news-details

Cash Flow Rises to a Record $2.2 Billion in 2008

February 20, 2009

TORONTO, ONTARIO -- (MARKET WIRE) -- 02/20/09 -- Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) -

FOURTH QUARTER AND YEAR-END REPORT 2008

FEBRUARY 20, 2009

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, 2009 Outlook, mine statistics and gold reserves and resources please see the Company's website, www.barrick.com.

Highlights

- Barrick reported record operating cash flow of $2.21 billion for 2008, a 27% increase over $1.73 billion in the prior year. Net income was $0.79 billion ($0.90 per share) compared to $1.12 billion ($1.29 per share) in the prior year. Adjusted net income rose 60% to $1.66 billion ($1.90 per share)(1) compared to $1.04 billion ($1.19 per share) in the prior year period.

- Adjusted Q4 net income of $277 million ($0.32 per share) compares to adjusted net income of $597 million ($0.69 per share) in Q4 2007. A net loss of $468 million ($0.54 per share) in the fourth quarter largely reflects non-cash impairment charges of $773 million ($0.89 per share), mainly related to goodwill.

- Full year production of 7.66 million ounces met original guidance, while total cash costs of $443 per ounce(2) were within the recent estimate. Applying a full credit for non-gold sales, total cash costs were $337 per ounce(3). Q4 gold production of 2.11 million ounces at total cash costs of $471 per ounce reflected anticipated stronger contributions from Goldstrike and Cortez, which had their highest production quarters of the year. On a full credit for non-gold sales basis, Q4 total cash costs were $382 per ounce.

- Three advanced projects remain on schedule and in line with their pre-production capital budgets. Cortez Hills is in full construction and expected to enter production in Q1 2010. Including Cortez Hills, the expanded Cortez operation is expected to produce an average of about 1.0 million ounces a year in its first full five years. Initial production from the Pueblo Viejo project is expected in Q4 2011 and first gold is anticipated from Buzwagi in Q2 2009.

- Year-end 2008 gold reserves increased 11% to 138.5 million ounces(4), and continue to be the highest in the industry, while measured and indicated gold resources grew 29% to 65.0 million ounces and inferred resources increased 9% to 34.8 million ounces. Together with the industry's highest gold production, Barrick continues to offer investors exceptional leverage to gold.

- Barrick has agreed to purchase Teck Cominco's 50% interest in the Hemlo operation, thereby consolidating 100% ownership, for a cash consideration of $65 million.

- The Company ended the year in a strong financial position, with a cash balance of $1.4 billion, a $1.5 billion undrawn credit facility and the industry's highest rated balance sheet.

Barrick Gold Corporation reported Q4 production of 2.11 million ounces of gold at total cash costs of $471 per ounce compared to 2.14 million ounces produced at total cash costs of $369 per ounce for the prior year period. Applying a full credit for non-gold sales, total cash costs were $382 per ounce compared to $265 per ounce in the prior year period. The realized gold price for the quarter was $807 per ounce(5) compared to the average spot price of $794 per ounce.

Adjusted net income of $277 million ($0.32 per share) reflects lower gold and copper margins and compares to adjusted net income of $597 million ($0.69 per share) in Q4 2007. Post-tax non-cash charges of $773 million ($0.89 per share) largely relate to goodwill impairment at Kanowna, North Mara, Osborne and Barrick Energy. The resulting net loss of $468 million ($0.54 per share) compares to net income of $537 million ($0.62 per share) in Q4 2007. Fourth quarter operating cash flow of $439 million compares to operating cash flow of $676 million in the prior year period.

"Barrick generated record operating cash flow in 2008, grew reserves and resources and significantly advanced its projects," said Aaron Regent, President and CEO. "The Company is now poised to open three lower cost mines over the next three years, which are expected to lift Barrick's production in 2010 once Cortez Hills is commissioned. The Company is positioned to provide investors with exceptional leverage to the gold price with the industry's largest production and reserves."

PRODUCTION AND COSTS

Barrick produced 2.11 million ounces of gold at total cash costs of $471 per ounce for the quarter. Full year production of 7.66 million ounces met original guidance and total cash costs of $443 per ounce were within the recent estimate.

The South American business unit produced 0.51 million ounces in Q4 at total cash costs of $275 per ounce. The Lagunas Norte mine delivered another quarter of outstanding results as production increased 16% over the prior year period to 0.33 million ounces at total cash costs of $124 per ounce. Full year production totaled 1.18 million ounces and Lagunas Norte is on track to deliver one million ounces again in 2009 for the fourth straight year as higher grades are expected to continue. The Veladero mine produced 0.09 million ounces in the quarter for full year production of 0.54 million ounces, up 13% from 2007 at total cash costs of $496 per ounce. The higher production reflects improved productivity and equipment utilization. Further increases in production at Veladero are expected following the completion of a crusher expansion targeted for the second half of 2009.

As expected, the North America region had its highest quarterly production of the year at 0.95 million ounces and total cash costs of $483 per ounce. Goldstrike produced 0.58 million ounces at total cash costs of $416 per ounce as the operation benefited from the completion of an extended waste stripping phase in the Betze-Post open pit that provided access to higher grade ore. Cortez produced 0.14 million ounces and the property is expected to become a million ounce per year producer(6) once Cortez Hills enters production.

The Australia Pacific business unit also had its highest quarterly production for the year at 0.53 million ounces at total cash costs of $610 per ounce. Porgera continued to be the region's largest contributor with production of 0.17 million ounces at $504 per ounce. East wall remediation work at Cowal was completed on schedule in Q4, allowing access to higher grade ore and resulting in increased production which is expected to continue in 2009.

Production from the African business unit was 0.12 million ounces in Q4 at total cash costs of $656 per ounce. The fourth quarter was impacted by civil disturbances at North Mara and lower than planned mining rates at Bulyanhulu, where an anticipated ramp-up of underground development is expected to result in improved performance in 2009.

Copper production in Q4 increased to 109 million pounds at total cash costs of $1.16 per pound, driven by a strong performance from Zaldivar as acid levels on the leach pad returned to normal following acid supply shortages earlier in the year. The Company benefited from its copper hedge position, realizing $3.06 per pound, $1.27 per pound higher than the average spot price.

PROJECTS UPDATE

Three advanced projects remain on schedule and in line with their respective pre-production capital budgets. Collectively, they are expected to contribute almost 2.0 million ounces of lower cost annual production(7).

The Buzwagi project in Tanzania was 90% complete at year end and first ore has been fed to the crusher. Buzwagi is on schedule to pour first gold in Q2 2009 in line with its pre-production capital budget of about $400 million, contributing about 200,000 ounces in 2009 at total cash costs of about $320 to $335 per ounce(8).

In Nevada, the Cortez Hills project is expected to become a key, long life asset for the Company. With the receipt of the Record of Decision in November 2008, Cortez Hills is now in full construction and is expected to enter production in the first quarter of 2010 assuming the satisfactory resolution of pending litigation regarding the project(9). Cortez Hills is in line with its $500 million capital budget and the expanded Cortez operation is expected to produce about 1.0 million ounces a year in its first full five years at total cash costs of approximately $350 to $400 per ounce(8). Total cash costs in the current plan reflect the inclusion of incremental lower grade heap leach ore from the Pipeline area due to a higher gold price assumption, and the associated costs for labor, consumables and stripping. This has the effect of extending the mine life. Higher proven and probable reserves of 13.4 million ounces at year-end 2008 for Cortez reflect the 40% interest acquired earlier in the year plus an additional 2.4 million ounces in the Crossroads area. Measured and indicated resources in the Cortez Hills underground increased from 0.7 million ounces to 2.0 million ounces. The Cortez property continues to demonstrate significant exploration potential. As a follow up to the successful 2008 work program, the Company plans to spend $18 million on exploration at Cortez with a total of seven rigs being committed to this extensive, underexplored property in 2009.

The Pueblo Viejo project in the Dominican Republic is advancing on schedule and in line with its pre-production capital budget of approximately $2.7 billion (100% basis)(10), with initial production anticipated in the fourth quarter of 2011. Barrick's 60% share of annual gold production in the first full five years of operation is expected to be 600,000 to 650,000 ounces per year at total cash costs of about $275 to $300 per ounce(8). Pueblo Viejo is a long life asset with an expected mine life of over 25 years and we continue to find new reserves, with 1.2 million ounces added in 2008.

RESERVES AND RESOURCES

At year-end 2008, the Company increased the industry's largest proven and probable reserve base by 13.9 million ounces (after depletion) or 11% to 138.5 million ounces, based on a $725 per ounce gold price. The increase reflects 10.8 million new ounces from the Cerro Casale project in Chile acquired in 2007; 6.5 million ounces at Cortez from Barrick's increased ownership and exploration success in the Crossroads area; and 1.2 million ounces at Pueblo Viejo.

Measured and indicated resources grew 29% or 14.4 million ounces to 65.0 million ounces and inferred resources increased 9% to 34.8 million ounces, based on an $850 per ounce gold price. Measured and indicated resources increased with exploration success at Cortez Hills, Pueblo Viejo, Donlin Creek and Reko Diq, and the addition of ounces from Cerro Casale, as well as increased ownership in Cortez.

Copper reserves increased to 6.4 billion pounds and measured and indicated resources increased by 7.1 billion pounds to 12.5 billion pounds. Contained silver within reported gold reserves is over one billion ounces.

The $150 to $160 million exploration(11) budget for 2009 is weighted towards near mine resource additions and reserve conversion, with approximately 40% of the total targeted for Nevada. The remainder of the budget will be divided between South America and Australia Pacific to further evaluate near mine targets at Porgera, Lagunas Norte, Veladero and Zaldivar, and early stage targets in Papua New Guinea and Peru. The lower budget for 2009 reflects a focus on targets that have the potential to make near term contributions to the Company's earnings and cash flow. In addition, the Company expects $250 to $270 million in project related expense which includes the cost of preparing feasibility studies for Cerro Casale, Donlin Creek and Reko Diq and the development costs associated with the extension of the mine life at Golden Sunlight.

CORPORATE DEVELOPMENT

Subsequent to quarter end, the Company entered into a definitive purchase and sale agreement with Teck Cominco Limited to acquire its 50% interest in the Hemlo operation, consolidating 100% ownership, for a total cash consideration of $65 million. Closing is expected in Q2 following receipt of customary regulatory approvals.

FINANCIAL POSITION

At December 31, 2008, Barrick had the gold industry's highest credit rating, a cash balance of $1.4 billion, a $1.5 billion undrawn credit facility and net debt of $2.9 billion with scheduled repayments of less than $300 million over the next four years. While the Company is in a strong financial position and is generating robust cash flows, it is applying a disciplined approach to capital allocation decisions and other expenditures in the current economic environment.

OUTLOOK AND GUIDANCE

The Company expects 2009 gold production to be about 7.2 to 7.6 million ounces. The production guidance for 2009 primarily reflects lower production from North America, largely due to lower production from the Goldstrike operation as a result of lower grades in the current mine sequence, and at Golden Sunlight, which will be waste stripping throughout the year. Production from the South American and Australia Pacific regions is expected to be similar to 2008 levels, while production from Africa is forecast to increase, reflecting new production from the Buzwagi mine. For 2010, the Company expects production to increase to approximately 7.7 to 8.1 million ounces at expected lower cash costs with new production from Cortez Hills.

Total cash costs for gold in 2009 are anticipated to be in the range of $450 to $475 per ounce or $360 to $385 per ounce applying full credit for non-gold sales. Removing the effects of the Company's foreign exchange and oil hedges, total cash costs would be approximately $30 per ounce lower at an assumed WTI oil price of $50 per barrel and an Australian dollar exchange rate of 0.70. Production and cash costs during the year are expected to vary due to mine sequencing. As a result, first quarter operating performance is anticipated to be weaker with expected improvement throughout the remainder of the year reflecting the ramp up at Buzwagi, the crusher expansion at Veladero and higher expected grades from both Veladero and Lagunas Norte.

Copper production for 2009 is expected to be 375 to 400 million pounds at total cash costs of $1.25 to $1.35 per pound.

Project capital expenditures for 2009 are anticipated to be in the range of $1.3 to $1.5 billion and sustaining capital is expected to be in the range of $750 to $850 million.

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 and New York stock exchanges.

(1) Adjusted net income is a non-GAAP financial measure. See page 48 of the Company's MD&A.

(2) Total cash costs is a non-GAAP financial measure. See page 49 of the Company's MD&A.

(3) Total cash costs on a full credit for non-gold sales basis is a non-GAAP financial measure and is defined as total cash costs less the net contribution from non-gold revenue streams. See page 49 of the Company's MD&A.

(4) Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Cerro Casale is classified as mineralized material and approximately 600,000 ounces of reserves for Pueblo Viejo (Barrick's 60% interest) are classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see page 110 of Barrick's 2008 Year-End Results.

(5) Realized price is a non-GAAP financial measure. See page 51 of the Company's MD&A.

(6) Average annual production in first full five years.

(7) Based on estimated average annual production for each project.

(8) Based on an oil price of $75 per barrel.

(9) In Q4 2008, a number of opponents of the Cortez Hills expansion filed suit in the U.S. District Court for the District of Nevada seeking to overturn the Bureau of Land Management's approval of the Cortez Hills project on environmental and religious grounds. The plaintiffs unsuccessfully sought to enjoin construction of the project pending consideration of their claims. The District Court's denial of the requested injunction is currently being appealed.

(10) Pre-production, followed by $0.3b to complete phased expansion to 24,000 tpd.

(11) Barrick's exploration programs are designed and conducted under the supervision of Robert Krcmarov, Senior Vice President, Global Exploration 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 U.S. Securities and Exchange Commission.

Key Statistics

Barrick Gold Corporation               Three months ended       Years ended
(in United States dollars)                    December 31,      December 31,
                                       -------------------------------------
(Unaudited)                                 2008     2007     2008     2007
----------------------------------------------------------------------------
Operating Results
Gold production (thousands of ounces)(1)   2,112    2,143    7,657    8,060
Gold sold (thousands of ounces)(1)         2,190    2,042    7,595    8,055
Per ounce data
 Average spot gold price                $    794  $   786  $   872  $   695
 Average realized gold price(2)              807      798      870      619
 Total cash costs(3)                         471      369      443      345
 Amortization and other(4)                   115      108      115      105
 Total production costs                      586      477      558      450
 Total cash costs - full credit for
  non-gold sales(5)                          382      265      337      228
Copper production (millions of pounds)       109      101      370      402
Copper sold (millions of pounds)             105       93      367      401
Per pound data
 Average spot copper price              $   1.79  $  3.28  $  3.15  $  3.23
 Average realized copper price(2)           3.06     3.11     3.39     3.22
 Total cash costs(3)                        1.16     0.81     1.19     0.82
 Amortization and other(4)                  0.25     0.28     0.33     0.32
 Total production costs                     1.41     1.09     1.52     1.14
----------------------------------------------------------------------------
Financial Results (millions)
Sales                                   $  2,110  $ 1,917  $ 7,913  $ 6,332
Net income (loss)                           (468)     537      785    1,119
Adjusted net income (loss)(6)                277      597    1,661    1,036
Operating cash flow                          439      676    2,206    1,732
Per Share Data (dollars)
 Net income (loss)(basic)                  (0.54)    0.62     0.90     1.29
 Adjusted net income (loss)(basic)(6)       0.32     0.69     1.90     1.19
 Net income (loss)(diluted)                (0.53)    0.61     0.89     1.28

Weighted average basic common shares
 (millions)                                  872      870      872      867
Weighted average diluted common shares
 (millions)(7)                               883      883      885      879
----------------------------------------------------------------------------
                                                      As at           As at
                                                December 31,    December 31,
                                                ------------  --------------
                                                       2008            2007
----------------------------------------------------------------------------
Financial Position (millions)
Cash and equivalents                                $ 1,437         $ 2,207
Non-cash working capital                              1,037           1,029
Long-term debt                                        4,556           3,386
Shareholders' equity                                 15,277          15,256
----------------------------------------------------------------------------
(1) Production includes equity gold ounces in Highland Gold. Gold production
    also includes an additional 20% share of production from the Porgera
    mine and 40% share of production from the Cortez mine, from April 1,
    2007 and March 1, 2008 onwards, respectively.
(2) Realized price is a non-GAAP financial measure. See page 51 of the
    Company's MD&A.
(3) Total cash costs is a non-GAAP financial measure. See page 49 of the
    Company's MD&A.
(4) Represents equity amortization expense, unrealized losses on non-hedge
    currency and commodity contracts and inventory purchase accounting
    adjustments at the Company's producing mines, divided by equity ounces
    of gold sold or pounds of copper sold.
(5) Total cash costs-full credit for non-gold sales is a non-GAAP
    financial measure. See page 49 of the Company's MD&A.
(6) Adjusted net income is a non-GAAP financial measure. See page 48 of the
    Company's MD&A.
(7) Fully diluted, includes dilutive effect of stock options and convertible
    debt.



Production and Cost Summary

                              Gold Production
                  (attributable ounces)(000's)     Total Cash Costs (US$/oz)
                 -----------------------------  ----------------------------
                   Three months         Years    Three months         Years
                          ended         ended           ended         ended
                    December 31,  December 31,    December 31,  December 31,
                 --------------- -------------  -------------- -------------
(Unaudited)         2008   2007   2008   2007     2008   2007   2008   2007
-------------------------------- -------------  -------------- -------------
North America(1)     946    802  3,028  3,201    $ 483  $ 390  $ 493  $ 363
South America        512    620  2,111  2,079      275    213    251    193
Australia Pacific    532    566  1,942  2,123      610    456    550    447
Africa               115    136    545    605      656    577    560    405
Other                  7     19     31     52      410    439    410    491
----------------------------------------------------------------------------
Total              2,112  2,143  7,657  8,060    $ 471  $ 369  $ 443  $ 345
----------------------------------------------------------------------------



                             Copper Production
                (attributable pounds)(Millions)    Total Cash Costs (US$/lb)
                ------------------------------- ----------------------------
                    Three months         Years   Three months         Years
                           ended         ended          ended         ended
                     December 31,  December 31,   December 31,  December 31,
                ----------------  ------------- ------------- --------------
(Unaudited)          2008   2007   2008   2007    2008   2007   2008   2007
--------------------------------  ------------- ------------- --------------
South America          89     77    295    315  $ 1.11 $ 0.77 $ 1.08 $ 0.69
Australia Pacific      20     24     75     87    1.43   1.00   1.64   1.36
----------------------------------------------------------------------------
Total                 109    101    370    402  $ 1.16 $ 0.81 $ 1.19 $ 0.82
----------------------------------------------------------------------------



                                        Total Gold Production Costs (US$/oz)
----------------------------------------------------------------------------
                                               Three months           Years
                                                      ended           ended
                                                December 31,    December 31,
------------------------------------------------------------ ---------------
(Unaudited)                                    2008    2007    2008    2007
----------------------------------------------------------------------------
 Direct mining costs at market foreign
  exchange rates                             $  415  $  393  $  441  $  359
 (Gains) losses realized on currency
  hedge and commodity hedge/economic
  hedge contracts                                31     (36)    (17)    (24)
 By-product credits                              (6)    (15)    (13)    (13)
----------------------------------------------------------------------------
Cash operating costs                            440     342     411     322
 Royalties                                       24      23      27      20
 Production taxes                                 7       4       5       3
----------------------------------------------------------------------------
Total cash costs(2)                             471     369     443     345
 Amortization                                   104     108     109     104
 Unrealized losses on non-hedge currency
  and commodity contracts                         8       -       2       1
 Inventory purchase accounting
  adjustments and other                           3       -       4       -
----------------------------------------------------------------------------
Total production costs                       $  586  $  477  $  558  $  450
----------------------------------------------------------------------------



                                   Total Copper Production Costs (US$/pound)
----------------------------------------------------------------------------
                                               Three months           Years
                                                      ended           ended
                                                December 31,    December 31,
------------------------------------------------------------ ---------------
(Unaudited)                                     2008   2007     2008   2007
----------------------------------------------------------------------------
Cash operating costs                          $ 1.15 $ 0.79   $ 1.17 $ 0.81
 Royalties                                      0.01   0.02     0.02   0.01
----------------------------------------------------------------------------
Total cash costs(2)                             1.16   0.81     1.19   0.82
 Amortization                                   0.25   0.28     0.33   0.30
 Inventory purchase accounting adjustments         -      -        -   0.02
----------------------------------------------------------------------------
Total production costs                        $ 1.41 $ 1.09   $ 1.52 $ 1.14
----------------------------------------------------------------------------
(1) Barrick's share of Cortez production and total cash costs increased to
    100% effective March 1, 2008. Barrick's share of Storm production and
    total cash costs increased to 100% effective October 1, 2008.
(2) Total cash costs per ounce/pound is a non-GAAP financial measure. See
    page 49 of the Company's MD&A.




Consolidated Statements of Income

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars, except per share data)
----------------------------------------------------------------------------
                                                       2008    2007    2006
----------------------------------------------------------------------------

Sales (notes 4 and 5)                               $ 7,913 $ 6,332 $ 5,630
----------------------------------------------------------------------------
Costs and expenses
Cost of sales (notes 4 and 6)(1)                      3,876   3,144   2,710
Amortization and accretion (notes 4 and 15)           1,033   1,054     774
Corporate administration                                155     155     142
Exploration (notes 4 and 7)                             216     179     171
Project development expense (note 7)                    242     188     119
Other expense (note 8A)                                 295     205     212
Impairment charges (note 8B)                            749      42      17
----------------------------------------------------------------------------
                                                      6,566   4,967   4,145
----------------------------------------------------------------------------
Interest income                                          39     141     110
Interest expense (note 20B)                             (21)   (113)   (126)
Other income (note 8C)                                  291     110      97
Write-down of investments (note 8B)                    (205)    (23)     (6)
----------------------------------------------------------------------------
                                                        104     115      75
----------------------------------------------------------------------------
Income from continuing operations before income
 taxes and other items                                1,451   1,480   1,560
Income tax expense (note 9)                            (590)   (341)   (348)
Non-controlling interests (note 2B)                     (12)     14       1
Loss from equity investees (note 12)                    (64)    (43)     (4)
----------------------------------------------------------------------------
Income from continuing operations                       785   1,110   1,209
Income from discontinued operations (note 3)              -       9     297
----------------------------------------------------------------------------
Net income for the year                             $   785 $ 1,119 $ 1,506
----------------------------------------------------------------------------
Earnings per share data (note 10)
Income from continuing operations
 Basic                                              $  0.90  $ 1.28  $ 1.44
 Diluted                                            $  0.89  $ 1.27  $ 1.42
----------------------------------------------------------------------------
Net income
 Basic                                              $  0.90  $ 1.29  $ 1.79
 Diluted                                            $  0.89  $ 1.28  $ 1.77
----------------------------------------------------------------------------
(1) Exclusive of amortization.

The notes to these unaudited consolidated financial statements, which are
contained in the Fourth Quarter and Year-End Report available on our
website, are an integral part of these unaudited consolidated financial
statements.



Consolidated Statements of Cash Flow

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)
----------------------------------------------------------------------------
                                                    2008     2007      2006
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income                                       $   785  $ 1,119   $ 1,506
Amortization and accretion (notes 4 and 15)        1,033    1,054       774
Impairment charges and write-down of investments
 (notes 8B and 12)                                   954       65        23
Increase in inventory                               (373)    (252)     (193)
Gain on sale of assets (note 8C)                    (187)      (2)       (9)
Income tax expense (notes 9 and 24)                  590      341       348
Income taxes paid                                   (575)    (585)     (280)
Other items (note 11A)                               (21)      (8)      (47)
----------------------------------------------------------------------------
Net cash provided by continuing operating
 activities                                        2,206    1,732     2,122
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Property, plant and equipment
 Capital expenditures (note 4)                    (1,776)  (1,046)   (1,087)
 Sales proceeds                                      185      100         8
Acquisitions (note 3)                             (2,174)  (1,122)     (208)
Investments (note 12)
 Purchases                                           (18)     (11)     (369)
 Sales                                                76      625        46
Reclassification of asset-backed commercial paper      -      (66)        -
Long-term supply contract (note 12)                  (35)       -         -
Other investing activities (note 11B)               (170)     (42)       17
----------------------------------------------------------------------------
Net cash used in continuing investing activities  (3,912)  (1,562)   (1,593)
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock
 Proceeds on exercise of stock options                74      142        74
Long-term debt (note 20B)
 Proceeds                                          2,723      408     2,189
 Repayments                                       (1,603)  (1,128)   (1,581)
Dividends (note 25)                                 (349)    (261)     (191)
Settlement of derivative instruments acquired
 with Placer Dome                                      -     (197)   (1,840)
Funding from non-controlling interests                88        -         2
----------------------------------------------------------------------------
Net cash provided by (used in) continuing
 financing activities                                933   (1,036)   (1,347)
----------------------------------------------------------------------------
CASH FLOWS OF DISCONTINUED OPERATIONS (note 3)
 Operating activities                                  -       21        29
 Investing activities                                  -        -     2,788
 Financing activities                                  -        -        11
----------------------------------------------------------------------------
                                                       -       21     2,828
----------------------------------------------------------------------------
Effect of exchange rate changes on cash and
 equivalents                                           3        9        (4)
----------------------------------------------------------------------------
Net increase (decrease) in cash and equivalents     (770)    (836)    2,006
Cash and equivalents at beginning of year
 (note 20A)                                        2,207    3,043     1,037
----------------------------------------------------------------------------
Cash and equivalents at end of year (note 20A)   $ 1,437  $ 2,207   $ 3,043
----------------------------------------------------------------------------

The notes to these unaudited consolidated financial statements, which are
contained in the Fourth Quarter and Year-End Report available on our
website, are an integral part of these unaudited consolidated financial
statements.



Consolidated Balance Sheets

Barrick Gold Corporation
At December 31,
(in millions of United States dollars)
----------------------------------------------------------------------------
                                                           2008        2007
----------------------------------------------------------------------------
ASSETS
Current assets
 Cash and equivalents (note 20A)                       $  1,437    $  2,207
 Accounts receivable (note 14)                              197         256
 Inventories (note 13)                                    1,309       1,129
 Other current assets (note 14)                           1,169         707
----------------------------------------------------------------------------
                                                          4,112       4,299

Non-current assets
 Investments (note 12)                                    1,145       1,227
 Property, plant and equipment (note 15)                 11,547       8,585
 Goodwill (note 17)                                       5,280       5,847
 Intangible assets (note 16)                                 75          68
 Deferred income tax assets (note 24)                       869         722
 Other assets (note 18)                                   1,133       1,203
----------------------------------------------------------------------------
Total assets                                           $ 24,161    $ 21,951
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
 Accounts payable                                           970         808
 Short-term debt (note 20B)                                 206         233
 Other current liabilities (note 19)                        668         255
----------------------------------------------------------------------------
                                                          1,844       1,296

Non-current liabilities
 Long-term debt (note 20B)                                4,350       3,153
 Asset retirement obligations (note 22)                     973         892
 Deferred income tax liabilities (note 24)                  754         841
 Other liabilities (note 23)                                781         431
----------------------------------------------------------------------------
Total liabilities                                         8,702       6,613
----------------------------------------------------------------------------
Non-controlling interests                                   182          82
----------------------------------------------------------------------------
Shareholders' equity
 Capital stock (note 25)                                 13,372      13,273
 Retained earnings                                        2,261       1,832
 Accumulated other comprehensive income (loss) (note 26)   (356)        151
----------------------------------------------------------------------------
Total shareholders' equity                               15,277      15,256
----------------------------------------------------------------------------
Contingencies and commitments (notes 15 and 29)
----------------------------------------------------------------------------
Total liabilities and shareholders' equity             $ 24,161    $ 21,951
----------------------------------------------------------------------------

The notes to these unaudited consolidated financial statements, which are
contained in the Fourth Quarter and Year-End Report available on our
website, are an integral part of these unaudited consolidated financial
statements.



Consolidated Statements of Shareholders' Equity

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)
----------------------------------------------------------------------------
                                                     2008     2007     2006
----------------------------------------------------------------------------
Common shares (number in millions)
At January 1                                          870      864      538
 Issued on exercise of stock options (note 27A)         3        6        3
 Issued on acquisition of Placer Dome (note 3F)         -        -      323
----------------------------------------------------------------------------
At December 31                                        873      870      864
----------------------------------------------------------------------------
Common shares
At January 1                                     $ 13,273 $ 13,106  $ 4,222
 Issued on exercise of stock options (note 27A)        74      142       74
 Issued on acquisition of Placer Dome (note 3F)         -        -    8,761
 Options issued on acquisition of Placer Dome
  (note 3F)                                             -        -       22
 Recognition of stock option expense (note 27A)        25       25       27
----------------------------------------------------------------------------
At December 31                                     13,372   13,273   13,106
----------------------------------------------------------------------------
Retained earnings (deficit)
At January 1                                        1,832      974     (341)
 Net income                                           785    1,119    1,506
 Dividends (note 25A)                                (349)    (261)    (191)
 Repurchase of preferred shares of a subsidiary        (7)       -        -
----------------------------------------------------------------------------
At December 31                                      2,261    1,832      974
----------------------------------------------------------------------------
Accumulated other comprehensive income (loss)
 (note 26)                                           (356)     151      119
----------------------------------------------------------------------------
Total shareholders' equity at December 31        $ 15,277 $ 15,256 $ 14,199
----------------------------------------------------------------------------



Consolidated Statements of Comprehensive Income

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)
----------------------------------------------------------------------------
                                                      2008     2007    2006
----------------------------------------------------------------------------
Net income                                         $   785  $ 1,119 $ 1,506
Other comprehensive income (loss), net of tax
 (note 26)                                            (507)      32     150
----------------------------------------------------------------------------
Comprehensive income                               $   278  $ 1,151 $ 1,656
----------------------------------------------------------------------------

The notes to these unaudited consolidated financial statements, which are
contained in the Fourth Quarter and Year-End Report available on our
website, are an integral part of these unaudited consolidated financial
statements.



CORPORATE OFFICE                        TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation                CIBC Mellon Trust Company
Brookfield Place, TD Canada Trust       P.O. Box 7010,
 Tower 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.com
Email: investor@barrick.com             Website: www.cibcmellon.com
Website:  www.barrick.com

SHARES LISTED                           BNY MELLON SHAREOWNER SERVICES
ABX - The Toronto Stock Exchange        480 Washington Blvd. - 27th Floor
      The New York Stock Exchange       Jersey City, NJ 07310
                                        Tel: 1-800-589-9836
                                        Fax: (201) 680-4665
                                        Email: shrrelations@mellon.com
                                        Website: www.melloninvestor.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Fourth Quarter and Year-End Report 2008, 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: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and 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; 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 and diminishing quantities or grades of reserves; adverse changes in our credit rating; level of indebtedness and liquidity; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Certain of 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.

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

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

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Gold  $ 1,256.46 +2.71 +0.22% Volume: December 15, 2017
ABX NYSE  $ 14.06 -0.11 -0.78% Volume: 16,747,058 December 15, 2017
ABX TSX  $ 18.13 +0.07 +0.39% Volume: 7,279,132 December 15, 2017
Gold  $ 1,256.46 +2.71 +0.22% 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.

World Gold Council MemberMember of ICMM

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