Mr. Greg Panagos of Barrick reports

BARRICK ANNOUNCES AGREEMENT IN PRINCIPLE ON AMENDMENTS TO PUEBLO VIEJO SPECIAL LEASE AGREEMENT

Pueblo Viejo Dominicana Corp. has reached an agreement in principle with the government of the Dominican Republic concerning amendments to Barrick Gold Corp.'s Pueblo Viejo special lease agreement. The Pueblo Viejo mine is operated by PVDC, which is jointly owned by Barrick (60 per cent) and Goldcorp (40 per cent). (All amounts are expressed in U.S. dollars unless otherwise indicated.)

The agreement in principle comes after eight months of constructive discussions between PVDC and the government. Barrick is pleased to reach an agreement in principle that preserves the economic value of the Pueblo Viejo mine, while also addressing the fiscal objectives of the country, in a way that will provide stability for both parties moving forward.

PVDC is one of the largest foreign investors in the Dominican Republic, and it is in the company's long-term interest to support the economic stability and development of the country, where it will be operating for the next three decades.

If the proposed amendments are implemented and entered into force, revenues to the government will be increased and brought forward through a number of proposed changes. To achieve this objective, amendments to the SLA, which will be mutually agreed upon by the parties, could include items, such as the following:

• Elimination of a 10-per-cent return embedded in the initial capital investment for the purposes of the NPI;
• An extension to the period over which PVDC will recover its capital investment;
• A delay of application of NPI deductions;
• A reduction in depreciation rates.

A graduated minimum tax will be established. The tax will be adjusted up or down based on metal prices. The annual minimum tax rate will be reset every three years and will be equivalent to 90 per cent of the taxes that would have been payable by PVDC over the same period. The details for the implementation of the minimum tax are to be mutually determined by the parties.

Based on the proposed amendments, it is anticipated there will be an approximate 50/50 split of the expected cash flows from the mine between PVDC and the government over the years 2013 to 2016. This would result in tax revenues to the government of approximately $2.2-billion over this period at a gold price of $1,600 per ounce.

The economic benefit of these changes over the life of the mine to the government is approximately $1.5-billion (net present value at 5-per-cent discount rate and $1,600 gold price assumption).

The proposed agreement also includes the following -- consistent with the SLA:

• Corporate income tax rate of 25 per cent;
• Net smelter royalty of 3.2 per cent;
• Net profits tax of 28.75 per cent.

The proposed amendments are subject to negotiation of a definitive agreement, which will require the approval of the boards of directors of Barrick and Goldcorp, along with the project lenders. The definitive agreement will also be subject to approval by the Congress of the Dominican Republic. The SLA will continue in full force and effect according to its present terms unless and until the definitive agreement is fully executed and approved.

The government has also reiterated its commitment to facilitating the timely granting of permits and other requirements necessary for continuing operations at Pueblo Viejo.

Pueblo Viejo is a world-class, low-cost mine and is expected to contribute an average of 625,000 to 675,000 ounces of gold per year to Barrick in its first full five years of production at all-in sustaining costs of $500 to $600 per ounce (1). With an estimated mine life of more than 25 years, Pueblo Viejo will be a significant contributor to Barrick's earnings and cash flow.

(1) Based on first full-five-year average and gold and WTI oil price assumptions of $1,700 per ounce and $90 per barrel, respectively. Escalation for future inflation is not included.

We seek Safe Harbor.