Veladero Gold Reserves Increase to 8 Million Ounces. Barrick and Homestake Expect Synergies with Pascua-Lama Project After Merger

July 20, 2001

For Immediate Release
All amounts in United States dollars

Barrick and Homestake Expect Synergies with Pascua-Lama Project After Merger

Toronto, July 20, 2001 . . . Barrick Gold Corporation today announced that gold reserves at the Veladero Property, jointly owned with Homestake Mining Company, have increased to 8 million ounces (probable reserves). The increase reflects a successful exploration season ending in April at the Argentinean property. Prior to the completion of the planned merger of the two companies, announced on June 25, Veladero is 40 per cent owned by Barrick and 60 per cent by Homestake.

"The two companies' development teams are working together to identify capital and operating cost synergies that will improve the economics of this expanding gold district," said Alan R. Hill, Executive Vice President, Development.

Work continues on metallurgical testing and technical studies to optimize the scope and economics of the Veladero project, which will be further enhanced by the proposed merger of Barrick and Homestake. Among other synergies, the merger would allow for the combined development of Veladero and Barrick’s nearby Pascua-Lama Project on the border of Chile and Argentina.

The combined properties would have 25.8 million ounces of gold reserves (proven reserves of 2.4 million ounces and probable reserves of 23.4 million ounces) comprising an entire new gold district. Including Barrick’s 100%-owned Filo Norte deposit contiguous with the Filo Federico deposit on the joint venture property, the two proposed pits at Veladero would contain 8.9 million ounces.

The Barrick/Homestake Merger Agreement, which is subject to regulatory and Homestake shareholder approvals, creates a new leader in the gold industry - both in terms of quality and scale. The combined company is expected to have a market capitalization double that of the nearest competitor. It will be the second largest gold producer with the lowest cash costs of any major gold producer and have approximately US$900 million in cash.

Barrick’s shares trade under the ticker symbol ABX on the Toronto, New York, London and Swiss Stock Exchange and the Paris Bourse.

Estimates of Barrick’s reserves have been prepared by employees of Barrick under the supervision of Alan R. Hill, P. Eng., Executive Vice President, Development of Barrick. Estimates of reserves for the Veladero property have been prepared using an assumed average long-term gold price of $300 per ounce and are based on information provided by Homestake Mining Company. For a description of the key assumptions, parameters and methods used in calculating Barrick’s reserves see Barrick’s Annual Information Form for the year ended December 31, 2000.

Certain statements included herein, including those regarding, market capitalization, production, cash balances and costs constitute “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Barrick or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Barrick’s most recent Annual Information Form and “Management’s Discussion and Analysis of Financial and Operating Results” on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

Investor Contact:
Richard Young
Vice President,
Investor Relations
Tel (416) 307-7431
Fax (416) 861-0727

Media Contact:
Vincent Borg
Vice President,
Corporate Communications
Tel (416) 307-7477
Fax (416) 861-1509

Barrick Gold Corporation
Royal Bank Plaza
South Tower, Suite 2700
Toronto, Canada
M5J 2J3

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