Barrick Gold: Cash Flow Rises to a Record $2.2 Billion in 2008

Market Wire, February, 2009

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

FOURTH QUARTER AND YEAR-END REPORT 2008

FEBRUARY 20, 2009

Based on US GAAP and expressed in US dollars

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, 2009 Outlook, mine statistics and gold reserves and resources please see the Company's website, www.barrick.com .

Highlights

- Barrick reported record operating cash flow of $2.21 billion for 2008, a 27% increase over $1.73 billion in the prior year. Net income was $0.79 billion ($0.90 per share) compared to $1.12 billion ($1.29 per share) in the prior year. Adjusted net income rose 60% to $1.66 billion ($1.90 per share)(1) compared to $1.04 billion ($1.19 per share) in the prior year period.

- Adjusted Q4 net income of $277 million ($0.32 per share) compares to adjusted net income of $597 million ($0.69 per share) in Q4 2007. A net loss of $468 million ($0.54 per share) in the fourth quarter largely reflects non-cash impairment charges of $773 million ($0.89 per share), mainly related to goodwill.

- Full year production of 7.66 million ounces met original guidance, while total cash costs of $443 per ounce(2) were within the recent estimate. Applying a full credit for non-gold sales, total cash costs were $337 per ounce(3). Q4 gold production of 2.11 million ounces at total cash costs of $471 per ounce reflected anticipated stronger contributions from Goldstrike and Cortez, which had their highest production quarters of the year. On a full credit for non-gold sales basis, Q4 total cash costs were $382 per ounce.

- Three advanced projects remain on schedule and in line with their pre-production capital budgets. Cortez Hills is in full construction and expected to enter production in Q1 2010. Including Cortez Hills, the expanded Cortez operation is expected to produce an average of about 1.0 million ounces a year in its first full five years. Initial production from the Pueblo Viejo project is expected in Q4 2011 and first gold is anticipated from Buzwagi in Q2 2009.

- Year-end 2008 gold reserves increased 11% to 138.5 million ounces(4), and continue to be the highest in the industry, while measured and indicated gold resources grew 29% to 65.0 million ounces and inferred resources increased 9% to 34.8 million ounces. Together with the industry's highest gold production, Barrick continues to offer investors exceptional leverage to gold.

- Barrick has agreed to purchase Teck Cominco's 50% interest in the Hemlo operation, thereby consolidating 100% ownership, for a cash consideration of $65 million.

- The Company ended the year in a strong financial position, with a cash balance of $1.4 billion, a $1.5 billion undrawn credit facility and the industry's highest rated balance sheet.

Barrick Gold Corporation reported Q4 production of 2.11 million ounces of gold at total cash costs of $471 per ounce compared to 2.14 million ounces produced at total cash costs of $369 per ounce for the prior year period. Applying a full credit for non-gold sales, total cash costs were $382 per ounce compared to $265 per ounce in the prior year period. The realized gold price for the quarter was $807 per ounce(5) compared to the average spot price of $794 per ounce.

Adjusted net income of $277 million ($0.32 per share) reflects lower gold and copper margins and compares to adjusted net income of $597 million ($0.69 per share) in Q4 2007. Post-tax non-cash charges of $773 million ($0.89 per share) largely relate to goodwill impairment at Kanowna, North Mara, Osborne and Barrick Energy. The resulting net loss of $468 million ($0.54 per share) compares to net income of $537 million ($0.62 per share) in Q4 2007. Fourth quarter operating cash flow of $439 million compares to operating cash flow of $676 million in the prior year period.

"Barrick generated record operating cash flow in 2008, grew reserves and resources and significantly advanced its projects," said Aaron Regent, President and CEO. "The Company is now poised to open three lower cost mines over the next three years, which are expected to lift Barrick's production in 2010 once Cortez Hills is commissioned. The Company is positioned to provide investors with exceptional leverage to the gold price with the industry's largest production and reserves."

PRODUCTION AND COSTS

Barrick produced 2.11 million ounces of gold at total cash costs of $471 per ounce for the quarter. Full year production of 7.66 million ounces met original guidance and total cash costs of $443 per ounce were within the recent estimate.

The South American business unit produced 0.51 million ounces in Q4 at total cash costs of $275 per ounce. The Lagunas Norte mine delivered another quarter of outstanding results as production increased 16% over the prior year period to 0.33 million ounces at total cash costs of $124 per ounce. Full year production totaled 1.18 million ounces and Lagunas Norte is on track to deliver one million ounces again in 2009 for the fourth straight year as higher grades are expected to continue. The Veladero mine produced 0.09 million ounces in the quarter for full year production of 0.54 million ounces, up 13% from 2007 at total cash costs of $496 per ounce. The higher production reflects improved productivity and equipment utilization. Further increases in production at Veladero are expected following the completion of a crusher expansion targeted for the second half of 2009.