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Barrick Announces Agreement to Divest Barrick Energy Inc. as Part of Portfolio Optimization Strategy

July 23, 2013

All amounts expressed in US dollars unless otherwise indicated - PDF 179 KB

TORONTO, July 23, 2013 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the "company") today announced it has entered into an agreement to divest Barrick Energy Inc. ("Barrick Energy").

As part of its disciplined capital allocation framework, Barrick is actively pursuing opportunities to optimize its portfolio, including through opportunities to divest certain non-core assets. The sale of Barrick Energy represents such a divestiture in this ongoing process.

In consideration for the sale of Barrick Energy and certain related transactions, Barrick will receive total consideration of approximately C$455 million, comprised of cash proceeds of approximately C$405 million on closing, subject to customary closing adjustments, plus a gross overriding royalty on certain lands, the estimated value of which is approximately C$50 million. The transactions consist of: (i) the sale of certain assets to Venturion Oil Limited for consideration of approximately C$59 million; (ii) the sale of certain assets to Whitecap Resources Inc. for consideration of approximately C$174 million; and (iii) after giving effect to the asset sale transactions, the sale of the shares of Barrick Energy and its assets to Canadian Natural Resources Limited for consideration of approximately C$173 million and a gross overriding royalty on certain lands.

Barrick's agreement to divest Barrick Energy is subject to the closing of the asset sale transactions and other customary closing conditions. The transactions are expected to close on or prior to July 31, 2013. In connection with entering into the agreement to divest Barrick Energy and the related transactions, Barrick expects to recognize a loss of approximately $500 million in the second quarter, approximately $90 million of which relates to goodwill, representing the difference between the net proceeds and the carrying value of Barrick Energy as at June 30, 2013.

Rothschild and Scotia Waterous are acting as financial advisors to Barrick with respect to the transactions. Norton Rose Fulbright Canada LLP is acting as legal counsel to Barrick.

INVESTOR CONTACT:
Amy Schwalm
Vice President
Investor Relations
Telephone: +1 416 307-7422
Email: aschwalm@barrick.com

MEDIA CONTACT:
Andy Lloyd
Vice President
Communications
Telephone: +1 416 307-7414
Email: alloyd@barrick.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "anticipate", "will" 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 the company, 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 spot and future price of certain commodities (such as oil and natural gas); the impact of global liquidity and credit availability on the timing of cash flows; fluctuations in the currency markets; changes in U.S. dollar interest rates; ability to successfully complete announced transactions; legislative, political or economic developments in the jurisdictions in which the company carries on business; litigation. 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 press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

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.

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Barrick Gold Corporation