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NovaGold's Case Against Barrick Dismissed

July 19, 2007
TORONTO, ONTARIO, Jul 19, 2007 (MARKET WIRE via COMTEX News Network) -- Barrick (TSX: ABX)(NYSE: ABX) announced today that the United States District Court for the District of Alaska has granted its motion to dismiss the case put forward by plaintiff NovaGold Resources Inc.

"We are satisfied that the Alaskan Court found in Barrick's favor and has entirely dismissed NovaGold's series of allegations," said Patrick Garver, Executive Vice President and General Counsel. "We vigorously disputed NovaGold's allegations that implied improper conduct by Barrick and we are glad the Federal Court has dismissed this ill-conceived action."

NovaGold made a series of allegations against Barrick, including claims that Barrick owes a fiduciary duty to NovaGold in connection with the Donlin Creek project, and that Barrick breached that duty (Counts 2 & 3). However the court concluded that the Mining Venture Agreement (MVA) expressly disclaims any fiduciary relationship.

NovaGold also alleged that Barrick breached the Alaska Covenant of Good Faith and Fair Dealing through activities relating to the Donlin Creek project and the Galore Creek project (Counts 4 & 6). The Court ruled that, "the nature of the dispute between the parties was adequately disclosed to shareholders during the tender offer process." The Court also found allegations relating to the Galore Creek project fall outside the scope of the MVA, and are therefore not relevant in this case.

The Court also dismissed NovaGold's request for a Declaratory Judgment (Count 5) on Barrick's ability to fulfill the terms of the Donlin Creek MVA, in order to earn its 70 per cent interest in the project by Nov. 12, 2007. In its ruling, the Court noted that both parties agree Barrick has until "on or before the last day of the back-in period to meet the back-in requirements." It added, "the Court does not consider it advisable (nor does the Court have jurisdiction) to interpret the contract in the absence of an actual controversy... The issues could be significantly narrowed or become moot if the parties are permitted to perform under the contract until the last day of the back-in-period as expressly agreed."

Barrick intends to continue to conduct its work towards completing a feasibility study on the Donlin Creek project in a diligent and professional manner. The Company fully intends to present NovaGold with a feasibility study by the relevant date consistent with the requirements outlined in the MVA.

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.

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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