Mr. Deni Nicoski reports

BARRICK REPORTS SECOND QUARTER 2018 RESULTS

Barrick Gold Corp. has released its second quarter results for the period ending June 30, 2018. Gold production and costs for the quarter were in line with expectations, with earnings and cash flow impacted by planned maintenance activities at Barrick Nevada and Pueblo Viejo. The company remains on track to meet full-year gold production guidance, with higher production and lower costs expected in the second half of 2018.

All amounts are expressed in U.S. dollars unless otherwise indicated.

Highlights:

• Barrick reported a net loss of $94-million (eight cents per share) and adjusted net earnings of $81-million (seven cents per share) for the second quarter.
• The company reported second quarter revenues of $1.71-billion, net cash provided by operating activities (operating cash flow) of $141-million and negative free cash flow of $172-million.
• Gold production in the second quarter was 1.07 million ounces, at a cost of sales applicable to gold of $882 per ounce, all-in sustaining costs (AISC) of $856 per ounce and cash costs of $605 per ounce.
• Copper production was 83 million pounds, at a cost of sales applicable to copper of $2.45 per pound, all-in sustaining costs of $3.04 per pound and C1 cash costs of $2.10 per pound.
• Based on further positive drill results, Barrick is announcing a new, high-grade gold discovery at Fourmile, located within the Cortez district in Nevada. The company has also allocated additional financing for drilling at the project over the remainder of 2018.
• Growth projects in Nevada and the Dominican Republic continue to progress according to schedule and within budget.
• Subsequent to the quarter-end, total debt has been reduced from approximately $6.4-billion to $5.8-billion, bringing Barrick's total debt repayments over the past five years to $10-billion.
• Full-year gold production and cost guidance remains unchanged at 4.5 million to 5.0 million ounces at a cost of sales of $810 to $850 per ounce, all-in sustaining costs of $765 to $815 per ounce and cash costs of $540 to $575 per ounce.
• Full-year copper production is expected to be 345 million to 410 million pounds at a cost of sales of $2 to $2.30 per pound, all-in sustaining costs of $2.55 to $2.85 per pound and C1 cash costs of $1.80 to $2.00 per pound.

Barrick's Nevada growth projects at Cortez, Goldrush and Turquoise Ridge continued to advance according to schedule and within budget, underpinning the next generation of profitable production from this core region for Barrick. In addition, Barrick's pipeline continues to grow with the announcement today of a new, high-grade gold discovery at Fourmile, located just two kilometres north of the Goldrush project in Nevada. This discovery demonstrates the significant untapped geological potential of Barrick's properties in Nevada, where the company is evaluating a project to increase processing capacity in order to accommodate new production from organic projects and bring forward production from stockpiles. Prefeasibility-level studies in support of a plant expansion at the Pueblo Viejo mine in the Dominican Republic are also advancing, with a pilot heap leach pad now in operation at the site.

Partnerships form a core element of Barrick's strategy to drive long-term value. On July 9, Barrick and Shandong Gold Group signed an enhanced strategic co-operation agreement, reflecting Barrick's unique focus on creating distinctive, enduring and trust-based relationships with China and China's best companies, as they jointly explore opportunities to enhance long-term value for their respective owners, and for their government and community partners. Under the agreement, Shandong is currently completing an independent evaluation focused on the potential to develop a mining project at Lama in Argentina, including a high-level evaluation of potential synergies between Lama and the nearby Veladero operation.

Outlook

Barrick's 2018 consolidated gold production guidance remains unchanged at 4.5 million to 5.0 million ounces at a cost of sales of $810 to $850 per ounce, cash costs of $540 to $575 per ounce and all-in sustaining costs of $765 to $815 per ounce.

Barrick expects gold production and costs to improve steadily over the second half of the year, driven by stronger performance at Barrick Nevada and Pueblo Viejo. Gold production in the third quarter is anticipated to be around 1.2 million ounces.

At Barrick Nevada, throughput and grade are expected to improve due to the completion of scheduled maintenance shutdowns in the first half of the year as well as increased production from the Cortez Hills open pit. At Pueblo Viejo, Barrick expects an increase in quarter-over-quarter production as it transitions to higher grades in phases 5 and 6 of the Moore pit. Third quarter throughput is expected to remain in line with the second quarter as Barrick completes the second of two scheduled autoclave maintenance shutdowns for the year. Barrick anticipates higher grades at Pueblo Viejo to persist into the fourth quarter, with higher throughput. Full processing capacity has also been restored at the Porgera joint venture earlier than initially expected, following the earthquake that struck Papua New Guinea in late February.

Barrick expects to produce 345 million to 410 million pounds of copper in 2018 at a cost of sales of $2 to $2.30 per pound, C1 cash costs of $1.80 to $2.00 per pound and all-in sustaining costs of $2.55 to $2.85 per pound. Copper production is anticipated to improve progressively over the third and fourth quarters, driven by a steady improvement in grade and crusher reliability at Lumwana, as well as an optimization of stacking procedures at Zaldivar.

Total attributable capital expenditure guidance for 2018 remains unchanged at $1.40-billion to $1.60-billion, including mine site sustaining capital of $950-million to $1.10-billion and project capital expenditures of $450-million to $550-million.

Barrick is adjusting its 2018 effective income tax rate guidance to 44 to 46 per cent, compared with its initial guidance of 41 to 43 per cent, reflecting lower spot gold prices and sales mix.

Financial highlights

The company reported a net loss of $94-million (eight cents per share) in the second quarter and adjusted net earnings of $81-million (seven cents per share). Operating cash flow was $141-million. Lower adjusted net earnings and operating cash flow compared with the prior-year period primarily reflect the impact of lower gold sales. In addition, while total direct mining costs were in line with the prior-year period, direct mining costs on a per-ounce basis increased, primarily due to the impact of fewer ounces sold, as well as expenses associated with planned maintenance at the Barrick Nevada roaster and the Pueblo Viejo autoclaves, and higher fuel costs. This was partially offset by higher realized gold prices, lower income tax expense and lower depreciation as a result of lower sales volumes. While income tax expenses were lower than the prior-year period, Barrick's second quarter effective tax rate increased from 46 per cent in 2017 to 48 per cent in 2018, bringing the company's 2018 year-to-date effective tax rate to 44 per cent.

Significant adjusting items impacting net earnings in the second quarter of 2018 included (pretax and non-controlling interest effects):

• $75-million in foreign currency translation losses primarily related to the significant weakening of the Argentine peso;
• $59-million in net impairment charges primarily related to the Kabanga project (a joint venture between Barrick and Glencore) and Acacia's Nyanzaga project;
• $43-million in other expense adjustments, including $28-million relating to staffing reductions and office closures associated with the implementation of Barrick's decentralized operating model.

During the second quarter of 2018, Barrick implemented a number of organizational reductions to advance the implementation of its decentralized operating model. The company completed an extensive review of all positions sitting above operations, reallocating roles where appropriate, eliminating those no longer required and closing a number of smaller offices. It is maintaining its full-year general and administrative expense guidance, as the expected savings from these changes are offset by approximately $30-million of severance expense.

The company recorded negative free cash flow of $172-million in the second quarter, driven by lower operating cash flows as described above. This was partially offset by lower capital expenditures compared with the prior-year period.

Balance sheet update

At the end of the second quarter, the company had a consolidated cash balance of approximately $2.1-billion. Subsequent to the end of the quarter, Barrick completed a make-whole repurchase of the outstanding principal of approximately $629-million on the company's 4.40 per cent notes due in 2021. As result, Barrick's total debt has been reduced from approximately $6.4-billion to $5.8-billion, further strengthening the company's balance sheet. Over the past five years, Barrick has reduced its total debt by $10-billion.

Following this repayment, the company has less than $100-million in debt due before 2020, and more than 85 per cent of its outstanding debt matures after 2032.

Operating highlights

Barrick produced 1.07 million ounces of gold in the second quarter of 2018 at a cost of sales of $882 per ounce, all-in sustaining costs of $856 per ounce and cash costs of $605 per ounce, in line with expectations. Gold production in the second quarter was impacted by lower grade and recovery at the Barrick Nevada oxide mill, and scheduled maintenance shutdowns at the Barrick Nevada roaster and the Pueblo Viejo autoclaves. Both shutdowns were successfully optimized, reflecting the company's focus on increasing the overall availability of its processing facilities by consolidating work and extending the time between planned maintenance activities.

Second quarter production at the Porgera joint venture was impacted by a significant earthquake that occurred in late February, resulting in a change to the mine's full-year guidance. However, full processing capacity has been restored at the mine, earlier than initially anticipated. A rock fall at the Kalgoorlie open pit in mid-May also impacted production in the second quarter, with lower mining rates expected for the remainder of the year.

During the second quarter, the Turquoise Ridge mine implemented a more efficient system for the shipping of ore for processing. Previously, ore was stockpiled on site before being shipped to Newmont's Twin Creeks facility for processing. Ore will now be shipped directly to Twin Creeks, eliminating double handling of the material. This change will eliminate one month of stockpiled material in 2018, resulting in a one-time change in inventory that will increase costs this year.

On a per-ounce basis, the cost of sales applicable to gold was higher than the prior-year period primarily due to the impact of fewer ounces sold. Direct mining costs on a per-ounce basis also increased, primarily due to the impact of fewer ounces sold, costs associated with planned maintenance at the Barrick Nevada roaster and the Pueblo Viejo autoclaves, and higher fuel costs. Higher all-in sustaining costs compared with the prior-year period primarily reflect the impact of higher direct mining costs on a per-ounce basis, as described above.

The company produced 83 million pounds of copper in the second quarter at a cost of sales of $2.45 per pound, all-in sustaining costs of $3.04 per pound and C1 cash costs of $2.10 per pound. Lower copper production in the second quarter was primarily the result of unplanned downtime at the Lumwana crusher and fewer heap leach tonnes processed at Zaldivar, partially offset by an increase in production at Jabal Sayid.

On a per-pound basis, cost of sales applicable to copper increased primarily due to higher processing and maintenance costs at Lumwana, and higher unit production costs as a result of lower sales at Zaldivar. Higher all-in sustaining costs primarily reflected higher direct mining costs applicable to copper.

Please see page 35 of Barrick's second quarter MD&A (management's discussion and analysis) for individual operating segment performance details.

                                                       Second quarter 2018         2018 guidance
Gold
Production (thousands of ounces)                                     1,067        4,500 to 5,000
Cost of sales applicable to gold ($ per ounce)                         882            810 to 850    
Cash costs ($ per ounce)                                               605            540 to 575    
All-in sustaining costs ($ per ounce)                                  856            765 to 815    
Copper                 
Production (millions of pounds)                                         83            345 to 410    
Cost of sales applicable to copper ($ per pound)                      2.45          2.00 to 2.30  
C1 cash costs ($ per pound)                                           2.10          1.80 to 2.00  
All-in sustaining costs ($ per pound)                                 3.04          2.55 to 2.85  
Total attributable capital expenditures ($ millions)                   332        1,400 to 1,600

Exploration and growth

Nevada

Fourmile -- more high-grade drill results confirm new discovery

Based on further positive drill results, Barrick has upgraded the Fourmile exploration project from a target to a discovery. Located approximately two kilometres north of Goldrush in Nevada, drilling continues to intersect high-grade results, confirming the continuity of mineralization in the project area, and increasing Barrick's confidence that Fourmile and Goldrush form part of a seven-kilometre-long mineralized system. Recent drilling has encountered high-grade mineralization across a number of stratigraphic horizons in multiple holes covering an area 600 metres in length by 200 metres in width.

Assay result highlights from the second quarter include 13.9 metres grading 56.8 grams per tonne of gold, 16.6 metres grading 71.6 grams per tonne of gold and 16.8 metres grading 57.9 grams per tonne of gold.

Based on the success of Barrick's 2018 drilling campaign to date, the company is allocating an additional $10-million to Fourmile exploration this year, increasing the total number of planned holes from 30 to 47. Further infill and wide-spaced stepout drilling will continue for the remainder of 2018.

Turquoise Ridge (75 per cent, Barrick) -- shaft sinking contractor mobilizing on site, high-grade exploration results extend deposit

Barrick is constructing a third shaft at Turquoise Ridge, which will allow the mine to roughly double annual production to more than 500,000 ounces per year (100-per-cent basis) at an average cost of sales of around $720 per ounce and average all-in sustaining costs of roughly $630 per ounce. Thyssen Mining, the shaft sinking contractor, is now mobilizing on site. Dewatering is advancing according to plan, and construction of surface infrastructure for electrical distribution and other mine utilities is well advanced. The capital cost for this project is estimated to be $300-million to $325-million (100-per-cent basis). Initial production from the new shaft is expected to begin in 2022, with sustained production from 2023.

At the end of 2017, Turquoise Ridge had 5.9 million ounces of proven and probable gold reserves (Barrick's 75-per-cent share) at an average grade of 15.5 grams per tonne (g/t) -- the highest reserve grade in the company's operating portfolio and among the highest in the gold industry. The mine added 2.1 million ounces of proven and probable gold reserves in 2017 through drilling (Barrick's 75-per-cent share), and the deposit remains open in multiple directions, including at depth.

Mine exploration drilling at Turquoise Ridge in 2018 has continued to expand the deposit in multiple directions. The North Zone Getchell program is targeting an open area of the Getchell fault updip in the northwest portion of the mine. The first hole of the program intersected 16.5 metres at 15.3 grams per tonne of gold. This intercept extends mineralization along the fault by 120 metres, with further drilling planned along the same structure.

In 2017, exploration drilling discovered mineralization 180 metres northeast of the deposit as part of the Foot Wall Pond Extension program. So far this year, drilling has extended known mineralization to the northeast by another 120 metres, with an intercept of 6.7 metres grading 13.9 grams per tonne gold. Follow-up drilling will also continue in this area.

Goldrush -- decline development commenced

When in full operation, the Goldrush underground project is expected to produce approximately 500,000 ounces of gold per year at a cost of sales of roughly $750 per ounce and all-in sustaining costs of approximately $640 per ounce. Portal pad construction for the twin declines was completed in the first quarter of 2018, and initial decline development commenced in the second quarter. Decline construction is expected to accelerate following the mobilization of the decline development contractor during the third quarter. Exploration twin declines will provide access to the orebody at depth, which will enable further drilling as well as the conversion of existing resources to reserves. These declines can be converted into production declines in the future. Goldrush currently has proven and probable gold reserves of 1.5 million ounces, and measured and indicated gold resources of 9.4 million ounces, with significant potential to identify additional resources once underground access to drill the deposit is established.

Cortez Deep South -- east decline complete, west decline advancing

The Deep South project is expected to contribute approximately 300,000 ounces of annual gold production when fully ramped up between 2024 and 2028, at a cost of sales of $650 per ounce and all-in sustaining costs of $580 per ounce. Deep South will utilize infrastructure which has already been approved under current plans to expand mining in the lower zone of the Cortez underground mine, including the new Rangefront twin declines and other underground infrastructure already under construction. During the second quarter, west decline development and mass excavations in support of the project continued to advance. Initial production from Deep South is expected in 2022.

Dominican Republic

Pueblo Viejo (60 per cent, Barrick) -- preoxidation heap leach and pilot flotation plant civil works under way

Barrick is advancing prefeasibility level studies for a plant expansion at the Pueblo Viejo mine that would increase throughput by 50 per cent to 12 million tonnes per year, allowing the mine to maintain average annual gold production of 800,000 ounces after 2022 (100-per-cent basis). The project involves the addition of a preoxidation heap leach pad with a capacity of eight million tonnes per year, a new mill and flotation concentrator with a capacity of four million tonnes per year, and additional tailings capacity. The project has the potential to convert roughly seven million ounces of measured and indicated resources to proven and probable reserves (100-per-cent basis).

In support of the prefeasibility study, Barrick has completed the construction of a pilot preoxidation heap leach pad to test metallurgy and recoveries, and is now irrigating ore. Civil works for the pilot flotation circuit have also commenced, and a tender process for structural, mechanical and electrical contracts is now under way.

Enhanced strategic co-operation agreement with Shandong Gold

Earlier this month, Barrick announced that it had entered into an enhanced strategic co-operation agreement with Shandong Gold Group Co. Ltd., deepening Barrick's partnership with one of China's leading mining companies. Key elements of the enhanced strategic co-operation agreement include the following:

• Lama evaluation:
  • Shandong Gold will carry out an independent evaluation of the potential to develop a mining project at Lama in Argentina, including a high-level evaluation of potential synergies between Lama and the nearby Veladero operation. Following the completion of this study, Barrick and Shandong may agree to conduct additional studies and technical work to evaluate a number of development options. Any decision by Shandong to invest in the project would be subject to additional agreement between the parties.
• Strengthening collaboration between Barrick and Shandong teams:
  • Reflecting a mutual commitment to operational excellence, safety, efficiency and best-in-class mining practices, Barrick and Shandong have agreed to choose one of Shandong's mines to serve as a platform for learning and collaboration between the two companies. Barrick and Shandong have also agreed to establish additional mechanisms to foster greater communication and knowledge sharing between respective management and technical teams.
• Strengthening co-operation on investment opportunities:
  • Building on a prior agreement to evaluate joint investment in organic mining projects currently owned by Barrick and Shandong, the two companies have agreed to consider opportunities to work together on acquisition opportunities or potential asset sales, if both agree it is in their collective best interests and would enhance the value of such an opportunity.

Hemlo royalty acquisition

Barrick has acquired a 2.5-per-cent gross revenue royalty for $14.9-million on certain surface and mineral lands adjacent to the Hemlo property in Ontario that was originally granted to Newmont Mining Corp. as part of the land acquisition in 2015. The royalty covers approximately 37 per cent of Barrick's overall landholding at Hemlo and includes large, highly prospective areas immediately west of the current operation. Drilling up to 800 metres beyond the limits of the existing resource has partly validated that ore-grade mineralization is continuous. The area covered by the royalty could represent potentially significant mine life extensions.

Technical information

The scientific and technical information contained in this press release has been reviewed and approved by: Geoffrey Locke, PEng, manager, metallurgy, of Barrick; Rick Sims, registered member SME, vice-president, reserves and resources, of Barrick; and Robert Krcmarov, FAusIMM, executive vice-president, exploration and growth, of Barrick, each a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

                              CONSOLIDATED STATEMENTS OF INCOME
                    (in millions of U.S. dollars, except per-share data)

                                           Three months ended June 30  Six months ended June 30
                                                   2018          2017         2018         2017      

Revenue                                        $  1,712      $  2,160     $  3,502     $  4,153     
Costs and expenses (income)                 
Cost of sales                                     1,176         1,277        2,328        2,619     
General and administrative expenses                  93            45          141          117       
Exploration, evaluation and project expenses         97            81          170          156       
Impairment (reversals) charges                       59            (5)          61       (1,130) 
Loss on currency translation                         75            32           90           35        
Closed mine rehabilitation                            9            (3)           -            5         
Income from equity investees                        (10)          (14)         (26)         (25) 
(Gain) loss on non-hedge derivatives                 (1)            2           (3)          (2) 
Other expense (income)                               38          (839)          39         (837) 
Income before finance costs and income taxes        176         1,584          702        3,215     
Finance costs, net                                 (136)         (173)        (269)        (323) 
Income before income taxes                           40         1,411          433        2,892     
Income tax expense                                 (116)         (274)        (317)        (866)
Net (loss) income                                   (76)        1,137          116        2,026
Attributable to                                    
Equityholders of Barrick Gold                       (94)        1,084           64        1,763
Non-controlling interests                            18            53           52          263
Earnings (loss) per share data attributable 
to the equityholders of Barrick Gold      
Net (loss) income                    
Basic                                          $  (0.08)     $   0.93     $   0.05     $   1.51
Diluted                                        $  (0.08)     $   0.93     $   0.05     $   1.51

We seek Safe Harbor.