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barrick now annual review 2006

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barrick s vision is to be the world s best gold company by finding acquiring developing and producing quality reserves in a safe profitable and socially responsible manner the company s quality assets and its unrivalled project pipeline combined with the strength of its balance sheet and the talents of its people position barrick to deliver significant value to its shareholders table of contents 1 2 6 financial highlights letter to shareholders barrick now barrick today barrick in 2006 barrick in 2007 10 barrick projects 12 responsible mining 14 financial strategy 16 regional business units north america south america australia-pacific africa 24 corporate directory the 2006 annual report consists of the 2006 annual review and the 2006 financial report.

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financial highlights in millions of us dollars except per share data us gaap basis 2006 5,636 1,506 2,122 3,043 14,199 1.77 2.48 0.22 8,643 541 282 359 367 3.06 0.79 1.22 123,066 2005 2,350 401 726 1,037 3,850 0.75 1.35 0.22 5,460 439 227 303 ­ ­ ­ ­ 88,591 2004 1,932 248 509 1,398 3,574 0.46 0.95 0.22 4,958 391 214 300 ­ ­ ­ ­ 89,056 sales net income for the year operating cash flow cash and equivalents shareholders equity net income per share diluted operating cash flow per share dividends per share operating highlights gold production thousands of ounces average realized gold price per ounce total cash costs per ounce1 total production costs per ounce copper production millions of pounds average realized copper price per pound total cash costs per pound 1 total production costs per pound reserves proven and probable thousands of ounces 2 1 see page 34 of barrick s 2006 financial report for a discussion of our total cash cost performance measures 2 calculated in accordance with national instrument 43-101 as required by canadian securities regulatory authorities for united states reporting purposes industry guide 7 under the securities exchange act of 1934 as interpreted by the staff of the sec applies different standards in order to classify mineralization as a reserve accordingly for u.s reporting purposes 1.88 million ounces of the cortez reserve buzwagi and pueblo viejo are classified as mineralized material for a breakdown of reserves and resources by category and additional information relating to reserves and resources see pages 128­136 of barrick s 2006 financial report higher prices expanded margins 600 439 541 3.00 up 23 2.25 2.48 450 up 84 300 1.50 1.35 1.77 up 136 0.75 150 0.75 0 2005 2006 0 2005 2006 2005 2006 realized price us per ounce cash flow us per share earnings us per share barrick annual review 2006 financial highlights 1

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letter to shareholders gold projects around the world are unlikely to replace production declines across the industry this growing discrepancy between gold supply and demand should have a profound impact on our industry and we believe barrick is strategically positioned to leverage the opportunities that lie ahead for the industry as a whole new projects are characterized by higher capital and operating costs significantly longer timelines for development more rigorous regulatory and public scrutiny and in most cases by lower grades we have worked steadily to prepare barrick for this new environment we have the strength breadth and scale coupled with the financial resources to maintain a comprehensive exploration program optimize our portfolio of operating mines and advance our pipeline of quality projects it is this project pipeline unrivalled in the gold mining industry which also sets barrick apart from its competitors in 2006 we laid much of the ground work for our future the acquisition of placer dome and a strong performance from barrick s four newest gold mines led to record levels of gold production which combined with strong gold and copper prices to produce the best financial results in barrick s history the company also effectively completed the integration of placer dome to establish itself as the pre-eminent gold producer peter munk chairman left gregory c wilkins president and chief executive officer dear shareholders 2006 was a dynamic year for the gold mining industry and a banner year for barrick we saw a wave of industry consolidation and historically high gold prices coupled with robust demand and flat supply this comes at a time when global interest in gold as an alternate investment is on the rise the yellow metal has been trading higher in united states dollar terms but also against other major global currencies an encouraging indicator for gold however while higher gold prices have attracted capital to the sector few new discoveries have been found over the next three years new 2 letter to shareholders barrick annual review 2006

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record results for barrick in 2006 gold production for the year was 8.6 million ounces at total cash costs per ounce of $282 meeting our original guidance copper production was 367 million pounds exceeding our original production guidance at total cash costs of $0.79 per pound earnings per share increased 136 per cent to $1.77 and cash flow per share from operations rose 84 per cent to $2.48 the average spot gold price in 2006 increased 36 per cent but barrick earnings and operating cash flow per share increased by multiples of that percentage this demonstrates the excellent leverage our earnings and cash flow have to movements in gold price our results also benefited from newly acquired copper production and higher copper prices which rose 83 per cent over 2005 these strong financial results were achieved in spite of the fact that we incurred significant costs in voluntarily reducing our forward sales contracts during the year the legacy placer dome hedge book was eliminated and by february 2007 we had also completely eliminated barrick s fixed price corporate gold sales contracts as a result of these deliveries the company expects to incur an aftertax cost of $564 million in the first quarter of 2007 and $65 million in the second quarter from second quarter 2007 onwards all gold production from our operating mines will be sold into the spot market the remaining project gold sales contracts serve as price support to optimize financing for our major projects including pascua-lama and pueblo viejo we repositioned our portfolio of operating mines by selling certain placer dome assets for $3.1 billion we were able to obtain significant value for the assets by selling them to companies better positioned to maximize synergies with their own operations the capital will be redeployed into building our new projects which offer greater upside potential and lower cash costs for our shareholders 2006 was the first full year of operations for three of the company s newest mines lagunas norte veladero and tulawaka all three turned in solid performances meeting their targets for the year the cowal mine the fourth in this suite of new mines was commissioned in april 2006 barrick annual review 2006 letter to shareholders 3

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the challenges are complex but the opportunities are very great we have the people assets and discipline to achieve our targets and generate strong financial results we advanced e ach of the company s four significant projects cortez hills in nevada pascualama on the border of chile and argentina pueblo viejo in the dominican republic and donlin creek in alaska at cortez hills our most advanced project we are currently working to secure permits for the development of the proposed mine pascualama received the necessary approvals of the environmental impact assessment from both the chilean and argentinean governments the pueblo viejo project benefited from exploration drilling that increased reserves by 35 per cent to 18.1 million ounces of gold 100 per cent basis at donlin creek we are on track to complete a feasibility study and satisfy the terms of the joint-venture agreement to increase our interest to 70 per cent barrick acquired a 37.5 per cent interest in the reko diq property in pakistan through the joint acquisition of tethyan copper company in partnership with antofagasta plc this provides the company with an interest in a very large coppergold district which has the potential to become a major source of production in the future during the year we took advantage of favorable financing conditions in the debt market to issue innovative copper-linked notes these notes raised $1 billion while locking in an attractive average price over $3 per pound for roughly one-third of our copper production for the next three years proceeds from the notes will be used to build our pipeline of gold projects ­ barrick s core business there are also a number of intangibles that contributed to our successes in 2006 we know successful companies thrive over time largely because they have attracted retained and motivated the best talent in their industry we believe that barrick has a management team and a workforce second to none in the industry our employees are motivated and dedicated to making our strategic vision a reality it is their drive and perseverance that have made the company what it is today we also recognize that good corporate citizenship is also good business in fact it is essential to achieve long-term business sustainability barrick has always been a pioneer and a leader in corporate social responsibility the company s philosophy of responsible mining represents a commitment to share the benefits of mining with the communities where we live and work barrick in 2007 strength now and into the future in 2007 we anticipate gold production will be slightly lower and operating costs higher than last year production is expected to be 8.1 to 8.4 million ounces at total cash costs of $335 to $350 per ounce 4 letter to shareholders barrick annual review 2006

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a substantial portion of the cash cost increase is attributable to mining at below reserve grade in 2007 as planned inflationary pressures felt across the mining industry have also had an impact on industry-wide cash costs however the company s cost containment programs have helped to mitigate the impact on barrick as cost pressures begin to stabilize in 2007 we do not expect to see similar increases in 2008 the company has already poured gold at the new ruby hill mine in nevada and throughout 2007 we will continue advancing our projects which represent the strongest pipeline in the industry as envisioned many of barrick s projects have the potential to become large long-life producers however as we noted earlier these projects entail lengthy permitting timeframes and as significant projects take time to build to our standards the challenges going forward are many and complex ­ but the opportunities are also very great the company remains positive on the outlook for gold price and we have the people the assets and the discipline to continue to achieve our targets replace our reserves build new mines and generate strong financial results further we recognize that our share price performance needs to improve relative to the gold price and we believe that the market will recognize the latent value in our assets and the pipeline of projects for the benefit of our shareholders lastly before closing we wish to pay tribute to a company director who has helped to shape and guide barrick s success over the years joseph rotman one of our founding shareholders and directors retires from our board in 2007 he has been a valued director friend and colleague since 1983 we will miss his wise counsel peter munk chairman gregory c wilkins president and chief executive officer barrick annual review 2006 letter to shareholders 5

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barrick now our reserves mines projects and balance sheet are at record strength our operating mines are fully levered to the gold price and our project pipeline is unequalled we achieved record results in 2006 of $1.5 billion in earnings and $2.1 billion in operating cash flow positioning barrick for the opportunities that lie ahead we have the strength breadth scale and financial resources to maintain a comprehensive exploration program optimize our operating mines and advance our unrivalled pipeline of quality projects 6 barrick now barrick annual review 2006

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barrick today quality portfolio of operating mines industry s largest reserves barrick is the industry s pre-eminent gold producer with 27 operating mines an unrivalled pipeline of quality projects and the expertise and financial strength to unlock their value for our investors as of february 2007 ­ more than two years ahead of schedule ­ our operating mines have full leverage to a rising gold market our quality portfolio of operating mines represents a large production base ­ substantial reserves long life and a stable cost structure over 60 of production is anticipated to come from oecd countries in 2007 see pages 16­23 with 123 million ounces in proven and probable reserves and 35 million ounces in measured and indicated resources barrick has the industry s largest reserve base of gold plus the proven ability to extract value from these ounces see page 11 unrivalled pipeline of projects barrick has an unrivalled project pipeline paired with a highly skilled and experienced project development team that has brought five new mines into production in the last two years see pages 10­11 extensive land positions on the most prolific trends our focus on high discovery potential has positioned us on some of the world s most prolific trends our competitive edge has already led us to nine super-giant deposits each with over 20 million ounces of gold endowment see pages 16­23 financial strength barrick has the industry s only `a rated balance sheet this gives us the flexibility and the financial capacity to manage our operations and advance our project pipeline without equity dilution see pages 14­15 enhanced leverage to gold barrick is positive on the outlook for gold as of february 2007 we have eliminated our fixed price corporate gold sales contracts and the legacy placer dome hedge position two years ahead of schedule giving our operating mines full leverage to a rising gold market see page 15 corporate governance and social responsibility barrick s success is predicated on a commitment to excellence our code of business conduct and ethics provides the framework to conduct our business to the highest standards while our environmental health safety and social programs are focused on responsible mining see pages 12­13 barrick annual review 2006 barrick today 7

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barrick in 2006 quarterly highlights first quarter acquired placer dome inc strengthened our operating portfolio with 12 new mines deepened our pipeline with 4 world-class projects and added large copper production and reserves received approval of the pascua-lama environmental impact assessment from chile a milestone achievement significantly advancing this key project through the environmental permitting process acquired tethyan copper company joint acquisition with antofagasta plc brought us a 37.5 interest in the large reko diq copper-gold project in pakistan located on the prospective tethyan belt 2006 was a banner year for barrick a year of great opportunities and singular achievements here are some of the highlights second quarter third quarter sold south deep for us$1.5 billion continued our rationalization of the placer dome portfolio by selling this non-core south african asset realized synergies completed integration of placer dome mines putting us on track to capture the expected $200 million in annual synergies beginning in 2007 showcased our nevada operations conducted mine tours to highlight the long life and excellent exploration potential of our nevada operations from our flagship goldstrike operation and the newly acquired cortez and bald mountain mines 1 2 3 4 fourth quarter reported record earnings and cash flow peak gold margins above $300 per ounce and robust copper revenues flowed to our bottom line delivering shareholder value eliminated legacy placer dome hedge position used favorable market conditions to eliminate the placer dome hedge book and to increase our leverage to gold sold four placer dome mines to goldcorp focused our operating portfolio by divesting non-core assets for us$1.6 billion in cash met our original full-year production and total cash cost guidance by meeting our original guidance for gold and exceeding our original guidance for copper the company posted record financial results for the year issued $1 billion of copper-linked notes innovative financing secured funding for our project pipeline simultaneously taking advantage of strong copper prices and favorable debt markets received approval of the pascua-lama environmental impact assessment from argentina marked the receipt of both the chilean and argentinean environmental approvals for this bi-national gold-silver development project 8 barrick in 2006 barrick annual review 2006

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barrick in 2007 outlook for the year 2007 outlook hedge book reductions we have positioned our company to excel in a rising gold market in 2007 we expect to reap the benefits of our quality portfolio of unhedged production advance our project pipeline and unlock the value of our non-gold assets 8.1 ­ 8.4 million ounces of gold at total cash costs of $335­$350 per ounce 400 million pounds of copper at total cash costs of about $0.90 per pound capture or exceed $200 million in annual synergies from placer dome integration all fixed price corporate gold sales contracts eliminated by february 2007 operating mines unhedged and fully leveraged to gold prices project gold sales contracts to support financing of development pipeline project pipeline $1.1 ­ $1.8 billion capital budget focused on preparing a final eis at cortez hills obtaining construction permits at pascua-lama advancing detailed engineering on pueblo viejo and completing the donlin creek feasibility study $190 million on expensed project development obtain eia approval and commence detailed engineering at buzwagi complete a scoping study and new resource estimate at reko diq unlocking value in other metals our objective in 2007 is to surface value in our quality portfolio of non-gold projects by completing pre-feasibility studies at the large high grade kabanga and sedibelo projects and a feasibility study on the fedorova project to increase our interest to 79 key exploration opportunities the company plans to spend $170 million on exploration in 2007 key areas of focus include north america ­ nevada mine sites pueblo viejo donlin creek australia-pacific ­ porgera reko diq south america ­ frontera district africa ­ north mara lake victoria greenstone belt summary we expect 2007 to be a year of significant progress on many fronts our 27 operations are poised to deliver full leverage to the strong gold price a number of key milestones are anticipated on our expanded project pipeline our exploration portfolio is focused on high discovery potential on some of the world s most prolific trends barrick annual review 2006 barrick in 2007 9

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barrick in 2007 advancing projects during the year we will continue to advance our projects through the pipeline and bring them steadily closer to long-life production cortez hills 60 basis usa proven and probable gold reserves 5.1 mm ozs expected pre-production capital 288 to $300 million expected gold production first 5 yrs 580 ­ 595 kozs/yr expected total cash costs first 5 yrs 280 ­ $290 per oz includes production from pipeline pascua-lama and argentina border 17.0 mm ozs measured and indicated gold resources 3.1 mm ozs expected pre-production capital 2.3 to $2.4 billion expected gold production first 5 yrs 750 ­ 775 kozs/yr expected total cash costs first 5 yrs 40 ­ $50 per oz proven and probable gold reserves location chile location nevada key points key points highly prospective deposit close to existing infrastructure construction period of approximately 15 months in 2007 complete detailed engineering and planning advance exploration drilling world-class gold-silver deposit with exploration opportunities large annual production long mine life low cash cost in 2007 secure remaining key agreements and permits advance detailed engineering pueblo viejo 60 basis republic proven and probable gold reserves 10.9 mm ozs measured and indicated gold resources 1.3 mm ozs expected pre-production capital 1.26 to $1.38 billion expected gold production first 5 yrs 465 ­ 480 kozs/yr expected total cash costs first 5 yrs 180 ­ $190 per oz key points location dominican donlin creek 30 with earn-in right to 70 usa mm ozs status feasibility study to be completed in 2007 measured and indicated gold resources 5.9 location alaska key points multi-metal revenue from world-class reserve +20 year mine life high exploration potential in 2007 advance exploration and metallurgical analysis begin detailed engineering optimize mine design large gold deposit with good exploration potential in 2007 conduct drilling program to increase measured and indicated resource complete feasibility study and meet back-in requirements to increase our ownership to 70 10 barrick in 2007 barrick annual review 2006

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barrick s project pipeline barrick has the gold industry s largest pipeline of projects and the expertise and financial strength to unlock the value of gold and other metals contained in these deposits the projects are expected to come into operation over a number of years ­ providing a continuing stream of new production for the company and long-term social and economic benefit for the local communities exploration feasibility permitting construction operations ruby hill cortez hills pascua-lama buzwagi pueblo viejo donlin creek sedibelo kabanga reko diq fedorova proven and probable reserves measured and indicated resources gold mm ozs copper mm lbs nickel mm lbs other metals contained within gold reserves and resources silver mm ozs copper mm lbs zinc mm lbs 36 ­ ­ 742 899 1,555 15 5,675 254 48 150 48 replacing production barrick has the industry s largest base of gold reserves we also have very significant resources both measured indicated and inferred ­ and the exploration and financial strength to continue to find acquire and develop new ounces well into the future resources millions of ounces at december 31 2006 reserves millions of ounces at december 31 2006 inferred measured indicated proven probable 25 35 123 8.1­8.4 2007e production barrick in 2007 11 barrick annual review 2006

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responsible mining at barrick we are committed to making a positive difference in the communities in which we live and work we recognize that responsible behavior is our calling card and that it creates opportunities to generate greater value for our shareholders while also fostering sustainable development in the communities and countries where we operate we strive to earn the trust of everyone involved ­ our employees local community members governments and any other stakeholders with whom we interact barrick s social responsibility charter provides a policy framework for all our business activities worldwide this framework is defined under four pillars ethics employees community and environment health and safety ethical behavior the barrick code of business conduct and ethics mandates that we conduct our business with the highest ethical standards and in accordance with all applicable laws rules and regulations each year our employees are required to review and renew on an individual basis their commitment to abide by the code they are also given the means to report conduct that violates the code in confidence when necessary we strive to act as a responsible corporate citizen and we use our expertise to help facilitate constructive public dialogue and informed debate on issues of importance to barrick the mining industry and the communities in which we operate we do so both as an individual company and through our affiliation with a variety of industry associations and initiatives that promote responsible mining practices including the un global compact global business coalition on hiv/aids and the mining association of canada to name a few we are committed to making a positive difference in the places where we live and work each year builds on the strengths and experience of the previous year our employees barrick is committed to developing the full potential of its employees this process starts with respect for each individual and we act on that respect by observing the fundamental tenets of human rights safety nondiscrimination and non-harassment in the workplace we compensate our employees fairly for their contributions provide them with meaningful performance feedback and offer them professional development and training opportunities we encourage accountability and employee involvement in issues affecting the workplace an approach that helps us continue to improve safety and work conditions business efficiency and the company as a whole our courageous leadership program which involves all employees goes far beyond merely `teaching safety it emphasizes individual responsibility and leadership so that everyone recognizes their personal role in ensuring workplace safety because of this emphasis on individual leadership the program is strengthening a culture of responsibility and empowerment in all areas of employees work lives from safety to environment to production our goal is to have every employee go home in good health and uninjured after every shift each and every day in 2006 our efforts resulted in a 41 reduction in our total medical injury rate we are now instituting our new powerful leadership program which builds on the success of courageous leadership and goes beyond empowerment to teach specific leadership skills we recognize that best practices continue to evolve in this important area and we too will continue to evolve learn and apply what we learn 12 responsible mining barrick annual review 2006

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community development barrick fully considers social cultural environmental governmental and economic factors when evaluating project development opportunities in each community we interact with local residents governments nongovernmental organizations international agencies and other interested groups to facilitate long-term and beneficial resource development in all our dealings we respect community interests and encourage open two-way dialogue providing accurate timely information and responding to the needs and concerns of the local communities these principles establish our priorities for action we provide financial support to a range of organizations through our community programs and charitable donations we build partnerships that help to develop local infrastructure and entrepreneurial capacity we also develop local skills by providing employment for indigenous peoples and other members of the community in donlin creek alaska for example 92 of our exploration camp employees and 90 of our crew supervisors are from the local alaskan native population we are proud of the recognition we receive for our careful attention to community interests and development for example barrick s community engagement efforts at our cowal mine in australia received the 2006 environment and community excellence award from the new south wales minerals council in peru our work in cuncashca associated with our pierina mine was honore d with the award for exce l le nce in cor p orate s o c ial and ethic al responsibility by the canadian manufacturers and exporters association and the canadian international development agency cida the work is an ongoing integrated agricultural and livestock project developed in consultation with the andres avelino caceres community council we have established a demonstration far m and training fac ilit y in cuncashca where improved agricultural techniques sewing food nutrition and production and business skills are being taught the facility is also a focal point for various upgrades provided by barrick to the community s cattle herd irrigation system and local infrastructure because of the success in cuncashca measured in community impact and support we have instituted a parallel program at lagunas norte barrick won the award for excellence in corporate social and ethical responsibility in 2006 for its community based integrated agriculture/livestock project associated with the pierina mine in cuncashca peru environment health and safety barrick has a responsibility to protect reclaim and enhance the environment on the sites where we operate we constantly look for ways to improve our performance and in 2006 took another step forward with our new environmental management system standard emss ­ a 15-principle standard consistent with iso 14001 that will be required on all our sites the emss is being fully implemented on a three-year schedule with further tools and training each year for many of our sites full compliance will require only minor adjustment to their existing programs in fact during 2006 our lagunas norte mine in peru obtained iso 14001 certification of its environmental management systems ­ the third barrick operation to do so in 2005 barrick became one of the first signatories to the voluntary international cyanide management code for the gold mining industry developed under the auspices of the united nations environment program unep in 2006 our cowal project was the first facility of any kind to receive international cyanide management institute approval when it received pre-operation certification detailed information about our performance in all these areas can be obtained online and in print visit www.bar r ick.com and click on cor porate responsibility or request a free copy of the print version of our annual responsibility report barrick annual review 2006 responsible mining 13

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