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Barrick Sells Non-Core Royalties to Royal Gold-Achieves Lower Royalties on Cortez-Crossroads

July 31, 2008

TORONTO, ONTARIO -- (MARKET WIRE) -- 07/31/08 -- All amounts expressed in US dollars

Barrick Gold Corporation (NYSE: ABX) (TSX: ABX) announced today that it has entered into a definitive agreement to sell certain non-core royalties to Royal Gold Inc. in exchange for $150 million in cash and a significant reduction of royalties otherwise payable to Royal Gold on Barrick's 100%-owned Cortez property.

This transaction rationalizes Barrick's non-core royalty portfolio and improves the economics of the permitted Crossroads deposit at one of the Company's core operations. The majority of these royalties held by Royal Gold cover claims contiguous to the existing operations at Cortez, including the Crossroads deposit. The lower royalties will remove a major obstacle to mining the deposit.

"We are pleased to reach this deal as the Crossroads deposit is an important part of our expansion plans at Cortez. The property is expected to become a million-ounce, low cost producer once the Cortez Hills project is commissioned," said Alex Davidson, Executive Vice President, Corporate Development and Exploration.

Barrick is targeting the conversion of all the existing 1.1 million ounces of the measured and indicated resources(1) held in the Crossroads deposit to the proven and probable reserve category at year-end. Upside potential exists and is being tested through ongoing drilling with the expectation of significant resource additions.

The transaction is expected to close on October 1, 2008.

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.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Press Release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue', "budget", "may", "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 fuel and electricity); fluctuations in currency markets; legislative, political or economic developments in the United States; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of 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. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. 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.

(1) Measured resources contain 3.4 million tons of ore at 0.044 oz/ton for 0.15 million ounces. Indicated resources contain 23.8 million tons of ore at 0.039 oz/ton for 0.93 million ounces. Mineral reserves and resources have been calculated as at December 31, 2007 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Calculations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Jacques McMullen, Senior Vice President, Technical Services of Barrick, Rick Allan, Senior Director, Mining of Barrick, and Rick Sims, Senior Director, Resources and Reserves of Barrick. For a breakdown of reserves and resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Barrick's reserves and resources, see Barrick's most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.

Contacts:
INVESTOR CONTACT: Deni Nicoski
Vice President, Investor Relations
(416) 307-7410
Email: dnicoski@barrick.com

MEDIA CONTACT: Vincent Borg
Senior Vice President, Corporate Communications
(416) 307-7477
Email: vborg@barrick.com

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Gold  $ 1,243.63 -1.52 -0.12% Volume: December 13, 2017
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Gold  $ 1,243.63 -1.52 -0.12% Volume: December 13, 2017

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