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of choice at a glance 2006 highlights millions except per share 2006 2005 revenues net income net income per share total debt stockholder s equity net cash from operations capital expenditures 4,987 791 1.76 1,911 9,337 1,225 1,551 4,352 322 0.72 1,918 8,376 1,243 1,220

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table ofcontents the chemical symbol of gold is au from the latin aurum aurora was the roman goddess of dawn which links to the 02 08 10 14 16 17 18 20 21 letter to shareholders looking ahead 2007 guidance operations 2006 sales reserves exploration merchant banking social responsibility financial information report of independent accounting firm consolidated financial statements board of directors corporate officers shareholder information 22 26 27 28 the financial information in the summary annual report is condensed this summary annual report should be read in conjunction with the company s annual report on form 10-k for the year ended december 31 2006 which provides more detailed financial information regarding the company including the company s complete consolidated financial statements and accompanying notes as well as management s discussion and analysis of financial condition and results of operations investors may request without charge the company s annual report on form 10-k by contacting investor relations as provided under shareholder information in the summary annual report this summary annual report also contains forward-looking statements that are subject to various risks and uncertainties as explained in more detail on page 27 of this summary annual report newmont 2006 annual report 1

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letter to our shareholders for our investors employees the gold company of choice we finished 2006 on a high note generating record earnings of $791 million 1.76 per share versus $322 million 0.72 per share in 2005 a 146 increase in our bottom line compared with a 15 increase in revenue our leverage to the gold price resulted in a 45 increase in our cash operating margin from the prior year we also grew our reserves for a fifth straight year to 93.9 million ounces during 2006 we continued to reinvest in our business maintaining our positive outlook for the gold price capital expenditures in 2006 exceeded $1.5 billion as we brought three new mines into commercial production including phoenix and leeville in nevada and ahafo in ghana adding over 1 million equity ounces of annual gold production capacity we also commenced construction of the boddington project in australia which will allow us to begin mining over 9 million equity ounces of reserves in this highly prospective gold belt in 2009 in addition we continued construction of a 200 megawatt power plant that we expect will generate up to $25 per ounce of cost savings in nevada and we commenced development of a gold mill in peru to enhance our recoveries and expand our reserves at yanacocha although we had a record financial year we continued to be challenged by declining grades at our mature operations and experienced significant increases in energy commodity and labor costs we also felt the impact of increasing political risk that translated into the expropriation of our 50 interest in the zarafshannewmont joint venture in uzbekistan during 2006 our equity gold production also declined for the third consecutive year in 2006 decreasing to 5.9 million ounces from 6.5 million ounces in 2005 at the same time our costs applicable to sales increased 28 to $304 per ounce in 2006 from $237 in the prior year we expect the first half of 2007 to remain challenging as well with the full commissioning of our three newest mines and the anticipated decline of production at yanacocha 2 newmont 2006 annual report

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and australian operations after generating compound annual returns of 24 over the last five years our stock price declined 15 while the gold price was up 36 during 2006 this is not a performance that we intend to repeat and management is committed to turning it around as we look back on 2006 and turn our focus to 2007 we recognize that our changing industry and the changing characteristics of our company demand a renewed commitment to discipline in the way we explore and grow our reserves in the way we manage our operations and develop our projects in the way we build our relationships with our host communities and partners and in the way we invest and grow average operating costs 51 14 14 13 09 03 01 labor and benefits diesel maintenance consumables electricity royalties and prod taxes coal exploration and reserve growth our first challenge is to arrest the decline in our gold reserve grade a key long-term cost predictor in 2003 our reserve grade was 0.039 ounces per ton which declined to 0.034 ounces per ton by the end of 2005 in 2006 we stopped that trend with our average reserve grade stabilizing at 0.034 ounces per ton we grew reserves for a fifth straight year adding 52.5 million ounces of gold reserves from 2002 to 2006 during the year we spent $170 million on exploration with 68 of those funds dedicated to near-mine exploration and reserve development in north america we added approximately 3.6 million ounces of reserves through near-mine exploration in nevada and mexico in south america yanacocha converted 0.2 million ounces and kori kollo added another 0.2 million ounces of reserves in australia we added 2.3 million newmont 2006 annual report note this excludes a 5 reduction in costs from other categories primarily related to stockpile builds at batu hijau and by-product credits 3

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equity ounces of reserve additions from boddington kcgm and jundee and an additional 2.6 million equity ounces through our increased equity interest in boddington in ghana we added 1.1 million equity ounces through our increased equity interest at akyem and an additional 0.7 million ounces from near-mine exploration in the ahafo district building on the strength of our 29.3 million acre land position we opened our 2007 exploration campaign with the same renewed dedication to execution as we have in our operating regions and projects in 2007 we expect to spend nearly $175 million for near-mine programs and greenfields exploration applying a disciplined portfolio approach to exploration management we continue to maximize the value of our exploration efforts while expanding our project pipeline through generative and acquisition-oriented programs operational and project execution the industry s operating cost environment is changing and so too must we over the past five years industry operating costs have increased at a compound annual rate of 12 driven by energy labor and input commodity price inflation as well as lower grade ores during this period oil prices increased over 250 while natural gas steel and industrial chemicals increased over 125 although our operating costs increased at a lower rate than the industry as a whole we too have experienced the impact of declining ore grades affecting the cost structure of the entire industry so what are we doing in the field in nevada we have a new team in place built around our one nevada management structure the new management team is using the one nevada approach to coordinate all maintenance and operating functions through a direct reporting structure across the state during 2006 we began to realize the benefits of one nevada as each of our sites across the state shared best practices and improved efficiencies in the areas of warehousing maintenance planning supply chain management and enhanced employee housing programs we are also building a 200 megawatt power plant that we anticipate will improve our operating cost profile by up to $25 per ounce upon completion in late 2008 simultaneously we continue to optimize cost and production at our leeville and phoenix mines which achieved commercial production late in 2006 in peru yanacocha has carefully evaluated the social issues and dynamics of the communities in and around our mining areas as an example yanacocha has engaged in extensive community and external affairs efforts during the early evaluation and optimization stages of the conga project building on our engagement with local communities over the past several years yanacocha continues to expand its outreach efforts with communities in the surrounding region we are also building a gold mill to more efficiently process yanacocha s current and future reserve base we anticipate that our investment in the yanacocha gold mill will increase our recovery of oxide and transitional ores by up to one million ounces while enhancing our potential to expand our reserves further in australia construction continues on the boddington project upon completion in late 2008 or early 2009 boddington will replace some of the higher cost production coming from our older operations in the region the completion of the boddington project will also enhance our reserve growth potential while expanding our operational base in this politically stable part of the world at our ahafo mine in ghana we are working on solutions to address the impact of national drought-related power shortages that could impact our costs applicable to sales there by $50 per ounce or more in 2007 we continue to work with the ghanaian government and an industry-wide consortium to formulate a series of short-term and long-term solutions to these power supply challenges enhancing our execution in these operating regions we continue to deploy our technical team in the fields of metallurgy mineralogy process design mine engineering development geology geo-statistical modeling and newmont 2006 annual report 5

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host communities and partners while our consolidating industry evolves we continue to evaluate investment opportunities with a focus on shareholder value consistent with our approach to acquisitions in the past we remain committed to disciplined growth and will only pursue investments that are accretive to our shareholder value reflecting our commitment to value-enhancing transactions our royalty portfolio generated $120 million in royalty and dividend income in 2006 while the market value of our equity portfolio grew to approximately $1.4 billion at the end of the year noteworthy within our portfolio our investment in the canadian oil sands trust generated almost $30 million in distributions during 2006 we expect this investment to provide a long-term hedge against rising fuel costs for the company further capitalizing on higher oil prices we sold our interest in an alberta oil sands project recognizing a pre-tax gain of $266 million during the third quarter we also purchased a 40 interest in the fort a la corne jv falc diamond project from shore gold inc for approximately $152 million the falc property located in saskatchewan canada is one of the largest kimberlite fields in the world in 2007 we expect to spend approximately $18 million on developmental drilling at falc to further define the prospects for this promising investment our interest in falc leverages our opportunity to participate directly in a significant district-scale diamond reserve estimation building on our experiences of 2006 our technical teams are undertaking in-depth reviews of our operations and our projects and above all other priorities we remain committed to operating our business safely and with a focus on our people our global operations employ nearly 15,000 people with another 20,000 employed by our contractors we take great pride in hiring locally with many of our employees coming from the regions where we operate our focus on hiring and developing local talent provides us with a workforce that is committed to our long-term success while simultaneously developing the technical skills and capacity of our host communities safety and the development of our employees remain paramount in everything we do in an increasingly competitive labor market we are striving to improve our competitive position through strong training and development programs competitive compensation and career advancement opportunities for our people environmental and social responsibility in 2006 parallel with our focus on the safety and development of our employees we continued to lead in our commitment to sustainable development stewardship of the environment and partnership with our host communities we are determined to maintain this commitment in 2007 during the year we served as chair of the international council on mining and metals icmm helping to establish and ensure industry-wide conformance with the principles of sustainable development and establish an independent third-party assurance protocol we also became one of the first gold mining companies to become certified under the international cyanide management code which provides an independent certification of the safe transportation use and storage of cyanide growth and investment discipline as we continue to invest and build for the future we have renewed conviction in our goal of being the gold company of choice for our investors employees 6 newmont 2006 annual report

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project that offers exposure to potential development discoveries and cash flow at valuation multiples comparable to those we see in the gold industry concluding thoughts the beginning of each year marks the occasion to reflect on the events of the past and look forward to the opportunities that lie ahead we take that occasion seriously as it offers us the ability to continuously learn from our experiences and improve our performance in reflection we faced many challenges during 2006 including opening three new mines on two continents escalating energy labor and input commodity prices and declining ore grades recognizing and learning from the challenges of 2006 we enter 2007 more experienced more disciplined and better prepared to capitalize on the foundation we have built and the opportunities that we create cash operating margins realized price/oz cash/oz operating margin/oz and we would like to thank our board for their ongoing dedication to strong corporate governance and strategic guidance i would also like to thank seymour schulich for his invaluable contributions to our board and his counsel to me although seymour has decided not to stand for re-election to the board we are grateful that he has chosen to continue his involvement with the company in his role as chairman of newmont capital and last but certainly not least i would like to thank pierre lassonde who has elected to retire from his role as president but will continue to contribute to the company in an advisory capacity and as vice chairman of the board we appreciate pierre s vision creativity and the passion that he brings to our company we are pleased that pierre has chosen to continue to share his energy with us while spending more of his time with his family sincerely 2001 2002 2003 2004 2005 2006 the foundation we have built includes an established production base with roughly two-thirds of our current gold sales coming from politically stable countries an ongoing pipeline of new projects an expansive land position being explored by a highly-experienced exploration team in-house merchant banking and technical teams staffed with some of the industry s best talent and a rapidly growing investment portfolio that is second to none in addition our bottom-line financial performance remains highly leveraged to the gold price it is upon this foundation that we enter 2007 with a renewed focus discipline and commitment to being the gold company of choice in closing i would like to thank our employees for their dedication throughout 2006 we would like to thank our investors for their commitment and belief in our ability to leverage their exposure to rising gold prices we would like to thank our host communities governments and suppliers for their continued partnerships wayne w murdy chairman and chief executive officer newmont 2006 annual report 7

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looking ahead 2007 guidance nevada usa la herradura mexico ahafo akyem ghana yanacocha conga peru kori kollo bolivia 8 newmont 2006 annual report

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gold sales the company expects equity gold sales between 5.2 and 5.6 million ounces for 2007 we expect equity gold sales to temporarily decline before beginning to fully realize the benefit of our investments in nevada ghana and australia gold sales in 2007 are expected to be impacted by lower production from yanacocha and in australia as well as the closure of lone tree in nevada and golden giant in canada in 2006 previously announced asset sales and lost production from the expropriation of the company s 50 interest in the zarafshan-newmont joint venture in uzbekistan will also contribute to lower gold sales in 2007 costs applicable to sales costs applicable to sales are expected to be approximately 25 higher than 2006 in 2007 operating costs are expected to be impacted by lower production at yanacocha and in australia as well as higher labor consumables energy and fuel prices in all operating regions after 2007 the company expects to realize cost efficiencies and benefits from investments in the leeville phoenix and ahafo mines as well as the completion of boddington in australia the construction of the power plant in nevada and the completion of a gold mill at yanacocha in peru capital expenditures the company anticipates capital expenditures between $1.8 and $2.0 billion during 2007 approximately one-third of our capital is expected to be invested in nevada one third in australia/new zealand and the remaining third at yanacocha in ghana and at other sites approximately half of the 2007 capital budget is allocated to sustaining investments with the remaining half allocated to new project development and improvement initiatives including the ramp-up of the boddington project in australia continued development of the power plant in nevada and completion of the yanacocha gold mill in peru batu hijau indonesia tanami australia pajingo jundee kalgoorlie boddington martha new zealand newmont 2006 annual report 9

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operations the following section provides details on newmont s core operations in 2006 as well as an outlook for 2007 and beyond for further information please refer to management s discussion and analysis in the company s 2006 form 10-k review our operations continue to be based in five main regions including nevada peru australia/new zealand indonesia and ghana in 2006 over 60 of our equity gold sales came from nevada and australia/new zealand in 2007 we expect these regions to again generate up to two-thirds of gold sales in 2006 we sold 7.4 million consolidated ounces of gold 5.9 million equity ounces at an average realized price of $599 per ounce at costs applicable to sales of $304 per ounce for 2007 we expect to sell between 5.2 and 5.6 million equity ounces of gold at costs applicable to sales approximately 25 higher than 2006 reflecting continued labor and commodity cost pressures as well as higher strip ratios and lower ore grade nevada newmont continues to be one of in nevada we commissioned two new mines with the phoenix mine and the leeville mine achieving commercial production in the fourth quarter gold sales from our nevada operations totaled approximately 2.5 million ounces in 2006 at costs applicable to sales of $403 per ounce with 33.1 million ounces of gold reserves reported at year end approximately 85 of nevada s ore is mined from open pit operations and 15 from underground mines the nevada operations produce gold from a variety of ore types requiring different processing techniques depending on economic and metallurgical characteristics the nevada reserves are approximately 77 refractory and 23 oxide refractory ores require more complex processing methods refractory ore treatment facilities generated 72 of nevada s gold production in 2006 compared with 69 in 2005 yanacocha in peru gold sales at our 51.35 owned yanacocha operation totaled 2.6 million ounces 1.3 million equity ounces at costs applicable to sales of $193 per ounce in 2006 with 15.1 million equity ounces of gold reserves 10 newmont 2006 annual report

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operations reported at year end yanacocha has five open pit mines with reclamation and/or backfilling activities underway at san josé maqui maqui and carachugo while cerro yanacocha and la quinua remain as active pits in addition yanacocha has four leach pads and three processing facilities batu hijau ghana in indonesia the batu hijau mine continues to be one of the company s lowest-cost operations with consolidated gold sales of 435,000 ounces of gold 230,000 equity ounces at costs applicable to sales of $209 per ounce consolidated copper sales were 435 million pounds 230 million equity pounds at costs applicable to sales of $0.71 per pound at year-end 2006 batu hijau reported 5.0 million equity ounces of gold reserves and 4.7 billion equity pounds of copper for 2006 batu hijau realized a net copper price of $1.54 per pound as a result of the copper hedges placed in2004 and 2005 batu hijau s copper hedges expire in the first half of 2007 australia/new zealand in australia and new zealand gold sales totaled 1.4 million ounces at costs applicable to sales of $384 per ounce in 2006 with 18.5 million ounces of gold reserves reported at year end our australian and new zealand region consists of pajingo jundee tanami martha and our 66.7 owned boddington project boddington is under development and is expected to be completed by late 2008 or early 2009 in our newest region in ghana our ahafo mine poured its first gold in august 2006 selling 202,100 ounces of gold at costs applicable to sales of $297 per ounce in 2006 with 20.3 million ounces of gold reserves reported at year end gold production and operating costs were impacted by nation-wide power rationing due to low water levels at lake volta serving ghana s akosombo hydroelectric facilities power rationing limited mill availability and ore throughput and required the installation of additional temporary diesel generating capacity longer-term lower-cost solutions to the current power shortages are being explored 12 newmont 2006 annual report

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other newmont also has the kori kollo mine in bolivia the la herradura mine in mexico and the holloway and golden giant mines in canada during 2006 these operations accounted for 251,800 equity ounces of gold at average costs applicable to sales of $222 per ounce golden giant completed mining in december 2005 with remnant mining and milling occurring in 2006 newmont sold the holloway mine during the year enhancing execution through technical services the newmont technical services team is based at the malozemoff technical facility focusing on technical and economic evaluations for early-stage projects acquisition reviews and detailed metallurgical testing geologic and geostatistical modeling and mine design work for advanced projects through these processes newmont technical services team numerous high-potential projects were identified and reviewed during the year including completion of detailed studies for the fort a la corne joint venture the technical services team also conducted analyses supporting our equity investment in the high-arctic open-cut mining project at hope bay our unique denver-based technical facility and the newmont technical services team play vital roles in newmont s continued efforts to create long-term value for our shareholders long-term value for our shareholders newmont 2006 annual report 13

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