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AFRICAN BARRICK GOLD PLC - Fourth Quarter Report for the 3 months ended 31.12.12

PR Newswire

London, January 16

AFRICAN BARRICK GOLD PLC

17th January 2013

Fourth Quarter Report for the three months ended 31 December 2012

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

African Barrick Gold plc ("ABG'') reports fourth quarter production results

→ Gold production of 180,684 ounces in the fourth quarter, up 13% Y-on-Y and22% Q-on-Q

Highlights

Ore tonnes processed (thousands 2,067 1,729 20% 7,698 7,409 4% of tonnes)

Attributable gold production 180,684 160,020 13% 626,212 688,278 -9% (ounces) 1

Attributable gold sold (ounces) 159,585 158,869 0% 609,252 699,539 -13% 1

Average realised gold price per 1,700 1,655 3% 1,668 1,587 5% ounce sold ($)2

Copper production (thousands of 4,266 2,889 48% 12,875 14,875 -13% pounds)

1 Group production and sold ounces consolidate 100% of Tulawaka's productionbase. Attributable production and sold ounces reflect equity ounces whichexclude 30% of Tulawaka's production base.

2 Cash cost and average realised gold price per ounce sold are non-IFRSfinancial performance measures with no standard meaning under IFRS. Refer to"Non-IFRS measures" on page 8 for each definition.

Commenting on the results, CEO Greg Hawkins said: "We are pleased to deliver asignificant step up in production in the fourth quarter in line with ourexpectations. The performance of Buzwagi is particularly satisfying and ourfocus is now on maintaining the improvement in virtually all of its operatingmetrics. North Mara delivered the expected increase in production as weaccessed additional higher grade material. Bulyanhulu was below plan over thequarter and we are addressing the issues. Beyond the production figures, overthe last twelve months we have made considerable progress in strengthening thebusiness through the renewal of mining licences and signing of the villagebenefit implementation agreements at North Mara, and the acquisition ofexciting early stage exploration licences in Kenya. With the performance in2012 as the base going into 2013, we are undertaking a full Operational Reviewto ensure the business has the optimum production and cost profile for theoperating environment we are in, so that we can drive returns and free cashflow generation."

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

African Barrick Gold plc +44 207 129 7150

Greg Hawkins, CEO

Andrew Wray, Head of Corporate Development & Investor Relations

Giles Blackham, Investor Relations Manager

RLM Finsbury +44 207 251 3801

ABG is Tanzania's largest gold producer and one of the five largest goldproducers in Africa. We have four producing mines, all located in North WestTanzania, and several exploration projects at various stages of development. Wehave a high-quality asset base, solid growth opportunities and a clearstrategy.

We aim to achieve this by:

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 (Barrick), our majorityshareholder. ABG reports in US dollars in accordance with IFRS as adopted bythe European Union, unless otherwise stated in this announcement.

Conference call

A conference call will be held for analysts and investors on 17 January 2013 at09.00 London time. A dial in facility will be available as follows:

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.

Operating update for the three months ended 31 December 2012

Attributable gold production for the quarter totalled 180,684 ounces, a 22%increase on the third quarter and a 13% increase on the corresponding quarterof 2011. Increased production was primarily driven by improved plantperformance at Buzwagi together with increased grade at North Mara and Buzwagi,which was in part offset by lower ounces produced from Bulyanhulu and Tulawaka.

The improved performance at Buzwagi was evident in both the continuing step upin mining activities, with 27% more tonnes mined compared to the prior yearperiod, and also the impact of a range of operational improvement initiativesin the process plant. This resulted in a 65% increase in tonnes milled versusthe prior year period, as well as a 20% improvement on the previous quarter.During the quarter the process plant averaged close to its nameplate capacityof 12,000 tonnes per day. This was also accompanied by further improvements inrecoveries, which averaged over 90%.

At North Mara, as expected given the significant waste stripping focus earlierin the year, mining increased from the higher grade zones in the Gokona pitwhich saw an increase in ore tonnes mined. Bulyanhulu continued to see theimpact of lower than planned paste fill delivery, which limited access tohigher grade stopes, as well as staffing shortages caused by resignations owingto potential Tanzanian pension regulation changes. Tulawaka continued to seelower production compared to the previous year as a result of the batch millingcampaign following the exhaustion of surface stockpiles earlier in 2012.

Gold ounces sold for the quarter were 159,585 which was in line with thecorresponding quarter of 2011. Gold ounces sold were 12% lower than goldproduced as a result of production being weighted towards the back end of thequarter. These ounces will be sold during January 2013. Tonnes mined for thequarter were 13.9 million compared to 10.5 million in the corresponding quarterof 2011. The increase was primarily driven by increased tonnes at Buzwagi andNorth Mara. The increase at Buzwagi was driven by improved equipmentavailabilities whilst North Mara continued to focus on waste stripping and alsobenefitted from lower illegal mining intrusions.

Tonnes processed in the fourth quarter of 2.1 million tonnes were 20% higherthan the corresponding quarter of 2011. The increase was due to the plantoperating efficiency improvements at Buzwagi.

The average grade processed for the quarter was 3.0 grams per tonne which was9% lower than the prior year period. The decrease in grade was predominantlydue to Bulyanhulu and Tulawaka and was in part offset by increased grade atNorth Mara.

Copper production for the quarter was 4.3 million pounds, 48% higher than theprior year period, mainly driven by the increase in throughput and coppergrades at Buzwagi when compared to Q4 2011.

For the full year, production of 626,212 ounces represented a 9% decline on theprior year period. Gold sales for the full year were below production at609,252 ounces due to the back-ended nature of the production in the quarter.The net cash position as at 31 December 2012 amounted to approximately US$400million.

The average realised gold price amounted to US$1,700 per ounce for the fourthquarter while it averaged US$1,668 per ounce for the full year. Theserepresented increases of 3% and 5% respectively, compared to the prior yearperiods.

It is with great regret that we report an underground incident in December atTulawaka that claimed the life of one of our underground employees. We are inthe process of carrying out a thorough investigation into the incident and willtake the appropriate actions to prevent such incidents in the future.

Exploration and Development Update

During the quarter ABG completed the acquisition of Aviva Mining (Kenya) Ltd("AMKL") from Aviva Corporation. The completion of the deal bringsapproximately 2,800 square kilometres of exploration ground and more than 20existing targets from grassroots through to the drill testing stage into theexploration and development pipeline. ABG expects to complete a comprehensiveinitial exploration programme during 2013 to further develop the high qualityportfolio of targets at all stages of the pipeline, advancing the mostpromising targets as a priority.

Exploration and development programmes during the fourth quarter of the yearcontinued to be successful, especially at our North Mara and Bulyanhuluprojects in Tanzania where drilling continued to deliver positive results, andat the Ramula prospect in Kenya, where multiple zones of higher-grademineralisation have been encountered in the limited drilling to date.

Tanzania

Bulyanhulu Carbon in Leach ("CIL") Circuit Expansion

The CIL expansion has been progressing according to plan, with commissioning ontrack for 2014. An EPC contract has now been signed with MDM Engineering inorder to manage the project. Detailed engineering design is now at 85%completion, with all major equipment procured and contractors commencing thefabrication of the structural steel and plate work. The earthworks contractorhas mobilised to site and is in the process of setting up a construction camp.All approvals for the construction of the CIL expansion have been granted, andthe Environmental and Social Impact Assessment for the life of mine tailingsstorage facility has been submitted to the Tanzanian Government. Projectfinancing discussions are close to completion for the provision of an exportcredit facility.

Bulyanhulu Upper East

The feasibility study for the combined mining of Reef 1 and Reef 2 is on trackfor completion at the end of Q1 2013, as previously communicated, and the aimis to present the project to the ABG Board for final approval in early Q2 2013.Development equipment has been procured and is expected to arrive on site atthe end of the second quarter and tenders for the contract mining appointmentare underway in order to meet that timeline.

In tandem with the feasibility work, infill drilling of Reef 2 and extensiondiamond core drilling on the Upper East part of the ore body was completedduring the quarter with 1,439 metres drilled in the quarter. Results receivedto date from the drilling are in line with the grades and widths historicallyencountered in this area of the Reef 2 resource with selected resultsincluding:

The current phase of drilling on the Reef 2 Upper East resource area is nowcomplete and a revised resource/reserve estimate is underway to determine theimpact of the recent drilling, and to investigate areas requiring additionalphases of drilling to further increase resources in this area.

North Mara - Gokona Underground

The first phase of a significant resource drill-out programme beneath theplanned Gokona and Nyabigena open pits was completed during H1 2012. A revisedunderground resource incorporating the drilling results will be released withour preliminary results in mid-February. Based on the positive results fromexploration and infill drilling which show the system remains open and robustin terms of grade at depth, it is anticipated further deep drilling iswarranted and could expand the underground resources in the future.

The trade-off analysis to determine the optimal way of integrating theunderground and surface resources at Gokona in order to maximise the life ofmine return at North Mara remains ongoing. This process is expected to becomplete within the first quarter of 2013 at which point the existingfeasibility study will be updated.

North Mara - Nyabirama Resource Definition and Nyabirama West ExtensionDrilling

The Nyabirama programme is aimed at defining underground potential from areaspreviously not able to be drilled from the open pit or during early explorationdrilling, and testing for extensions of mineralisation to the west of thecurrent open pit. The programme was completed in Q4 2012 with a total of 7,526metres drilled in the quarter.

Assay results received during the quarter continued to confirm the currentresource interpretation, intersecting multiple high-grade gold zones within abroader 1 gram per tonne of gold mineralised envelope, with selected betterresults including:

The 2012 drilling results will now be incorporated into an updated resourcemodel for open pit and underground scenarios.

Nyanzaga

In Q4 2012, the focus at Nyanzaga was on advancing the pre-feasibility study.The study is progressing well and expected to be completed by the end of Q12013, at which point a decision will be made on whether to move into a fullfeasibility study. The main focus areas of the pre-feasibility study are theoptimisation of operating and capital costs during the early part of the lifeof mine.

Kenya

During Q4 2012, exploration activities focused on commencing a full assessmentof historical data through from regional geochemical surveys to more advanceddrilling. ABG plans to complete an extensive review of all targets over thecoming six months in order to prioritise and rank the best targets on theproject, while at the same time completing regional mapping programmes,geochemical and geophysical surveys, and reconnaissance drilling to identifyfurther new targets. In parallel with this, we plan to continue diamond coredrilling of high potential targets and known gold prospects in order to movetargets up our exploration pipeline towards resource development.

Ramula

At the Ramula prospect, which is located in the central part of the West KenyaJV Project, we are targeting a gold in soil anomaly associated with a magneticanomaly in the aeromagnetics. Drilling intersected a large anomalous gold zonewith narrower high-grade zones associated stacked quartz veins containingvisible gold. Mineralisation identified to date occurs associated withsilica-sericite-pyrite altered magnetic granodiorite intrusion. All results forthe ANRDD001 to ANRDD003 diamond core drill programme have now been received,with the best results encountered in hole ANRDD003 including:

The diamond core rig returned to Ramula in early December to commence afourteen hole diamond core programme that will scope out the continuity andsize of the mineralised system. A second drill rig capable of deeper diamondcore drilling is also currently being mobilised to site in order scope out thedepth potential for additional mineralised veins at depths below 200 metresvertical. Of note is the fact that the density and width of quartz veinsappeared to be increasing with depth.

Post Period Events

ABG announced on the 8 January 2013 that Barrick had ended discussions with CNGover the potential sale of its 73.9% stake in ABG. As a result, ABG is nolonger in an offer period under the Takeover Code.

As previously announced, management has initiated a full Operational Reviewwith the aim of recalibrating operations so as to drive improved returns fromthe asset base whilst enhancing the certainty of delivery. We will providefurther detail on specific initiatives at the time of the preliminary resultsin mid-February with regular updates thereafter.

African Barrick Gold Report for the Fourth Quarter ended 31 December 2012

1LSE: ABG