Barrick Gold: Net Income Rises 29% to $514 Million ($0.59 per Share); Expanded Margins Increase Profitability in Q1

Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) -

FIRST QUARTER REPORT - MAY 6, 2008

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, full-year guidance at significant mines, and mine statistics, please see the Company's website, www.barrick.com .

Highlights

- The Company reported first quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compared to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Reported net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share)(1) and included $29 million of post-tax special items that reduced income by $0.03 per share. Adjusting for these special items, earnings of $0.62 per share are a Company record. The realized gold price of $925 per ounce matched the average spot price for the quarter.

- First quarter gold production was 1.74 million ounces at total cash costs of $393 per ounce(2), and copper production was 87 million pounds at total cash costs of $0.94 per pound(2). The Company maintains full year production guidance of 7.6 - 8.1 million ounces of gold at total cash costs of $390 - $415 per ounce and 380 - 400 million pounds of copper at total cash costs of $1.15 - $1.25 per pound.

- Significant progress continued to be made on Barrick's extensive project pipeline, including: advanced construction of Buzwagi, which is on schedule and within budget for start-up in mid-2009, and the submission of a feasibility study and project notice to the Government of the Dominican Republic in February in order to proceed with the Pueblo Viejo project. At Cortez Hills in Nevada, detailed engineering is essentially complete and the project remains on schedule and within the $480 - $500 million pre-production capital budget. A final feasibility study has been completed on the Sedibelo platinum project in South Africa, entitling the Company to a 10% interest and the right to earn an additional 40% on a decision to mine.

- During the quarter, the Company consolidated 100% ownership in the Cortez property with the purchase of the remaining 40% interest. The Cortez operation is expected to become a million-ounce, low cost producer once Cortez Hills is commissioned, and is a key, long life asset in Barrick's portfolio.

Barrick Gold Corporation reported Q1 production of 1.74 million ounces of gold at total cash costs of $393 per ounce compared to 2.03 million ounces produced at total cash costs of $309 per ounce for the prior year period.

First quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compare to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share) on higher cash margins for both gold and copper. Operating cash flow of $728 million ($0.83 per share) compares to adjusted cash flow of $727 million ($0.84 per share) reported for the prior year period. Current period cash flow was adversely impacted by a build up of inventory during the quarter. EBITDA of $984 million ($1.14 per share) was 30% higher than prior year adjusted EBITDA of $757 million ($0.87 per share).(1)

Reported net income included $29 million of post-tax special items that reduced earnings by $0.03 per share.

"Our 25th anniversary this year comes at an exciting time to be in the mining business," said Peter Munk, Chairman and Acting CEO of Barrick. "We have positioned ourselves to benefit from today's strong metal prices and our efforts are now being realized in expanding margins and strong earnings and cash flow."

PRODUCTION AND COSTS

In Q1 2008, Barrick produced 1.74 million ounces of gold at total cash costs of $393 per ounce and a realized gold price of $925 per ounce. Q1 was a lower production quarter as lower grades and throughput were experienced at some larger operations due to a combination of planned mine sequencing and operational disruptions. Improved performance is anticipated at a number of mines that experienced disruptions and as higher grades are accessed at Goldstrike starting in the second quarter.

The Company maintains its full year production guidance of 7.6 - 8.1 million ounces of gold at total cash costs of $390 - $415 per ounce. Assuming continuing cost pressures associated with higher than assumed gold and energy prices, cash costs for gold are expected to be in line with the higher end of the guidance range.

The South American business unit produced 0.54 million ounces of gold in Q1 at total cash costs of $193 per ounce. The Lagunas Norte mine continues to deliver excellent results, producing 0.23 million ounces of gold at cash costs of $116 per ounce. Veladero production of 0.19 million ounces at cash costs of $293 per ounce benefited from access to higher grade areas of the Filo Federico and Amable pits following extensive waste stripping in 2007.