October 24, 2018
All amounts expressed in U.S. dollars unless otherwise indicated

•Barrick reported a net loss of $412 million ($0.35 per share), and adjusted net earnings1 of $89 million ($0.08 per share) for the third quarter.
•The Company reported third quarter revenues of $1.84 billion, net cash provided by operating activities (“operating cash flow“) of $706 million, and free cash flow2 of $319 million.
•Gold production in the third quarter was 1.15 million ounces, at a cost of sales applicable to gold3 of $850 per ounce, all-in sustaining costs4 of $785 per ounce, and cash costs4 of $587 per ounce.
•Copper production was 106 million pounds, at a cost of sales applicable to copper3 of $2.18 per pound, all-in sustaining costs5 of $2.71 per pound, and C1 cash costs5 of $1.94 per pound.
•Full-year gold production and cost guidance remains unchanged at 4.5-5.0 million ounces, at a cost of sales3 of $810-$850 per ounce, all-in sustaining costs4 of $765-$815 per ounce, and cash costs4 of $540-$575 per ounce. We expect gold production to be approximately 1.25 million ounces in the fourth quarter.
•We continue to expect full-year copper production in the range of 345-410 million pounds, at a cost of sales3 of $2.00-$2.30 per pound, all-in sustaining costs5 of $2.55-$2.85 per pound, and C1 cash costs5 of $1.80-$2.00 per pound.
•Corporate administration cost guidance for 2018 has been reduced from roughly $275 million to approximately $235 million, reflecting savings associated with decentralization.
•During the quarter, Barrick announced a transformational all-share merger with Randgold Resources Ltd. that will create an industry-leading gold company powered by a common vision of long-term value creation.
•Organic growth projects in Nevada and the Dominican Republic continue to advance according to schedule and in line with cost estimates.
•Infill and step out drilling at the Fourmile discovery in Nevada has identified further high grade mineralization, expanding the potential project footprint.
•In September, the Company signed a mutual investment agreement with Shandong Gold Group Co., Ltd. (“Shandong Gold“), strengthening Barrick’s partnership with one of China’s leading mining companies.

TORONTO — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the “Company”) today reported third quarter results for the three-month period ending September 30, 2018. Gold production increased to 1.15 million ounces in the third quarter, while cost of sales on a per ounce basis3 was approximately four percent lower than the second quarter of 2018. All-in sustaining costs and cash costs were down by roughly eight percent and three percent, respectively, over the same period. Third quarter operating cash flow of $706 million, and free cash flow2 of $319 million, was significantly higher than the second quarter of 2018, driven by higher production and lower costs. Copper production and costs also improved in the third quarter, as expected. The Company remains on track to meet its full-year gold and copper production guidance.

During the third quarter, Barrick and Randgold Resources Ltd. (“Randgold”) announced a transformational all-share merger that will create an industry-leading gold company powered by a common vision of long-term value creation. The combined company will have the largest portfolio of tier one gold assets6 in the industry, including five of the world’s top 10 tier one gold mines, and two potential tier one mines under development. With John Thornton as Executive Chairman, and Mark Bristow as President and CEO, the combined company will be led by a proven management team of owners with a successful track record in both complex and established jurisdictions. Superior operating metrics, including the highest adjusted EBITDA margin7 and the lowest total cash cost8 position among senior gold peers9, will support sustainable investment in growth and shareholder returns.

Since the proposed merger was announced, Barrick and Randgold shares have risen by 25 percent and 28 percent, respectively, creating $4.8 billion in combined market value.10 Over the same period, the senior gold peers9 have risen by an average of approximately three percent.10 A special meeting of Barrick shareholders will be held on November 5 to approve the issuance of Barrick common shares in connection with the merger, as well as to approve the continuance of Barrick to the Province of British Columbia. Leading independent proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended that shareholders of both companies vote in favor of the proposed merger. For more information about the merger, and details on how to vote, please visit www.barrick.com/a-new-champion.

Financial Highlights and Balance Sheet

The Company reported a net loss of $412 million ($0.35 per share) in the third quarter, and adjusted net earnings1 of $89 million ($0.08 per share). The net loss primarily reflects a $405 million impairment charge at the Lagunas Norte mine in Peru (see page 5 for more details). Lower adjusted net earnings compared to the prior-year period primarily reflect lower realized gold and copper prices11, increased direct mining costs primarily due to higher fuel consumption and prices, and planned maintenance activities at Pueblo Viejo during the third quarter. These declines were partially offset by insurance proceeds associated with the KCGM pit wall incident, a reduction in general and administrative expenses, and lower depreciation expense.

Significant adjusting items (pre-tax and non-controlling interest effects) in the third quarter of 2018 include:
•$431 million in net impairment charges primarily related to the asset impairment of Lagunas Norte;
•$62 million in foreign currency translation losses primarily related to the significant weakening of the Argentine peso; and
•$68 million in other expense adjustments, mainly relating to debt extinguishment costs of $29 million and the settlement of a supplier contract dispute of $27 million inherited as part of the Equinox acquisition in 2011.

Refer to page 51 of Barrick’s third quarter MD&A for a full list of reconciling items between net earnings and adjusted net earnings for the current and prior-year periods.

Operating cash flow increased to $706 million, compared to $532 million in the third quarter of 2017, primarily due to a favorable change in working capital, and a decrease in interest expense as a result of debt reduction activities. This was partially offset by lower realized gold and copper prices.11 Stronger operating cash flow drove free cash flow of $319 million—a 42 percent increase compared to the prior-year period.

Over the course of 2018, we have continued to advance the implementation of our decentralized operating model, reallocating roles to operations where appropriate, and eliminating those no longer required (including 235 overhead roles eliminated in 2018 to date). As a result of decentralization efforts, we now expect corporate administration expenses to be approximately $235 million in 2018, including $36 million in one-time severance expenses, compared to our original guidance of roughly $275 million. The indicative annualized savings as a result of this decentralization are approximately $100 million.

As previously reported, during the month of July, Barrick completed a make-whole repurchase of the outstanding principal of approximately $629 million on the Company’s 4.40 percent notes due in 2021. The Company’s total debt is now $5.7 billion, and debt less cash (net debt) is $4.0 billion. Since 2013, Barrick has reduced its total debt by $10 billion. The Company has less than $100 million in debt due before 202012, and more than 85 percent of our outstanding debt matures after 2032. Further debt reduction will depend on cash flows, and will be evaluated against alternative uses of cash.

Operating Highlights

Barrick produced 1.15 million ounces of gold in the third quarter of 2018, at a cost of sales3 of $850 per ounce, all-in sustaining costs4 of $785 per ounce, and cash costs4 of $587 per ounce. As anticipated, gold production was higher compared to the second quarter of 2018, primarily driven by improved throughput and grade at Barrick Nevada. We anticipate gold production to be approximately 1.25 million ounces in the fourth quarter, with full-year production at the lower end of our 2018 guidance range of 4.5-5.0 million ounces of gold.

On a per ounce basis, cost of sales applicable to gold3 was four percent higher than the prior-year period, primarily due to the impact of fewer ounces sold, higher direct mining costs attributable to increased fuel consumption and prices, and planned maintenance activities at Pueblo Viejo. A two percent increase in all-in sustaining costs4 compared to the third quarter of 2017 reflects higher direct mining costs, partially offset by lower mine site sustaining capital expenditures.

The Company produced 106 million pounds of copper in the third quarter, at a cost of sales3 of $2.18 per pound, all-in sustaining costs5 of $2.71 per pound, and C1 cash costs5 of $1.94 per pound. Improved copper production compared to the second quarter of 2018 was primarily driven by higher production at Lumwana, reflecting a steady improvement in grade and recovery, and improved crusher reliability.

On a per pound basis, cost of sales applicable to copper3 increased compared to the prior-year period, primarily due to the impact of lower sales volume on unit production costs, higher direct mining costs at Lumwana and Jabal Sayid, and lower capitalized stripping at Zaldívar. Higher copper all-in sustaining costs5 compared to the prior-year period primarily reflects higher direct mining costs, and higher mine site sustaining capital expenditures.

Please see page 36 of Barrick’s third quarter MD&A for individual operating segment performance details. Detailed mine site guidance information can be found in Appendix 1 of this press release.

Gold Third Quarter 2018 2018 Guidance
Production13 (000s of ounces) 1,149 4,500 - 5,000
Cost of sales applicable to gold3 ($ per ounce) 850 810 - 850
Cash costs4 ($ per ounce) 587 540 - 575
All-in sustaining costs4 ($ per ounce) 785 765 - 815
Copper
Production13 (millions of pounds) 106 345 - 410
Cost of sales applicable to copper3 ($ per pound) 2.18 2.00 - 2.30
C1 cash costs5 ($ per pound) 1.94 1.80 - 2.00
All-in sustaining costs5 ($ per pound) 2.71 2.55 - 2.85
Total Attributable Capital Expenditures14 ($ millions) 346 1,400 - 1,600

Exploration and Growth

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