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Barrick's Earnings Grow to $113 Million - $0.21 per Share - in Q3; New Mines Delivering Results

October 27, 2005

TORONTO--(BUSINESS WIRE)--Oct. 27, 2005--Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(EURONEXT PARIS:ABX)


    THIRD QUARTER REPORT 2005 - OCTOBER 27, 2005

    Based on US GAAP and expressed in US dollars

    Highlights

- Barrick's new mines are making a significant contribution to earnings and cash flow in a positive gold price environment.

- Third-quarter 2005 net income was $113 million, or $0.21 per share, and cash flow from operations was $232 million, or $0.43 per share, compared to net income of $32 million, or $0.06 per share, and cash flow from operations of $152 million, or $0.28 per share, in the prior-year period.

- Gold sales were 1.5 million ounces at a total cash cost of $210 per ounce(1) in Q3 2005. The Company remains on track to meet its original full-year guidance to produce between 5.4 - 5.5 million ounces of gold for 2005 at total cash costs of about $225 per ounce(2).

- The Lagunas Norte mine in Peru, which achieved start-up in June 2005 ahead of schedule and under budget, produced over 210,000 ounces of gold at total cash costs of $121 per ounce during Q3 2005. In its first full quarter of operations, Lagunas Norte has become one of Barrick's largest producers, second only to the flagship Goldstrike property.

- The Veladero mine in Argentina poured its first gold during Q3, ahead of schedule. The commissioning of Veladero marks the beginning of production from the highly prospective Frontera District, a 30-million ounce gold camp in Chile and Argentina that also contains the sizeable Pascua-Lama project.

- Significant progress continues at the Company's other development projects, including Cowal in Australia which is on target to commence operations in Q1 2006.

- Significant drilling results on the Dee Property could lead to a new oxide ore deposit on the Carlin Trend.

Barrick Gold Corporation today reported earnings of $113 million ($0.21 per share) and operating cash flow of $232 million ($0.43 per share) for third quarter 2005 compared to earnings of $32 million ($0.06 per share) and operating cash flow of $152 million ($0.28 per share) in the year-earlier period.

"These strong results demonstrate that Barrick has the team, resources and expertise to develop new mines and deliver value to its shareholders," said Greg Wilkins, President and Chief Executive Officer. "These new mines solidify Barrick's foundation for continued growth."

Barrick's new mines began to deliver significant results in third quarter 2005, with earnings and cash flow increasing appreciably over previous quarters. Most notably, Lagunas Norte produced 211,000 ounces during the quarter at a total cash cost of $121 per ounce. The availability of higher-grade ore at Goldstrike open pit also contributed to higher production and lower total cash costs per ounce in third quarter 2005, compared to the prior-year quarter.

In addition to higher gold sales volumes and lower total cash costs, third-quarter 2005 earnings were favorably impacted by a $32-per-ounce higher realized gold price, compared to the prior-year period, partly offset by higher income tax expense associated with higher earnings. The Company's third-quarter 2005 earnings also included a number of special items that had a positive effect totaling $9 million post-tax ($0.02 per share), compared to a positive effect of $15 million post-tax ($0.03 per share) in the prior-year quarter. See page 9 of Management's Discussion and Analysis for further details.

PRODUCTION AND COSTS

In third quarter 2005, Barrick produced and sold 1.5 million ounces of gold at total cash costs of $210 per ounce, compared to 1.2 million ounces produced and 1.3 million ounces sold at total cash costs of $221 per ounce for the prior-year quarter. Barrick reduced its gold hedge commitments by a further 200,000 ounces, bringing the Corporate Gold Sales Contracts position down to 6.4 million committed ounces, or 9% of year-end reserves excluding Pascua-Lama.

The third quarter benefited from a full quarter of production from Lagunas Norte as well as a stronger operating performance at Goldstrike, and these trends are expected to continue in the fourth quarter. The Company is on track with its original guidance to produce 5.4 - 5.5 million ounces of gold for the year at total cash costs of about $225 per ounce, but remains subject to increasing cost pressures affecting the entire industry. Refer to the Production and Cost Summary on page 5 for a mine-by-mine summary of full-year 2005 production and total cash cost estimates.

The North America region saw a significant increase in production over the second quarter 2005 at lower total cash costs, due primarily to mining higher-grade ore at the Goldstrike open pit. In the fourth quarter 2005, the North America region is expected to deliver a similar operating performance as the third quarter and is on track to meet its full-year production and cash cost guidance.

The South America region also saw a significant increase in production over second quarter 2005 at lower total cash costs as Lagunas Norte was in production for a full quarter subsequent to commencing operations in mid-June 2005. The South America region's production for the full year is expected to be slightly lower than previously expected and at marginally higher total cash costs.

The Australia/Africa region's operating performance was similar to the second quarter 2005. The region is on track to meet its full-year production guidance at slightly higher total cash costs.

The Company recently consolidated its interests in South America into one regional business unit with Igor Gonzales as President. The other regions are led by Greg Lang, North America; John Shipp, Australia/Africa; and Rene Marion, Russia/Central Asia.

DEVELOPMENT PROJECTS UPDATE

During the third quarter, the Veladero mine in Argentina poured its first gold, earlier than previously forecast, and is in its final stages of commissioning. Veladero's construction costs are expected to be in line with the Company's estimate of about $540 million. Gold production from Veladero is expected to average approximately 700,000 ounces annually over the first three full years of operation.

The start-up of Veladero marks the beginning of Barrick's production in the Frontera district that straddles the Chile/Argentina border. Barrick has a 3,000-square-kilometer land position in the district, including its Pascua-Lama project. Frontera is one of the most prospective gold camps in the world, with Pascua-Lama targeted to be in production in 2009 subject to timely completion of the permitting process. Within the region, Barrick currently has proven and probable gold reserves in excess of 30 million ounces, resources of over 3 million ounces(3), and through its current exploration program, is targeting resource additions.

The Company's Cowal project in Australia is progressing with overall construction about 50% complete. Procurement is concluded and 85% of materials and equipment have been delivered to site. Construction highlights include the completion of engineering, the structure and cladding for the plant workshop, the regrind area structural steel and the backfill for the stockpile reclaim tunnel. Production is expected to commence in first quarter 2006.

At the East Archimedes project located at the Ruby Hill mine site in Nevada, permitting approvals were received in October and mining activities are ramping up. The first gold pour is targeted for mid-2007.

At the Pascua-Lama project in Chile/Argentina, work continues on community and government relations, permitting, protocol implementation and tax stability. While approvals for the environmental impact assessments are targeted in the first quarter of 2006, the timing of the receipt of these approvals, as well as the resolution of some of the other external issues, such as permitting and licensing; cross-border operating issues; and fiscal, tax and royalty issues, is largely beyond Barrick's control.

At the Nevada power plant, all major mechanical and electrical work has been completed. Performance testing is underway and test energy has been sold. The plant is expected to be ready for operation in November 2005.

EXPLORATION UPDATE(4)

In Nevada, Barrick's exploration program has been exploring 35 high-quality opportunities that range from reserve development to grassroots exploration. At Goldstrike North Post, reserve development drilling is underway and confirming the shape and grade of the orebody previously defined by surface drilling. Drill programs are also testing six additional targets on the Goldstrike property, with positive results for some areas, such as the Meikle Rodeo corridor, where drilling has intersected mineralized zones both immediately beneath active mining levels and at depth. The Betze North Pit drill program has recently returned several significant intercepts that may help expand the open pit or may represent high-grade underground pit-wall mining opportunities. Elsewhere in the district, exploration continues at Storm where ore grade mineralization outside the previously defined deposit has been intersected.

The Company is announcing significant drilling results at the Dee Property that could lead to a new oxide ore deposit on the Carlin Trend. Barrick holds a 60% interest at Dee, which includes the South Arturo Zone located to the southeast of the Storm deposit and the Dee open pit. Eight holes have been completed on the South Arturo Zone and all eight have intersected significant oxide gold mineralization. The drilling covers an area of 1,000 feet by 1,500 feet and the mineralization is open to the south, east and west. Drilling continues and a resource calculation will be done at year-end.

In the Frontera district in South America, exploration drilling and fieldwork resumed at the end of the quarter. Initial focus is on part of the Guanaco Zonzo area where a large geophysical anomaly between two known mineralized areas is being tested. Follow-up drilling is planned at the main Guanaco Zonzo target where previous drilling obtained potentially ore grades and widths. Drill programs will commence shortly at Regalito as well as at two other targets in the Veladero/Pascua-Lama area.

In Tanzania, a drill program at Buzwagi is continuing with results confirming the potential to add mineralization outside the currently defined pit outline. Engineering studies are ongoing and a pre-feasibility study is on schedule for completion by year end. On the Nyanzaga property, drill programs commenced on two near-surface oxide zones, and are continuing into the fourth quarter. Assay results confirmed the potential for an oxide resource and show the zones are open and extend to the south.

Barrick is building a new generation of mines around the globe and has the lowest total cash costs among the major gold producers. Its vision is to be the world's best gold company by finding, developing and producing quality reserves in a profitable and socially responsible manner. Barrick's shares are traded on the Toronto, New York, London, Euronext-Paris and Swiss stock exchanges.

(1) Total cash cost per ounce is defined as cost of sales divided by ounces sold. Total cash costs per ounce exclude amortization expense, which was $72 per ounce in third quarter 2005. For further information on this performance measure see page 20.

(2) The Company's original guidance of $220-$230 per ounce restated for the impact of the new accounting policy for stripping costs and the inclusion of accretion expense.

(3) Based on reserves calculated as at December 31, 2004 using an assumed price of $375 per ounce for gold, $5.50 per ounce for silver and an exchange rate of $1.45 Can$/US$. Calculations were performed by employees of Barrick under the supervision of Rene Marion, P.Eng., Vice President Technical Services of Barrick. For a breakdown of reserves and resources by category and additional information on reserves and resources, see the most recent Annual Information Form/Form 40-F on file with Canadian provincial regulatory authorities and the US Securities and Exchange Commission.

(4) Barrick's exploration programs are designed and conducted under the supervision of Alexander J. Davidson, P. Geo., Executive Vice President, Exploration and Corporate Development of Barrick. For information on the geology, exploration activities generally, and drilling and analysis procedures on Barrick's material properties, see Barrick's most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the US Securities and Exchange Commission.



Key Statistics

                                        Three months      Nine months
                                               ended            ended
(in United States dollars)             September 30,    September 30,
(Unaudited)                        2005         2004     2005    2004
-----------------------------------------------------  --------------
Operating Results
Gold production (thousands of
 ounces)(1)                       1,509        1,240    3,812   3,807
Gold sold (thousands of ounces)   1,456        1,267    3,670   3,736

Per Ounce Data
 Average spot gold price          $ 439        $ 401    $ 432   $ 401
 Average realized gold price        427          395      426     383
 Total cash costs(2)                210          221      229     213
 Amortization(3)                     72           89       77      90
 Total production costs             282          310      306     303
-----------------------------------------------------  --------------

Financial Results (millions)
Gold sales                        $ 627        $ 500  $ 1,574 $ 1,431
Net income                          113           32      226      92
Operating cash flow                 232          152      457     386

Per Share Data (dollars)
 Net income (basic and diluted)    0.21         0.06     0.42    0.17
 Operating cash flow               0.43         0.28     0.85    0.72
Weighted average common shares
 outstanding (millions)(4)          539          533      537     535
-----------------------------------------------------  --------------

                                  As at        As at
                          September 30, December 31,
                          --------------------------
                                   2005         2004
----------------------------------------------------
Financial Position
 (millions)
Cash and equivalents            $ 1,105      $ 1,398
Non-cash working capital            225          141
Long-term debt                    1,763        1,655
Shareholders' equity              3,804        3,576
----------------------------------------------------

(1) Includes equity ounces in Highland Gold.
(2) Represents cost of goods sold plus royalties, production taxes
    and accretion expense, less by-product revenues, divided by
    ounces of gold sold. For further information on this performance
    measure, refer to page 20.
(3) Represents amortization expense at the Company's producing
    mines divided by ounces of gold sold.
(4) Fully diluted, includes shares issuable upon exchange of BGI
    (Barrick Gold Inc.) exchangeable shares.



Production and Cost Summary

                             Production (attributable ounces) (000's)
                          -------------------------------------------
                                     Three          Nine
                              months ended  months ended
                             September 30, September 30, December 31,
(Unaudited)                     2005  2004    2005  2004        2005E
---------------------------------------------------------------------
North America
 Open Pit                        475   356   1,019 1,009  1,470-1,480
 Underground                     104   140     383   427      530-540
---------------------------------------------------------------------
 Goldstrike Property Total       579   496   1,402 1,436  2,000-2,020
 Eskay Creek                      41    60     147   216      170-180
 Round Mountain (50%)             97   106     290   297      370-375
 Hemlo (50%)                      59    54     180   181      235-240
 Holt-McDermott(2)                 -    15       -    55            -
 Marigold (33%)                   15    12      49    32        65-70
---------------------------------------------------------------------
                                 791   743   2,068 2,217  2,840-2,885
---------------------------------------------------------------------
South America
 Pierina                         153   133     454   552      615-625
 Lagunas Norte                   211     -     252     -      545-550
 Veladero                          5     -       5     -        50-55
---------------------------------------------------------------------
                                 369   133     711   552  1,210-1,230
---------------------------------------------------------------------
Australia/Africa
 Plutonic                         60    72     194   231      250-260
 Darlot                           41    42      96   112      130-135
 Lawlers                          32    29      93    82      120-125
 Kalgoorlie (50%)                 99   129     336   334      435-440
---------------------------------------------------------------------
                                 232   272     719   759      935-960
 Bulyanhulu                       82    84     239   261      320-325
 Tulawaka (70%)                   27     -      54     -        75-80
---------------------------------------------------------------------
                                 341   356   1,012 1,020  1,330-1,365
Highland equity portion            8     8      21    18        20-30
---------------------------------------------------------------------
Total                          1,509 1,240   3,812 3,807  5,400-5,500
---------------------------------------------------------------------



                                         Total Cash Costs (US$/oz)(1)
                          -------------------------------------------
                                     Three          Nine
                              months ended  months ended
                             September 30, September 30, December 31,
(Unaudited)                     2005  2004    2005  2004        2005E
---------------------------------------------------------------------
North America
 Open Pit                      $ 198 $ 249   $ 245 $ 256    $ 240-245
 Underground                     350   279     304   265      300-310
---------------------------------------------------------------------
 Goldstrike Property Total       226   256     261   258      255-260
 Eskay Creek                      60    64      54    41        80-90
 Round Mountain (50%)            235   205     232   211      250-260
 Hemlo (50%)                     281   269     281   244      275-285
 Holt-McDermott(2)                 -   157       -   198            -
 Marigold (33%)                  277   204     222   200      225-235
---------------------------------------------------------------------
                                 224   231     243   227      245-250
---------------------------------------------------------------------
South America
 Pierina                         123   124     128   104      130-135
 Lagunas Norte                   121     -     121     -      100-110
 Veladero                          -     -       -     -      245-255
---------------------------------------------------------------------
                                 122   124     126   104      120-130
---------------------------------------------------------------------
Australia/Africa
 Plutonic                        239   223     253   215      250-260
 Darlot                          237   194     268   200      260-265
 Lawlers                         302   249     287   246      260-270
 Kalgoorlie (50%)                231   233     219   232      245-250
---------------------------------------------------------------------
                                 245   226     245   223      250-257
 Bulyanhulu                      327   280     347   299      340-350
 Tulawaka (70%)                  282     -     276     -      270-275
---------------------------------------------------------------------
                                 272   241     272   242      275-280
Highland equity portion          314   212     297   206      300-320
---------------------------------------------------------------------
Total                          $ 210 $ 221   $ 229 $ 213      $(i)225
---------------------------------------------------------------------
(i) Represents approximate amount



                                      Total Production Costs (US$/oz)
                                   ----------------------------------
                                         Three months     Nine months
                                                ended           ended
                                        September 30,   September 30,
(Unaudited)                             2005     2004    2005    2004
---------------------------------------------------------------------
 Direct mining costs at market
  foreign exchange rates               $ 237    $ 251   $ 263   $ 244
 Gains realized on currency and
  commodity hedge contracts             (21)     (20)    (23)    (20)
 By-product credits                     (23)     (26)    (27)    (28)
---------------------------------------------------------------------
Cash operating costs                     193      205     213     196
 Royalties                                11       10      11      10
 Production taxes                          4        3       3       2
 Accretion and other costs                 2        3       2       5
---------------------------------------------------------------------
Total cash costs                         210      221     229     213
 Amortization                             72       89      77      90
---------------------------------------------------------------------
Total production costs                 $ 282    $ 310   $ 306   $ 303
---------------------------------------------------------------------

(1) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs. Refer to pages 18 and 19 for further details. For further
    information on this performance measure, refer to page 20.
(2) Holt-McDermott ceased production in fourth quarter 2004.

MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")

This portion of the Quarterly Report provides management's discussion and analysis of the financial condition and results of operations to enable a reader to assess material changes in financial condition and results of operations as at and for the three and nine month periods ended September 30, 2005, in comparison to the corresponding prior-year periods. This MD&A has been prepared as of October 20, 2005. This MD&A is intended to supplement and complement the unaudited interim consolidated financial statements and notes thereto, prepared in accordance with US generally accepted accounting principles ("US GAAP"), for the three and nine month periods ended September 30, 2005 (collectively, the "Financial Statements"), which are included in this Quarterly Report on pages 21 to 38. You are encouraged to review the Financial Statements in conjunction with your review of this MD&A. This MD&A should be read in conjunction with both the annual audited consolidated financial statements for the three years ended December 31, 2004, the related annual MD&A included in the 2004 Annual Report, and the most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Certain notes to the Financial Statements are specifically referred to in this MD&A and such notes are incorporated by reference herein. All dollar amounts in this MD&A are in millions of US dollars, unless otherwise specified.

For the purposes of preparing this MD&A, we consider the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of Barrick Gold Corporation's shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision, or if it would significantly alter the total mix of information available to investors. Materiality is evaluated by reference to all relevant circumstances, including potential market sensitivity.



CONTENTS
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Executive Summary                                                   6
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Key Economic Trends                                                 7
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Results                                                             8
---------------------------------------------------------------------
 Overview of 2005 versus 2004                                       8
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 Consolidated Gold Production, Sales and Costs                      9
---------------------------------------------------------------------
 Results of Operating Segments                                     10
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 Other Costs and Expenses                                          13
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 Cash Flow                                                         15
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 Balance Sheet                                                     16
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 Quarterly Information                                             17
---------------------------------------------------------------------
Off-Balance Sheet Arrangements                                     17
---------------------------------------------------------------------
Critical Accounting Policies and Estimates                         18
---------------------------------------------------------------------
Total Cash Costs Performance Measures                              20
---------------------------------------------------------------------

EXECUTIVE SUMMARY

Production and sales increased and total cash costs per ounce decreased in third quarter 2005 compared to both the corresponding period in 2004 and the first two quarters of 2005. In third quarter 2005 we produced and sold 1.5 million ounces of gold at a total cash costs of $210(1) per ounce. The start-up of Lagunas Norte in June 2005 and availability of higher-grade ore at Goldstrike open pit in third quarter 2005 contributed to higher production and lower total cash costs per ounce than in both the third quarter 2004 and first half of 2005. Production rates in the first nine months of 2005 at Plutonic and Bulyanhulu were lower than originally expected, but this was offset by better performance at a number of our other mines. At Plutonic, open-pit mining ended in second quarter 2005, and at Bulyanhulu lower throughput led to lower production levels. Notwithstanding the fact that production at Plutonic and Bulyanhulu in 2005 is lower than initially expected, we remain on track to meet our original full-year guidance for 2005 to produce 5.4-5.5 million ounces of gold at an average total cash costs of about $225(2) per ounce. While we expect lower production levels at Plutonic, Bulyanhulu and Eskay Creek to continue, we are still targeting an increase in our gold production to about 6.8 million ounces in 2007.

(1) Total cash costs per ounce is defined as cost of sales divided by ounces sold. Total cash costs per ounce exclude amortization expense, which was $72 per ounce in third quarter 2005. For further information on this performance measure see page 20.

(2) The Company's original guidance of $220-$230 per ounce restated for the impact of the new accounting policy for stripping costs and the inclusion of accretion expense.

Earnings of $113 million in third quarter 2005 ($0.21 per share) were 253% higher than in third quarter 2004, mainly reflecting higher gold production and sales, higher realized gold prices and lower total cash costs per ounce. Operating cash flow of $232 million ($0.43 per share) in third quarter 2005 was 53% higher than in third quarter 2004 due to the same factors. For the first nine months of 2005, both earnings and operating cash flow increased over the comparable period in 2004 mainly due to the impact of higher realized gold prices as we benefited from rising market gold prices.

We continue to make significant progress on the development of our new generation of mines. The Tulawaka mine began production in first quarter 2005, and the Lagunas Norte mine began production in second quarter 2005. The Veladero mine made its first gold pour in mid-September 2005, ahead of schedule, and is expected to commence operations upon completion of ongoing commissioning activities. At our fourth new mine, Cowal in Australia, production is expected to commence in first quarter 2006. We continued work on advancing our two other projects in development, Pascua-Lama in Chile/Argentina and East Archimedes in Nevada. While approvals of the Pascua-Lama environmental impact assessments are targeted in the first quarter of 2006, the timing of the receipt of these approvals, as well as resolution of some other external issues, is largely beyond Barrick's control.

KEY ECONOMIC TRENDS

The MD&A included in our 2004 Annual Report contained a discussion of the key economic trends that affect our business and how they impact our financial statements. In 2005, there has been a continued trend of higher gold and silver prices which, while benefiting gold revenues and by-product credits, also leads to higher royalty expenses, as well as a trend of inflationary pressure in the cost of other commodities and consumables. Also, while exchange rates between the US dollar and both the Canadian dollar and Australian dollar have not changed significantly to date in 2005, our reported total cash costs per ounce are affected by the exchange rates under our currency hedge position, whose profile results in increases in costs over time. Assuming that these economic trends continue, we expect our revenues to benefit from higher gold and silver prices, but we also expect our total cash costs per ounce in 2006 and beyond to increase over our guidance for the full year 2005, which is consistent with recent trends in total cash costs per ounce across the rest of the gold mining industry.

Gold Prices

The gold price ranged from $411 to $473 per ounce during the first nine months of 2005, with an average market gold price of $432 per ounce. Gold prices continued on a general upward trend in 2005, with the average market price in the first nine months of 2005 being 8% higher than the corresponding period in 2004. In 2005, we sold most of our production at market gold prices and our average realized selling price was $426 per ounce, slightly lower than the average spot market price. We continue to view the outlook for market gold prices to be positive.

Silver Prices

With an average market price of $7.07 per ounce in the first nine months of 2005, silver prices continued to be strong. Higher silver prices help to reduce total cash costs per ounce of gold as silver sales are recorded as a by-product credit.

Currency Exchange Rates

At the end of third quarter 2005, through our currency hedge position, we have protected local currency-based expenditures for about the next three years at exchange rates that are, on average, more favorable than current market rates. Through this hedge position, we have been able to mitigate, to a significant extent, the negative effect of a weaker US dollar on operating costs at our Australian and Canadian mines. The average rates for currency contracts designated against operating costs over the next three years are $0.66 for Australian dollar contracts and $0.74 for Canadian dollar contracts. Further details of our currency hedge position are included in note 14 to the Financial Statements.

Inflationary Cost Pressures

The mining industry is experiencing significant inflationary cost pressures, which has been evident through higher production costs reported by a number of gold producers. We have been actively seeking ways to mitigate these costs pressures. In the case of diesel fuel and propane, we have put in place hedge positions that have been successful to a significant extent in mitigating price increases, and are expected to provide some further protection for about one quarter of our annual consumption over the next four years. For other cost pressures, we have been focusing on supply chain continuous improvement initiatives to mitigate the effect on our production costs.

Fuel

Crude oil prices rose from $43 per barrel at the end of 2004 to $66 per barrel at the end of third quarter 2005. To help control the cost of fuel consumed at our mines, we have a fuel hedge position totaling 2.3 million barrels, representing about 24% of our estimated future diesel fuel consumption over the next four years. The average cap price is $44 per barrel.

Propane prices rose from $0.76 per gallon at the end of 2004 to $1.18 per gallon at the end of third quarter 2005. To help control the costs of propane consumed at our mines, we have a propane hedge position totaling 21 million gallons, which represents about 69% of our estimated future propane consumption through to the end of 2006, at an average price of $0.79 per gallon.

Electricity

Electricity prices continued to rise in 2005, mainly as a result of diesel fuel and natural gas price increases, as well as the impact of increasing demand for electricity. To partially mitigate rising electricity costs, we are building a 115-megawatt natural gas-fired power plant that will be available to supply our Goldstrike mine from fourth quarter 2005 onwards. This power plant will provide Goldstrike with the flexibility to generate its own power or buy cheaper power from other producers, with the goal of minimizing the cost of power consumed at the mine.

Consumables

With increasing demand for tires and limitations in supply from tire manufacturers, tire costs have been rising and many companies have experienced difficulty securing tires. We have been seeking to mitigate this cost pressure by finding ways to extend tire lives and looking at the various alternatives for supply. The limited availability of tires has not had any significant impact on productivity at our mines to date.

Prices for certain other consumables, such as cyanide and explosives, have also been generally increasing, which in turn leads to higher mining and processing costs. We are focusing on supply chain initiatives and continuous improvement initiatives to mitigate the impact of higher prices for consumables.

Labor costs

With high demand for experienced miners and relatively inflexible supply, the industry is facing upward pressure on labor costs, and, in some areas, higher turnover due to the strong demand. The cost pressures have, to date, been most significant in Australia, where there is a shortage of skilled labor, which has led to pressure on costs at our Australian mines.

US Dollar Interest Rates

Over the first nine months of 2005, short-term US interest rates have risen, while long-term rates (10-30 years) have remained relatively unchanged, with rates at relatively low levels historically. In periods of higher interest rates, we earn higher interest income on cash balances and expect higher forward selling prices under our gold sales contracts. A significant portion of our long-term debt has fixed interest rates and therefore interest costs have not historically been significantly affected by changing interest rates.



RESULTS

---------------------------------------------------------------------
                                     Three months         Nine months
($ millions, except per share               ended               ended
 and per ounce data in dollars)           Sept.30             Sept.30
                                   2005      2004      2005      2004
---------------------------------------------------------------------
Gold production ('000s oz)        1,509     1,240     3,812     3,807
---------------------------------------------------------------------
Gold sales(3)
 '000s oz                         1,456     1,267     3,670     3,736
 $ millions                       $ 627     $ 500   $ 1,574   $ 1,431
---------------------------------------------------------------------
Market gold price(1)                439       401       432       401
---------------------------------------------------------------------
Realized gold price(1)              427       395       426       383
---------------------------------------------------------------------
Total cash costs(1),(2),(3)         210       221       229       213
---------------------------------------------------------------------
Amortization(1),(3)                  72        89        77        90
---------------------------------------------------------------------
Total production costs(3)           282       310       306       303
---------------------------------------------------------------------
Net income                          113        32       226        92
---------------------------------------------------------------------
Net income per share(1),(4)        0.21      0.06      0.42      0.17
---------------------------------------------------------------------
Cash inflow (outflow)
---------------------------------------------------------------------
 Operating activities               232       152       457       386
---------------------------------------------------------------------
 Capital expenditures             (323)     (218)     (835)     (536)
---------------------------------------------------------------------
 Other investing activities           1       (1)      (77)      (41)
---------------------------------------------------------------------
 Financing activities                59       154       160       (1)
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Cash position - end of period   $ 1,105     $ 775   $ 1,105     $ 775
---------------------------------------------------------------------
(1) Per ounce weighted average.
(2) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs - see page 18. Total cash costs per ounce statistics
    exclude amortization - see page 20.
(3) Excludes equity ounces from Highland.
(4) Basic and diluted.


    OVERVIEW OF 2005 VERSUS 2004

    Earnings

Earnings in third quarter 2005 were $81 million higher than third quarter 2004. The main factors and various special items are summarized in the tables below, together with references to where more information can be found in this MD&A. Earnings continue to be positively impacted by lower amortization rates, and our guidance for amortization of the full year has been revised downwards to $430-$455 million.



Impact on earnings

---------------------------------------------------------------------
                                                  Increase (decrease)
                                                  Q3 2005     Year to
                                   Refer to page       vs   date 2005
($ millions)                                      Q3 2004     vs 2004
---------------------------------------------------------------------
Higher realized gold prices                    9     $ 47       $ 158
---------------------------------------------------------------------
Total cash costs (increase)
 decrease                                      9       16        (59)
---------------------------------------------------------------------
Sales volumes increase
 (decrease)(1)                                 9       16         (4)
---------------------------------------------------------------------
Lower amortization rates                       8       25          48
---------------------------------------------------------------------
Lower exploration/development
 expense                                      13       11           6
---------------------------------------------------------------------
Lower interest expense                        14        6          17
---------------------------------------------------------------------
Higher income tax expense(2)                  14     (23)        (22)
---------------------------------------------------------------------
Special items(3)                               9     (12)        (11)
---------------------------------------------------------------------
Other                                                 (5)           1
---------------------------------------------------------------------
Total                                                $ 81       $ 134
---------------------------------------------------------------------
(1) Impact of changing sales volumes on margin between selling
    prices, total cash costs and amortization.
(2) Excluding the impact of recording previously unrecognized
    deferred tax assets.
(3) Excluding impact on the period of deferred stripping accounting
    changes.



Special Items - Effect on earnings increase (decrease)

---------------------------------------------------------------------
                      Refer to Three month period ended September 30,
($ millions)              page           2005             2004
                                    Pre-Tax Post-Tax Pre-Tax Post-Tax
---------------------------------------------------------------------
Non-hedge derivative
 gains (losses)             14        $ (2)    $ (2)     $ 8      $ 9
---------------------------------------------------------------------
Gains (losses) on
 investments                14          (3)      (3)       -        -
---------------------------------------------------------------------
Gains on asset sales        14            4        3       2        2
---------------------------------------------------------------------
Gain on Kabanga
 transaction                12            -        -       -        -
---------------------------------------------------------------------
Impairment charge on
 royalty interest                         -        -     (8)      (5)
---------------------------------------------------------------------
Currency translation
 gains                      14           11        9       3        3
---------------------------------------------------------------------
Deferred stripping
 accounting changes
---------------------------------------------------------------------
 Cumulative effect          18            -        -       -        -
---------------------------------------------------------------------
 Impact on the period
  compared to
  previous policy           18           11        6       -        -
---------------------------------------------------------------------
Changes in AROs at
 closed mines                           (8)      (4)     (3)      (2)
---------------------------------------------------------------------
Income tax credits                        -        -       -        8
---------------------------------------------------------------------
Total                                  $ 15      $ 9     $ 2     $ 15
---------------------------------------------------------------------



---------------------------------------------------------------------
                      Refer to  Nine month period ended September 30,
($ millions)              page           2005             2004
                                    Pre-Tax Post-Tax Pre-Tax Post-Tax
---------------------------------------------------------------------
Non-hedge derivative
 gains (losses)             14          $ 7      $ 5   $ (1)      $ 3
---------------------------------------------------------------------
Gains (losses) on
 investments                14            6        5       1        1
---------------------------------------------------------------------
Gains on asset sales        14            5        4       5        4
---------------------------------------------------------------------
Gain on Kabanga
 transaction                12           15       15       -        -
---------------------------------------------------------------------
Impairment charge on
 royalty interest                         -        -     (8)      (5)
---------------------------------------------------------------------
Currency translation
 gains                      14            6        5       4        4
---------------------------------------------------------------------
Deferred stripping
 accounting changes
---------------------------------------------------------------------
 Cumulative effect          18            6        6       -        -
---------------------------------------------------------------------
 Impact on the period
  compared to
  previous policy           18           29       27       -        -
---------------------------------------------------------------------
Changes in AROs at
 closed mines                          (13)      (8)     (3)      (2)
---------------------------------------------------------------------
Income tax credits                        -        -       -       38
---------------------------------------------------------------------
Total                                  $ 61     $ 59   $ (2)     $ 43
---------------------------------------------------------------------

Cash Flow

In third quarter 2005, our cash position decreased by $26 million. We generated $232 million of operating cash flow in third quarter 2005, $80 million higher than in third quarter 2004, mainly because of higher gold sales volumes, higher realized gold prices and lower total cash costs per ounce. Capital expenditures were $323 million, $105 million higher than in third quarter 2004, mainly due to the levels of construction activity at our development projects. We drew down $32 million from financing facilities used to fund construction at our development projects and received $50 million in proceeds on the exercise of stock options.

In the first nine months of 2005, our cash position decreased by $293 million. We generated $457 million of operating cash flow, $71 million higher than in 2004, mainly because of higher realized gold prices, partly offset by higher total cash costs. Capital expenditures were $835 million, $299 million higher than in 2004, due to the levels of activity at our development projects. We received $160 million from financing activities in 2005, including $88 million in proceeds on the exercise of stock options and $170 million in proceeds from various financing facilities used to fund construction at our development projects, partly offset by dividend payments of $59 million.

CONSOLIDATED GOLD PRODUCTION, SALES AND COSTS

Gold production in third quarter 2005 was 269,000 ounces higher than in third quarter 2004, primarily due to the ramp up of production at Lagunas Norte and higher production levels at Goldstrike open pit. Ounces sold increased by 189,000 ounces compared to third quarter 2004, consistent with the higher production levels. In the first nine months of 2005, ounces produced and sold were similar to 2004 as new production from Lagunas Norte and Tulawaka was offset by lower production at Pierina, Eskay Creek and Plutonic.

In third quarter 2005, we sold most of our production at market prices, and delivered approximately 0.2 million ounces into existing fixed-price gold sales contracts and another approximately 0.1 million ounces into existing floating spot-price gold sales contracts for a total opportunity cost of $19 million compared to prevailing spot market prices. We realized $427 per ounce of gold in third quarter 2005, $32 per ounce higher than third quarter 2004, reflecting higher market gold prices. In the first nine months of 2005, we realized $426 per ounce, $43 per ounce higher than the same period in 2004, also due to higher market gold prices. The price realized for gold sales in fourth quarter 2005 and beyond will depend upon market conditions and the selling prices of any gold sales contracts into which we voluntarily deliver, which could be below prevailing spot market prices.



Consolidated total cash costs per ounce

---------------------------------------------------------------------
                             Three month period     Nine month period
                                 ended Sept.30,        ended Sept.30,
(in dollars per ounce)          2005       2004       2005       2004
---------------------------------------------------------------------
Cost of goods sold(1),(2)      $ 237      $ 251      $ 263      $ 244
---------------------------------------------------------------------
Currency/commodity hedge
 gains                          (21)       (20)       (23)       (20)
---------------------------------------------------------------------
By-product credits              (23)       (26)       (27)       (28)
---------------------------------------------------------------------
Royalties/mining taxes            15         13         14         12
---------------------------------------------------------------------
Accretion/other costs              2          3          2          5
---------------------------------------------------------------------
Total cash costs               $ 210      $ 221      $ 229      $ 213
---------------------------------------------------------------------
(1) At market currency exchange rates.
(2) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs - see page 18. Total cash costs per ounce excludes
    amortization - see page 20.

Total cash costs per ounce in third quarter 2005 were lower than in third quarter 2004, primarily because of the new low-cost production from Lagunas Norte, and the availability of higher-grade ore at Goldstrike open pit. These factors were partly offset by higher royalties, due to higher gold prices, and the impact of inflationary cost pressures.

RESULTS OF OPERATING SEGMENTS

In our Financial Statements, we present a measure of historical segment income that reflects gold sales at average consolidated realized gold prices, less segment operating costs and amortization of segment property, plant and equipment. Our segments mainly include producing mines and development projects. We monitor segment operating costs using "total cash costs per ounce" statistics that represent segment cost of sales divided by ounces of gold sold in each period. The discussion of results for producing mines focuses on this statistic in explaining changes in segment operating costs, and should be read in conjunction with the mine statistics presented on pages 39 to 42.

NORTH AMERICA

The region produced 791,000 ounces in third quarter 2005 (2004: 743,000 ounces) at total cash costs of $224 per ounce (2004: $231 per ounce), for a total of 2,068,000 ounces in the first nine months of 2005 (2004: 2,217,000 ounces) at total cash costs of $243 per ounce (2004: $227 per ounce). Higher gold production and lower costs in third quarter 2005 were mainly due to higher ore grades at Goldstrike open pit. For the first nine months of 2005, production was lower than 2004 mainly due to the depletion of ore reserves at Holt-McDermott by the end of 2004, as well as processing of lower-grade ore at Eskay Creek in 2005.

In 2005, total cash costs per ounce increased due to inflationary cost pressures and higher royalties, partly offset by higher toll milling credits and the impact of the change in accounting for stripping costs. Results for third quarter 2005 were affected by similar cost pressures, but total cash costs per ounce were lower than in 2004 due to the availability of higher-grade ore at Goldstrike open pit on completion of the ninth west layback. Full-year guidance for total cash costs has been revised to $245-$250 per ounce and production has been revised to 2,840,000-2,885,000 ounces.

Goldstrike Open Pit, United States

Ore production rates were impacted in the first half of 2005 by above average rainfall, but increased again in the third quarter. Tons of ore processed in third quarter 2005 were similar to third quarter 2004, but at higher grades as mining occurred in a higher-grade area of the pit, as mining continued in the area of the ninth west layback. In the first nine months of 2005, the mining of slightly higher-grade ore was largely offset by lower throughput compared to 2004. Lower throughput was mainly because of harder ore encountered that impacted milling rates, the above average rainfall that led to lower mining rates in the first half of 2005, and scheduled roaster maintenance in second quarter 2005. Lower total cash costs per ounce in 2005, compared to 2004, were mainly due to the higher production levels, higher toll milling credits, and the impact of the change in accounting for stripping costs (see page 19), partly offset by higher royalties and net proceeds taxes, and inflationary cost pressures.

Goldstrike Underground, United States

In third quarter 2005, mine sequencing changes were implemented to accelerate drift-and-fill mining at Meikle in view of difficult ground conditions at Rodeo. Lower mining rates, associated with drift-and-fill mining, a temporarily plugged backfill raise, and the mining of lower-grade stopes at Meikle, resulted in lower production in third quarter 2005 compared to the prior-year period. In the first nine months of 2005 the effect of incremental ore mined in 2004 at Rodeo and the reallocation of resources to drift-and-fill mining in 2005 was partly offset by a drawdown of stockpiles in the first half of 2005. Higher total cash costs per ounce in 2005 were mainly due to the lower production levels, inflationary cost pressures, higher ground support costs due to difficult ground conditions and an increase in drift-and-fill mining. Lower levels of development activity led to a greater allocation of expenses to mining costs in 2005, which also contributed to the increase in total cash costs per ounce.

Power Plant for Goldstrike, United States

The construction of a 115-megawatt natural gas-fired power plant in Nevada to supply our Goldstrike mine is on schedule, with the plant expected to be ready for operations in November 2005. Project highlights include:

- Construction costs of $29 million were incurred in third quarter 2005, with total costs of $63 million in the first nine months of 2005.

- All power generators have been received and set in place.

- Interconnections to the power grid have been tested and commissioned.

- Gas supply facilities and the gas pressure reduction station have been completed.

    - Major mechanical and electrical work is complete.

    - Commissioning activities commenced in September.

- The hiring of operating personnel is substantially complete and training has begun.

Eskay Creek, Canada

Fewer tons of higher-grade direct-to-smelter ore were processed in 2005, with a substitution of lower-grade ore to the mill, leading to lower gold production levels compared to 2004. As the mine approaches the end of its life (expected in 2007), lower labor, transportation and smelter costs, partly offset by lower silver by-product credits (higher silver prices were more than offset by lower volumes produced in 2005), contributed to lower total cash costs per ounce in third quarter 2005 than in the same period of 2004. In the first nine months of 2005, higher equipment maintenance and contractor costs, combined with the factors affecting the third quarter, led to an increase in costs over 2005.

Round Mountain (50% owned), United States

Ore tons mined decreased in 2005 from 2004 levels, with higher quantities of material placed on the leach pads in 2004 than in 2005. Tons processed each period do not necessarily correlate to the ounces produced in the period as there is a time delay between placing tons on the leach pad and pouring ounces. Total cash costs per ounce were higher in 2005 due to inflationary cost pressures, higher royalties and net proceeds taxes, as well as the effect of the change in accounting for stripping costs (see page 19).

East Archimedes, United States

The East Archimedes project remains on schedule and we expect production to commence by mid-2007. Project highlights include:

- Construction costs of $15 million were incurred in third quarter 2005, with total costs of $27 million in the first nine months of 2005.

- The majority of the mining fleet was received in third quarter 2005.

- About 80% of the workforce has been hired.

- The final Record of Decision was signed by the US Bureau of Land Management in the first week of October 2005.

SOUTH AMERICA

The region produced 369,000 ounces in third quarter 2005 (2004: 133,000 ounces) at total cash costs of $122 per ounce (2004: $124 per ounce), for a total of 711,000 ounces in the first nine months of 2005 (2004: 552,000 ounces) at total cash costs of $126 per ounce (2004: $104 per ounce). Lagunas Norte made a significant contribution to the region's results in third quarter 2005, which we expect to continue in upcoming quarters. Veladero had its first gold pour in September 2005, and upon completion of commissioning activities it will begin full production. We expect South America to produce 1,210,000-1,230,000 ounces and total cash costs of $120-$130 per ounce, slightly lower than previously expected and at marginally higher total cash costs per ounce.

Pierina, Peru

With the availability of higher-grade ore in third quarter 2005, partly offset by lower tons processed, gold production was higher than the prior year period. Gold production in the first nine months of 2005 was lower than in 2004 as higher quantities of run-of-mine ore were placed on the leach pad in 2004. Total cash costs per ounce increased in 2005 as the effect of inflationary cost pressures, combined with higher maintenance and ground support costs, was partly offset by higher silver by-product credits. Mining costs were also higher in 2005 as the total tons of ore and waste mined increased in 2005.

Lagunas Norte, Peru

Lagunas Norte produced 211,000 ounces in third quarter 2005, its first full quarter of production, at total cash costs of $121 per ounce, with mining of high-grade near-surface ore. Construction contracts were closed out in the third quarter and we expect the construction capital of the mine to be less than the previously announced estimate of $340 million.

Veladero, Argentina

The first gold pour at Veladero occurred in September 2005. Upon completion of ongoing commissioning activities Veladero will begin full production. Construction costs of $78 million were incurred in third quarter 2005, for a total of $213 million in the first nine months of the year.

Pascua-Lama, Chile/Argentina

In 2004, we made a decision to proceed with the development of the Pascua-Lama project in Chile/Argentina, contingent upon obtaining the necessary permits, approvals and fiscal regimes. While approvals for the environmental impact assessments are targeted in the first quarter of 2006, the timing of the receipt of these approvals, as well as the resolution of some of the other external issues, such as permitting and licensing; cross-border operating issues; and fiscal, tax and royalty issues, is largely beyond Barrick's control.

Capital and operating cost estimates for the Pascua-Lama project were based on the cost and commodity price environment prevailing at the time of the updated feasibility study, which was finalized in June of 2004. The design of the project has been optimized in the course of the permitting process to incorporate additional operating and construction efficiencies, additional environmental mitigation measures, and other project improvements. We are in the course of updating cost estimates to reflect such changes, inflationary cost pressures and higher commodity prices. Although such factors will result in some increase in capital and operating cost estimates, based on the current cost and commodity price environment, and combined with other efficiencies, we do not expect significant changes to the overall economics of the project.

AUSTRALIA/AFRICA

The region produced 341,000 ounces in third quarter 2005 (2004: 356,000 ounces) at total cash costs of $272 per ounce (2004: $241 per ounce), for a total of 1,012,000 ounces in the first nine months of 2005 (2004: 1,020,000 ounces) at total cash costs of $272 per ounce (2004: $242 per ounce). Lower production in 2005 was mainly due to the ending of open-pit mining at Plutonic in the second quarter, as well as lower production at Kalgoorlie in the third quarter, partly offset by new production from Tulawaka.

Total cash costs per ounce were higher in 2005 mainly because of inflationary cost pressures, and lower throughput and ore grades at Plutonic after open-pit mining ended in the second quarter, partly offset by higher ore grades at Bulyanhulu in the third quarter. We expect the region to meet its full-year production guidance of 1,330,000-1,365,000 ounces at slightly higher total cash costs of $275-$280 per ounce.

Kalgoorlie (50% owned), Australia

In the first nine months of 2005, tons mined were lower than in 2004 due to reduced shovel capacity. Tons processed were similar to 2004 in the first nine months of 2005 with the processing of stockpiled material. Mill throughput was higher due to improved mill utilization and the positive impact of processing finer ore sizes. A build-up of concentrate inventory occurred in 2005 due to limitations in roaster capacity. Inflationary cost pressures in 2005, combined with higher exchange rates under hedge contracts, were more than offset by the effect of the change in accounting for stripping costs (see page 19), leading to lower total cash costs per ounce in 2005. In the third quarter 2005, lower production related to lower ore grades, and higher maintenance costs due to scheduled maintenance shutdowns, led to an increase in total cash costs per ounce over the first half of the year.

Kalgoorlie is installing a mercury scrubber on its carbon kilns and is assessing process changes, controls and other management measures for the roaster facility to reduce mercury emissions. The assessment is continuing, after which we will be able to estimate any capital requirements and operating cost impact associated with such measures.

Plutonic, Australia

At Plutonic we processed fewer ore tons in 2005 than in 2004, after open-pit mining ceased in the second quarter, which, while partly offset by higher average ore grades, led to lower gold production in 2005. Lower gold production levels, combined with inflationary cost pressures, were partly offset by lower operating costs after open-pit mining ended and the impact of the change in accounting for stripping costs (see page 19), for an increase in total cash costs per ounce in 2005.

Bulyanhulu, Tanzania

In the first nine months of 2005 tons mined decreased mainly due to reduced equipment availability, a hoist gearbox failure and labor issues due to roster changes. Ore grades were lower in the first half of 2005 than in 2004, although grades improved in third quarter on accessing higher-grade stopes. These factors led to lower gold production levels in the first half of 2005 compared to prior year period. Production in third quarter 2005 improved and was consistent with third quarter 2004. In the first half of 2005, inventory levels increased due to container delays that impacted shipments to the smelter. With the delays resolved in the third quarter, inventory levels decreased back to previous levels. Lower gold production levels, combined with equipment downtime and higher maintenance and administrative costs, resulted in higher total cash costs per ounce in 2005 compared to 2004.

Cowal, Australia

The project remains on schedule for production to commence in first quarter 2006. Project highlights include:

- Capital expenditures incurred were $76 million in third quarter 2005, for a total of $185 million in the first nine months of 2005, and overall construction of the project is about 50% complete. Inflationary cost pressures in Australia have been impacting ongoing capital costs. It is now anticipated that the public guidance for construction costs of about $305 million may be exceeded by up to five to ten per cent. We have been taking steps to mitigate cost increases where possible. A cost review is being undertaken to assess the impact.

    - Engineering is substantially complete.

    - Plant-site concrete is 85% complete.

- The southern tailings storage facility is about 50% complete and the northern tailings storage facility was completed in second quarter 2005.

Kabanga (50% owned), Tanzania

In April 2005, we entered into a joint-venture agreement with Falconbridge Limited ("Falconbridge") with respect to the Kabanga nickel deposit and related concessions in Tanzania. Falconbridge acquired a 50% indirect interest in respect of the Kabanga project for $15 million and a funding commitment. Falconbridge will be the operator of the joint venture. The Kabanga project has a current estimated inferred resource of 26.4 million tonnes grading 2.6% nickel(1).

Over the next several years, Falconbridge will fund and conduct a further $50-million work plan that will include additional exploration and infill drilling, and technical work to update the resource model for Kabanga and bring the project towards feasibility. It will establish a dedicated team in Tanzania to coordinate and advance the work plan. Upon conclusion of the work plan, Falconbridge will fund the next $95 million of any project development expenditures to advance the Kabanga project. Thereafter, Falconbridge and Barrick will share equally in joint-venture revenues and expenditures.

(1) Resource calculations were prepared by employees of Barrick under the supervision of Alexander J. Davidson, P. Geo., Executive Vice President, Exploration and Corporate Development of Barrick.

RUSSIA/CENTRAL ASIA

In second quarter 2005, we spent $50 million to increase our ownership in Highland Gold Mining PLC ("Highland") from 14% to 20%. Our 20% ownership interest is reflected in our financial statements and production statistics on an equity basis.



OTHER COSTS AND EXPENSES

Exploration, Development and Business Development Expense

---------------------------------------------------------------------
                 Three months     Nine months
                        ended           ended
                 September 30    September 30 Comments on significant
($ millions)    2005     2004    2005    2004 trends and variances
---------------------------------------------------------------------
Exploration
 North America   $ 9      $ 6    $ 21    $ 20 Higher exploration
                                              activity at Goldstrike
                                              in third quarter 2005.
---------------------------------------------------------------------
 Australia
  /Africa          3       10      27      26 Lower levels of
                                              exploration activity
                                              in third quarter 2005
                                              at the Buzwagi
                                              project.
---------------------------------------------------------------------
 South America     2        5      13      15 Lower exploration
                                              activity in third
                                              quarter 2005 at
                                              various exploration
                                              properties in Peru,
                                              Chile and Argentina,
                                              including exploration
                                              of Pierina mine site
                                              property.
---------------------------------------------------------------------
 Russia
  /Central Asia    4        1       7       4 Higher levels of
                                              exploration activity in
                                              third quarter 2005.
---------------------------------------------------------------------
 Other countries   -        -       1       1
---------------------------------------------------------------------
Mine development   2        4       7      13 In 2004, we expensed
                                              Lagunas Norte
                                              development costs until
                                              May 1, which was the
                                              date when the project
                                              achieved the criteria
                                              to classify
                                              mineralization as a
                                              reserve for US
                                              reporting purposes.
                                              Funding of Kabanga
                                              expenditures by
                                              Falconbridge also
                                              contributed to lower
                                              expenses.
---------------------------------------------------------------------
Non-capitalizable
 project costs     4        5      11       5 Non-capitalizable costs
                                              mainly present items
                                              incurred in the
                                              development
                                              /construction phase
                                              that cannot be
                                              capitalized under US
                                              GAAP.
---------------------------------------------------------------------
Business
 development/other 3        7       8      17 Decrease in overhead
                                              costs associated with
                                              the administration of
                                              exploration and
                                              development projects.
---------------------------------------------------------------------
Total           $ 27     $ 38    $ 95   $ 101
---------------------------------------------------------------------



Amortization, Administration and Interest Expense

---------------------------------------------------------------------
                                                    Comments on
                              Three months ended    significant
($ millions, except per         September 30        trends
 ounce data and percentages) 2005    2004  % Change and variances
---------------------------------------------------------------------
Amortization
---------------------------------------------------------------------
 Absolute amount            $ 111   $ 117      (5)% Decrease mainly
                                                    due to lower
                                                    amortization
                                                    rates per ounce.
---------------------------------------------------------------------
 Per ounce (dollars)           72      89     (19)% Lower rates in
                                                    2005 mainly due
                                                    to reserve
                                                    increases at the
                                                    end of 2004
                                                    (particularly
                                                    Goldstrike open
                                                    pit and Pierina
                                                    - see page 19),
                                                    the lower book
                                                    value of Eskay
                                                    Creek after an
                                                    impairment
                                                    charge was
                                                    recorded in
                                                    fourth quarter
                                                    2004 and effect
                                                    of low
                                                    amortization
                                                    costs per ounce
                                                    at Lagunas Norte
                                                    on the overall
                                                    average. We do
                                                    not expect the
                                                    overall average
                                                    rate per ounce
                                                    to change
                                                    significantly
                                                    for the
                                                    remainder of
                                                    2005.
---------------------------------------------------------------------
Administration                 17      16        6% Higher regulatory
                                                    compliance costs
                                                    in 2005.
---------------------------------------------------------------------
Interest costs
---------------------------------------------------------------------
 Incurred                      33      13      154% Increase mainly
                                                    due to new
                                                    financing put in
                                                    place in 2004 and
                                                    2005. Average
                                                    long-term debt
                                                    outstanding
                                                    increased from
                                                    $0.7 billion in
                                                    the first nine
                                                    months of 2004
                                                    to $1.7 billion
                                                    in 2005.
---------------------------------------------------------------------
 Capitalized                 (33)     (7)      371% Increased amounts
                                                    were capitalized
                                                    in the first nine
                                                    months of 2005 to
                                                    Lagunas Norte,
                                                    Veladero and
                                                    Cowal development
                                                    projects as
                                                    construction
                                                    costs were
                                                    incurred and
                                                    capitalized.
                                                    Capitalization at
                                                    Lagunas Norte
                                                    ceased in third
                                                    quarter 2005.
                                                    Average book
                                                    value of these
                                                    three projects
                                                    was $1 billion in
                                                    the first nine
                                                    months of 2005
                                                    compared to $0.3
                                                    billion in the
                                                    first nine months
                                                    of 2004.
                                                    Capitalization at
                                                    Pascua-Lama began
                                                    in third quarter
                                                    2004.
---------------------------------------------------------------------
 Expensed                      -        6    (100)% Following the
                                                    start-up of the
                                                    Lagunas Norte
                                                    mine, and after
                                                    commissioning is
                                                    completed at the
                                                    Veladero project,
                                                    we expect that
                                                    interest expense
                                                    in the future
                                                    will begin to
                                                    increase as the
                                                    combined book
                                                    value of Cowal
                                                    and Pascua-Lama
                                                    will likely be
                                                    lower than
                                                    outstanding
                                                    long-term debt.
---------------------------------------------------------------------



---------------------------------------------------------------------
                                                    Comments on
                                  Nine months ended significant
($ millions, except per                September 30 trends
 ounce data and percentages) 2005    2004  % Change and variances
---------------------------------------------------------------------
Amortization
---------------------------------------------------------------------
 Absolute amount            $ 298   $ 352     (15)% Decrease mainly
                                                    due to lower
                                                    amortization
                                                    rates per ounce.
---------------------------------------------------------------------
 Per ounce (dollars)           77      90     (14)% Lower rates in
                                                    2005 mainly due
                                                    to reserve
                                                    increases at the
                                                    end of 2004
                                                    (particularly
                                                    Goldstrike open
                                                    pit and Pierina
                                                    - see page 19),
                                                    the lower book
                                                    value of Eskay
                                                    Creek after an
                                                    impairment
                                                    charge was
                                                    recorded in
                                                    fourth quarter
                                                    2004 and effect
                                                    of low
                                                    amortization
                                                    costs per ounce
                                                    at Lagunas Norte
                                                    on the overall
                                                    average. We do
                                                    not expect the
                                                    overall average
                                                    rate per ounce
                                                    to change
                                                    significantly
                                                    for the
                                                    remainder of
                                                    2005.
---------------------------------------------------------------------
Administration                 53      50        6% Higher regulatory
                                                    compliance costs
                                                    in 2005.
---------------------------------------------------------------------
Interest costs
---------------------------------------------------------------------
 Incurred                      92      36      156% Increase mainly
                                                    due to new
                                                    financing put in
                                                    place in 2004
                                                    and 2005. Average
                                                    long-term debt
                                                    outstanding
                                                    increased from
                                                    $0.7 billion in
                                                    the first nine
                                                    months of 2004
                                                    to $1.7 billion
                                                    in 2005.
---------------------------------------------------------------------
 Capitalized                 (91)    (18)      406% Increased amounts
                                                    were capitalized
                                                    in the first nine
                                                    months of 2005 to
                                                    Lagunas Norte,
                                                    Veladero and
                                                    Cowal development
                                                    projects as
                                                    construction
                                                    costs were
                                                    incurred and
                                                    capitalized.
                                                    Capitalization
                                                    at Lagunas Norte
                                                    ceased in third
                                                    quarter 2005.
                                                    Average book
                                                    value of these
                                                    three projects
                                                    was $1 billion
                                                    in the first
                                                    nine months of
                                                    2005 compared to
                                                    $0.3 billion in
                                                    the first nine
                                                    months of 2004.
                                                    Capitalization
                                                    at Pascua-Lama
                                                    began in third
                                                    quarter 2004.
---------------------------------------------------------------------
 Expensed                      1      18      (94)% Following the
                                                    start-up of the
                                                    Lagunas Norte
                                                    mine, and after
                                                    commissioning is
                                                    completed at the
                                                    Veladero project,
                                                    we expect that
                                                    interest expense
                                                    in the future
                                                    will begin to
                                                    increase as the
                                                    combined book
                                                    value of Cowal
                                                    and Pascua-Lama
                                                    will likely be
                                                    lower than
                                                    outstanding
                                                    long-term debt.
---------------------------------------------------------------------



Other (Income) Expense

---------------------------------------------------------------------
                       Three months   Nine months  Comments on
                              ended         ended  significant
                       September 30  September 30  trends
($ millions)             2005  2004   2005   2004  and variances
---------------------------------------------------------------------
Non-hedge derivative
 (gains)/losses           $ 2 $ (8)  $ (7)    $ 1  The gains and
                                                   losses arise
                                                   primarily due to
                                                   changes in
                                                   commodity prices,
                                                   currency exchange
                                                   rates and
                                                   interest rates.
---------------------------------------------------------------------
Gains on asset sales      (4)   (2)    (5)    (5)  Gains in third
                                                   quarter 2005
                                                   mainly relate to
                                                   land dispositions
                                                   in Australia.
---------------------------------------------------------------------
Gain on Kabanga
 transaction                -     -   (15)      -  Gain recorded in
                                                   second quarter
                                                   2005 relates to
                                                   the closing of a
                                                   transaction in
                                                   which Falconbridge
                                                   acquired a 50%
                                                   indirect interest
                                                   in Kabanga.
---------------------------------------------------------------------
Gains on investment
 sales                      -     -    (9)    (1)  Gains of $9
                                                   million in first
                                                   quarter 2005
                                                   related to the
                                                   sale of
                                                   investments held
                                                   in a rabbi trust
                                                   for a deferred
                                                   compensation plan
                                                   as a result of a
                                                   change in the
                                                   plan trustee.
---------------------------------------------------------------------
Impairment of
 investments                3     -      3      -  Losses relate to
                                                   two investments
                                                   where we concluded
                                                   impairment was
                                                   other than
                                                   temporary.
---------------------------------------------------------------------
Environmental
 remediation costs         17    12     31     24  In third quarter
                                                   2005 revisions
                                                   were made to cost
                                                   estimates at
                                                   three closed mines
                                                   in North America
                                                   on completion of
                                                   an update to the
                                                   closure plans that
                                                   led to a $8
                                                   million charge to
                                                   earnings.
---------------------------------------------------------------------
Currency translation
 gains                   (11)   (3)    (6)    (4)  Foreign currency
                                                   translation gains
                                                   reflect the effect
                                                   of strengthening
                                                   of the Canadian,
                                                   Australian and
                                                   Argentinean
                                                   currencies
                                                   against the US
                                                   dollar on
                                                   monetary assets.
---------------------------------------------------------------------
Other items               14    13     34     26
---------------------------------------------------------------------
Total                   $ 21  $ 12   $ 26   $ 41
---------------------------------------------------------------------

Income Taxes

Income tax expense increased in 2005 primarily due to the increase in income before taxes. Excluding the impact of recording previously unrecognized deferred tax assets, the underlying tax rate for the first nine months of 2005 was 21% compared to 41% in 2004. The major reasons for the decrease in the effective tax rate were the impact of a $67 million (2005: $20 million) opportunity cost in 2004, relating to deliveries into gold sales contracts in a low tax-rate jurisdiction at prices lower than prevailing spot market price; and a change in the geographic mix of gold production, and therefore income before tax, with a shift towards jurisdictions with lower tax rates. The effective tax rate in third quarter 2005 was slightly higher than the rate in the first half of the year because $16 million out of a $19-million opportunity cost occurred in a low-rate tax jurisdiction.

As gold prices increase, our underlying tax rate also increases, reaching a high of about 25% with market prices at or above $475 per ounce. The expected underlying tax rate excludes the effect of gains and losses on non-hedge derivatives, the effect of delivering into forward gold sales contracts at prices below prevailing market prices, and any release of deferred tax valuation allowances.

Operating Activities

Operating cash flow increased by $80 million to $232 million in third quarter 2005 compared to third quarter 2004. The key factors that contributed to the period over period increase are summarized in the table below.

CASH FLOW

NOTE: A chart is available on CCNMatthews' website at: www.ccnmatthews.com/doc/BAR1.pdf



Key factors affecting operating cash flow

---------------------------------------------------------------------
                      Impact on                 Impact on Comments on
        Three months comparative  Nine months comparative significant
       ended Sept.30  operating ended Sept.30   operating  trends and
          2005  2004  cash flow    2005  2004   cash flow   variances
---------------------------------------------------------------------
Gold
 sales
 volumes
 ('000s
   oz)   1,456 1,267       $ 33   3,670 3,736      $ (11) See page 9.
---------------------------------------------------------------------
Realized
 gold
 prices
 ($/oz)  $ 427 $ 395         47   $ 426 $ 383         158 See page 9.
---------------------------------------------------------------------
Total
 cash
 costs
 ($/oz)    210   221         16     229   213        (59) See page 9.
---------------------------------------------------------------------
Sub-total                    96                        88
---------------------------------------------------------------------
Other
 inflows
 (outflows)
---------------------------------------------------------------------
Income tax
 (payments)
 refunds  (20)    11       (31)    (49)  (40)         (9) Canadian
                                                          Federal tax
                                                          refund of
                                                          $18 million
                                                          was
                                                          received in
                                                          third
                                                          quarter
                                                          2004. The
                                                          increase in
                                                          tax
                                                          payments in
                                                          third
                                                          quarter
                                                          2005
                                                          relates to
                                                          the first
                                                          full
                                                          quarter of
                                                          Lagunas
                                                          Norte
                                                          production
                                                          and higher
                                                          realized
                                                          gold
                                                          prices.
---------------------------------------------------------------------
Increase
 in
 invent-
 ories    (20)     -       (20)    (94)  (26)        (68) Higher
                                                          inventory
                                                          at
                                                          development
                                                          projects to
                                                          support
                                                          start-up of
                                                          production.
---------------------------------------------------------------------
Other
 non-cash
 working
 capital   12     10         2      53     30          23
---------------------------------------------------------------------
Interest
 expense    -      6         6       1     18          17 See page
                                                          14.
---------------------------------------------------------------------
Income
 tax
 expense   28      3        25      47     33         14 See page
                                                         14.
---------------------------------------------------------------------
Effect
 of
 other
 factors                     2                         6
---------------------------------------------------------------------
Total                     $ 80                      $ 71
---------------------------------------------------------------------



Investing Activities

Investing activities in 2005 principally comprised capital
 expenditures as detailed below.


---------------------------------------------------------------------
                       Three months ended
                          September 30
($ millions)         2005   2004 $ Change Comments
---------------------------------------------------------------------
Growth capital
 expenditures(1)
---------------------------------------------------------------------
Veladero             $ 78   $ 65     $ 13 Construction activity
                                          at similar levels in each
                                          period.
---------------------------------------------------------------------
Lagunas Norte          28     83     (55) Construction activity
                                          started in second quarter
                                          2004. Production start-up
                                          in second quarter 2005,
                                          with lower capital
                                          expenditures in third
                                          quarter 2005 on completion
                                          of construction.
---------------------------------------------------------------------
Cowal                  76     13       63 Construction activity
                                          started in second quarter
                                          2004. Higher levels of
                                          activity generally in
                                          2005, leading up to
                                          production start-up
                                          expected in first quarter
                                          2006.
---------------------------------------------------------------------
Tulawaka                -     12     (12) Production began in first
                                          quarter 2005, with lower
                                          capital expenditures on
                                          completion of construction.
---------------------------------------------------------------------
Pascua-Lama            27      8       19 Higher levels of activity
                                          since decision in mid-2004
                                          to proceed with the
                                          project, as well as higher
                                          capitalized interest.
---------------------------------------------------------------------
Nevada Power Plant     29      -       29 Construction activity
                                          started in fourth quarter
                                          2004.
---------------------------------------------------------------------
East Archimedes        15      -       15 Construction activity
                                          started in first quarter
                                          2005.
---------------------------------------------------------------------
Sub-total             253    181       72
---------------------------------------------------------------------
Sustaining capital
 expenditures
---------------------------------------------------------------------
North America          37     17       20 Purchases of equipment at
                                          Goldstrike in third quarter
                                          2005.
---------------------------------------------------------------------
Australia/Africa       27     14       13 Purchases of equipment at
                                          Australian operating mines
                                          in third quarter 2005.
---------------------------------------------------------------------
South America           5      -        5 Purchases of equipment at
                                          Pierina in third quarter
                                          2005.
---------------------------------------------------------------------
Other                   1      6      (5)
---------------------------------------------------------------------
Sub-total              70     37       33
---------------------------------------------------------------------
Total               $ 323  $ 218    $ 105
---------------------------------------------------------------------



---------------------------------------------------------------------
                       Nine months ended
                          September 30
($ millions)         2005   2004 $ Change Comments
---------------------------------------------------------------------
Growth capital
 expenditures(1)
---------------------------------------------------------------------
Veladero            $ 213  $ 207      $ 6 Construction activity at
                                          similar levels in each
                                          period.
---------------------------------------------------------------------
Lagunas Norte         128    115       13 Construction activity
                                          started in second quarter
                                          2004. Production start-up
                                          in second quarter 2005,
                                          with lower capital
                                          expenditures in third
                                          quarter 2005 on completion
                                          of construction.
---------------------------------------------------------------------
Cowal                 185    44       141 Construction activity
                                          started in second quarter
                                          2004. Higher levels of
                                          activity generally in 2005,
                                          leading up to production
                                          start-up expected in first
                                          quarter 2006.
---------------------------------------------------------------------
Tulawaka                8     27     (19) Production began in first
                                          quarter 2005, with lower
                                          capital expenditures on
                                          completion of construction.
---------------------------------------------------------------------
Pascua-Lama            66     18       48 Higher levels of activity
                                          since decision in mid-2004
                                          to proceed with the
                                          project, as well as higher
                                          capitalized interest.
---------------------------------------------------------------------
Nevada Power Plant     63      -       63 Construction activity
                                          started in fourth quarter
                                          2004.
---------------------------------------------------------------------
East Archimedes        27      -       27 Construction activity
                                          started in first quarter
                                          2005.
---------------------------------------------------------------------
Sub-total             690    411      279
---------------------------------------------------------------------
Sustaining capital
 expenditures
---------------------------------------------------------------------
North America          70     63        7 Purchases of equipment at
                                          Goldstrike in third quarter
                                          2005.
---------------------------------------------------------------------
Australia/Africa       61     52        9 Purchases of equipment at
                                          Australian operating mines
                                          in third quarter 2005.
---------------------------------------------------------------------
South America          10      2        8 Purchases of equipment at
                                          Pierina in third quarter
                                          2005.
---------------------------------------------------------------------
Other                   4      8      (4)
---------------------------------------------------------------------
Sub-total             145    125       20
---------------------------------------------------------------------
Total               $ 835  $ 536    $ 299
---------------------------------------------------------------------
(1) Includes construction costs and capitalized interest.

Financing Activities

The most significant financing cash inflows in third quarter 2005 were $50 million received on the exercise of employee stock options and $32 million of proceeds from various financings, partly offset by $23 million of repayments made in third quarter 2005 under long-term debt obligations. In the nine-month period ended in 2005, we received $88 million of proceeds on exercise of stock options and $170 million of financing proceeds, partly offset by long-term debt repayments of $38 million and dividends paid of $59 million.


    BALANCE SHEET

    SHAREHOLDERS' EQUITY

    Outstanding Share Data

As at October 14, 2005, 537.2 million of our common shares, one special voting share and 1.4 million Exchangeable Shares not owned by Barrick (exchangeable into 0.7 million of our common shares) were issued and outstanding. As at October 14, 2005, options to purchase 20.5 million common shares were outstanding under our option plans, as well as options to purchase 0.4 million common shares under certain option plans inherited by us in connection with prior acquisitions.

Comprehensive Income

Comprehensive income consists of net income or loss, together with certain other economic gains and losses that collectively are described as "other comprehensive income", and excluded from the income statement.

In third quarter 2005, the other comprehensive income of $9 million mainly included gain reclassification adjustments totaling $37 million on hedge contracts that were transferred to earnings in third quarter 2005; partly offset by gains of $49 million on hedge contracts designated for future periods caused primarily by changes in currency exchange rates, interest rates and fuel prices. For the nine-month period ended September 30, 2005, the other comprehensive loss of $28 million mainly included gain reclassification adjustments totaling $100 million on hedge contracts that were transferred to earnings and gains of $9 million on sale of investments, partly offset by gains of $75 million on hedge contracts designated for future periods caused primarily by changes in currency exchange rates, interest rates, and fuel prices.



QUARTERLY INFORMATION ($ millions, except where indicated)
---------------------------------------------------------------------
                        2005                    2004             2003
               -------------------  --------------------------  -----
                  Q3     Q2     Q1     Q4     Q3     Q2     Q1     Q4
---------------------------------------------------------------------
Gold sales     $ 627  $ 463  $ 484  $ 501  $ 500  $ 454  $ 477  $ 536
---------------------------------------------------------------------
Net income       113     53     60    156     32     34     26     77
---------------------------------------------------------------------
Net income
 per share
 - basic
 (dollars)      0.21   0.10   0.11   0.30   0.06   0.06   0.05   0.14
---------------------------------------------------------------------

Our financial results for the last seven quarters through to second quarter 2005 reflect the following general trends: rising spot gold prices with a corresponding rise in prices realized from gold sales; and rising total cash costs per ounce as a number of our mines have been processing lower-grade ore and experienced inflationary cost pressures. In third quarter 2005, after our low-cost Lagunas Norte mine began production, these trends began to reverse, with an increase in production and decrease in total cash costs per ounce, that also resulted in a significant increase in both gold sales and net income. We expect this new trend of increasing production to continue. Net income in each quarter also reflects the timing of various special items. The items affecting the third quarter and first nine months of both 2005 and 2004 are presented in a table on page 9.

OFF-BALANCE SHEET ARRANGEMENTS

The MD&A included in our 2004 Annual Report contained a detailed discussion of off-balance sheet arrangements. In this interim MD&A, we have included an update of any significant changes in off-balance sheet arrangements.

Gold and Silver Sales Contracts

We have historically used gold and silver sales contracts as a means of selling a portion of our gold and silver production. The contracting parties are bullion banks whose business includes entering into contracts to purchase gold or silver from mining companies. All our gold and silver sales contracts (including Corporate Gold Sales Contracts, Pascua-Lama Gold Sales Contracts and Floating Spot-Price Gold Sales Contracts) retain all the benefits of our Master Trading Agreements ("MTAs") and are not subject to margining, downgrade or unilateral and discretionary "right to break" provisions.

Corporate Gold Sales and Floating Spot-Price Gold Sales Contracts

Fixed-price Corporate Gold Sales Contracts, which at September 30, 2005 totaled 6.4 million ounces, represent approximately one year of expected future gold production and approximately 9% of our proven and probable reserves, excluding Pascua-Lama. We reduced our fixed-price Corporate Gold Sales contract commitments by delivering 0.2 million ounces in third quarter 2005.

At September 30, 2005, we had floating spot-price gold sales contracts under which we are committed to deliver 0.7 million ounces of gold over the next ten years at spot prices, less an average fixed-price adjustment of $86 per ounce. We reduced our floating spot-price gold sales contract commitments by 0.1 million ounces through gold deliveries in third quarter 2005.



Key Aspects of Corporate Gold Sales Contracts
(at September 30, 2005)
-------------------------------------------------------------------
Current termination date of contracts.         2015 in most cases.
-------------------------------------------------------------------
Average estimated realizable price in 2015.    $439/oz.(1)
-------------------------------------------------------------------
Mark-to-market value at Sept.30, 2005.
 Corporate Gold Sales Contracts                $(1,100) million.(2)
 Floating Spot-Price Gold Sales Contracts.     $(60) million.(2)
-------------------------------------------------------------------
(1) Approximate estimated value based on current market US dollar
    interest rates and an average gold lease rate assumption of 1%.
    Accelerating gold deliveries would likely lead to reduced
    contango that would otherwise have built up over time. Barrick
    may choose to settle any gold sales contract in advance of
    this termination date at any time, at its discretion.
    Historically, delivery has occurred in advance of the
    contractual termination date.
(2) At a spot gold price of $473 per ounce, and market interest
    rates.

Pascua-Lama Gold Sales Contracts

In anticipation of building Pascua-Lama and in support of any related financing, we have 6.5 million ounces of existing fixed-price gold sales contracts specifically allocated to Pascua-Lama (the "Pascua-Lama Gold Sales Contracts"). The allocation of these contracts will help reduce gold price risk at Pascua-Lama and is expected to help secure the financing for its construction. We expect the allocation of these contracts to eliminate any requirement by lenders to add any incremental gold sales contracts in the future to support the financing of Pascua-Lama. The forward sales prices on our Pascua-Lama Gold Sales Contracts have not been fully fixed, and thus remain sensitive to long-term (2009-2017) interest rates. Increasing long-term interest rates in the third quarter have resulted in a higher expected realizable sales price for these contracts. If these interest rates continue to rise, we anticipate the expected realizable sales price to increase (in 2009-2017).

As part of our MTAs, Pascua-Lama Gold Sales Contracts are not subject to any provisions regarding any final go-ahead decisions with Pascua-Lama construction, or any possible delay or change in the Pascua-Lama project. Barrick guarantees the performance of all its gold and silver sales contracts.



Key Aspects of Pascua-Lama Gold Sales Contracts
(at September 30, 2005)
--------------------------------------------------------------------
Expected delivery dates.(1)               2009-2017, the term of the
                                           expected financing.
--------------------------------------------------------------------
Future estimated average realizable
 price.                                   $368/oz.(2)
--------------------------------------------------------------------
Mark-to-market value at Sept.30, 2005.    $(1,190) million.(3)
--------------------------------------------------------------------
(1) The contract termination dates are 2014-2017 in most cases, but
    we expect to deliver Pascua-Lama production against these
    contracts starting in 2009, subject to the timing of receipt of
    approvals of the environmental impact assessments, as well as
    the resolution of other external issues, both of which are
    largely beyond our control.
(2) Upon delivery of production from 2009-2017, the term of expected
    financing. Approximate estimated value based on current market
    contango which is sensitive to US dollar interest rates.
(3) At a spot gold price of $473 per ounce and market interest rates.

These contracts represent about 37% of the 17.6 million ounces of gold reserves at Pascua-Lama, and do not impact any of the 643 million ounces of silver contained in gold reserves.



Fair Value of Derivative Positions

---------------------------------------------------------------------
Unrealized Gain/(Loss)            At Sept.30, 2005    At Dec.31, 2004
---------------------------------------------------------------------
Corporate Gold Sales Contracts(1)        $ (1,160)            $ (975)
---------------------------------------------------------------------
Pascua-Lama Gold Sales Contracts           (1,190)              (966)
---------------------------------------------------------------------
Silver Sales Contracts(1)                     (34)               (26)
---------------------------------------------------------------------
Currency contracts                             219                298
---------------------------------------------------------------------
Interest and lease rate contracts               35                 45
---------------------------------------------------------------------
Fuel contracts                                  58                  4
---------------------------------------------------------------------
                                         $ (2,072)          $ (1,620)
---------------------------------------------------------------------
(1) Includes floating spot-price contracts.

Contractual Obligations and Commitments

Purchase obligations include only those items where binding commitments have been entered into. They do not include the full amount of future capital expenditures required to complete construction of our development projects because commitments have yet to be made for all of the estimated future capital costs. Significant changes to the December 31, 2004 contractual obligations and commitments include an additional $0.3 billion of purchase obligations for supplies and consumables and power contracts that we expect to incur mainly in 2005 to 2010.

In third quarter 2005, we drew down a further $32 million under two lease facilities put in place to fund Lagunas Norte construction costs. The lease facilities will be repaid evenly on a quarterly basis over five years.

Capital expenditures not yet committed

We expect to incur about $1.5 billion in capital to complete the development of our present projects over the next five years (Cowal, Pascua-Lama, East Archimedes and the Nevada Power Plant). A total of about $80 million of these amounts had been committed at the end of third quarter 2005, with the remainder not yet committed.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management has discussed the development and selection of our critical accounting estimates with the Audit Committee of the Board of Directors, and the Audit Committee has reviewed the disclosure relating to such estimates in conjunction with its review of this MD&A. The accounting policies and methods we utilize determine how we report our financial condition and results of operations, and they may require management to make estimates or rely on assumptions about matters that are inherently uncertain. In this MD&A, we have not repeated information provided in our 2004 annual MD&A. We have provided an update for any changes in accounting policies and critical accounting estimates that were not included in our 2004 annual MD&A.

Accounting Policy Changes

EITF Issue No. 04-6, Accounting for Stripping Costs Incurred during Production in the Mining Industry ("EITF 04-6")

In 2005, the FASB approved EITF 04-6, and we chose to adopt it in second quarter 2005. EITF 04-6 relates to the accounting for stripping costs in the production stage at a mine. Previously we capitalized stripping costs incurred in the production phase. Results for 2005 reflect the method of accounting under EITF 04-6, but periods prior to 2005 were not restated in accordance with the transition rules of EITF 04-6. Cost of sales and related total cash costs per ounce statistics for 2004 and prior periods have not been restated, and are therefore not comparable to current-year results and statistics.

The new accounting rules require the actual stripping costs incurred each period be reflected in the cost of ore mined for the same period, and will likely lead to greater period-to-period volatility in total cash costs. Previously, stripping costs were deferred and amortized based on a life-of-mine stripping ratio that smoothed the costs over time. The impact of this change was to increase net income for third quarter 2005 by $6 million, ($0.01 per share) and for the nine months ended September 30, 2005 by $27 million ($0.05 per share). Cost of sales for third quarter 2005 was $11 million lower ($7 per ounce lower total cash costs) and $29 million lower in the nine months ended September 30, 2005 ($8 per ounce lower total cash costs). Results for 2005 also include a $6-million post-tax credit ($0.01 earnings per share) to reflect the cumulative effect of the policy for periods prior to January 1, 2005.



Impact of EITF 04-6 on Total Cash Costs Per Ounce Statistics

---------------------------------------------------------------------
                                   Three months           Nine months
                                          ended                 ended
                             September 30, 2005    September 30, 2005
                                       Increase              Increase
(dollars per ounce)                  (decrease)            (decrease)
---------------------------------------------------------------------
Goldstrike open pit                      $ (13)                 $ (7)
---------------------------------------------------------------------
Round Mountain                               42                    21
---------------------------------------------------------------------
Hemlo                                         6                     9
---------------------------------------------------------------------
Pierina                                    (46)                  (33)
---------------------------------------------------------------------
Lagunas Norte                              (27)                  (26)
---------------------------------------------------------------------
Kalgoorlie                                   25                  (12)
---------------------------------------------------------------------
Plutonic                                      -                  (22)
---------------------------------------------------------------------
Lawlers                                       -                     8
---------------------------------------------------------------------
Tulawaka                                     62                    50
---------------------------------------------------------------------
Total cash costs per ounce                $ (7)                 $ (8)
---------------------------------------------------------------------

Critical Accounting Estimates

Certain accounting estimates have been identified as being "critical" to the presentation of our financial condition and results of operations because they require management to make particularly subjective and/or complex judgments about matters that are inherently uncertain; and there is a reasonable likelihood that materially different amounts could be reported under different conditions or using different assumptions and estimates. Following the adoption of EITF 04-6, stripping ratios are no longer a critical accounting estimate. Critical accounting estimates include:

- Reserve estimates used to measure amortization of property, plant and equipment;

- Impairment assessments of long-lived assets and investments;

- Assessments as to whether mine development costs should be capitalized or expensed;

- The fair value of asset retirement obligations;

- The measurement of deferred income tax assets and liabilities and assessments of the amounts of valuation allowances recorded; and

- Assessments of the likelihood of loss contingencies occurring and the amount of potential loss.

Reserve Estimates Used to Measure Amortization of Property, Plant and Equipment

We record amortization expense based on the estimated useful economic lives of long-lived assets. Effective December 31, 2004, we updated our estimates of proven and probable gold mineral reserves. Following the update of these estimates, we prospectively revised calculations of amortization and caused amortization for third quarter 2005 and the first nine months of 2005 to decrease by $10 million and $28 million, respectively, for the mines listed below, which had reserve estimate changes (other than production) greater than 10%.



Impact of Historic Changes in Reserve Estimates on Amortization
---------------------------------------------------------------------
($ millions, except         Reserves
 reserves                   increase Amortization increase (decrease)
 in millions of        (decrease)(1)      Periods ended Sept.30, 2005
 contained oz)    As at Dec.31, 2004    Three months      Nine months
---------------------------------------------------------------------
Goldstrike open pit              1.8           $ (4)           $ (11)
---------------------------------------------------------------------
Round Mountain                   0.3             (2)              (6)
---------------------------------------------------------------------
Lawlers                          0.1             (1)              (2)
---------------------------------------------------------------------
Eskay Creek                    (0.1)               2                5
---------------------------------------------------------------------
Pierina                          0.3             (6)             (16)
---------------------------------------------------------------------
Hemlo                          (0.2)               1                2
---------------------------------------------------------------------
Total                            2.2            (10)             (28)
---------------------------------------------------------------------
Impact on total amortization
 per ounce (dollars)                           $ (7)            $ (8)
---------------------------------------------------------------------
(1) Each year we update our reserve estimates as at the end of the
    year as part of our normal business cycle. Reserve changes, shown
    in millions of contained ounces, affect amortization expense on a
    prospective basis.

Impairment Assessments of Investments

Each reporting period we review all available-for-sale securities whose fair value at the end of the period is below cost to determine whether an other-than-temporary impairment has occurred. We consider both positive and negative evidence in order to reach a conclusion on whether any impairment is other-than-temporary, and if necessary, record any losses that are other-than-temporary in earnings within other expense. Changes in the values of these investments are caused by market factors beyond our control and could be significant. The amount of any impairment charges recorded could materially impact earnings in a reporting period. In third quarter 2005, we reviewed an investment in an unrealized loss position that had a fair value that was $12 million below cost, and concluded that an impairment charge was not required. If a further or prolonged deterioration in value of this investment occurs, we may reach a different conclusion that could lead to the recognition of an impairment charge in earnings of a future period.

Impairment Assessments of Property, Plant and Equipment

At the end of 2004, we conducted detailed impairment assessments for Eskay Creek and Cowal. In 2005, we have not performed any detailed impairment assessments on any groups of assets. We are monitoring the impact of economic trends and other economic factors on our producing mines and development projects. It is reasonably possible that a detailed impairment assessment could be required for some properties in future periods if industry-wide inflationary cost pressures persist or increase in the future.

TOTAL CASH COSTS PERFORMANCE MEASURES

Total cash costs include all costs absorbed into inventory, including royalties, by-product credits, mining taxes and accretion expense, except for amortization. Total cash costs per ounce is calculated by dividing the aggregate of these costs by gold ounces sold. Total cash costs and total cash costs per ounce are calculated on a consistent basis for the periods presented. On our income statement we present amortization separately from cost of sales. Some companies include amortization in cost of sales, which results in a different measurement of cost of sales on the income statement. We have provided below a reconciliation to illustrate the impact of excluding amortization from cost of sales and total cash costs per ounce statistics.

In managing our mining operations, we disaggregate cost of sales between amortization and the other components of cost of sales. We use total cash costs per ounce statistics as a key performance measure internally to monitor the performance of our mines. We use the statistics to assess how well our mines are performing against internal plans, and also to assess the overall effectiveness and efficiency of our mining operations. We also use amortization cost per ounce statistics to monitor business performance. By disaggregating cost of sales into these two components and separately monitoring them we are able to better identify and address key performance trends. We believe that the presentation of these statistics in this manner in our MD&A, together with commentary explaining trends and changes in the statistics, enhances the ability of investors to assess our performance. These statistics also enable investors to better understand year on year changes in cash production costs, which in turn affect our profitability and ability to generate cash flow.

The principal limitation associated with total cash costs per ounce statistics is that they do not reflect the total costs to produce gold, which in turn impacts the earnings of Barrick. We believe that we have compensated for this limitation by highlighting the fact that total cash costs exclude amortization as well as providing details of the financial effect. We believe that the benefits of providing disaggregated information outweigh the limitation in the method of presentation of total cash costs per ounce statistics.

Total cash costs per ounce statistics are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with US GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under US GAAP.



Illustration of Impact of excluding Amortization from Total Cash
 Costs Per Ounce

---------------------------------------------------------------------
                                     Three months         Nine months
($ millions, except per       ended September 30, ended September 30,
 ounce information in dollars)     2005      2004       2005     2004
---------------------------------------------------------------------
Cost of sales per Barrick
 income statement                 $ 310     $ 279      $ 847    $ 795
---------------------------------------------------------------------
Amortization at producing mines     106       113       284       335
---------------------------------------------------------------------
Cost of sales including
 amortization                     $ 416     $ 392   $ 1,131   $ 1,130
---------------------------------------------------------------------
Ounces sold (thousands)           1,456     1,267     3,670     3,736
---------------------------------------------------------------------
Total cash costs per ounce
 as reported                      $ 210     $ 221     $ 229     $ 213
---------------------------------------------------------------------
Amortization per ounce               72        89        77        90
---------------------------------------------------------------------
Cost of sales (including
 amortization) per ounce          $ 282     $ 310     $ 306    $  303
---------------------------------------------------------------------



Consolidated Statements of Income

Barrick Gold Corporation
(in millions of United States           Three months      Nine Months
 dollars, except per share data)               ended            ended
(Unaudited)                            Septemebr 30,    September 30,
                                    ----------------  ---------------
                                        2005    2004     2005    2004
                                    ----------------  ---------------
Gold sales (notes 3 and 4)             $ 627   $ 500  $ 1,574 $ 1,431
----------------------------------------------------  ---------------
Costs and expenses
Cost of sales(1) (note 5)                310     279      847     795
Amortization (note 3)                    111     117      298     352
Administration                            17      16       53      50
Exploration, development and
 business development                     27      38       95     101
Other expense (note 6)                    21      12       26      41
----------------------------------------------------  ---------------
                                         486     462    1,319   1,339
----------------------------------------------------  ---------------


Interest income                            9       5       28      18
Equity in investees (note 11)            (1)       -      (2)       -
Interest expense (note 14a)                -     (6)      (1)    (18)
----------------------------------------------------  ---------------
Income before income taxes and
 other items                             149      37      280      92
Income tax expense (note 7)             (36)     (5)     (60)       -
----------------------------------------------------  ---------------
Income before cumulative effect of
 change in accounting principles         113      32      220      92
Cumulative effect of change in
 accounting principles, net of tax
 (note 2b)                                  -       -        6       -
----------------------------------------------------  ---------------
Net income for the period              $ 113    $ 32    $ 226    $ 92
----------------------------------------------------  ---------------
Earnings per share data:
Income before cumulative effect of
 change in accounting principles
 Basic and diluted                    $ 0.21  $ 0.06   $ 0.41  $ 0.17
Net income
 Basic and diluted (note 8)           $ 0.21  $ 0.06   $ 0.42  $ 0.17
----------------------------------------------------  ---------------

(1) Exclusive of amortization (note 3).

The accompanying notes are an integral part of these unaudited
 interim consolidated financial statements.



Consolidated Statements of Cash Flow

Barrick Gold Corporation               Three months       Nine months
(in millions of United States dollars)        ended             ended
(Unaudited)                           September 30,     September 30,
                                  -----------------  ----------------
                                       2005    2004     2005     2004
---------------------------------------------------  ----------------
OPERATING ACTIVITIES
Net income for the period             $ 113    $ 32    $ 226     $ 92
Amortization (note 3)                   111     117      298      352
Gains on sale of investments
 (note 6)                                 -       -      (9)      (1)
Gain on Kabanga transaction
 (note 6)                                 -       -     (15)        -
Other items (note 9)                      8       3     (43)     (57)
---------------------------------------------------  ----------------
Net cash provided by operating
 activities                             232     152      457      386
---------------------------------------------------  ----------------
INVESTING ACTIVITIES
Property, plant and equipment
 Capital expenditures (note 3)        (323)   (218)    (835)    (536)
 Sales proceeds                           4       3        7       11
Cash receipt from Kabanga
 transaction                              -       -       15        -
Investments
 Purchases (note 11)                    (3)       -     (86)     (45)
Other items                               -     (4)     (13)      (7)
---------------------------------------------------  ----------------
Net cash used in investing
 activities                           (322)   (219)    (912)    (577)
---------------------------------------------------  ----------------
FINANCING ACTIVITIES
Capital stock
 Proceeds on exercise of stock
  options                                50       3       88       29
 Repurchased for cash                     -       -        -     (95)
Long-term debt
 Proceeds (note 14a)                     32     167      170      167
 Repayments                            (23)       -     (38)     (27)
Dividends (note 16a)                      -       -     (59)     (59)
Other items                               -    (16)      (1)     (16)
---------------------------------------------------  ----------------
Net cash provided by (used in)
 financing activities                    59     154      160      (1)
---------------------------------------------------  ----------------
Effect of exchange rate changes on
 cash and equivalents                     5       3        2      (3)
Net increase (decrease) in cash and
 equivalents                           (26)      90    (293)    (195)
Cash and equivalents at beginning
 of period                            1,131     685    1,398      970
---------------------------------------------------  ----------------
Cash and equivalents at end of
 period                             $ 1,105   $ 775  $ 1,105    $ 775
---------------------------------------------------  ----------------

The accompanying notes are an integral part of these unaudited
 interim consolidated financial statements.



Consolidated Balance Sheets

Barrick Gold Corporation                       As at            As at
(in millions of United States          September 30,     December 31,
 dollars) (Unaudited)                           2005             2004
----------------------------------------------------   --------------
ASSETS
Current assets
 Cash and equivalents                        $ 1,105          $ 1,398
 Accounts receivable                              50               58
 Inventories (note 10)                           361              215
 Other current assets                            324              286
----------------------------------------------------   --------------
                                               1,840            1,957
 Available for sale securities
  (note 11)                                       71               59
 Equity method investments (note 11)             144               88
 Property, plant and equipment
  (note 12)                                    3,982            3,391
 Capitalized mining costs (note 2b)                -              226
 Other assets (note 13)                          753              566
----------------------------------------------------   --------------
Total assets                                 $ 6,790          $ 6,287
----------------------------------------------------   --------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
 Accounts payable                              $ 421            $ 335
 Other current liabilities                        89               83
----------------------------------------------------   --------------
                                                 510              418
 Long-term debt (note 14)                      1,763            1,655
 Other long-term obligations
  (note 15)                                      565              499
 Deferred income tax liabilities                 148              139
----------------------------------------------------   --------------
Total liabilities                              2,986            2,711
----------------------------------------------------   --------------
Shareholders' equity
 Capital stock (note 16)                       4,218            4,129
 Deficit                                       (455)            (622)
 Accumulated other comprehensive
  income (note 18)                                41               69
----------------------------------------------------   --------------
Total shareholders' equity                     3,804            3,576
----------------------------------------------------   --------------
Contingencies and commitments (notes 12
 and 19)
----------------------------------------------------   --------------
Total liabilities and shareholders'
 equity                                      $ 6,790          $ 6,287
----------------------------------------------------   --------------
The accompanying notes are an integral part of these unaudited
 interim consolidated financial statements.



Consolidated Statements of Shareholders' Equity

Barrick Gold Corporation
For the nine months ended September 30
(in millions of United States dollars) (Unaudited)       2005    2004
---------------------------------------------------------------------
Common shares (number in millions)
At January 1                                              534     535
 Issued on exercise of stock options                        4       2
 Repurchased (note 16a)                                     -     (5)
---------------------------------------------------------------------
At September 30                                           538     532
---------------------------------------------------------------------
Common shares (dollars in millions)
At January 1                                          $ 4,129 $ 4,115
 Issued on exercise of stock options                       89      29
 Repurchased (note 16a)                                     -    (35)
---------------------------------------------------------------------
At September 30                                       $ 4,218 $ 4,109
---------------------------------------------------------------------
Deficit
At January 1                                          $ (622) $ (694)
 Net income                                               226      92
 Dividends (note 16a)                                    (59)    (59)
 Adjustment on repurchase of common shares
  (note 16a)                                                -    (60)
---------------------------------------------------------------------
At September 30                                       $ (455) $ (721)
---------------------------------------------------------------------
Accumulated other comprehensive
 income (loss) (note 18)                                 $ 41  $ (12)
---------------------------------------------------------------------
Total shareholders' equity at
 September 30                                         $ 3,804 $ 3,376
---------------------------------------------------------------------



Consolidated Statements of Comprehensive Income

                                 Three months ended Nine months ended
Barrick Gold Corporation              September 30,     September 30,
                               -------------------- -----------------
(in millions of United States
 dollars) (Unaudited)                  2005    2004     2005     2004
--------------------------------------------------- -----------------
Net income                            $ 113    $ 32    $ 226     $ 92
Other comprehensive income (loss),
 net of tax (note 18)                     9      30     (28)     (72)
--------------------------------------------------- -----------------
Comprehensive income                  $ 122    $ 62    $ 198     $ 20
--------------------------------------------------- -----------------

The accompanying notes are an integral part of these unaudited
 interim consolidated financial statements.

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Tabular dollar amounts in millions of United States dollars, unless otherwise shown. References to C$, A$, EUR and ARS are to Canadian dollars, Australian dollars, Euros and Argentinean pesos respectively.

1. NATURE OF OPERATIONS

Barrick Gold Corporation ("Barrick" or the "Company") engages in the production and sale of gold from underground and open-pit mines, including related activities such as exploration and mine development. Our operations are mainly located in North America, South America, Australia and Africa.


    2. SIGNIFICANT ACCOUNTING POLICIES

    A Basis of preparation

The United States dollar is the principal currency of our operations. These unaudited interim consolidated financial statements have been prepared in United States dollars and under United States generally accepted accounting principles ("US GAAP") for the preparation of interim financial information. Accordingly, they do not include all of the information and disclosures required by US GAAP for annual consolidated financial statements. The accounting policies used in the preparation of the accompanying unaudited interim consolidated financial statements are the same as those described in our audited consolidated financial statements and the notes thereto for the three years ended December 31, 2004, except as noted below in note 2b.

In the opinion of management, all adjustments considered necessary for the fair presentation of results for the periods presented have been reflected in these financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and the notes thereto for the three years ended December 31, 2004.

The preparation of these financial statements requires us to make estimates and assumptions. The most significant estimates and assumptions are: quantities of proven and probable gold reserves; expected value of mineral resources not considered proven and probable reserves; expected future costs and expenses to produce proven and probable reserves; expected future commodity prices and foreign currency exchange rates; and expected costs to meet asset retirement obligations. Decisions and assessments affected by our critical estimates and assumptions include:

- decisions as to whether mine development costs should be capitalized or expensed;

- assessments of whether groups of long-lived assets are impaired and the fair value of those groups of assets that are the basis for measuring impairment charges;

- assessments of our ability to realize the benefits of deferred income tax assets;

- the useful lives of long-lived assets and the measurement of amortization recorded in earnings;

- the fair value of asset retirement obligations;

- assessments of the likelihood of loss contingencies occurring and the amount of potential loss; and

- assessments of whether investments are impaired.

We regularly review these estimates and assumptions that affect our financial statements, however, actual outcomes could differ from our estimates and assumptions.

B Accounting changes

EITF Issue No. 04-6, Accounting for Stripping Costs Incurred during Production in the Mining Industry (EITF 04-6)

In second quarter 2005, we adopted EITF 04-6 prospectively and changed our accounting policy for stripping costs. Previously, we capitalized stripping costs incurred in the production phase. We included amortization of capitalized costs in inventory based on a "stripping ratio" using the units of production method. Under EITF 04-6, stripping costs incurred each period during the production phase are recorded as a component of the cost of inventory produced each period. On adoption of EITF 04-6 in second quarter 2005, we recorded: a decrease in capitalized mining costs of $226 million; an increase in inventory of $232 million; and a $6 million increase in earnings for the cumulative effect of adopting EITF 04-6. For the three month period ended September 30, 2005, the effect on earnings of adopting EITF 04-6 was an increase in income, of $11 million ($0.01 per share), and for the nine month period ended September 30, 2005, the effect was an increase in income, of $29 million ($0.04 per share).


    C Accounting developments

    FAS 123R, Accounting for Stock-Based Compensation (FAS 123R)

In December 2004, the Financial Accounting Standards Board ("FASB") issued FAS 123R. FAS 123R is applicable to transactions in which an entity exchanges its equity instruments for goods and services. It focuses primarily on transactions in which an entity obtains employee services in share-based payment transactions. FAS 123R requires that the fair value of such equity instruments be recorded as an expense as services are performed. Prior to FAS 123R, only certain pro forma disclosures of the effect of accounting for these transactions at fair value were required. FAS 123R will be effective for our first quarter 2006 financial statements, and permits different transition methods including: retroactive adjustment of prior periods as far back as 1995 to give effect to the fair value based method of accounting for awards granted in those prior periods; or a modified prospective application beginning in 2006. We are presently evaluating the effect of the different methods of adopting FAS 123R. We expect to adopt FAS 123R using the modified prospective method effective January 1, 2006.

FIN 47, Accounting for Conditional Asset Retirement Obligations (FIN 47)

FIN 47 was issued in March 2005 and relates to the accounting for a legal obligation to perform an asset retirement activity, when the timing or method of settlement are conditional on a future event, which may not be within the control of the entity. FIN 47 requires recognition of a liability for the fair value of a conditional asset retirement obligation if the fair value can be reasonably estimated. FIN 47 is effective no later than the end of fiscal years ending after December 31, 2005. We would recognize the cumulative effect of adopting FIN 47 as a change in accounting policy with the cumulative effect reported in our income statement. We are presently evaluating the impact of FIN 47.

FAS 151, Inventory Costs

FAS 151 was issued in November 2004 as an amendment to ARB No. 43. FAS 151 specifies the general principles applicable to the pricing and allocation of certain costs to inventory. Under FAS 151, abnormal amounts of idle facility expense, freight, handling costs and wasted materials are recognized as current period charges rather than capitalized to inventory. FAS 151 also requires that the allocation of fixed production overhead to the cost of inventory be based on the normal capacity of production facilities. FAS 151 will be effective for inventory costs incurred beginning in our 2006 fiscal year. We are presently evaluating the impact of FAS 151 on our financial statements.

FAS 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FAS 3

FAS 154 relates to the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principles. The reporting of corrections of an error by restating previously issued financial statements is also addressed by this statement. FAS 154 applies to pronouncements in the event they do not include specific transition provisions. When a pronouncement includes specific transition provisions, those provisions should be followed. FAS 154 requires retrospective application to prior periods' financial statements of changes in accounting principle, unless the period specific effects or cumulative effects of an accounting change are impracticable to determine, in which case the new accounting principle is required to be applied to the assets and liabilities as of the earliest period practicable, with a corresponding adjustment made to opening retained earnings. Prior to FAS 154, most accounting changes were recorded effective at the beginning of the year of change, with the cumulative effect at the beginning of the year of change recorded as a charge or credit to earnings in the period a change was adopted. FAS 154 will be effective for us for accounting changes and corrections of errors beginning in 2006. FAS 154 does not change the transition provisions of any existing accounting pronouncements, including those that are in the transition phase as of the effective date of FAS 154.

Exposure Draft, Accounting for Uncertain Tax Positions

On July 14, 2005, the FASB issued an exposure draft of a proposed Interpretation, Accounting for Uncertain Tax Positions - an Interpretation of FASB Statement No. 109. The proposed Interpretation would require companies to recognize the best estimate of an uncertain tax position only if it is probable of being sustained on audit by the taxation authorities. Subsequently, the tax benefit would be derecognized (by either recording a tax liability or decreasing a tax asset) when the probable threshold is no longer met and it is more likely than not that the tax position will not be sustained.

The proposed Interpretation would be effective for years ending after December 15, 2005 and treated as a change in accounting policy. It would require companies to assess all uncertain tax positions and only those meeting the probable threshold at the transition date would continue to be recognized. The difference between the amount previously recognized and the amount recognized after applying the proposed Interpretation would be recorded as a cumulative-effect adjustment in the 2005 income statement (restatement is not permitted). The comment period ended on September 12, 2005. We are presently evaluating the impact of this exposure draft on our financial statements.


    D Changes in estimates

    Gold Mineral Reserves

Effective December 31, 2004, we updated our estimates of proven and probable gold mineral reserves. Following the update of these estimates, we prospectively revised calculations of amortization of property, plant and equipment. The effect of the change in reserve estimates on amortization of property, plant and equipment for the three months ended September 30, 2005 was a decrease in this expense by approximately $10 million and for the nine months ended September 30, 2005, a decrease in amortization of property, plant and equipment of $28 million, for mines with a greater than 10% change (excluding production for the period) in the reserve estimates.

Asset Retirement Obligations (AROs)

In 2005, we revised cost estimates at various closed mines and recorded an increase in the fair value of AROs, which was included as a charge within environmental remediation costs in other expense. An amount of $5 million was recorded in second quarter 2005 (second quarter 2004 - $nil), with a further amount of $8 million in third quarter 2005 (third quarter 2004 - $3 million).



3. SEGMENT INFORMATION
Income statement information
---------------------------------------------------------------------
                                   Gold       Segment      Segment
                                  sales     expenses(1) income (loss)
---------------------------------------------------------------------
For the three months ended
 September 30                  2005  2004    2005  2004    2005  2004
---------------------------------------------------------------------
Goldstrike                    $ 225 $ 190   $ 120 $ 124    $ 70  $ 27
Round Mountain                   40    40      22    20      13    15
Eskay Creek                      17    24       2     4       8     7
Hemlo                            27    21      17    15       6     3
Other producing mines             6    14       4     6       1     5
---------------------------------------------------------------------
 North America                  315   289     165   169      98    57
---------------------------------------------------------------------
Kalgoorlie                       39    50      21    30      13    13
Plutonic                         24    29      13    16       8    10
Bulyanhulu                       45    44      35    29     (1)     3
Tulawaka                         17     -      11     -       1     -
Other producing mines            31    28      20    16       7     9
Cowal                             -     -       1     1     (1)   (1)
---------------------------------------------------------------------
 Australia/Africa               156   151     101    92      27    34
---------------------------------------------------------------------
Pierina                          67    60      20    19      30    16
Lagunas Norte                    89     -      25     2      55   (2)
Veladero                          -     -       2     3     (2)   (3)
Pascua-Lama                       -     -       2     -     (2)     -
---------------------------------------------------------------------
 South America                  156    60      49    24      81    11
---------------------------------------------------------------------
Exploration group                 -     -      20    27    (20)  (27)
---------------------------------------------------------------------
Segment total                 $ 627 $ 500   $ 335 $ 312   $ 186  $ 75
---------------------------------------------------------------------



---------------------------------------------------------------------
                                   Gold       Segment      Segment
                                  sales     expenses(1) income (loss)
---------------------------------------------------------------------
For the nine months ended
 September 30                  2005    2004  2005  2004    2005  2004
---------------------------------------------------------------------
Goldstrike                    $ 579   $ 525 $ 356 $ 355   $ 117  $ 59
Round Mountain                  122     109    66    60      43    33
Eskay Creek                      62      82     8     9      34    36
Hemlo                            80      68    52    44      17    15
Other producing mines            21      36    11    19       5     8
---------------------------------------------------------------------
 North America                  864     820   493   487     216   151
---------------------------------------------------------------------
Kalgoorlie                      128     131    66    79      47    36
Plutonic                         82      91    48    51      27    32
Bulyanhulu                      104     102    85    77     (8)   (3)
Tulawaka                         29       -    18     -       2     -
Other producing mines            79      77    52    44      16    23
Cowal                             -       -     4     1     (4)   (1)
---------------------------------------------------------------------
 Australia/Africa               422     401   273   252      80    87
---------------------------------------------------------------------
Pierina                         187     210    57    57      80    62
Lagunas Norte                   101       -    29    11      62  (11)
Veladero                          -       -     5     3     (5)   (3)
Pascua-Lama                       -       -     4     -     (4)     -
---------------------------------------------------------------------
 South America                  288     210    95    71     133    48
---------------------------------------------------------------------
Exploration group                 -       -    76    71    (76)  (71)
---------------------------------------------------------------------
Segment total               $ 1,574 $ 1,431 $ 937 $ 881   $ 353 $ 215
---------------------------------------------------------------------
(1) In second quarter 2005, we revised our internal definition of
    segment expenses to include accretion expense. Segment
    information for all the periods presented reflects this change in
    the measurement of segment expenses.



Reconciliation of segment income
---------------------------------------------------------------------
                                           Three months   Nine months
                                                  ended         ended
                                           September 30  September 30
                                           2005    2004   2005   2004
---------------------------------------------------------------------
Segment income                            $ 186    $ 75  $ 353  $ 215
Amortization of corporate assets            (5)     (4)   (14)   (17)
Business development costs                  (2)     (5)    (5)   (15)
Administration                             (17)    (16)   (53)   (50)
Equity in investees                         (1)       -    (2)      -
Interest income                               9       5     28     18
Interest expense                              -     (6)    (1)   (18)
Other expense                              (21)    (12)   (26)   (41)
---------------------------------------------------------------------
Income before income taxes and other
 items                                    $ 149    $ 37  $ 280   $ 92
---------------------------------------------------------------------



Asset information

                                                      Segment capital
                                          Amortization   expenditures
---------------------------------------------------------------------
For the three months ended September 30   2005    2004    2005   2004
---------------------------------------------------------------------
 Goldstrike                               $ 35    $ 39    $ 57   $ 10
 Round Mountain                              5       5       -      2
 Eskay Creek                                 7      13       -      1
 Hemlo                                       4       3       1      2
 Ruby Hill                                   -       -      15      -
 Other operating segments                    1       3       8      2
---------------------------------------------------------------------
  North America                             52      63      81     17
---------------------------------------------------------------------
 Plutonic                                    3       3       6      3
 Kalgoorlie                                  5       7       6      2
 Cowal                                       -       -      76     13
 Bulyanhulu                                 11      12      10      8
 Tulawaka                                    5       -       -     12
 Other operating segments                    4       3       5      1
---------------------------------------------------------------------
  Australia/Africa                          28      25     103     39
---------------------------------------------------------------------
 Pierina                                    17      25       5      -
 Lagunas Norte                               9       -      28     83
 Veladero                                    -       -      78     65
 Pascua-Lama                                 -       -      27      8
---------------------------------------------------------------------
  South America                             26      25     138    156
---------------------------------------------------------------------
Segment total                              106     113     322    212
Other items not allocated to segments        5       4       1      6
---------------------------------------------------------------------
Enterprise total                         $ 111   $ 117   $ 323  $ 218
---------------------------------------------------------------------



---------------------------------------------------------------------
                                                      Segment capital
                                          Amortization   expenditures
---------------------------------------------------------------------
For the nine months ended September 30    2005    2004    2005   2004
---------------------------------------------------------------------
 Goldstrike                              $ 106   $ 111   $ 117   $ 39
 Round Mountain                             13      16       1      4
 Eskay Creek                                20      37       1      5
 Hemlo                                      11       9       4      5
 Ruby Hill                                   -       -      27      -
 Other operating segments                    5       9      10     10
---------------------------------------------------------------------
  North America                            155     182     160     63
---------------------------------------------------------------------
 Plutonic                                    7       8      13     11
 Kalgoorlie                                 15      16       9      7
 Cowal                                       -       -     185     44
 Bulyanhulu                                 27      28      26     26
 Tulawaka                                    9       -       8     27
 Other operating segments                   11      10      13      8
---------------------------------------------------------------------
  Australia/Africa                          69      62     254    123
---------------------------------------------------------------------
 Pierina                                    50      91      10      2
 Lagunas Norte                              10       -     128    115
 Veladero                                    -       -     213    207
 Pascua-Lama                                 -       -      66     18
---------------------------------------------------------------------
  South America                             60      91     417    342
---------------------------------------------------------------------
Segment total                              284     335     831    528
Other items not allocated to segments       14      17       4      8
---------------------------------------------------------------------
Enterprise total                         $ 298   $ 352   $ 835  $ 536
---------------------------------------------------------------------


4. REVENUE AND GOLD SALES CONTRACTS
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Gold bullion sales
Spot market sales                       $ 493   $ 398 $ 1,354 $   767
Gold sales contracts                       97      68     135     577
---------------------------------------------------------------------
                                          590     466   1,489   1,344
Concentrate sales                          37      34      85      87
---------------------------------------------------------------------
                                        $ 627   $ 500 $ 1,574 $ 1,431
---------------------------------------------------------------------

At September 30, 2005, we had fixed-price Corporate gold sales contracts with various counterparties for 6.4 million ounces of future gold production, fixed-price gold sales contracts specifically allocated to Pascua-Lama for 6.5 million ounces of future gold production and floating-price forward gold sales contracts for 0.7 million ounces. In 2004, we allocated 6.5 million ounces of fixed-price gold sales contracts specifically to Pascua-Lama. The allocation of these contracts will help reduce gold price risk at Pascua-Lama and is expected to help secure financing for its construction. In addition to the gold sales contracts allocated to Pascua-Lama, we had 6.4 million ounces of Corporate gold sales contracts that we intend to settle through delivery of future gold production from our operating mines and development projects, excluding Pascua-Lama. The mark-to-market on the fixed-price gold sales contracts (at September 30, 2005) was negative $1,190 million for the Pascua-Lama Gold Sales Contracts and negative $1,100 million for the Corporate Gold Sales Contracts.

Floating spot price sales contracts were previously fixed-price forward sales contracts for which, in accordance with the terms of our master trading agreements, we have elected to receive floating spot gold and silver prices, adjusted by the difference between the spot price and the contract price at the time of such election. Floating prices were elected for these contracts so that we could economically regain spot gold price leverage under the terms of delivery into these contracts. Floating price mechanisms were elected for these contracts at a time when the then current market price was higher than the fixed-price in the contract, resulting in a mark-to-market on these contracts (at September 30, 2005) of negative $60 million, which equates to an average reduction to the future spot sales price of approximately $86 per ounce, when we deliver gold at spot prices against these contracts. At September 30, 2005, we held gold lease rate swaps, under which we receive a fixed gold lease rate, and pay a floating gold lease rate, on a notional 1.0 million ounces of gold spread from 2005 to 2013. The swaps are associated with fixed-price gold sales contracts with expected delivery dates beyond 2006. Lease rate swaps are classified as non-hedge derivatives (note 14b).



5. COST OF SALES
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Cost of goods sold(1)                   $ 321   $ 296   $ 894   $ 852
By-product revenues(2)                   (34)    (33)   (100)   (103)
Royalty expense                            17      13      43      37
Mining taxes                                6       3      10       9
---------------------------------------------------------------------
                                        $ 310   $ 279   $ 847   $ 795
---------------------------------------------------------------------
(1) Cost of goods sold includes accretion expense at producing mines
    of $2 million (2004 - $3 million) in the three months ended
    September 30, 2005 and $8 million in the nine months ended
    September 30, 2005 (2004 - $8 million). The cost of inventory
    sold in the period reflects all components capitalized to
    inventory, except that, for presentation purposes, the component
    of inventory cost relating to amortization of property, plant and
    equipment is classified in the income statement under
    "amortization". Some companies present this amount under "cost
    of sales". The amount presented in amortization rather than cost
    of sales was $106 million in the three months ended September 30,
    2005 (2004 - $113 million) and $284 million in the nine months
    ended September 30, 2005 (2004 - $335 million).
(2) We use silver sales contracts to sell a portion of silver
    produced as a by-product. Silver sales contracts have similar
    delivery terms and pricing mechanisms as gold sales contracts.
    At September 30, 2005, we had fixed-price commitments to deliver
    12.7 million ounces of silver at an average price of $6.04 per
    ounce, and floating spot price sales contracts for 10.61 million
    ounces, over periods primarily of up to 10 years. The mark-to-
    market on the silver sales contracts (at September 30, 2005) was
    negative $34 million.



6. OTHER EXPENSE
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Non-hedge derivative (gains) losses
 (note 14b)                               $ 2   $ (8)   $ (7)     $ 1
Gains on sale of assets                   (4)     (2)     (5)     (5)
Gain on Kabanga transaction                 -       -    (15)       -
Environmental remediation costs(1)           17      12      31
24
Gains on sale of investments                -       -     (9)     (1)
Other than temporary impairment of
 investments                                3       -       3       -
World Gold Council fees                     3       2       7       7
Currency translation gains               (11)     (3)     (6)     (4)
Pension expense                             1       1       3       3
Other items                                10      10      24      16
---------------------------------------------------------------------
                                         $ 21    $ 12    $ 26    $ 41
---------------------------------------------------------------------
(1) Includes costs at development projects and closed mines and
    changes in the expected costs of AROs at closed mines (see note
    2d).

Kabanga transaction

In April 2005 we finalized a joint-venture agreement with Falconbridge Limited ("Falconbridge") for the Kabanga nickel deposit and related concessions located in Tanzania. Under the terms of the agreement, Falconbridge has acquired a 50% indirect joint venture interest for $15 million cash and will be the operator of the joint venture. On closing of the transaction with Falconbridge we recorded a gain of $15 million.



Pension expense
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Expected return on plan assets          $ (3)   $ (3)   $ (9)   $ (8)
Interest cost on benefit obligation         3       4       9      10
Actuarial losses                            1       -       3       1
---------------------------------------------------------------------
                                        $   1   $   1   $   3   $   3
---------------------------------------------------------------------



7. INCOME TAX EXPENSE
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Current                                  $ 28    $  3    $ 47    $ 33
Deferred                                    8      10      13       5
---------------------------------------------------------------------
                                         $ 36    $ 13    $ 60    $ 38
Recognition of deferred tax assets          -     (8)       -    (38)
---------------------------------------------------------------------
                                         $ 36    $  5    $ 60    $  -
---------------------------------------------------------------------
Actual effective income tax rate,
 excluding recognition of deferred tax
 assets                                   24%     35%     21%     41%
---------------------------------------------------------------------

The primary reasons why our actual effective income tax rate differs from the 38% Canadian statutory rate are due to certain allowances and special deductions unique to extractive industries, and also because we operate in multiple tax jurisdictions that have different tax rates than the Canadian federal and provincial rates.



8. EARNINGS PER SHARE
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
($ millions, except shares in millions   September 30    September 30
 and per share amounts in dollars)       2005    2004    2005    2004
---------------------------------------------------------------------
Income available to common stockholders
 Basic                                  $ 113    $ 32   $ 226    $ 92
 Effect of dilutive stock options           -       -       -       -
---------------------------------------------------------------------
 Diluted                                $ 113    $ 32   $ 226    $ 92
---------------------------------------------------------------------
Weighted average shares outstanding
 Basic                                    536     532     535     533
 Effect of dilutive stock options           3       1       2       2
---------------------------------------------------------------------
 Diluted                                  539     533     537     535
---------------------------------------------------------------------
 Earnings per share
  Basic and diluted                    $ 0.21  $ 0.06  $ 0.42  $ 0.17
---------------------------------------------------------------------



9. SUPPLEMENTAL CASH FLOW INFORMATION
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Income statement items:
 Currency translation gains             $ (6)  $ (12)   $ (4)   $ (7)
 Accretion expense                          6       6      16      14
 Non-hedge derivative (gains) losses
  (note 14)                                 2     (8)     (7)       1
 Current income tax expense (note 7)       28       3      47      33
 Revisions to expected cost of AROs at
  closed mines (note 2d)                    8       -      13       -
 Cumulative effect of changes in
  accounting principles (note 2b)           -       -     (6)       -
 Deferred income taxes (note 7)             8       2      13    (33)
 Gains on sale of assets                  (4)     (2)     (5)     (5)
Changes in:
 Accounts receivable                       11     (1)       7     (6)
 Inventory                               (20)       -    (94)    (26)
 Accounts payable                          36      11      72      31
 Capitalized mining costs                   -       2       -       5
 Taxes recoverable                       (22)    (23)    (15)    (40)
 Other assets and liabilities            (13)      21    (11)      40
Cash payments:
 Asset retirement obligations             (6)     (7)    (20)    (24)
 Current income taxes                    (20)      11    (49)    (40)
---------------------------------------------------------------------
 Other net operating activities           $ 8     $ 3  $ (43)  $ (57)
---------------------------------------------------------------------



10. INVENTORIES
---------------------------------------------------------------------
                                          At Sept.30,      At Dec.31,
                                                 2005            2004
---------------------------------------------------------------------
Inventories
 Gold in process and ore in stockpiles          $ 506           $ 198
 Mine operating supplies                          116              82
---------------------------------------------------------------------
                                                  622             280
 Non-current ore in stockpiles(1)               (261)            (65)
---------------------------------------------------------------------
                                                $ 361           $ 215
---------------------------------------------------------------------
(1) Ore that we do not expect to process in the next 12 months is
    classified in other assets. On adoption of EITF 04-6 in second
    quarter 2005, amounts totaling $232 million were reclassified
    from capitalized mining costs to ore in stockpiles (see note 2b).



11. INVESTMENTS
A Available-for-sale securities
---------------------------------------------------------------------
                                     At Sept.30, 2005 At Dec.31, 2004
---------------------------------------------------------------------
                                                Gains           Gains
                                        Fair (Losses)   Fair (Losses)
                                       value   in OCI  value   in OCI
---------------------------------------------------------------------
Securities in an unrealized gain
 position
Benefit plans:(1)
 Fixed-income securities                $  4   $    -   $ 11     $  -
 Equity securities                        16        1     19       10
Strategic investments:
 Equity securities                        38       24     24       13
---------------------------------------------------------------------
                                        $ 58   $   25   $ 54     $ 23
---------------------------------------------------------------------
Securities in an unrealized loss
 position
Strategic investments:
 Equity securities(2)                    $ 13   $ (12)  $  5     $(2)
---------------------------------------------------------------------
                                         $ 71   $   13  $ 59     $ 21
---------------------------------------------------------------------
(1) Under various benefit plans for certain former Homestake
    executives, a portfolio of marketable fixed-income and equity
    securities are held in a rabbi trust that is used to fund
    obligations under the plans.
(2) Includes an investment in the ordinary shares of Celtic Resources
    (fair value of $13 million at September 30, 2005), which has been
    in a continuous loss position for less than three months.

Strategic equity investments in an unrealized loss position comprise a company that operates in the gold mining industry, and whose market share price is impacted by the price of gold. In evaluating whether the impairment at September 30, 2005 was "other than temporary", we took into consideration the decline in value occurred in the third quarter 2005, our positive outlook for the price of gold, and the prospective nature and value of its interests in mineral properties. We concluded that the impairment at September 30, 2005 was temporary.

Investment in Celtic Resources Holdings PLC ("Celtic")

On January 5, 2005 we completed a subscription for 3,688,191 units of Celtic for a price of $7.562 per unit for a total cost of $30 million. Each unit consisted of one ordinary share of Celtic and one-half of one share purchase warrant. We have allocated $25 million to the ordinary shares and $5 million to the share purchase warrants based on their relative fair values. On completion, we held a 9% direct and indirect interest in Celtic's outstanding common shares. On June 1, 2005, the number of warrants held increased under the terms of the subscription agreement by 922,048 warrants to 2,766,143 warrants based on their relative fair values at acquisition. Each whole warrant entitles us to acquire one ordinary share of Celtic for $7.562, expiring on December 31, 2007. We determined that the share purchase warrants are derivative instruments as defined by FAS 133. The warrants are classified as non-hedge derivatives in the balance sheet with changes in fair value subsequent to acquisition recorded in earnings.

Celtic has granted us the right to acquire 50% of any interest in any mineral property in Kazakhstan that Celtic acquires for a period of 12 months after any such acquisition for an amount equal to 50% of the cost to Celtic of its interest in the mineral property.



B Equity Method Investments
---------------------------------------------------------------------
                                 At Sept.30, 2005     At Dec.31, 2004
---------------------------------------------------------------------
                                    Fair Carrying       Fair Carrying
                                value(1)   amount   value(1)   amount
Highland Gold Mining PLC           $ 124    $ 136       $ 75     $ 88
Diamondex Resources Limited            8        8          -        -
---------------------------------------------------------------------
                                   $ 132    $ 144       $ 75     $ 88
---------------------------------------------------------------------
(1) Based on the closing market stock price.

Highland Gold Mining PLC ("Highland")

On May 6, 2005, we purchased 11 million common shares of Highland for cash consideration of $50 million, increasing our equity ownership to 20%. Following this increase in ownership we re-evaluated the accounting method used for this investment and concluded that the equity method is the most appropriate accounting treatment for this investment. Under the equity method we record our share of income or loss of Highland each period based on our actual ownership interest in each period from fourth quarter 2003, when we first purchased an equity interest in Highland. On transition to equity accounting, US GAAP requires financial statements for prior periods to be revised to reflect the new accounting treatment.

The difference between the cost of our investment in Highland and the underlying net assets of Highland was $76 million at September 30, 2005. We are in the process of determining whether mineralized material at mining properties owned by Highland meets the definition of a reserve for US reporting purposes and also finalizing valuations for the assets and liabilities of Highland to allocate the cost of the purchase, with any residual unallocated amount representing goodwill. Once this process is complete, we will evaluate the need for any revisions to the equity pick up to reflect the results of Highland on a US GAAP basis.

Diamondex Resources Limited ("Diamondex")

We completed a subscription for 7,550,000 units of Diamondex for $5 million on May 18, 2005 and a further 3,561,111 units on July 4, 2005 for $3 million. Each unit consists of one ordinary share of Diamondex and one share purchase warrant. On completion, we held a 14% interest in the outstanding common shares of Diamondex (25% assuming exercise of the share purchase warrants). $7 million was allocated to the ordinary shares and $1 million to the share purchase warrants.



12. PROPERTY, PLANT AND EQUIPMENT

The following assets were not being amortized.

---------------------------------------------------------------------
                                        Carrying  Carrying   Targeted
                                       amount at amount at  timing of
                                       Sept. 30,  December production
                                            2005  31, 2004   start-up
---------------------------------------------------------------------
Development projects
 Veladero                                  $ 578     $ 349   Q4, 2005
 Cowal                                       324       128       2006
 Ruby Hill project                            27         -       2007
 Pascua-Lama                                 308       243       2009
Buzwagi exploration project                  102       102          -
Nevada Power Plant                            81        18   Q4, 2005
---------------------------------------------------------------------
Total                                    $ 1,420     $ 840
---------------------------------------------------------------------

In 2005, amortization of property, plant and equipment at the Tulawaka and Lagunas Norte mines began after the mines moved from construction into the production phase.

Capital commitments

In addition to entering into various operational commitments in the normal course of business, we had commitments of approximately $80 million at September 30, 2005 for construction activities at our development projects and for construction of a power plant in Nevada to supply the Goldstrike mine.



13. OTHER ASSETS
---------------------------------------------------------------------
                                          At Sept.30,      At Dec.31,
                                                 2005            2004
---------------------------------------------------------------------
Ore in stockpiles                               $ 261            $ 65
Derivative assets                                 249             257
Other                                             243             244
---------------------------------------------------------------------
                                                $ 753           $ 566
---------------------------------------------------------------------

14. FINANCIAL INSTRUMENTS
A Long-term debt
Interest expense
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
---------------------------------------------------------------------
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Interest incurred                        $ 33    $ 13    $ 92    $ 36
Less: capitalized                        (33)     (7)    (91)    (18)
---------------------------------------------------------------------
Interest expense                         $  -    $  6    $  1    $ 18
---------------------------------------------------------------------


Proceeds
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
---------------------------------------------------------------------
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Veladero financing(1)                    $  -   $ 167   $  35   $ 167
Peru lease facilities
 First facility(2)                         23       -      73       -
 Second facility(3)                         9       -      12       -
Peruvian bonds(4)                           -       -      50       -
---------------------------------------------------------------------
Total                                    $ 32   $ 167   $ 170   $ 167
---------------------------------------------------------------------
(1) A total amount of $233 million was outstanding under the facility
    at September 30, 2005.
(2) By September 30, 2005, a total of $103 million had been drawn
    down under a $110 million build to suit lease facility held by
    one of our wholly owned subsidiaries, Minera Barrick Misquichilca
    (MBM). We repaid $23 million in September 2005, with the
    remaining $80 million repayable in 20 equal quarterly
    installments commencing in fourth quarter 2005. The lease
    facility has an interest rate of Libor plus 2.5% for the first
    12 installments and Libor plus 2.6% for the last 8 installments.
(3) In second quarter 2005, MBM finalized a second build to suit
    lease facility for $20 million, which is being used to finance
    the extension of the leach pad at the Lagunas Norte project.
    Since the end of the third quarter, we have secured an expansion
    of the facility to a total facility of $30 million.
(4) In second quarter 2005, MBM issued $50 million of debt securities
    in the Peruvian capital markets. The net proceeds have been used
    to partially fund the construction of the Lagunas Norte project.
    The securities bear interest at Libor plus 1.72%, and mature in
    2013.

Bulyanhulu project financing

In second quarter 2005, the terms of our Bulyanhulu financing were amended, with the lender having recourse to Barrick going forward in return for a reduction in the credit spread over Libor on the financing, from Libor plus 1.5% to Libor plus 0.35%. The covenants governing the financing have also been simplified. Kahama Mining Corporation Ltd., a subsidiary that owns Bulyanhulu, had a variable-rate recourse amortizing loan for $136 million at September 30, 2005.

Corporate loan facility

In third quarter 2005, we extended our $1 billion Corporate loan facility by two years from April 2008 to April 2010.



B Derivative instruments ("derivatives")
Summary of derivatives at September 30, 2005(1)
---------------------------------------------------------------------
                                                    Accounting
                          Notional Amount    Classification by   Fair
                      by Term to Maturity      Notional Amount  value
---------------------------------------------------------------------
                                              Cash  Fair
                 Within   2 to 5              flow value  Non-
                 1 year    years    Total    hedge hedge Hedge

US dollar interest
 rate contracts
Receive-fixed swaps
 (millions)       $   -  $ 1,100  $ 1,100  $   550  $500 $  50 $ (20)
Pay-fixed swaps
 (millions)           -      261      261      136     -   125   (15)
---------------------------------------------------------------------
Net notional
 position         $   -  $   839  $   839  $   414  $500 $(75) $ (35)
---------------------------------------------------------------------
Currency contracts

C$:US$ contracts
 (C$ millions)   C$ 263 C$   550 C$   813 C$   813     -  -(3) $   89
A$:US$ contracts
 (A$ millions)   A$ 607 A$ 1,499 A$ 2,106 A$ 2,101     -A$   5 $  131
EUR:US$ contracts
 (EUR millions)  EUR 10        -   EUR 10   EUR 10     -     - $  (1)
ARS:US$ contracts
 (ARS millions)      36        9       45       45     -     -      -
---------------------------------------------------------------------
Commodity contracts
Fuel contracts
 (thousands of
 barrels)(2)        693    1,557    2,250    2,157     -    93  $  50
Propane contracts
 (millions of
 gallons)            16        5       21       21     -     -  $   8
---------------------------------------------------------------------
(1) Excludes gold sales contracts (see note 4), gold lease rate swaps
    (see note 4) and Celtic share purchase warrants (see note 4).
(2) Includes WTI, Mean of Platts Singapore (MOPS) and US Waterborne
    contracts.
(3) $62 million of non-hedge currency contracts were economically
    closed out by entering into offsetting positions albeit with
    differing counterparties.


    US dollar interest rate contracts

    Cash flow hedges - cash balances

Receive-fixed swaps have been designated against the first $550 million of our cash balances as a hedge of the variability of forecasted interest receipts on the balances caused by changes in Libor.

Cash flow hedges - Bulyanhulu financing

Pay-fixed swaps totaling $136 million have been designated against the Bulyanhulu financing as a hedge of the variability in forecasted interest payments caused by changes in Libor.

Fair value hedges

Receive-fixed swaps totaling $500 million have been designated against the 7 1/2% debentures as a hedge of the variability in the fair value of the debentures caused by changes in Libor.

Non-hedge contracts

We use gold lease rate swaps to achieve a more economically optimal term structure for gold lease rates implicit in fixed-price gold sales contracts (see note 4). The valuation of gold lease rate swaps is impacted by market US dollar interest rates. Our non-hedge pay-fixed swap position largely mitigates the impact of changes in US dollar interest rates on the valuation of gold lease rate swaps.


    Currency contracts

    Cash flow hedges

Currency contracts totaling C$813 million, A$2,101 million, EUR 10 million and ARS 45 million have been designated against forecasted local currency denominated expenditures as a hedge of the variability of the US dollar amount of those expenditures caused by changes in currency exchange rates.


    Commodity contracts

    Cash flow hedges

Commodity contracts totaling 2,157 thousand barrels of crude oil and 21 million gallons of propane have been designated against forecasted purchases of the commodities for expected consumption at our mining operations.

Non-hedge contracts

Non-hedge fuel contracts are used to mitigate the risk of oil price changes on consumption at the Lagunas Norte mine. On completion of regression analysis, we concluded that the contracts do not meet the "highly effective" criterion in FAS 133 due to currency and basis differences between contract prices and the prices charged to the mines by oil suppliers. Despite not qualifying as an accounting hedge, the contracts protect the Company to a significant extent from the effects of oil price changes.



Non-hedge derivative gains (losses)(1)
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Non-hedge derivatives
 Commodity contracts                      $ 1     $ 2     $ 7   $ (7)
 Currency contracts                         -       3       1     (7)
 Interest rate contracts                  (1)       3       -      11
 Share purchase warrants                  (4)       -     (4)       -
---------------------------------------------------------------------
                                          (4)       8       4     (3)
Hedge ineffectiveness
 Ongoing hedge inefficiency                 2       -       2       -
 Due to changes in timing of hedged
  items                                     -       -       1       2
---------------------------------------------------------------------
                                        $ (2)     $ 8     $ 7   $ (1)
---------------------------------------------------------------------
(1) Non-hedge derivative gains (losses) are classified as a component
    of other expense.



Cash Flow Hedge Gains (Losses) in OCI
---------------------------------------------------------------------
           Commodity
               price                              Interest
              hedges      Currency hedges        rate hedges
           --------- ------------------------- ---------------
                             Adminis-  Capital           Long-
                    Operating tration  expend-     Cash   term
                Fuel    costs   costs   itures balances   debt  Total
---------------------------------------------------------------------
At Dec.31, 2004  $ 2    $ 240    $ 33     $ 48      $ 3 $ (25)  $ 301
Effective
 portion of
 change in
 fair value
 of hedging
 instruments      53        4      13      (1)        1      5     75
Transfers to
 earnings:
  On recording
   hedged items
   in earnings   (7)     (76)    (11)      (3)      (4)      1  (100)
 Hedge
  ineffectiveness
  due to changes
  in timing of
  hedged items     -        -       -      (1)        -      -    (1)
---------------------------------------------------------------------
At September
 30, 2005       $ 48    $ 168    $ 35     $ 43      $ - $ (19)  $ 275
---------------------------------------------------------------------

Hedge gains/
 losses                        Admin-   Amort-   Inte-  Inte-
 classified  Cost of  Cost of  istra-    izat-     rest  rest
 within        sales    sales    tion      ion   income  cost
---------------------------------------------------------------------
Portion of
 hedge gain
 (loss)
 expected to
 affect
 earnings in
 the next
 twelve
 months(1)      $ 21    $ 89     $ 16      $ 2    $ (1)  $ (1)  $ 126
---------------------------------------------------------------------
(1) Based on the fair value of hedge contracts at September 30, 2005.



15. OTHER LONG-TERM OBLIGATIONS
A Asset Retirement Obligations (AROs)
---------------------------------------------------------------------
At January 1, 2005                                              $ 367
AROs incurred in the period                                        27
Impact of revisions to expected cash flows
 Adjustments to carrying amount of assets                          20
 Charged to earnings (note 2d)                                     13
Settlements
 Cash payments                                                   (20)
 Settlement gains                                                 (2)
Accretion                                                          16
---------------------------------------------------------------------
At September 30, 2005                                             421
Current part                                                     (33)
---------------------------------------------------------------------
                                                                $ 388
---------------------------------------------------------------------


    16. CAPITAL STOCK

    A Common Shares

In the three month period ended June 30, 2005, we declared and paid dividends in US dollars totaling $0.11 per share (three months ended June 30, 2004: $0.11 per share). During the three month period ended March 31, 2004, we repurchased 4.47 million common shares for $95 million, at an average cost of $21.20 per share. This resulted in a reduction of common share capital by $35 million and a $60 million charge (being the difference between the repurchase cost and the average historic book value of shares repurchased) to retained earnings.

B Exchangeable Shares

In connection with a 1998 acquisition, Barrick Gold Inc. ("BGI") issued 11.1 million BGI exchangeable shares, which are each exchangeable for 0.53 of a Barrick common share at any time at the option of the holder, and have essentially the same voting, dividend (payable in Canadian dollars), and other rights as 0.53 of a Barrick common share. BGI is a subsidiary that holds our interest in the Hemlo and Eskay Creek Mines.

At September 30, 2005, 1.4 million BGI exchangeable shares were outstanding, which are equivalent to 0.7 million Barrick common shares (2004 - 0.7 million common shares). While there are exchangeable shares outstanding, we are required to present summary consolidated financial information relating to BGI.



Summarized financial information for BGI
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
                                         September 30    September 30
                                         2005    2004    2005    2004
---------------------------------------------------------------------
Total revenues and other
 income                                $   46  $   46   $ 144   $ 158
Less: costs and expenses                 (58)    (65)   (134)   (149)
---------------------------------------------------------------------
Income (loss) before taxes             $ (12)  $ (19)   $  10   $   9
---------------------------------------------------------------------
Net income (loss)                      $  (3)  $ (22)   $  17   $   1
---------------------------------------------------------------------

                                At September 30, 2005 At Dec.31, 2004
---------------------------------------------------------------------
Assets
 Current assets                                  $ 95            $ 67
 Non-current assets                                88             119
---------------------------------------------------------------------
                                                $ 183           $ 186
---------------------------------------------------------------------
Liabilities and shareholders' equity
 Other current liabilities                         16              24
 Intercompany notes payable                       393             395
 Other long-term liabilities                       34              36
 Deferred income taxes                             19              20
 Deficit                                        (279)           (289)
---------------------------------------------------------------------
                                                $ 183           $ 186
---------------------------------------------------------------------

17. STOCK-BASED COMPENSATION

We record compensation cost for stock options based on the excess of the market price of the stock at the grant date of an award over the exercise price. Historically, the exercise price for stock options has equaled the market price of stock at the grant date, resulting in no compensation cost. We provide information in the following table to illustrate the pro forma effect of following an accounting policy of expensing the fair value of stock options.



Stock option expense
---------------------------------------------------------------------
                                         Three months     Nine months
                                                ended           ended
($ millions, except per share            September 30    September 30
 amounts in dollars)                     2005    2004    2005    2004
---------------------------------------------------------------------
Pro forma effects
Net income, as reported                $  113  $   32  $  226  $   92
Stock-option expense                      (9)     (8)    (24)    (22)
---------------------------------------------------------------------
Pro forma net income                   $  104  $   24  $  202  $   70
---------------------------------------------------------------------
Net income per share:
As reported(1)                         $ 0.21  $ 0.06  $ 0.42  $ 0.17
Pro forma(1)                           $ 0.19  $ 0.04  $ 0.38  $ 0.13
---------------------------------------------------------------------
(1) Basic and diluted.



18. OTHER COMPREHENSIVE INCOME (LOSS) ("OCI")
---------------------------------------------------------------------
                                     Three months         Nine months
                                            ended               ended
                                     September 30        September 30
                                  2005       2004      2005      2004
---------------------------------------------------------------------
Accumulated OCI at
 beginning of period
 Cash flow hedge gains, net
  of tax of $83, $49, $95, $99   $ 180       $ 98     $ 206     $ 189
 Investments, net of tax of
  $nil, $nil, $nil, $nil            10         14        21        25
 Currency translation
  adjustments, net of tax of
  $nil, $nil, $nil, $nil         (146)      (147)     (146)     (147)
 Additional pension
  liability, net of tax of
  $nil, $nil, $nil, $nil          (12)        (7)      (12)       (7)
---------------------------------------------------------------------
                                  $ 32     $ (42)      $ 69      $ 60
---------------------------------------------------------------------
Other comprehensive income
 (loss) for the period:
 Changes in fair value of
  cash flow hedges                  49         76        75       (8)
 Changes in fair value of
  investments                        -          1       (2)       (8)
Less: reclassification
 adjustments for
 gains/losses recorded in
 earnings:
 Transfers of cash flow
  hedge gains to earnings:
  On recording hedged items
   in earnings                    (37)       (30)     (100)      (85)
  Hedge ineffectiveness due
   to changes in timing of
   hedged items                      -          -       (1)       (2)
 Investments:
  Other than temporary
   impairment charges                3          -         3         1
  Gains realized on sale             -          -       (9)       (3)
---------------------------------------------------------------------
Other comprehensive income
 (loss), before tax                 15         47      (34)     (105)
Income tax recovery
 (expense) related to OCI          (6)       (17)         6        33
---------------------------------------------------------------------
Other comprehensive income
 (loss), net of tax                $ 9       $ 30    $ (28)    $ (72)
---------------------------------------------------------------------
Accumulated OCI at
 September 30
 Cash flow hedge gains, net
  of tax of $89, $66, $89, $66     186        127       186       127
 Investments, net of tax of
  $nil, $nil, $nil, $nil            13         15        13        15
 Currency translation
  adjustments, net of tax of
  $nil, $nil, $nil, $nil         (146)      (147)     (146)     (147)
 Additional pension
  liability, net of tax of
  $nil, $nil, $nil, $nil          (12)        (7)      (12)       (7)
---------------------------------------------------------------------
                                  $ 41     $ (12)      $ 41    $ (12)
---------------------------------------------------------------------


    19. CONTINGENCIES

    Blanchard complaint

On January 7, 2003, we were served with a Complaint for Injunctive Relief by Blanchard and Company, Inc. ("Blanchard"), and Herbert Davies ("Davies"). The complaint, which is pending in the U.S. District Court for the Eastern District of Louisiana, also names J.P. Morgan Chase & Company ("J.P. Morgan") as a defendant, along with an unspecified number of additional defendants to be named later. The complaint, which has been amended several times, alleges that we and bullion banks with whom we entered into spot deferred gold sales contracts have manipulated the price of gold, in violation of U.S. anti-trust laws and the Louisiana Unfair Trade Practices and Consumer Protection Law. Blanchard and Davies both allege that they have been injured as a seller of gold due to reduced interest in gold as an investment. The complaint seeks damages and an injunction terminating certain of our trading agreements with J.P. Morgan and other bullion banks. In September 2003, the Court issued an Order granting in part and denying in part Barrick's motions to dismiss this action. In February 2005, the Court granted Blanchard's motion to amend their complaint to add an allegation of a violation of the Commodity Exchange Act and amend its allegation of Barrick's violation of anti-trust laws. Discovery has commenced in the case and a trial date has been tentatively set for January 2006. We have and will continue to vigorously defend the action.

McKenzie complaint

On September 21, 2004, a putative class action complaint was filed in the U.S. District Court for the Eastern District of Louisiana against Barrick and J.P. Morgan. The plaintiffs, Dr. Gregg McKenzie and others are alleged purchasers of gold and gold derivatives. The complaint alleges violations of the U.S. anti-trust laws and also of the Commodity Exchange Act, based upon the same conduct as alleged in the Blanchard complaint. The complaint seeks damages and an injunction terminating certain of our trading agreements with J.P. Morgan. On December 17, 2004, a second and substantially identical complaint was filed in the same court against the same defendants. We have and will continue to vigorously defend both actions.

Wagner complaint

On June 12, 2003, a complaint was filed against Barrick and several of its current or former officers in the U.S. District Court for the Southern District of New York. The complaint is on behalf of Barrick shareholders who purchased Barrick shares between February 14, 2002 and September 26, 2002. It alleges that Barrick and the individual defendants violated U.S. securities laws by making false and misleading statements concerning Barrick's projected operating results and earnings in 2002. The complaint seeks an unspecified amount of damages. Other parties on behalf of the same proposed class of Barrick shareholders filed several other complaints, making the same basic allegations against the same defendants. In September 2003, the cases were consolidated into a single action in the Southern District of New York. The Plaintiffs filed a Consolidated and/or Amended Complaint on November 5, 2003. On January 14, 2004, Barrick filed a motion to dismiss the complaint. On September 29, 2004, the Court issued an order granting in part and denying in part Barrick's motion to dismiss the action. The Plaintiffs filed a Second Amended Complaint on October 20, 2004. The Plaintiffs filed a Third Amended Complaint on January 6, 2005. On May 23, 2005, Barrick filed a motion to dismiss the Third Amended Complaint. On July 5, 2005, the Plaintiffs filed their opposition to Barrick's motion to dismiss, and Barrick filed its response to the Plaintiffs' Opposition on August 2, 2005. The Court has not yet ruled on the motion to dismiss the Third Amended Complaint. We have and will continue to vigorously defend the action.

Wilcox complaint

On September 8, 2004, two of our U.S. subsidiaries, Homestake Mining Company of California ("Homestake California") and Homestake Mining Company ("Homestake") were served with a First Amended Complaint by persons alleging to be current or former residents of a rural area near the former Grants Uranium Mill. The Complaint, which was filed in the U.S. District Court for the District of New Mexico, identifies 26 plaintiffs. Homestake and Homestake California, along with an unspecified number of unidentified defendants, are named as defendants. The plaintiffs allege that they have suffered a variety of physical, emotional and financial injuries as a result of exposure to radioactive and other hazardous substances. The Complaint seeks an unspecified amount of damages. A motion to dismiss the claim was filed with the Court, but the Court has not yet ruled on the motion. We have and will continue to vigorously defend the action.



Mine Statistics

                                   UNITED STATES
               ------------------------------------------------------
                                            Goldstrike        Round
Three months      Open Pit   Underground       Total        Mountain
 ended
 September 30,  2005    2004  2005  2004   2005    2004   2005   2004
---------------------------------------------------------------------
Tons mined
 (thousands)  32,668  34,432   316   365 32,984  34,797  3,802  4,925
Tons processed
 (thousands)   2,692   2,697   311   378  3,003   3,075  7,508  8,910
Average grade
 (ounces per
  ton)         0.203   0.153 0.375 0.412  0.221   0.185  0.014  0.014
Recovery rate
 (percent)     87.0%   86.7% 89.4% 90.0%  87.5%   87.4%    n/a    n/a
---------------------------------------------------------------------
Production
 (thousands of
  ounces)        475     356   104   140    579     496     97    106

Production
 costs
 per ounce
 Cash operating
  costs        $ 174   $ 229 $ 332 $ 257  $ 204   $ 236  $ 195  $ 178
 Royalties and
  production
  taxes           23      18    17    22     21      19     36     23
 Accretion
  expense          1       2     1     -      1       1      4      4
---------------------------------------------------------------------
 Total cash
  costs(1)       198     249   350   279    226     256    235    205
 Amortization     53      60   132   134     68      80     46     52
---------------------------------------------------------------------
Total
 production
 costs         $ 251   $ 309 $ 482 $ 413  $ 294   $ 336  $ 281  $ 257
Capital
 expenditures
 (US$ millions) $ 50     $ 2   $ 7   $ 8   $ 57    $ 10    $ -    $ 2
---------------------------------------------------------------------



Nine months
 ended
 September 30,  2005    2004  2005  2004   2005    2004   2005   2004
---------------------------------------------------------------------
Tons mined
 (thousands)  98,634 104,266 1,081 1,200 99,715 105,466 12,403 15,007
Tons processed
 (thousands)   7,584   8,109 1,106 1,221  8,690   9,330 25,359 28,059
Average grade
 (ounces per
  ton)         0.158   0.147 0.385 0.392  0.187   0.179  0.014  0.015
Recovery rate
 (percent)     84.8%   84.6% 90.1% 89.3%  86.2%   85.2%    n/a    n/a
---------------------------------------------------------------------
Production
 (thousands of
  ounces)      1,019   1,009   383   427  1,402   1,436    290    297

Production
 costs
 per ounce
 Cash operating
  costs        $ 226   $ 237 $ 281 $ 242  $ 242   $ 239  $ 193  $ 179
 Royalties and
  production
  taxes           17      17    23    22     18      18     35     28
 Accretion
  expense          2       2     -     1      1       1      4      4
---------------------------------------------------------------------
 Total cash
  costs(1)       245     256   304   265    261     258    232    211
 Amortization     62      61   119   129     79      81     45     56
---------------------------------------------------------------------
Total production
 costs         $ 307   $ 317 $ 423 $ 394  $ 340   $ 339  $ 277  $ 267
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions) $ 95    $ 19  $ 22  $ 20  $ 117    $ 39    $ 1    $ 4
---------------------------------------------------------------------

(1) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs.



                                        AUSTRALIA
                -----------------------------------------------------
                     Plutonic      Darlot      Lawlers     Kalgoorlie
Three months
 ended
 September 30,    2005    2004   2005  2004  2005  2004   2005   2004
---------------------------------------------------------------------
Tons mined
 (thousands)       362   4,227    188   241   207   904  9,944 10,549
Tons processed
 (thousands)       434     596    229   226   223   229  1,819  1,839
Average grade
 (ounces per
  ton)           0.153   0.130  0.184 0.197 0.149 0.132  0.064  0.079
Recovery rate
 (percent)       90.2%   90.2%  96.2% 94.6% 96.9% 95.2%  85.5%  88.2%
---------------------------------------------------------------------
Production
 (thousands of
  ounces)           60      72     41    42    32    29     99    129

Production costs
 per ounce
 Cash operating
  costs          $ 229   $ 212  $ 229 $ 185 $ 294 $ 240  $ 220  $ 216
 Royalties and
  production
  taxes             10       9      8     8     7     7      9      8
 Accretion
  expense            -       2      -     1     1     2      2      9
---------------------------------------------------------------------
 Total cash
  costs(1)         239     223    237   194   302   249    231    233
 Amortization       42      34     66    49    53    42     56     51
---------------------------------------------------------------------
Total production
 costs           $ 281   $ 257  $ 303 $ 243 $ 355 $ 291  $ 287  $ 284
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)    $ 6     $ 3    $ 3   $ 1   $ 2   $ -    $ 6    $ 2
---------------------------------------------------------------------



Nine months
 ended
 September 30,    2005    2004   2005  2004  2005  2004   2005   2004
---------------------------------------------------------------------
Tons mined
 (thousands)     3,296  10,155    570   679   565 3,115 31,629 34,028
Tons processed
 (thousands)     1,595   2,018    628   646   653   649  5,545  5,272
Average grade
 (ounces per
  ton)           0.136   0.127  0.159 0.181 0.147 0.131  0.070  0.073
Recovery rate
 (percent)       89.3%   89.9%  95.9% 96.1% 96.3% 96.2%  86.6%  86.9%
---------------------------------------------------------------------
Production
 (thousands
  of ounces)       194     231     96   112    93    82    336    334

Production costs
 per ounce
 Cash operating
  costs          $ 242   $ 206  $ 260 $ 191 $ 278 $ 238  $ 207  $ 220
 Royalties and
  production
  taxes             11       8      8     8     8     7     10      8
 Accretion
  expense            -       1      -     1     1     1      2      4
---------------------------------------------------------------------
 Total cash
  costs(1)         253     215    268   200   287   246    219    232
 Amortization       36      32     68    50    53    48     48     45
---------------------------------------------------------------------
Total production
 costs           $ 289   $ 247  $ 336 $ 250 $ 340 $ 294  $ 267  $ 277
---------------------------------------------------------------------
Capital
 expenditures
 (US$ millions)   $ 13    $ 11    $ 8   $ 6   $ 5   $ 2    $ 9    $ 7
---------------------------------------------------------------------

(1) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs.



                                            CANADA
                      -----------------------------------------------
                           Hemlo          Eskay Creek  Holt-McDermott
Three months
 ended September 30,   2005     2004     2005     2004    2005   2004
------------------------------------  ----------------  -------------
Tons mined
 (thousands)          1,037    1,172       48       69       -    106
Tons processed
 (thousands)            464      520       49       61       -    107
Average grade
 (ounces per ton)     0.127    0.109    0.967    1.050       -  0.152
Recovery rate
 (percent)            93.9%    94.0%    86.3%    92.1%       -  93.6%
------------------------------------  ----------------  -------------
Production (thousands
 of ounces)              59       54       41       60       -     15

Production costs
 per ounce
 Cash operating
  costs               $ 270    $ 259     $ 49     $ 57     $ -  $ 156
 Royalties and
  production taxes       10        9        6        6       -      1
 Accretion expense        1        1        5        1       -      -
------------------------------------  ----------------  -------------
 Total cash costs(1)    281      269       60       64       -    157
 Amortization            59       54      175      220       -     83
------------------------------------  ----------------  -------------
Total production
 costs                $ 340    $ 323    $ 235    $ 284     $ -  $ 240
------------------------------------  ----------------  -------------
Capital expenditures
 (US$ millions)         $ 1      $ 2      $ -      $ 1     $ -    $ -
------------------------------------  ----------------  -------------



Nine months
 ended September 30,   2005     2004     2005     2004    2005   2004
------------------------------------  ----------------  -------------
Tons mined
 (thousands)          3,406    3,533      159      201       -    380
Tons processed
 (thousands)          1,447    1,512      162      193       -    394
Average grade
 (ounces per ton)     0.124    0.127    0.999    1.194       -  0.149
Recovery rate
 (percent)            93.8%    94.2%    90.9%    93.0%       -  93.1%
------------------------------------  ----------------  -------------
Production (thousands
 of ounces)             180      181      147      216       -     55

Production costs
 per ounce
 Cash operating
  costs               $ 270    $ 234     $ 44     $ 35     $ -  $ 197
 Royalties and
  production taxes       10        9        7        5       -      -
 Accretion expense        1        1        3        -       -      1
------------------------------------  ----------------  -------------
 Total cash costs(1)    281      244       54       41       -    198
 Amortization            57       48      140      170       -    114
------------------------------------  ----------------  -------------
Total production
 costs                $ 338    $ 292    $ 194    $ 211     $ -  $ 312
------------------------------------  ----------------  -------------
Capital expenditures
 (US$ millions)         $ 4      $ 5      $ 1      $ 5     $ -    $ -
------------------------------------  ----------------  -------------

(1) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs.



                               PERU                  TANZANIA
                --------------------------- -------------------------
                                   Lagunas
                     Pierina        Norte      Bulyanhulu    Tulawaka
Three months
 ended
 September 30,    2005    2004   2005  2004   2005   2004   2005 2004
------------------------------ ------------ ------------- -----------
Tons mined
 (thousands)    11,641   9,933 14,410     -    264    292  3,154    -
Tons processed
 (thousands)     4,151   4,571  4,446     -    265    283    105    -
Average grade
 (ounces per
  ton)           0.055   0.029  0.069     -  0.351  0.332  0.279    -
Recovery rate
 (percent)         n/a     n/a    n/a     -  88.7%  88.5%  95.5%    -
------------------------------ ------------ ------------- -----------
Production
 (thousands of
  ounces)          153     133    211     -     82     84     27    -

Production costs
 per ounce
 Cash operating
  costs          $ 123   $ 118  $ 106   $ -  $ 315  $ 268  $ 267  $ -
 Royalties and
  production
  taxes              -       -     12     -     11     11     15    -
 Accretion
  expense            -       6      3     -      1      1      -    -
------------------------------ ------------ ------------- -----------
 Total cash
  costs(1)         123     124    121     -    327    280    282    -
 Amortization      115     165     43     -    103    116    116    -
------------------------------ ------------ ------------- -----------
Total production
 costs           $ 238   $ 289  $ 164   $ -  $ 430  $ 396  $ 398  $ -
------------------------------ ------------ ------------- -----------
Capital
 expenditures
 (US$ millions)    $ 5     $ -   $ 28  $ 83   $ 10    $ 8    $ - $ 12
------------------------------ ------------ ------------- -----------



Nine months
 ended
 September 30,    2005    2004   2005  2004   2005   2004   2005 2004
------------------------------ ------------ ------------- -----------
Tons mined
 (thousands)    34,803  30,568 16,496     -    765    860  5,743    -
Tons processed
 (thousands)    12,327  12,498  5,902     -    783    849    225    -
Average grade
 (ounces per
  ton)           0.042   0.037  0.056     -  0.344  0.348  0.251    -
Recovery rate
 (percent)         n/a     n/a    n/a     -  88.8%  88.4%  95.7%    -
------------------------------ ------------ ------------- -----------
Production
 (thousands of
  ounces)          454     552    252     -    239    261     54    -

Production costs
 per ounce
 Cash operating
  costs          $ 123    $ 99  $ 106   $ -  $ 333  $ 258  $ 255  $ -
 Royalties and
  production
  taxes              -       -     12     -     13     12     20    -
 Accretion
  expense            5       5      3     -      1     29      1    -
------------------------------ ------------ ------------- -----------
 Total cash
  costs(1)         128     104    121     -    347    299    276    -
 Amortization      115     165     44     -    112    109    131    -
------------------------------ ------------ ------------- -----------
Total production
 costs           $ 243   $ 269  $ 165   $ -  $ 459  $ 408  $ 407  $ -
------------------------------ ------------ ------------- -----------
Capital
 expenditures
 (US$ millions)   $ 10     $ 2  $ 128 $ 115   $ 26   $ 26    $ 8 $ 27
------------------------------ ------------ ------------- -----------

(1) Total cash costs per ounce statistics for 2005 and 2004 are not
    comparable due to the change in accounting for deferred stripping
    costs.



CORPORATE OFFICE                     TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation             CIBC Mellon Trust Company
BCE Place, Canada Trust Tower,       P.O. Box 7010,
Suite 3700                           Adelaide Street Postal Station
161 Bay Street, P.O. Box 212         Toronto, Ontario M5C 2W9
Toronto, Canada M5J 2S1              Tel: (416) 643-5500
Tel: (416) 861-9911                  Toll-free throughout
Fax: (416) 861-0727                  North America: 1-800-387-0825
Toll-free within Canada and          Fax: (416) 643-5501
United States: 1-800-720-7415        Email: inquiries@cibcmellon.ca
Email: investor@barrick.com          Website: www.cibcmellon.com
Website: www.barrick.com


SHARES LISTED                        Mellon Investor Services L.L.C.
ABX - The Toronto Stock Exchange     85 Challenger Road,
      The New York Stock Exchange    Overpeck Center
      The Swiss Stock Exchange       Ridgefield Park, New Jersey
      Euronext - Paris               07660
BGD - The London Stock Exchange      Tel: (201) 329-8660
                                     Toll-free within the
                                     United States:
                                     1-800-589-9836
                                     Website: www.mellon-investor.com


INVESTOR CONTACT:                    MEDIA CONTACT:
James Mavor                          Vincent Borg
Vice President,                      Vice President,
Investor Relations                   Corporate Communications
Tel: (416) 307-7463                  Tel: (416) 307-7477
Email: jmavor@barrick.com            Email: vborg@barrick.com

FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this Third Quarter Report 2005, including any information as to our future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets (such as the Canadian and Australian dollars versus the U.S. dollar); fluctuations in the spot and forward price of gold or certain other commodities (such as silver, copper, diesel fuel and electricity); changes in U.S. dollar interest rates or gold lease rates that could impact the mark to market value of outstanding derivative instruments and ongoing payments/receipts under interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark to market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Australia, Chile, Peru, Argentina, Tanzania, Russia or Barbados or other countries in which we do or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this Third Quarter Report 2005 are qualified by these cautionary statements. Specific reference is made to Barrick's most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Barrick Gold Corporation (PARIS:ABX) (NYSE:ABX) (TSX:ABX) (Swiss:ABX) (LSE:BGD)

    CONTACT: Barrick Gold Corporation
             Vincent Borg
             Vice President, Corporate Communications
             (416) 307-7477
             Fax: (416) 861-1509
             media@barrick.com

    SOURCE: Barrick Gold Corporation

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Gold  $ 1,259.30 +1.30 +0.1% Volume: December 15, 2017
ABX NYSE  $ 14.06 -0.11 -0.78% Volume: 17,868,346 December 15, 2017
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Gold  $ 1,259.30 +1.30 +0.1% Volume: December 15, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

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