Barrick Reports Record Earnings and Cash Flow; Legacy Placer Dome Gold Hedge Position Eliminated

Market Wire, August, 2006

Barrick Gold Corporation (NYSE: ABX)(TSX: ABX)(LSE: BGD)(SWX: ABX)(EURONEXT PARIS: ABX) -

SECOND QUARTER REPORT 2006 - AUGUST 2, 2006

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, and mine statistics, please see the Company's website, www.barrick.com/Investors/Annual&QuarterlyReports/ .

Highlights

- Q2 net income was $459 million ($0.53 per share) and operating cash flow was $643 million ($0.73 per share), both Company records and substantially higher than the prior-year period's net income of $47 million ($0.09 per share) and operating cash flow of $101 million ($0.19 per share).

- Equity gold production was 2.1 million ounces at total cash costs of $281 per ounce(1), and copper production was 100 million pounds at total cash costs of $0.76 per pound(1). The Company expects gold production for the second half of 2006 to increase due to stronger operating performances.

- During Q2, the remaining legacy Placer Dome gold hedge position was eliminated. Year-to-date, the Company has reduced its corporate gold sales position by a total of 7.7 million ounces.

- During Q2, Barrick concluded the sale of four Placer Dome mines and other agreed interests to Goldcorp Inc. for net cash proceeds of approximately $1.6 billion.

- The Company is on track to meet its full-year gold production guidance of 8.6 - 8.9 million ounces at total cash costs of $275 - $290 per ounce, and has revised upwards its copper production guidance from 350 million pounds to 370 million pounds and is maintaining total cash costs guidance of about $0.75 - $0.80 per pound.

- On July 24, 2006, Barrick announced all-cash offers for NovaGold Resources Inc. and Pioneer Metals Corporation in order to consolidate the ownership to 100% of the Donlin Creek project and add Galore Creek to its unrivalled project pipeline.

Barrick Gold Corporation today reported net income of $459 million ($0.53 per share) for second quarter 2006, up significantly from net income of $47 million ($0.09 per share) in the year-earlier period. Second quarter 2006 net income was positively impacted by $30 million ($0.03 per share) of special items (see page 9 of Management's Discussion and Analysis for further details).

Operating cash flow for second quarter 2006 was $643 million ($0.73 per share), compared with the prior-year period of $101 million ($0.19 per share).

"As gold and copper prices rose in the second quarter, our operating margins expanded and had a direct positive impact on our bottom line," said Greg Wilkins, President and CEO. "The result was record earnings and cash flow per share."

PRODUCTION AND COSTS

In second quarter 2006, Barrick produced 2.1 million ounces of gold at total cash costs of $281 per ounce, compared to 1.2 million ounces produced at total cash costs of $243 per ounce for the prior-year quarter. The increase in production year-over-year is due to the successful acquisition of Placer Dome and the contribution from Barrick's new generation of mines.

Barrick's financial results benefited from the strong gold price, as it realized $592 per ounce on its gold sales, a 40% increase over the prior-year period. As a result, the Company's margin over its total cash costs increased to over $300 per ounce in the current quarter, versus $181 per ounce in the prior-year period. The Company also produced 100 million pounds of copper during the second quarter 2006, and realized $3.49 per pound on its copper sales relative to its total cash costs of $0.76 per pound.

HEDGE BOOK REDUCTION

Barrick believes the long-term outlook for gold prices is positive and has aggressively reduced its gold hedge program. During the second quarter, the remaining legacy Placer Dome gold hedge position was eliminated, for a total reduction of 7.7 million ounces year-to-date. The total cost of reducing the Placer Dome gold hedge position was approximately $1.8 billion, of which $0.3 billion remains to be paid. During the second quarter, the Company's realized price on its gold sales was reduced by $35 per ounce, primarily as a result of hedge accounting adjustments related to the acquired Placer Dome hedge position. The corporate gold sales contract position currently totals 2.8 million ounces, and the Company intends to continue to reduce this position opportunistically, such that it is eliminated by no later than the end of 2009.

REGIONAL RESULTS

North America

The North America region's second-quarter gold production was 0.8 million ounces at total cash costs of $293 per ounce versus 0.6 million ounces at total cash costs of $257 per ounce in the prior-year period. The Company expects North American gold production for the second half of 2006 to be slightly higher primarily due to planned mine sequencing at Bald Mountain and Cortez. Total cash costs for the region increased over the same period primarily due to the mix of production from the acquired mines, higher prices of diesel fuel and higher royalties. Goldstrike's total cash costs were reduced in the quarter due to Barrick's new power plant. The Goldstrike property passed a milestone in May 2006 when it poured its 30 millionth ounce of gold since its acquisition 20 years ago.