Cortez Mine Delivered A Strong Performance

TORONTO, ON - Barrick Gold Corporation reported a second quarter net loss of $8.56 billion, reflecting $8.7 billion in after-tax impairment charges largely driven by significant decreases in long-term metal price assumptions following the sharp declines in spot prices in the second quarter. The total charge is comprised of: $5.1 billion for the Pascua-Lama project, $2.3 billion in goodwill impairments and $1.3 billion in other asset impairment charges.

"We are pleased with our second quarter operating performance and our improved 2013 guidance. These results reflect the high quality of Barrick's portfolio of assets and our increasingly effective efforts at controlling costs. We are disappointed with the impairment charges for Pascua-Lama and other assets but are confident that these assets, some with mine lives in excess of 25 years, will generate substantially more economic benefits over time," said Jamie Sokalsky, Barrick's President and CEO.

Barrick's comprehensive cost reductions and high quality asset base provide the company with significant operational flexibility. Its group of five key mines - Cortez, Goldstrike, Pueblo Viejo, Veladero and Lagunas Norte - are expected to generate some 60 percent of 2013 production at all-in sustaining costs (AISC) of $650-$700 per ounce. An additional seven mines have AISC below $1,000 per ounce, bringing the total amount of expected 2013 production with costs below this level to about 75 percent.

For the remaining operations with expected 2013 AISC above $1,000 per ounce, the company will change mine plans, suspend, close or divest these assets to improve cash flow. Actions currently being considered as part of an ongoing process include: Bald Mountain (US) - mine plan changes to reduce the number of pits and focus on the most profitable ounces, while retaining the option to access other ore in the future; Round Mountain and Marigold - working with our joint venture partners to optimize mine plans; Hemlo (Canada) - defer the open pit expansion and optimize the underground mine plan; Porgera (Papua New Guinea) - evaluate mine plan changes and explore other alternatives; Plutonic, Yilgarn South (Australia) - optimize the mine plans and/or divest; African Barrick Gold (ABG) (Tanzania) - finalizing a detailed operational review to aggressively optimize mine plans and improve operations; Pierina (Peru) - assessing closure options.

We are developing mine plans to maximize cash flows at every mine. The outcome of this process could have an impact on our year-end 2013 proven and probable reserves and expected future production levels; however, where possible, we will maintain the option to access the metal in the future. As a result of the schedule delay at Pascua-Lama, expected mine plan changes to maximize cash flow and the likelihood of further asset divestitures, we are no longer targeting eight million ounces of gold production in 2016, Sokalsky said.