Mr. Daniel Oh reports

BARRICK REPORTS THIRD QUARTER 2017 RESULTS

Barrick Gold Corp. has released third quarter results for the period ended Sept. 30, 2017. (All amounts are expressed in U.S. dollars unless otherwise indicated.) Lower revenues, earnings and cash flow for the quarter reflect lower gold production compared with the prior-year period, as well as the impact of lower sales from Acacia. Despite these factors, a stronger balance sheet and robust cash flow generation allowed the company to increase investments in the future of its business, with the ultimate objective of increasing free cash flow per share over the long term.

The company allocated more capital to its pipeline of low-risk, organic projects, located at or near Barrick's core operations. These projects have the potential to contribute more than one million ounces of annual production to Barrick, beginning in 2020. In addition to organic growth and exploration, the impact of the company's continuing investments in digital transformation and innovation, including improvements in safety, productivity, efficiency and transparency, is expected to accelerate as it broadens the implementation of these projects across its operations.

Financial highlights

The company reported a net loss of $11-million (one cent per share) for the third quarter, compared with net earnings of $175-million (15 cents per share) in the prior-year period. The decrease in net earnings primarily reflects lower gold production and lower gold prices, as well as the impact of Tanzania's concentrate export ban on Acacia. Net earnings were also impacted by a tax provision of $172-million related to the proposed framework for Acacia's operations in Tanzania.

In addition, debt extinguishment costs, direct mining costs, exploration and evaluation costs, and depreciation expenses were higher than the prior-year period. These increases were partially offset by higher earnings from equity investees, lower interest costs as a result of debt repayments and lower tax expense.

Adjusted net earnings for the third quarter were $186-million (16 cents per share), compared with $278-million (24 cents per share) in the prior-year period. Significant adjusting items (pretax and non-controlling interest effects) in the third quarter include:

• $101-million in losses on debt extinguishment;
• $172-million in a tax provision relating to the proposed framework for Acacia operations in Tanzania; partially offset by:
• $93-million in tax effects and non-controlling interest impacts, primarily in relation to the two adjustments discussed above.

Refer to page 50 of Barrick's third quarter management's discussion and analysis for a full list of reconciling items between net earnings and adjusted net earnings for the current and prior-year periods.

Operating cash flow was $532-million, compared with $951-million in the third quarter of 2016. Lower operating cash flow primarily reflects lower gold sales, combined with higher cash taxes paid, and higher direct mining costs. Operating cash flow was also impacted by lower cash flows attributable to non-controlling interests, an increase in exploration, evaluation and project expenses, and lower gold prices.

Free cash flow for the third quarter was $225-million, compared with $674-million in the third quarter of 2016. Lower free cash flow primarily reflects higher capital expenditures, combined with lower operating cash flows. In the third quarter of 2017, capital expenditures on a cash basis were $307-million, compared with $277-million in the third quarter of 2016. This includes a $27-million increase in project capital expenditures, primarily at Barrick Nevada, relating to the development of Crossroads, the Cortez Hills lower zone and the Goldrush project. Minesite sustaining capital expenditures were also higher at Barrick Nevada and Veladero, in line with plans.

Restoring a strong balance sheet

Achieving and maintaining a strong balance sheet remain a top priority. So far this year, the company has reduced its total debt by nearly $1.5-billion, exceeding its target of $1.45-billion for 2017. During the third quarter, the company completed the redemption of approximately $731-million of May, 2023, notes, and fully repaid the amounts outstanding on the company's Pueblo Viejo project financing agreement.

Its goal is to reduce its total debt to $5-billion by the end of 2018, using cash flow from operations, and through further portfolio optimization, including potential divestments and the creation of new joint ventures and partnerships. The company will continue to pursue debt reduction with discipline, taking only those actions that make sense for the business, on terms the company considers favourable to its shareholders.

At the end of the third quarter, Barrick had a consolidated cash balance of approximately $2.0-billion. The company has less than $100-million in debt due before 2020. Three-quarters of the company's outstanding total debt of $6.4-billion do not mature until after 2032.

Operating highlights and outlook

Barrick produced 1,243,000 ounces of gold in the third quarter, at a cost of sales of $820 per ounce. This compares with 1,381,000 ounces, at a cost of sales of $766 per ounce in the prior-year period. Production levels were expected to be lower in the third quarter, with higher gold production and lower costs expected in the fourth quarter. On a per-ounce basis, cost of sales applicable to gold was higher due to the impact of fewer ounces sold, combined with higher direct mining costs, and depreciation expense.

All-in sustaining costs in the third quarter were $772 per ounce, compared with $704 per ounce in the third quarter of 2016. Higher all-in sustaining costs primarily reflect a planned increase in mine site sustaining capital expenditures at Barrick Nevada and Veladero, and higher cost of sales on a per-ounce basis.

Cash costs increased from $518 per ounce in the third quarter of 2016 to $546 per ounce in the third quarter of 2017, primarily driven by higher direct mining costs. Cash costs have decreased by 5 per cent over the first nine months of 2017, compared with the same period in 2016.

The company has narrowed its full-year gold production and cost guidance ranges. It expects full-year gold production to be 5.3 million to 5.5 million ounces, at a cost of sales of $790 to $810 per ounce, and all-in sustaining costs of $740 to $770 per ounce. This compares with the company's most recent production guidance of 5.3 million to 5.6 million ounces, at a cost of sales of $780 to $820 per ounce, and all-in sustaining costs of $720 to $770 per ounce.

The company produced 115 million pounds of copper in the third quarter, at a cost of sales of $1.67 per pound, and all-in sustaining costs of $2.24 per pound. This compares with 100 million pounds, at a cost of sales of $1.43 per pound, and all-in sustaining costs of $2.02 per pound, in the third quarter of 2016.

The company's full-year copper production guidance range has narrowed to 420 million to 440 million pounds. The company has increased its copper cost of sales guidance to $1.70 to $1.85 per pound, primarily as a result of higher costs in Zambia. Its copper all-in sustaining cost guidance range has narrowed to $2.20 to $2.40 per pound.

Please see page 34 of Barrick's third quarter management's discussion and analysis for individual operating segment performance details.

                                       OPERATING PERFORMANCE

                                               Third quarter 2017   Current 2017 guidance   Original 2017 guidance 
Gold
Production (000s of ounces)                                 1.243             5.300-5.500              5.600-5.900* 
Cost of sales applicable to gold ($ per ounce)                820                 790-810                  780-820 
All-in sustaining costs ($ per ounce)                         772                 740-770                  720-770 
                                                    -------------           -------------            -------------
Copper       
Production (millions of pounds)                               115                 420-440                  400-450 
Cost of sales applicable to copper ($ per pound)             1.67               1.70-1.85                1.50-1.70 
All-in sustaining costs ($ per pound)                        2.24               2.20-2.40                2.10-2.40
                                                    -------------           -------------            ------------- 
Total attributable capital expenditures ($ millions)          296             1,350-1,500              1,300-1,500
                                                    -------------           -------------            ------------- 

* Original 2017 gold production guidance was adjusted to 5.3 to 5.6 million 
ounces to reflect the sale of 50 per cent of Veladero to Shandong Gold Mining 
Co. Ltd., effective June 30, 2017.

Appointment of chief digital officer

Digital transformation is helping Barrick generate more value from its assets by leveraging data, analytics and deep machine learning to make the company's business more safe, productive and transparent.

In August, the company appointed Sham Chotai as Barrick's first chief digital officer. Under Mr. Chotai's leadership, Barrick will accelerate its digital transformation by bringing together the company's information technology, digital and operating technology groups. This will ensure an integrated approach to developing and adopting digital solutions across the company and will build on the success of the company's pilot implementations this year.

Those pilots have demonstrated the ability to capture productivity gains and cost reductions at the Cortez mine by optimizing mining cycle times, digitizing maintenance work and introducing autonomous operations. As the company scales up the use of these products across Cortez and other Barrick operations, the company expects to see a corresponding acceleration of the benefits the company has achieved thus far.

Mr. Chotai comes to Barrick with 25 years of experience in digital technology, business intelligence and software development. Prior to joining Barrick, he was chief technology officer and head of software for GE's power business. Mr. Chotai also served as vice-president, cloud computing, for Hewlett-Packard.

Proposal for a new partnership between Acacia and Tanzania

Following three months of discussions, the government of Tanzania and Barrick have agreed on a proposed framework, which, if adopted, would redefine Acacia's relationship with Tanzania for the long term, moving to a partnership characterized by trust and transparency. This proposal is subject to review and approval by Acacia.

The company believes the proposed framework represents the optimal path for the resolution of outstanding disputes between Acacia and the government of Tanzania, and for the resumption of normal operations. Such a partnership has the potential to provide greater near-term certainty to Acacia and Barrick shareholders, and mitigate risk of future business disruptions, thereby improving the long-term stability and sustainability of Acacia's operations in Tanzania.

Under the proposed framework, economic benefits from Acacia's operations would be split on a 50/50 basis with the government of Tanzania. The government's portion will be delivered in the form of royalties, taxes and a 16-per-cent free carried interest in Acacia's Tanzanian operations, in line with the country's new mining law.

A new Tanzanian operating company will be created to manage Bulyanhulu, Buzwagi and North Mara. The principle of transparency between partners will define how this company operates. The government of Tanzania will participate in decisions related to operations, investment, planning, procurement and marketing. This operating company will maximize employment of Tanzanians, building local capacity at all levels of the business, from board membership to operations. It will also increase procurement of goods and services within Tanzania.

Having agreed on a proposed partnership framework, the government of Tanzania and Barrick have created a working group to resolve outstanding tax matters relating to Acacia. In support of the working group's continuing efforts, the proposed framework agreed between Barrick and the government of Tanzania provides for the payment of $300-million to the government of Tanzania by Acacia, on terms to be settled by the working group. Given Acacia's current financial position, these payments would be made over time, using Acacia's continuing cash flows. As such, payment would be also conditional on Acacia's ability to sell dore and concentrate.

Barrick will also be working with the government of Tanzania to establish the basis upon which the concentrate export ban can be lifted as expediently as possible, including protocols for joint oversight and verification of concentrate shipments.

Barrick and the government of Tanzania will now work to complete detailed documentation and final agreements for review and approval by Acacia. The company expects this work to be completed in the first half of 2018. Barrick has engaged with independent directors of Acacia during this process and will continue to do so.

Technical information

The scientific and technical information contained in this press release has been reviewed and approved by Steven Haggarty, PEng, senior director, metallurgy, of Barrick, Rick Sims, registered member SME, senior director, resources and reserves, of Barrick, and Patrick Garretson, registered member SME, senior director, life-of mine planning, of Barrick, each a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

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