Construction Commences At Pasua-Lama Project

TORONTO, 0N - Construction on Barrick Gold s Pascua-Lama project began in 2009 and remains on schedule to deliver gold in the first quarter of 2013 and in line with its $2.8 $3.0 billion pre-production capital budget. Pascua-Lama is one of the largest undeveloped gold-silver deposits in the world with gold reserves of about 18 million ounces and 671 million ounces of silver contained within the gold reserves. Once operating, it is expected to produce between 750,000 800,000 ounces of gold annually (assuming a $12 per ounce silver price) at total cash costs of $20 $50 per ounce, for a mine life of over 25 years. For every $1 per ounce increase in the silver spot price, total cash costs are expected to decrease by $35 per ounce over this period. This makes Pascua-Lama one of the lowest cost gold mines in the world.

At the Pascua-Lama project, located on the border of Chile and Argentina, detailed engineering is about 90% complete. Major earthworks on the Chilean side are advancing. The portal for the tunnel and ore conveyor, which provides access for shipping the ore to the process facility from Chile to Argentina, has been completed and the Barrealis camp has been progressing well with about 540 people currently on site. In Argentina, contractors for early earthworks site preparation have mobilized to the site. Over 25% of the capital has been committed, securing the mining fleet, processing mills, camp accommodation and earthworks contractors.

Within 10 kilometers of Barrick s Veladero mine in Argentina, the Pascua-Lama deposit sits in the Frontera district. Project development and subsequent mine operations are expected to benefit from the company s experience at Veladero and from the significant infrastructure in the area. The development of Pascua-Lama opens up the Frontera gold district where Barrick sees significant potential to provide further value through exploration.

Other South American Projects

One hundred thirty kilometers north of Pascua-Lama is Barrick s Cerro Casale joint-venture project, which is in the Maricunga district of Region III in Chile. The proximity of the two projects is expected to provide opportunities for construction and operating synergies. Cerro Casale is one of the world s largest undeveloped gold-copper deposits, with gold reserves of about 23 million ounces and just under 6 billion pounds of copper within the gold reserves (100% basis) and has an expected mine life of about 20 years. The feasibility study optimization work at Cerro Casale has been completed. Pre-production capital is expected to be about $4.2 billion (100% basis) with a construction period of about three years following the receipt of key permits.

In February 2010, Barrick agreed to acquire an additional 25% interest in the Cerro Casale project from Kinross Gold Corporation for total consideration of $475 million, thereby increasing the Company s interest in the project to 75%. Upon completion of the transaction with Kinross Gold, Barrick s 75% share of average annual production is anticipated to be about 750,000 825,000 ounces of gold and 170 190 million pounds of copper in its first full five years of operation at total cash costs of about $240 $260 per ounce assuming a copper price of $2.50 per pound. A $0.25 per pound change in the copper price would result in an approximate $50 per ounce impact on the expected total cash cost per ounce over this period. On a life-of-mine basis, the Company s share of average annual production is anticipated to be about 600,000 650,000 ounces of gold and about 170 190 million pounds of copper at total cash costs of about $140 $160 per ounce.

The Veladero mine (Argentina) is expected to increase production to 1.09 1.16 million ounces in 2010 as a result of increased throughput from a crusher expansion completed in 2009 which increased throughput from 50,000 to 85,000 tons per day. Production from the Veladero mine benefited from access to higher grades in the Amable and Federico pits.

The Lagunas Norte mine in Peru produced just over 1.0 million ounces for the fourth year in a row at low cash costs below $140 per ounce. At the Pierina mine, also in Peru, successful in-fill drilling results have extended its expected life to mid-2013.

South America remains the company s lowest cash cost region and produced 1.9 million ounces of gold in 2009.

Barrick s copper business continued to generate significant cash flow for reinvestment in its core gold business. Production from its two copper mines, the Zald’var operation in Chile and the Osborne mine in Australia, was 393 million pounds in 2009. Copper cash margins per ounce were robust at about 63% of the average realized price as the Company benefited from its copper hedge position. The average realized price of $3.16 was $0.82 per pound higher than the average spot price for the year.

The Company Overall

In 2009, Barrick produced 7.4 million ounces of gold. The Company expects production to grow to 7.6 8.0 million ounces in 2010, net of the ABG IPO, at lower total cash costs of $425 $455 per ounce or net cash costs of $345 $375 per ounce. Higher production is driven by the start-up of Cortez Hills in Nevada, a full year of operations at the company s new Buzwagi mine in Tanzania and higher production from the Veladero mine in Argentina.

Barrick was within its overall company production and cost targets. The strength of its 26-mine portfolio allowed Barrick to absorb unplanned disruptions at certain sites, while continuing to meet expectations.

The company s address is 161 Bay Street, Suite 3700, Toronto, ON M5J 2S1, 416-861-9911, fax: 416-861-2492, www.barrick.com.