ACA.L Regulatory News (ACA)

AFRICAN BARRICK GOLD PLC - 1st Quarter Results

PR Newswire

London, April 17

AFRICAN BARRICK GOLD

18 April 2013

Results for the 3 months ended 31 March 2013 (Unaudited)

Based on IFRS and expressed in US Dollars (US$)

African Barrick Gold plc ("ABG'') reports first quarter 2013 results

"We have made a good start to 2013, and remain on track to achieve full yearguidance, as we continue to deliver on our mine plan while progressing theOperational Review" said Greg Hawkins, Chief Executive Officer of AfricanBarrick Gold. "North Mara and Buzwagi both delivered strong performance withthe higher grade profile at North Mara and improved throughput at Buzwagidriving production levels. As anticipated, Bulyanhulu experienced a slow startto the year and we continue to expect improved performance as we move throughthe year and corrective measures are implemented. During the quarter we ceasedmining operations at Tulawaka and are working with the Government to finalisethe closure plans."

Quarterly Highlights

* Gold production1 of 146,105 ounces and gold sales of 148,232 ounces

* Cash costs2 of US$931 per ounce sold, with cash costs excluding Tulawaka of

US$893 per ounce sold

* EBITDA2 of US$81.9 million; excluding Tulawaka this amounted to US$88.8 million

* Net earnings of US$20.7 million; excluding Tulawaka this amounted to US$31.2

million

* Operational cash flow of US$57.3 million, with a cash balance of US$402 million

* Completion of US$142 million financing for the Bulyanhulu CIL expansion project

* Operational Review progressed with key initiatives identified and project plans

Attributable Gold Production (ounces)1 146,105 144,643 1% 626,212

Average realised gold price (US$/ounce)2 1,611 1,697 -5% 1,668

Cash generated from operating activities 57,326 64,757 -11% 268,734

Operating cash flow per share (cents)2 14.0 15.3 -9% 64.1

In order to accurately reflect the underlying performance of our continuingcore operations following the cessation of mining at Tulawaka, presented beloware our key financial metrics excluding Tulawaka:

Cash cost from operating mines (US$/ounce)2 893 870 3% 922

1 Production and sold ounces reflect equity ounces which exclude 30% ofTulawaka's production and sales base.

2 Attributable cash cost, cash cost from operating mines, average realised goldprice, EBITDA and operating cash flow per share are non-IFRS financialperformance measures with no standard meaning under IFRS. Refer to "Non IFRSmeasures"' on page 13 for definitions.

3 Three months ended 31 March 2012 restated for the reclassification of bankcharges from corporate administration to finance expense.

4 Restated for the impact of capitalised stripping due to the adoption ofIFRIC20.

Operational Review

The Operational Review which was initiated earlier this year and which isfocused on driving returns and cash flow generation is progressing in line withour expectations and we remain on schedule to provide a fuller update with ourInterim results. The review is comprehensive and is focused onfive key areas:Operating Costs, Capital Costs, Organisational Structure, Corporate Overheadsand Mine Planning; in order to realise clear benefits in our cost structure andoperating metrics.

Operating Costs

As the largest area of spend this has been the priority focus for the reviewteam. An initial review of our operating costs has been completed and we haveformulated project plans in order to address the six key areas where we believesignificant cost reductions are achievable:

* Maintenance

* Aviation, Camp Services, Travel, Vehicles and Administration

* Consumables

* Contractor and External Services

In February, we announced that we had reduced our expected sustaining capitalexpenditure for 2013 by US$50 million and we remain on track to achieve this.We believe there will be further opportunity to reduce this spend in futureyears and this will be analysed in more detail in tandem with the mine planningreview in order to optimise both our sustaining capital and our capitalisedstripping expenditure.

We have also reduced our budgeted spend on exploration for the year to US$22million, which is a reduction of approximately 50% from 2012 as we refocus themajority of our greenfield exploration efforts on the newly acquired landpackage in Kenya.

Organisational Structure

The decision to bring Tulawaka to an early close removes higher cost ouncesfrom the portfolio and immediately improves our return profile, as the tableabove for our ongoing operations illustrates. Once we have commencedimplementation ofthe closure plan for the mine we will be able to reduce thelevel of resource in certain support functions.

In parallel with the operating cost review a zero based review of the entireorganisation is in the process of being completed and will ensure that we havethe appropriate mix of employees and contractors and appropriate staffinglevels.

Corporate Overheads

We have reduced our budgeted corporate overhead spend by approximately 15% from2012 levels prior to any impact from the Operational Review, and are alreadyseeing the results of this action. With the ongoingreview of our corporatestructure we believe there is further opportunity to reduce our corporateoverheads and more efficiently support our operations.

Mine Planning

On a mine site level, we are continuing the review process to validate andoptimise the life of mine plans at each of our assets in order to prioritisedriving returns and cash flow and reduce future capital requirements. Furtherto this we will look to improve both productivity and efficiency at each of theassets through improved organisational structure and training.

For further information, please visit our website: www.africanbarrickgold.comor contact:

ABG is Tanzania's largest gold producer and one of the five largest goldproducers in Africa. We have four mines, all located in Northwest Tanzania, andseveral exploration projects at various stages of development in Tanzania andKenya. We have a high-quality asset base, solid growth opportunities and aclear strategy of:

* driving operating efficiencies to optimise production from our existing asset

base;

* growing through near mine expansion and development of advanced-stage projects;

and

* organic greenfield growth and acquisitions in Africa.

Maintaining our licence to operate through acting responsibly in relation toour people, the environment and the communities in which we operate is centralto achieving our objectives.

ABG is a UK public company with its headquarters in London. We are listed onthe Main Market of the London Stock Exchange under the symbol ABG and have asecondary listing on the Dar es Salaam Stock Exchange. Historically and priorto our initial public offering (IPO), our operations comprised the Tanzaniangold mining business of Barrick Gold Corporation, our majority shareholder. ABGreports in US dollars in accordance with IFRS as adopted by the European Union,unless otherwise stated in this report.

Conference call

A conference call will be held for analysts and investors on 18 April 2013 at12:30 London time with the dial-in details as follows:

Participant dial in: +44 (0) 203 003 2666 / +1 866 966 5335

There will be a replay facility available until 25 April 2013. Access detailsare as follows:

Replay number: +44 (0) 208 196 1998

This report includes "forward-looking statements" that express or implyexpectations of future events or results. Forward-looking statements arestatements that are not historical facts. These statements include, withoutlimitation, financial projections and estimates and their underlyingassumptions, statements regarding plans, objectives and expectations withrespect to future production, operations, costs, products and services, andstatements regarding future performance. Forward-looking statements aregenerally identified by the words "plans," "expects," "anticipates,""believes," "intends," "estimates" and other similar expressions.

All forward-looking statements involve a number of risks, uncertainties andother factors, many of which are beyond the control of ABG, which could causeactual results and developments to differ materially from those expressed in,or implied by, the forward-looking statements contained in this report. Factorsthat could cause or contribute to differences between the actual results,performance and achievements of ABG include, but are not limited to, changes ordevelopments in political, economic or business conditions or national or locallegislation in countries in which ABG conducts or may in the future conductbusiness, industry trends, competition, fluctuations in the spot and forwardprice of gold or certain other commodity prices, changes in regulation,currency fluctuations (including the US dollar, South African rand, Kenyanshilling and Tanzanian shilling exchange rates), ABG's ability to successfullyintegrate acquisitions, ABG's ability to recover its reserves or develop newreserves, including its ability to convert its resources into reserves and itsmineral potential into resources or reserves, and to process its mineralreserves successfully and in a timely manner, risk of trespass, theft andvandalism, changes in its business strategy, as well as risks and hazardsassociated with the business of mineral exploration, development, mining andproduction. Although ABG's management believes that the expectations reflectedin such forward-looking statements are reasonable, ABG cannot give assurancesthat such statements will prove to be correct. Accordingly, investors shouldnot place reliance on forward looking statements contained in this report. Anyforward-looking statements in this report only reflect information available atthe time of preparation. Subject to the requirements of the Disclosure andTransparency Rules and the Listing Rules or applicable law, ABG explicitlydisclaims any obligation or undertaking publicly to update or revise anyforward-looking statements in this report, whether as a result of newinformation, future events or otherwise. Nothing in this report should beconstrued as a profit forecast or estimate and no statement made should beinterpreted to mean that ABG's profits or earnings per share for any futureperiod will necessarily match or exceed the historical published profits orearnings per share of ABG.

Ore tonnes mined (thousands of tonnes) 1,675 1,747 7,070

Ore tonnes processed (thousands of tonnes) 1,945 1,902 7,698

Attributable gold production (ounces)¹ 146,105 144,643 626,212

Copper production (thousands of pounds) 2,462 3,005 12,875

Average realised copper price (US$/pound) 3.39 4.15 3.57

Corporate social responsibility expenditure (3,446) (3,409) (14,445)

- Owners of the parent (net earnings) 20,716 40,348 62,780

1 Production and sold ounces reflect equity ounces which exclude 30% ofTulawaka's production and sales base.

2 Average realised gold price, total cash cost per ounce, amortisation andother cost per ounce, total production cost per ounce, cash margin, cash costper tonne milled and operating cash flow per share are non-IFRS financialperformance measures with no standard meaning under IFRS. Refer to "Non IFRSmeasures"' on page 12 for definitions.

3 Reflect the London PM fix price.

4 Restated for the impact of capitalised stripping due to the adoption ofIFRIC20.

5 Three months ended 31 March 2013 restated for the reclassification of bankcharges from corporate administration to finance expense.

6 Includes non-cash reclamation asset adjustments and finance lease purchasesin 2012.

Operating and financial review for the three months ended 31 March 2013

We saw strong performance at both North Mara and Buzwagi during the quarter,which offset the temporary operational issues experienced at Bulyanhulu and theimpact of the cessation of mining activities at Tulawaka.

At Buzwagi, all key operating metrics have shown good year-on-year improvementand have sustained the performance levels achieved in the previous quarter. Asexpected head grade was 13% lower than the prior year as we focused on wastestripping, but increased recovery rates and improved mill throughput ratesdrove production of 40,020 ounces, a 10% increase from the same period lastyear.

At North Mara, mining from the higher grade zones in Gokona continued duringthe quarter resulting in an increased head grade of 3.6 grams per tonne (g/t),71% higher than last year. Mill recovery rates increased by 10% to 87.3%,predominantly as a result of the gold plant upgrade completed in 2012, furtheraided by the higher grade mill feed. As a result, production for the quarteramounted to 64,704 ounces, an increase of 83% from the same period in 2012.

Gold production at Bulyanhulu of 38,036 ounces was 38% lower than in Q1 2012,primarily due to lower mined grade as a result of paste fill delays and theimpact of the reduced workforce. During the quarter hoisting capacity wasreduced for a short period by the failure of the primary winder transformerwhich has now been replaced.

At Tulawaka production for the quarter amounted to 3,346 ounces, 70% lower thanin 2012 as underground operations came to an end resulting in lower tonnesmilled.

Total tonnes mined amounted to 14.0 million tonnes, an increase of 42% from 9.8million in 2012, mainly driven by increased mining rates at Buzwagi. Ore tonnesmined of 1.7 million tonnes were 4% lower than in 2012 as a result of lower oretonnes mined at Buzwagi and Bulyanhulu which were partially offset by anincrease in tonnes mined at North Mara. Ore tonnes processed amounted to 1.9million tonnes, an improvement of 2% from 2012. Increased throughput at Buzwagidue to stable power supply and process plant improvements was partially offsetby lower throughput at Bulyanhulu.

Head grade for the quarter of 2.6 g/t was 7% lower than 2.8 g/t in 2012. Thiswas due to mining at lower grades and the processing of lower grade stockpilesdue to the waste stripping programme at Buzwagi and lower availability ofhigher grade stopes at Bulyanhulu. This was partially offset by higher gradefrom North Mara.

Our total cash costs for the quarter were 7% higher than 2012, and amounted toUS$931 per ounce sold. The increase was primarily due to the impact of lowerproduction at Tulawaka as mining operations ceased (US$38/oz), increasedcontracted services mainly driven by contracted maintenance at Buzwagi andNorth Mara due to the increase in mining activity and inventory and salesrelated costs. This was partially offset by increased capitalised miningexpenditure at Buzwagi due to increased waste mining, and increased co-productrevenue due to increased production, also at Buzwagi.

Cash costs of US$71 per tonne milled for the quarter have increased by 6% on2012 (US$67 per tonne), primarily as a result of the above factors.

Gold sales amounted to 148,232 ounces, and were 2% higher than production, asconcentrate on hand at Buzwagi at the beginning of the year was shipped duringthe quarter. Approximately 10,000 ounces remain on hand for sale in Q2 2013 asa result of the timing of production at Bulyanhulu and North Mara.

Our copper production for the quarter of 2.5 million pounds represents an 18%decrease on Q1 2012 (3.0 million pounds), as increased production at Buzwagiwas offset by lower production at Bulyanhulu.

Revenue of US$254.6 million was 5% lower than Q1 2012 as increased salesvolumes were offset by a 5% decrease in realised price of US$1,611 per ouncesold, compared to US$1,697 per ounce sold in the prior year.

EBITDA of US$81.9 million was 16% lower than in Q1 2012, mainly driven by lowerrevenue and an increased direct cost base, offset by lower corporateadministration and exploration and evaluation costs. Corporate administrationcosts were down US$9.0 million on the prior year period, aided by a US$3.8million credit due to the downward revaluation of long term incentives giventhe share price performance during the quarter.

Excluding Tulawaka, performance from the ongoing operating mines led toproduction of 142,759 ounces, total cash costs of US$893 per ounce, EBITDA ofUS$88.8 million and Net Earnings of US$31.2 million.

Cash generated from operating activities amounted to US$57.3 million which wasUS$24.6 million below EBITDA. This was mainly due to an increase in indirecttax receivables of US$21.5 million due to the change of VAT reliefadministration measures for mining companies by the Tanzanian Government duringQ3 2012 which impacts on the timing of receivables. Our cash balance at the endof the quarter was flat at US$402 million.

Bulyanhulu produced 38,036 ounces during the quarter, 39% lower than the prioryear's total as a result of decreased head grade due to lower availability ofhigh grade stopes, lower tonnes mined due to the impact of a reduced workforceand reduced throughput as a result of hoisting capacity being impacted by thefailure of the production winder transformer.

As previously reported, potential changes to Tanzanian pension legislation ledto the resignation of a significant number of long serving underground miningand maintenance personnel, over the end of 2012 and early 2013. We have madegood progress in replacing these employees through both internal and externalrecruitment and anticipate being back to a full complement of staff during thecurrent quarter.

During the first quarter we continued to add paste fill capacity by drillingfurther holes from surface in order to improve access to high grade stopes. Aswe increase throughput through the mill over the current quarter we expect tosee greater availability of paste fill underground to alleviate this issue.

Head grade of 7.6 g/t was lower than the prior year (8.6 g/t) as a result ofpaste fill delays limiting access to primary long hole stopes leading to moretonnes being mined from lower grade stopes. The impact of the lower mined gradeon recovery was offset by improvements in the gravity circuit which resulted inan increased overall recovery rate of 91.3%, slightly higher than Q1 2012.

Gold ounces sold for the quarter were 33,416 ounces, with approximately 4,600ounces held over for sale in Q2 as a result of the timing of production in thequarter.

Copper production for the quarter of 0.9 million pounds was 48% lower than thatof the same period in 2012. This was primarily due to a decrease in millthroughput.

Due to the lower sales and resultant lower co-product revenue, cash costs perounce sold for the quarter of US$1,192 were 70% higher than the prior year ofUS$701; however gross cash costs were 9% down on the prior year due lowerconsumable and energy costs as a result of the lower mining and processingrates and lower staff numbers.

Cash costs per tonne milled increased to US$232 in 2013 (US$177 in 2012) as aresult of lower mill throughput.

Capital expenditure for the quarter of US$40.3 million was 114% higher than theprior year period of US$18.8 million mainly driven by the CIL expansion project(US$21.5 million). Capitalised underground development was US$12.3 million.

# Q1 2012 and FY 2012 results are restated for the impact of capitalisedstripping due to the adoption of IFRIC20

*Includes non-cash reclamation asset adjustments

Operating performance

We have seen a continued improvement in operating performance at Buzwagi withboth mining and processing rates significantly increasing over the prior yearperiod. As expected, head grade was 13% lower than the prior year as we blendedore mined with lower grade stockpiles, but increased recovery rates andimproved mill throughput rates drove production of 40,020 ounces, a 10%increase from the same period last year. Gold ounces sold exceeded productionby 29% due to the sale of concentrate shipments on hand from Q4 2012.

Improved availability and utilisation of the mobile fleet during the quarter,combined with a focus on waste removal, resulted in an 80% increase in tonnesmined over the prior year period. As a result of the increased focus on wastestripping activities, ore tonnes mined of 701,000 tonnes were 24% lower than in2012.

Mill throughput was at nameplate capacity, an increase of 18% compared to Q12012, driven by improved plant availability and efficiencies. As planned, themill operated solely on self generated power in order to mitigate theinstability of grid power.

Head grade for the quarter amounted to 1.3 g/t, a decrease of 13% from the sameperiod in Q1 2012. This was a result of an increase in processing of lowergrade stockpiles due to the increased waste stripping activities.

Copper production for the quarter of 1.6 million pounds was 17% above the prioryear's production. This was primarily due to the increased throughput. Coppersold for the quarter amounted to 2.5 million pounds, and exceeded production by55% due to the sale of copper concentrate on hand at the end of Q4 2012.

Cash costs for the quarter were US$802 per ounce sold compared to US$1,067 inQ1 2012. Cash costs have been positively affected by increased sales and theresultant increase in co-product revenue, increased capitalised mining due tothe waste stripping undertaken during the quarter and a decrease inadministration costs. This was partially offset by increased energy costs dueto increased self generation and mining activity and increased contractedservices costs driven by maintenance and repair contracts ("MARC") as a resultof increased mining and milling activities and increased sales related costs.

Cash costs per tonne milled of US$38 remained in line with Q1 2012 as increasedthroughput was offset by an increase in the direct mining costs.

Capital expenditure for the quarter of US$39.0 million was 151% higher than theprior year of US$15.5 million primarily due to capitalised deferred stripping.Key capital expenditure includes capitalised stripping (US$23.9 million), minefleet investment which rolled over from 2012 (US$10.0 million) and investmentsin the detoxification plant completed during the quarter (US$5.1 million).

# Q1 2012 and FY 2012 results are restated for the impact of capitalisedstripping due to the adoption of IFRIC20

*Includes non-cash reclamation asset adjustments and excludes land purchases

Operating performance

North Mara delivered strong gold production for the quarter of 64,704 ounces,an increase of 83% on Q1 2012 as a result of improved grade and recoveries.Gold ounces sold amounted to 59,050 ounces for the quarter, an increase of 55%from 2012, with approximately 5,600 ounces held over for sale in Q2 due to thetiming of production in the quarter.

Head grade of 3.6 g/t improved by 71% from 2012, driven by an increased minegrade and a reduction in mill feed from the lower grade stockpiles. Recoveriesof 87.3% increased by 10% from the prior year period as a result of thepositive impact from the gold plant recovery project completed in 2012 and theincreased grade profile. For the remainder of the year head grade is expectedto be broadly in line with 2012 levels as the lower levels of ore mined will besupplemented with lower grade stockpiles.

Total tonnes mined for the quarter amounted to 5.0 million tonnes, 13% higherthan the same quarter in 2012. Ore tonnes mined of 777,000 tonnes were 54%higher than Q1 2012 as the waste stripping programme undertaken in 2012 openedhigher grade ore areas in the Gokona pit for mining in early 2013.

Cash costs for the quarter were US$804 per ounce sold compared to US$973 in theprior year period. The decrease in cash costs were driven by the increasedsales base, which was partially offset by increased maintenance costs andconsumables usage due to the increased activity, and increased sales relatedcosts. Cash cost per tonne milled increased to US$73 in 2013 from US$56 in Q12012, as a result of the increased costs above and the decrease in throughput.

Capital expenditure for the quarter of US$20.0 million was in line with theprior year of US$20.6 million. Key capital expenditure included capitalisedstripping (US$6.6 million), mine equipment (US$6.6 million) and othersustaining capital (US$5.5 million).

Land acquisition at North Mara remains a key issue and continues to be apriority focus for management. Operations in the Nyabirama pit remain suspendeddue to delays in relocating villagers close to the pit. We are continuing ourdiscussions with local and central government in order to find a solution and aGovernment led task force has been on site over the quarter assessing thesituation.

We continue to progress the lifting of the Environmental Protection Order("EPO") at North Mara in order to be able to discharge water.

As announced as part of our 2012 preliminary results, we have made the decisionto bring Tulawaka to a close and as a result mining operations ceased duringthe quarter. We have now commenced with closing activities and the stripping ofequipment from the underground mine. Mill throughput will cease in the comingmonths as we work through the remaining inventory in solution and process anyincidental material due to the closing of the mine.

As a result of the cessation of mining operations during the quarter the mine'sattributable gold production for Q1 2013 was 3,346 ounces, down from 11,174ounces in Q1 2012. The decrease was due to a 49% decrease in throughput and areduction in head grade as a result of the clean-up of the underground stopes.Recovery decreased mainly as a result of the lower grade. Gold ounces sold werebroadly in line with production.

We have submitted the Mine Closure Plan to the relevant Government departmentsand discussions regarding the ultimate use of mine infrastructure are expectedto continue into the second half of the year.

Due to the reduction in production and a predominantly fixed cost base, cashcosts for the quarter were US$2,328 per ounce sold compared to US$902 in theprior year.

Cash costs per tonne milled increased to US$267 in 2013 from US$158 in 2012,primarily as a result of a lower mill throughput.

Capital expenditure for the quarter of US$0.5 million was 94% lower than theprior year of US$5.1 million due to the cessation of mining operations. Capitalexpenditure incurred related to mine site support equipment to be used duringclosure.

Exploration and Development Update

Tanzania

Bulyanhulu CIL Expansion

Construction of the CIL Expansion progressed well during the quarter andremains on budget and on track for first production in Q1 2014. Theconstruction of camp facilities and early site works are close to completionwith key equipment including four of the leach tanks arriving on site and noware awaiting construction.

During the quarter we completed the financing of the project through an exportcredit facility for US$142 million, of which US$50 million was drawn down inJanuary. Project execution spend to date is approximately US$50 million whichis in line with expectations

Bulyanhulu Upper East

The combined feasibility study incorporating both Reef-1 and Reef-2 into theUpper East Project has been completed subject to a peer review process. Thepeer review and any follow up analysis will be undertaken during the secondquarter, after which it is expected that the project will be submitted to theBoard for approval. The project remains on target for first production in early2015.

Nyanzaga

The pre-feasibility study at Nyanzaga is close to completion, with technicalwork on the project now complete. The project will now go through a peer reviewprocess before being submitted to the Board. Given the scale of the project atover 4.5 million ounces of resource, it represents a potentially large capitalinvestment and we will continue to assess the project with strict capitaldiscipline that we apply to the rest of the business as well as assessingalternative methods of finance should we progress the project.

Dett-Ochuna Project

Dett-Ochuna is a large gold system hosted in granitic and sedimentary rockslocated approximately 45 kilometres west of North Mara. Historic drillingprogrammes intersected very wide zones of low grade (0.6-0.9g/t Au)mineralisation extending from surface to depths greater than 300 metres andcurrent drilling is targeting higher grades zones within this mineralisedsystem. The current phase of reverse circulation and diamond drilling wascompleted during Q1 2013 with encouraging results received from two discretehigher grade (>1.5g/t Au) zones that are likely to justify further drilling onthe project. A total of 5 diamond core holes for 1,384 metres were completedduring the reporting period bringing the total to 24 reverse circulation anddiamond core holes for 6,657 metres for this phase of the programme.

Selected significant results for the quarter included:

DTD0009 - 62m @ 1.15g/t Au from 66m, including 29m @ 1.85g/t Au from 79m

DTD0011 - 68m @ 1.33g/t Au from 88m, including 26m @ 2.08g/t Au from 124m

DTD0014 - 95m @ 1.08g/t Au from 67m, including 41m @ 1.52g/t Au from 68m

DTD0017 - 85m @ 1.44g/t Au from 140m, including 56m @ 1.67g/t Au from 144m

DTD0018 - 73m @ 1.84g/t Au from 181m, including 43m @ 2.46g/t Au from 198m

DTD0019 - 111m @ 1.16g/t Au from 72m, including 36m @ 1.51g/t Au from 94m

DTD0020 - 134m @ 1.00g/t Au from 111m, including 26m @ 2.21g/t Au from 159m

Figure - Dett-Ochuna drill hole location plan with selected significant assaysand approximate trend of gold zones

[See www.africanbarrickgold.com for picture]

During Q1 2013, two holes (DTDDM0021 and DTDDM0023) were drilled to infillseveral broader spaced holes in order to show continuity of the higher gradezones and to complete preliminary metallurgical and communition test-work.Results for the metallurgical test work are anticipated during Q2 2013, andthese results, combined with an assessment of the resource potential, willdetermine future exploration programmes.

Kenya

West Kenya JV Project

Exploration programmes in Kenya during Q1 2013 focused on target generation,mapping and rock chip sampling across selected regional prospects in order tovalidate targets and design follow up programmes. At the same time, planning iswell underway for regional soil sampling programmes and an extensive programmeof reconnaissance RAB/Aircore drilling that will test existing soil anomaliesthroughout the Kakamega Dome and Lake Zone gold camps. Regional drilling andsoil sampling programmes are expected to commence during the second quarter,following the completion of Presidential elections during the first quarter.Additionally, we expect to complete a programme of diamond core drilling acrossthe Ramula, Rosterman and Bushiangala prospects targeting sufficient goldmineralisation to move each target up our Exploration and Development pipeline.

Non IFRS Measures

ABG has identified certain measures in this report that are not measuresdefined under IFRS. Non-IFRS financial measures disclosed by management areprovided as additional information to investors in order to provide them withan alternative method for assessing ABG's financial condition and operatingresults. These measures are not in accordance with, or a substitute for, IFRS,and may be different from or inconsistent with non-IFRS financial measures usedby other companies. These measures are explained further below.

Average realised gold price per ounce sold is a non-IFRS financial measurewhich excludes from gold revenue:

Unrealised gains and losses on non-hedge derivative contracts;

Unrealised mark-to-market gains and losses on provisional pricing from copperand gold sales contracts; and

Export duties.

Cash cost per ounce sold is a non-IFRS financial measure. Cash costs includeall costs absorbed into inventory, as well as royalties, by-product credits,and production taxes, and exclude capitalised production stripping costs,inventory purchase accounting adjustments, unrealised gains/losses fromnon-hedge currency and commodity contracts, depreciation and amortisation andcorporate social responsibility charges. Cash cost is calculated net ofco-product revenue.

The presentation of these statistics in this manner allows ABG to monitor andmanage those factors that impact production costs on a monthly basis. ABGcalculates cash costs based on its equity interest in production from itsmines. Cash cost per ounce sold are calculated by dividing the aggregate ofthese costs by gold ounces sold. Cash costs and cash cost per ounce sold arecalculated on a consistent basis for the periods presented.

Cash cost from operating mines is a non-IFRS financial measure. It iscalculated by excluding the impact of Tulawaka from cash cost per ounce sold.

EBITDA is a non-IFRS financial measure. ABG calculates EBITDA as net profit orloss for the period excluding:

Depreciation and amortisation; and

Impairment charges of goodwill and other long-lived assets.

EBITDA is intended to provide additional information to investors and analysts.It does not have any standardised meaning prescribed by IFRS and should not beconsidered in isolation or as a substitute for measures of performance preparedin accordance with IFRS. EBITDA excludes the impact of cash costs of financingactivities and taxes, and the effects of changes in operating working capitalbalances, and therefore is not necessarily indicative of operating profit orcash flow from operations as determined under IFRS. Other companies maycalculate EBITDA differently. Prior year EBITDA was restated by US$1.4 millionto reflect the reclassification of bank charges from corporate administrationcharges to finance expense.

EBIT is a non-IFRS financial measure and reflects EBITDA adjusted fordepreciation and amortisation and goodwill impairment charges.

Amortisation and other cost per ounce sold is a non-IFRS financial measure.Amortisation and other costs include amortisation and depreciation expenses andthe inventory purchase accounting adjustments at ABG's producing mines. ABGcalculates amortisation and other costs based on its equity interest inproduction from its mines. Amortisation and other costs per ounce sold iscalculated by dividing the aggregate of these costs by ounces of gold sold.Amortisation and other cost per ounce sold are calculated on a consistent basisfor the periods presented.

Cash cost per tonne milled is a non-IFRS financial measure. Cash costs includeall costs absorbed into inventory, as well as royalties, by-product credits,and production taxes, and exclude capitalised production stripping costs,inventory purchase accounting adjustments, unrealised gains/losses fromnon-hedge currency and commodity contracts, depreciation and amortisation andcorporate social responsibility charges. Cash cost is calculated net ofco-product revenue. ABG calculates cash costs based on its equity interest inproduction from its mines. Cash cost per tonne milled are calculated bydividing the aggregate of these costs by total tonnes milled.

Cash margin is a non-IFRS financial measure. The cash cost margin is theaverage realised gold price per ounce less the cash cost per ounce sold.

Operating cash flow per share is a non-IFRS financial measure and is calculatedby dividing Net cash generated by operating activities by the weighted averagenumber of Ordinary Shares in issue.

Mining statistical information

The following describes certain line items used in the ABG Group's discussionof key performance indicators:

Open pit material mined - measures in tonnes the total amount of open pit oreand waste mined.

Underground ore tonnes hoisted - measures in tonnes the total amount ofunderground ore mined and hoisted.

Total tonnes mined includes open pit material plus underground ore tonneshoisted.

Strip ratio - measures the waste–to–ore ratio for open pit material mined.

Ore milled - measures in tonnes the amount of ore material processed throughthe mill.

Head grade - measures the metal content of mined ore going into a mill forprocessing.

Milled recovery - measures the proportion of valuable metal physicallyrecovered in the processing of ore. It is generally stated as a percentage ofthe metal recovered compared to the total metal originally present.

Total production costs - measures the total cost of production and is anaggregate of total cash costs as well as production specific depreciation andamortisation.