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Barrick Earns Over $1 Billion in First Nine Months of 2006; Earnings and Cash Flow Per Share Rise Over 100%

November 02, 2006

TORONTO, ONTARIO, Nov 02, 2006 (MARKET WIRE via COMTEX News Network) -- Barrick Gold Corporation (NYSE: ABX)(TSX: ABX)(LSE: BGD) -

THIRD QUARTER REPORT 2006 - NOVEMBER 2, 2006

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, and mine statistics, please see the Company's website, www.barrick.com/Investors/Annual&QuarterlyReports/

Highlights

- Q3 net income was $405 million ($0.46 per share) compared to $113 million ($0.21 per share) in the prior-year period, and Q3 operating cash flow was a record $805 million ($0.92 per share) compared to $232 million ($0.43 per share) in the prior-year period.

- Q3 equity gold production was 2.2 million ounces at total cash costs of $281 per ounce(1), for year-to-date gold production of 6.2 million ounces at total cash costs of $282 per ounce. The Company expects to meet its original 2006 gold production and cash cost guidance and is targeting to produce about 8.6 million ounces of gold at total cash costs of about $285 per ounce.

- Q3 copper production was 95 million pounds at total cash costs of $0.81 per pound(1), for a year-to-date total of 267 million pounds at total cash costs of $0.77 per pound. The Company is on track to meet its production guidance of 370 million pounds at total cash costs of about $0.80 per pound.

- During Q3, the Company announced that it had entered into an agreement to sell its interest in the South Deep mine to Gold Fields Limited for total consideration of $1.525 billion. The transaction is expected to close in early 2007.

- During Q3, Barrick announced all-cash offers for NovaGold Resources Inc. and Pioneer Metals Corporation. On October 24, 2006, Barrick announced its best and final offer price for NovaGold of US$16.00 per common share and extended the offer to November 7, 2006.

- In October 2006, Barrick successfully completed the issuance of $1 billion of copper-linked notes. Proceeds of this offering were used to repay existing short-term debt and will be used to fund Barrick's development projects.

- On November 1, 2006, Barrick entered into a preliminary agreement with Highland Gold Mining Limited to contribute its 50% interest in the Taseevskoye deposit and other exploration properties to Highland and increased its ownership to 34%.

Barrick Gold Corporation today reported net income of $405 million ($0.46 per share) for third quarter 2006, up significantly from net income of $113 million ($0.21 per share) in the year-earlier period. Third quarter 2006 net income was reduced by $45 million ($0.05 per share) of special items (see page 9 of Management's Discussion and Analysis for further details).

Operating cash flow for third quarter 2006 was a Company record of $805 million ($0.92 per share), compared with the prior-year period of $232 million ($0.43 per share).

"Our third-quarter results demonstrate the Company's ability to generate robust earnings and cash flow through expanded margins from its global portfolio of assets," said Greg Wilkins, President and CEO. "This has translated into impressive per share growth as we benefit from leverage to higher metal prices."

PRODUCTION AND COSTS

In third quarter 2006, Barrick produced 2.2 million ounces of gold at total cash costs of $281 per ounce, compared to 1.5 million ounces produced at total cash costs of $210 per ounce for the prior-year quarter. The increase in production year-over-year is due to the successful acquisition of Placer Dome.

Barrick's financial results benefited from the strong gold price, as it realized $581 per ounce on its gold sales. During the third quarter, Barrick sold all its gold production at spot prices, and incurred a $79-million charge against gold sales for the impact of the previously-announced Placer Dome hedge book close-out. In the first nine months, the Company's margin over its total cash costs has increased by 47% year-over-year due to the rising gold price environment. The Company also produced 95 million pounds of copper during the third quarter 2006, and realized $3.32 per pound on its copper sales relative to its total cash costs of $0.81 per pound.

REGIONAL RESULTS

North America

The North America region's third-quarter gold production was 0.8 million ounces, similar to the prior-year's production levels, at total cash costs of $344 per ounce compared to $224 per ounce in the prior-year period. Production from Goldstrike was lower in the third quarter due to lower-grade ore processed from the open-pit stockpiles. The Company expects North American gold production for the fourth quarter of 2006 to be higher primarily due to higher production from Goldstrike and Cortez. Total cash costs for the region increased over the same period primarily due to the mix of production from the acquired mines, and lower production from Goldstrike.

The Cortez Hills project is nearing the end of its first year, with about $40 million of the $480-million project budget spent to date. The Company targets completion of the environmental impact statement and receipt of required approvals in the second half of 2007, thereby allowing the 15-month construction period to commence. At present, open-pit mining equipment is being procured, and development of twin declines for underground exploration continues to advance.

At the Pueblo Viejo project, the Company continues to update the feasibility analysis prepared by Placer Dome prior to the acquisition, while concurrently undertaking government and community relations, and environmental permitting. During the quarter, a 10,000-meter follow-up exploration drill program was approved and initiated. The objective of the program is to confirm continuity of the new mineralization defined this year and add mineralized resources to the project.

Barrick continues to advance the Donlin Creek project. An expanded 82,000-meter drill program is in progress with the objective of upgrading mineralization in the inferred category to measured and indicated resources. Approximately 68,000 meters of core drilling were completed by the end of the quarter, including 57,000 meters of infill drilling. The drilling program is slightly ahead of schedule, however, approximately 17,000 meters of core backlog has accumulated, which should be logged by the end of the year. Grades encountered in the drilling are consistent with the resource model. The Company has ensured that the appropriate financial, technical and human resources are being devoted to the timely completion of the feasibility study.

South America

The South America region produced 0.6 million ounces of gold at total cash costs of $125 per ounce in the third quarter 2006 versus 0.4 million ounces of gold at $122 per ounce in the prior-year quarter. The year-over-year increase is due to production from the Veladero mine which opened in late 2005. Lagunas Norte produced more gold as a result of increased primary crusher throughput and higher grades, and the mine continues to target production of over one million ounces in 2006.

The Zaldivar copper mine produced 80 million pounds of copper during third quarter 2006 at total cash costs of $0.65 per pound. Production benefited in the quarter due to improved crusher availability.

At the Pascua-Lama project in Chile/Argentina, the Company filed a report consolidating all environmental impact assessments in Argentina and related documentation, including responses to public questions. Approvals from the Argentine environmental regulatory authorities are targeted for the fourth quarter of 2006. Construction is expected to commence after receipt of approvals and issuance of sectoral permits, with Pascua-Lama's first gold pour now targeted for 2010.

Barrick is the recent recipient of the Award for Excellence in Corporate Social and Ethical Responsibility for the Integrated Agricultural and Livestock Project in Cuncashca, Peru. The award was presented by the Canadian Manufacturers & Exporters (CME) and Canadian International Development Agency (CIDA) in recognition of Barrick's corporate responsibility policies and its outstanding work in international cooperation.

Australia Pacific

The Australia Pacific region's third-quarter gold production was 0.6 million ounces at total cash costs of $372 per ounce versus 0.2 million ounces at total cash costs of $245 per ounce in the prior-year period. At Kalgoorlie, production continues to be lower due to reduced throughput caused by harder ore and lower-than-planned ore grades, which resulted in higher total cash costs. At Cowal, production is continuing to ramp up, as grades and throughput rates are expected to improve. Total cash costs for the region increased over the prior-year period due to the new mix of mines, higher labor costs, and increases in currency exchange rates.

Africa

The Africa region produced 0.3 million ounces of gold in the quarter at total cash costs of $254 per ounce versus 0.1 million ounces at total cash costs of $318 per ounce in the prior-year period. At North Mara, production improved during the quarter as a result of increased shovel efficiencies and drilling capacity, and mining from the higher-grade Gokona ore body. South Deep production was impacted by the skip accident that occurred in the second quarter of 2006 as well as an underground fire that occurred late in third quarter 2006. Total cash costs for the third quarter 2006 are lower as a result of higher production levels. At South Deep, insurance arrangements have mitigated the impact of the skip accident on total cash costs.

CORPORATE DEVELOPMENT

Early in the third quarter, Barrick announced all-cash offers for NovaGold Resources Inc. and Pioneer Metals Corporation. Subsequently, the Company has acquired approximately 90% of the outstanding common shares of Pioneer, and has extended its offer to November 9. On October 24, 2006, Barrick increased its all-cash offer to acquire the outstanding common shares of NovaGold to US$16.00 per common share and extended the offer to November 7, 2006. The increased price is Barrick's best and final offer price for NovaGold.

During the third quarter, the Company announced it had entered into a definitive purchase and sale agreement with Gold Fields Limited regarding Barrick's indirectly held 50% interest in the South Deep asset and its rights under the joint venture agreement with Western Areas Limited in the Republic of South Africa. The consideration is comprised of $1.525 billion of which $1.2 billion will be paid in cash and the balance of $325 million in Gold Fields shares. The agreement is subject to customary conditions including the receipt of South African regulatory approvals and is expected to close in early 2007.

On November 1, 2006, Barrick entered into a preliminary agreement with Highland Gold Mining Limited whereby Barrick would transfer ownership of certain companies holding Russian and Kyrgyz licenses in return for additional Highland shares. In effect, Barrick will be contributing its 50% interest in the Taseevskoye deposit, as well as other exploration properties in Russia and Central Asia, to Highland, thereby consolidating ownership of these properties under one company. In exchange, Highland will issue to Barrick approximately 34.5 million shares, which will increase Barrick's ownership in Highland from 20% to approximately 34%. As part of the transaction, Barrick will second several of its employees to Highland, and will receive two additional Board seats. Completion of the transaction is subject to regulatory approval and approval by Highland shareholders. The Fedorova PGM deposit is not included in this transaction.

FINANCIAL POSITION

In October 2006, Barrick successfully completed the issuance of $1 billion of copper-linked notes, comprised of $400 million of 5.75% notes due 2016 and $600 million of 6.35% notes due 2036. During the first three years of these notes, the original $1 billion of funding is to be repaid from the sales proceeds of approximately 324 million pounds of copper (equating to approximately $3.08 per pound), and is to be replaced with $1 billion of funding in the form of conventional interest-bearing notes. Debt outstanding at any time from issue date to maturity is $1 billion. Proceeds of this offering have been used to repay $490 million of short-term debt, and will also be used to fund Barrick's development projects and to finance upcoming debt maturities.

In August 2006, Barrick increased its $1-billion credit facility to $1.5 billion, and currently has the full amount available for use.

OUTLOOK

The Company expects gold production in the fourth quarter to be its best quarterly performance and to meet its original 2006 full year guidance. The Company is targeting to produce about 8.6 million ounces of gold at total cash costs of about $285 per ounce.

The Company expects to meet its 2006 copper production guidance of 370 million pounds at total cash costs of about $0.80 per pound.

The Company is planning to sell its interests in the South Deep mine and the Paddington operations in Australia. As well, production at Goldstrike is expected to be about 15% lower in 2007 as the site will be processing lower-grade ore stockpiles for about eight months due to waste stripping in the open pit. Production at Veladero is expected to continue at 2006 levels until we access high-grade areas of the Filo Federico ore body beginning in early 2009. As a result of an overall decrease in the grades to be processed in 2007, part of which is the result of processing material that has been re-classified to ore due to higher gold prices, along with continued inflationary pressures, total cash costs per ounce are expected to increase by about 15-18% in 2007.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick's shares are traded on the Toronto, New York and London stock exchanges.

(1) Total cash costs is defined as cost of sales divided by ounces of gold sold or pounds of copper sold. Total cash costs exclude amortization expense and inventory purchase accounting adjustments. For further information on this performance measure see pages 17 to 18 of the Company's MD&A.

Key Statistics
                                      Three months ended  Nine months ended
(in United States dollars)                 September 30,      September 30,
(Unaudited)                            2006         2005       2006    2005
---------------------------------------------------------------------------
Operating Results
Gold production (thousands of
 ounces)(1)                           2,162        1,509      6,203   3,812
Gold sold (thousands of ounces)(1)    2,169        1,456      6,107   3,670
Per ounce data
 Average spot gold price              $ 622        $ 439      $ 601   $ 432
 Average realized gold price(5)         581          427        571     426
 Total cash costs(2)                    281          210        282     229
 Amortization(3)                         73           72         76      77
 Total production costs                 354          282        358     306
Copper production (millions
 of pounds)                              95          n/a        267     n/a
Copper sold (millions of pounds)         99          n/a        276     n/a
Per pound data
 Average spot copper price           $ 3.48          n/a     $ 3.00     n/a
 Average realized copper price         3.32          n/a       3.09     n/a
 Total cash costs(2)                   0.81          n/a       0.77     n/a
 Amortization(3)                       0.23          n/a       0.39     n/a
 Total production costs                1.04          n/a       1.16     n/a
---------------------------------------------------------------------------
Financial Results (millions)
Sales                               $ 1,632        $ 627    $ 4,347 $ 1,574
Net income                              405          113      1,088     226
Operating cash flow                     805          232      1,803     457
Per Share Data (dollars)
 Net income (diluted)                  0.46         0.21       1.29    0.42
 Operating cash flow (diluted)         0.92         0.43       2.12    0.85
Weighted average diluted common
 shares (millions)(4)                   879          539        850     537
---------------------------------------------------------------------------
                                      As at        As at
                              September 30, December 31,
                              --------------------------
                                       2006         2005
--------------------------------------------------------
Financial Position
 (millions)
Cash and equivalents                $ 1,766      $ 1,037
Non-cash working capital                418          151
Long-term debt                        2,888        1,721
Shareholders' equity                 13,677        3,850
--------------------------------------------------------
(1) Includes equity gold ounces in Tulawaka, South Deep and Porgera.
    Production also includes equity gold ounces in Highland Gold.
(2) Represents equity cost of goods sold plus royalties, production taxes
    and accretion expense, less by-product revenues, divided by equity
    ounces of gold sold or pounds of copper sold. For further information
    on this performance measure, refer to page 17. Excludes amortization
    and inventory purchase accounting adjustments.
(3) Represents equity amortization expense and inventory purchase
    accounting adjustments at the Company's producing mines divided by
    equity ounces of gold sold or pounds of copper sold.
(4) Fully diluted, includes dilutive effect of stock options, convertible
    debt and preferred shares.
(5) Calculated as consolidated gold sales divided by consolidated ounces
    sold.
Production and Cost Summary
                     Gold Production
             (attributable ounces) (000's)        Total Cash Costs (US$/oz)
            ------------------------------  -------------------------------
             Three months      Nine months    Three months      Nine months
                    ended            ended           ended            ended
            September 30, September 30,(1)   September 30, September 30,(1)
            ------------- ----------------  -------------- ----------------
(Unaudited)  2006    2005     2006    2005    2006    2005     2006    2005
------------------------- ----------------  -------------- ----------------
North
 America      765     791    2,439   2,068   $ 344   $ 224    $ 307   $ 243
South
 America      566     368    1,450     711     125     122      159     126
Australia
 Pacific      570     232    1,615     719     372     245      334     245
Africa        256     109      675     293     254     318      322     336
Russia/
 Central
 Asia           5       9       24      21     467     314      456     297
---------------------------------------------------------------------------
Total       2,162   1,509    6,203   3,812   $ 281   $ 210    $ 282   $ 229
---------------------------------------------------------------------------
                   Copper Production
          (attributable pounds) (Millions)        Total Cash Costs (US$/lb)
          --------------------------------  -------------------------------
             Three months      Nine months    Three months      Nine months
                    ended            ended           ended            ended
            September 30, September 30,(1)   September 30, September 30,(1)
          --------------- ----------------  -------------- ----------------
(Unaudited)  2006    2005     2006    2005    2006    2005     2006    2005
------------------------- ----------------  -------------- ----------------
South
 America       80       -      222       -  $ 0.65       -   $ 0.62       -
Australia
 Pacific       15       -       45       -    1.56       -     1.46       -
---------------------------------------------------------------------------
Total          95       -      267       -  $ 0.81       -   $ 0.77       -
---------------------------------------------------------------------------
                                       Total Gold Production Costs (US$/oz)
                                       ------------------------------------
                                              Three months      Nine months
                                                     ended            ended
                                             September 30,    September 30,
                                       ------------------- ----------------
(Unaudited)                                   2006    2005     2006    2005
---------------------------------------------------------------------------
 Direct mining costs at market
  foreign exchange rates                     $ 282   $ 237    $ 285   $ 263
 Gains realized on currency and
  commodity hedge contracts                   (11)    (21)     (11)    (23)
 By-product credits                           (12)    (23)     (16)    (27)
---------------------------------------------------------------------------
Cash operating costs                           259     193      258     213
 Royalties                                      17      11       18      11
 Production taxes                                2       4        3       3
 Accretion and other costs                       3       2        3       2
---------------------------------------------------------------------------
Total cash costs(2)                            281     210      282     229
 Amortization                                   73      72       74      77
 Inventory purchase accounting
  adjustments                                    -       -        2       -
---------------------------------------------------------------------------
Total production costs                       $ 354   $ 282    $ 358   $ 306
---------------------------------------------------------------------------
                                     Total Copper Production Costs (US$/lb)
                                     --------------------------------------
                                              Three months      Nine months
                                                     ended            ended
                                             September 30,    September 30,
                                     --------------------- ----------------
(Unaudited)                                   2006    2005     2006    2005
---------------------------------------------------------- ----------------
Cash operating costs                        $ 0.79       -   $ 0.76       -
 Royalties                                    0.02       -     0.01       -
---------------------------------------------------------------------------
Total cash costs(2)                           0.81       -     0.77       -
 Amortization                                 0.14       -     0.13       -
 Inventory purchase accounting
  adjustments                                 0.09       -     0.26       -
---------------------------------------------------------------------------
Total production costs                      $ 1.04    $  -   $ 1.16    $  -
---------------------------------------------------------------------------
(1) Barrick's share of acquired Placer Dome mines' production and total
    cash costs for the period January 20, 2006 to September 30, 2006.
(2) Total cash costs per ounce/pound excludes amortization and inventory
    purchase accounting adjustments. Total cash costs per ounce/pound is a
    performance measure that is used throughout this Third Quarter Report
    2006. For more information see pages 17 to 18 of the Company's MD&A.
CORPORATE OFFICE                       TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation               CIBC Mellon Trust Company
BCE Place, TD 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) 643-5660
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       480 Washington Blvd.
      The New York Stock Exchange      Jersey City, NJ   07310
BGD - The London Stock Exchange        Email:  shrrelations@mellon.com
                                       Website:  www.mellon-investor.com
INVESTOR CONTACT                       MEDIA CONTACT
James Mavor                            Vincent Borg
Vice President,                        Senior Vice President,
Investor Relations                     Corporate Communications
Tel: (416) 307-7463                    Tel: (416) 307-7477
Email: jmavor@barrick.com              Email: vborg@barrick.com

ADDITIONAL INFORMATION

On August 4, 2006, Barrick Gold Corporation filed a tender offer statement related to its tender offer for the outstanding common shares of NovaGold Resources Inc. On September 15, 2006, September 29, 2006, October 12, 2006 and October 25, 2006, Barrick filed a Notices of Extension relating to the tender offer statement. Investors and security holders of NovaGold are urged to read the tender offer statement and related documents, because they contain important information. Investors and security holders of NovaGold may obtain a free copy of the tender offer statement and other documents filed by Barrick Gold Corporation with the SEC at the SEC's website at www.sec.gov. The tender offer statement may also be obtained for free from Barrick Gold Corporation on its website or by directing a request to Barrick Gold Corporation's investor relations department.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information included in this press release, including any information as to our future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements." The words "expect", "will", "intend", "estimate" 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 management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as copper, silver, fuel and electricity) and currencies; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including the risks of diminishing quantities or grades of reserves, adverse changes in our credit rating, contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contacts:
Barrick Gold Corporation
Vincent Borg
Senior Vice President, Corporate Communications
(416) 307-7477
(416) 861-1509 (FAX)
Email: vborg@barrick.com


SOURCE: Barrick Gold Corporation

mailto:vborg@barrick.com

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