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12 February 2014 Preliminary Results for the 12 months ended 31 December 2013 (Unaudited) Based on IFRS and expressed in US Dollars (US$) African Barrick Gold plc ("ABG'') reports full year 2013 results "2013 was a year of significant change within ABG as we undertook a majorOperational Review to ensure the business was set up to deliver increasingvalue in a lower gold price environment," said Brad Gordon, Chief ExecutiveOfficer of African Barrick Gold. "We achieved production ahead of guidance andcash costs 10% below guidance with a US$500 per ounce reduction in our all-insustaining cost ("AISC") compared to Q4 2012. As a result of mine planningchanges and lower gold price assumptions we have incurred non-cash impairmentcharges at a number of our assets, but we expect positive cash flow generationat each of our sites going forward. For 2014 we expect increased production of650,000 to 690,000 ounces of gold at reduced cash costs of US$740 to US$790 perounce sold and reduced AISC of US$1,100 to US$1,175 per ounce sold driven bysustainable cost savings and updated mine plans." Full Year Operational 2013 Highlights Production of 641,931 ounces with full year sales of 649,742 ounces, 3% and 7%respectively, higher than 2012 Cash costs2 of US$827 per ounce sold, 12% below 2012 All-in sustaining costs2 of US$1,362 per ounce sold, down 14% on 2012 Operational Review delivered US$129 million in cost reductions by the end of2013 Rescheduled Buzwagi life of mine plan to enable positive cash flow generation Deferred Gokona Cut 3 at North Mara whilst investigating opportunity to mineunderground Bulyanhulu CIL Expansion project construction close to completion,commissioning continuing through Q2 2014 As a result of revised life of mine plans and lower future gold priceassumptions our total reserve base has reduced by 3.9 million ounces to 12.7million ounces Full Year Financial Highlights Revenue of US$929 million and EBITDA2 of US$240 million Deferral of Gokona Cut 3 to drive cash flow led to a year-end non-cashimpairment charge of US$96 million at North Mara Total impairment charges of US$823 million for 2013 leading to a net loss ofUS$781 million for the year Adjusted net earnings2 of US$106 million (US25.9 cents per share) Cash position of US$282 million as at 31 December 2013 Proposed final dividend of US2.0 cents per share; total dividend for 2013 ofUS3.0 cents per share Three months ended 31 December (Unaudited, in US$'000 unless otherwise stated) 2013 20124 Revenue 221,603 275,281 EBITDA2 44,866 75,139 Adjusted EBITDA2 58,460 81,815 Net (loss)/ earnings (97,700) (34,753) Basic (loss)/ earnings per share (EPS) (cents) (23.8) (8.5) Adjusted net earnings2 27,891 11,260 Adjusted net earnings per share (AEPS) (cents)2 6.8 2.7 Dividend per share (cents) 2.0 12.3 Cash and cash equivalents 282,409 401,348 Cash generated from operating activities 48,193 96,372 Operating cash flow per share (cents)2 11.7 23.5 Capital expenditure5 91,190 114,876 Drawdown of long term debt (Borrowings) 32,000 - Equity 1,927,362 2,778,290 Year ended 31 December (Unaudited, in US$'000 unless otherwise stated) 2013 20124 Revenue 929,004 1,011,738 EBITDA2 240,407 336,282 Adjusted EBITDA2 275,874 342,958 Net (loss)/ earnings (781,101) 62,780 Basic (loss)/ earnings per share (EPS) (cents) (190.4) 15.3 Adjusted net earnings2 106,277 108,793 Adjusted net earnings per share (AEPS) (cents)2 25.9 26.5 Dividend per share (cents) 3.0 16.3 Cash and cash equivalents 282,409 401,348 Cash generated from operating activities 187,115 268,733 Operating cash flow per share (cents)2 45.6 65.5 Capital expenditure5 385,069 331,885 Drawdown of long term debt (Borrowings) 142,000 - Equity 1,927,362 2,778,290 CEO Statement I joined ABG in August 2013 as I saw a significant opportunity at the company.From the outside I believed that the company had great assets, talented peopleand that Tanzania was a stable place to operate. Since joining, I have immersedmyself in the business and now believe I underestimated how big an opportunitywe have within the company. We have a portfolio of exceptional assets, with Bulyanhulu being a truly worldclass deposit. North Mara continues to provide positive results and is a highgrade open pit mine with excellent potential to go underground. Buzwagi, whichhistorically has had a number of challenges, has been rescheduled and willgenerate cash flow for us going forward. I have also been impressed by the knowledge and experience we have within theorganisation and the pool of skilled labour available in Tanzania. As a result,during the year we have been able to further increase the proportion ofTanzanians in our workforce to over 93%. We have also enhanced the leadershipgroup with additional operational expertise to drive continued operationalefficiencies while increasing our production base. I have operated in a number of jurisdictions across the world and believe thatTanzania compares well to many of them. In this regard, I have enjoyed fruitfulinitial dialogues with the Government, something which I will continue toprogress throughout 2014, as I seek to ensure that ABG receives the recognitionand support it requires given our position as the largest investor and privatesector employer in the country. Year in Review 2013 was a year of significant change within ABG as we undertook a majorOperational Review to ensure the business was set up to thrive in a lower goldprice environment. Under the leadership of our now Chief Financial OfficerAndrew Wray, we identified over US$185 million of cost savings across thebusiness ranging from reductions in capital spend, exploration, corporateoverheads and organisational structures. The Operational Review has been agreat success and we had removed US$129 million of cost from the business bythe end of 2013. This enabled us to deliver a year-on-year reduction in all-insustaining costs ("AISC") of 14% to US$1,362, with fourth quarter AISC ofUS$1,171 per ounce, representing a 30% reduction on the same period 12 monthsago. Our traditional measure of cash costs reduced by 12% to US$827 per ouncefor the full year, and our exit rate was 19% lower than the previous year atUS$774 per ounce. On the production front, 2013 marked a turning point as we saw productionincrease year-on-year by 3% to 641,931 ounces, 7% ahead of the top of ourguidance range. If we exclude Tulawaka, which stopped operating early in theyear, our three core mines increased production by 7%, when compared to 2012.This was driven by strong performances at North Mara and Buzwagi, up 33% and10% respectively year-on-year, as a result of improved grade at North Mara andincreased throughput at Buzwagi. This more than offset the weaker first halfperformance from Bulyanhulu as a result of both labour shortages and equipmentavailabilities. The dramatic drop in the gold price over the year meant that the strongerproduction and cost performance against 2012 did not fully translate intoimproved financial performance with our average realised gold price of US$1,379per ounce being 17% lower than the 2012 average of US$1,668 per ounce. As aresult, revenues from ongoing operations dropped to US$929 million (down 8%),with EBITDA of US$240 million. Earnings were further impacted by total non-cashimpairment charges of US$1,061 million as a result of the impact of a lowergold price assumption and significant changes to mine plans, which led to aloss of 190.4 cents per share. On an adjusted basis, earnings were 25.9 centsper share. Operational Review We achieved total Operational Review savings of US$129 million against a targetof over US$100 million by the end of 2013.The delivery on the cost savings ishighlighted by the consistent reduction in our AISC over the year and improvedcash flow generation from our sustaining operations quarter on quartersupported by delivering a strong production profile throughout the year. Weremain committed and on track to deliver against the US$185 million target setout earlier in the year, as our guidance reflects. We are simultaneouslyintensifying the ongoing review in our core mining areas, which were largelyoutside the scope of the Operational Review, and we are confident that thiswill deliver further efficiencies and cost savings throughout 2014 and beyond.Progress against each of the key areas of the Operational Review is detailedbelow: Capital discipline We achieved US$58 million of sustaining capital expenditure savings in 2013inclusive of land purchases. We continue to assess all future capitalexpenditure to identify further opportunities to deploy our capital moreeffectively and improve the capital intensity of the business. We have plannedfor a further US$10-15 million savings in 2014 in respect of sustaining capitalas reflected in our guidance. Corporate overhead cost reductions We have made excellent progress simplifying the corporate structure and thereduction in size of our support offices as confirmed by savings of US$18million achieved in 2013. Headcount in our corporate offices has already beenreduced by 39%, and this will rise to 52% by the end of 2014, which has drivenlower travel and associated costs. We are in the process of transitioningspecific support functions from our Johannesburg office to Tanzania in order toachieve improved operational efficiencies and further localisation in our maincountry of operation. A further reduction of US$3 million is expected to beachieved in 2014. Exploration We achieved a total saving of US$25 million in 2013. We have focused ourexploration programme on potential high return programmes at Bulyanhulu and ontwo targets in the North Mara region while we undertook extensive low costsampling and anomaly testing in Kenya in order to prepare for futureprogrammes. In 2014 our main focus areas will be at Bulyanhulu and in Kenya. Weexpect 2014 expenditure to be in line with 2013. Operating Cost Reductions We achieved US$28 million of savings on an annualised, like for like basis.Major savings to date have been in camp services, consumables and security, aswell as in the reduction of our overall workforce which, excluding Tulawaka,has reduced by 12%. This includes a 29% reduction of international workers from411 to 290 employees as part of our efforts to increase localisation inTanzania. 2014 will see an increased focus on maintenance and external serviceswhile delivering increased labour savings on the back of our existingrestructuring plans. As a result we expect our savings over 2014 to be in linewith our previous guidance. Mine Planning Key to the improvements made over the year were the decisions we took regardingmine planning at each of the assets. We have reviewed each of the mine plans inlight of a reduced reserve price of US$1,300 per ounce and re-designed theplans to ensure that each of the mines are able to generate positive cashflows. At Buzwagi, in June 2013 we re-engineered the life of mine plan tosubstantially reduce the amount of waste movement required and optimise thegrade of the mine. This resulted in a reduction of reserve life, together witha reduction in carrying value to US$253 million as at 31 December 2013, butwhich also drives a significant improvement in AISC and has positioned the mineto deliver positive cash flows for the next five years. At North Mara, during the year we made several changes to the life of mine planwhich will substantially reduce the strip ratio, volume of material to be movedand ultimate footprint of the asset. Part of this was the decision in Octoberto defer Gokona Cut 3, which contains 628koz of North Mara's reserve base,while we finalise a feasibility study into the alternative of mining out thisreserve by underground methods. This deferral, together with our final reservecalculations, has resulted in a year-end non- cash post tax impairment of US$96million which, together with the mid-year impairment of US$128 million, leavesNorth Mara with a carrying value of US$367 million. We are confident that theoutcome of the underground study will be positive, and together with the otherchanges made, will ensure strong free cash flow generation together with anoptimised footprint to alleviate some of the social pressures and land accessissues experienced at the mine. At Bulyanhulu, we reviewed the mining methods for the future life of mine planand believe that greater efficiencies and value will be generated by moving toa much higher proportion of mechanised mining. Specifically, this involveschanging the predominant stoping method from "cut and fill" to "long hole".This change, together with the revised gold price assumptions, has resulted ina reduction in reserve ounces and overall grade whilst improving both the costand safety profile of the mine. Notwithstanding the reduction in reserve base,Bulyanhulu remains a long life, high grade asset, as demonstrated by recentlyreleased exploration results, and we are confident it will deliver anincreasing production profile at lower costs. The priority at Bulyanhulu is toturn what is undoubtedly a world class deposit into a truly world class mine.The carrying value of the asset remains at US$1.1 billion. Senior Leadership Team Changes During 2013 there were a number of changes to the Senior Leadership team atABG. I joined as Chief Executive Officer in August and, with my primary focusto ensure that the mines deliver consistent and improved operationalperformance, I took on direct responsibility for operations in September. Inthe same month I appointed Andrew Wray as Chief Financial Officer, who prior tothis had been Head of Corporate Development and Investor Relations at ABG andinstrumental in transitioning ABG to a public company. More recently he led thecompany-wide Operational Review and with his skills and experience he will addsignificant value as CFO at what is a critical time for us as we continue tofocus on cost containment. In December 2013, Michelle Ash joined as ExecutiveGeneral Manager Planning and Business Improvement from BHP Mitsubishi. Michellewill utilise her 20 years of experience in the Mining and Manufacturing sectorsto identify and drive business improvement projects across the company. Shewill take direct responsibility for leading the next phase of the OperationalReview and co-ordinating integrated business planning across all functions andsites. Following these changes, I believe we now have the leadership team inplace to drive this company forward. Transfer of Tulawaka We took the decision to close the Tulawaka mine in early 2013 and as part ofthis process we commenced discussions with STAMICO, the Tanzanian State MiningCorporation, regarding the ultimate use of the site. In November we reachedagreement with STAMICO whereby it would acquire Tulawaka and certainexploration licenses surrounding the mine for consideration of US$4.5 millionand the grant of a 2% net smelter royalty on future production in excess of500,000 ounces, capped at US$500,000. In addition, as part of the terms ofsale, STAMICO has agreed to assume the remaining closure fund and all remainingpast and future closure and rehabilitation liabilities for Tulawaka. InFebruary 2014 the transaction completed resulting in a cash payment of US$11.6million by ABG to STAMICO, this being equal to the amount of the remainingclosure fund, less transaction consideration payable. Taxation During 2013 we saw a build up in the indirect tax receivable driven by theabolition of VAT Relief in Q4 2012 in contravention of our Mineral DevelopmentAgreements. Following positive discussions an escrow arrangement for VAT onimports was agreed in Q3 2013 to ensure quicker and more regular refunds to us.We saw the first payments from this account during Q4 2013 as well as anincrease in the level of outstanding refunds, which meant that overall refundsto us in the quarter totalled US$26.7 million, which exceeded VAT incurred inthe same period by US$3.4 million. In addition, we are continuing discussionswith respect to instigating a similar mechanism for VAT on domestic goods. Thisis a key priority for us as are our efforts to recover outstanding amountsowing to ensure that we do not see further outflows in 2014 while starting torecover the balance outstanding. As at 31 December 2013, outstanding amountsstood at US$95.0 million. In addition, the remaining balance subject to theMemorandum of Settlement in 2011, after discounting adjustments, amounts toUS$64.8 million and will be offset against future corporate taxes. Corporate Responsibility Maintaining our social licence to operate remains critical to the business, andwe made good progress on this in 2013. At North Mara the impact of theinfrastructure projects for the provision of clean water, medical care, schoolsand roads are being felt across the communities and our positive impact isbeing recognised both locally and nationally. The Maendeleo Fund continues tosupport projects around each of our mines and has been especially active in2013 in providing support to in excess of 40 projects. Overall we made aninvestment of US$15.5 million in corporate responsibility projects during theyear (2012: US$14.4 million). From a safety perspective we saw a reduction of18% in our total reportable injury frequency rate and zero fatalities, which isencouraging, but we are determined to continue to reduce injuries to zero andensure each of our employees goes home safe and healthy every day. Final dividend for 2013 The Directors are pleased to recommend the payment of a final dividend of US2.0cents per Ordinary Share for 2013. In accordance with our policy, thisrepresents two thirds of the total dividend of US3.0 cents for 2013, which wefeel is appropriate in order to maintain the strength of our balance sheetwhilst maintaining the discipline of paying a dividend. Subject to shareholdersapproving this recommendation at the AGM on 24 April 2014, the final dividendwill be paid on 23 May 2014 to shareholders on the register on 2 May 2014. Theex-dividend date is 30 April 2014. Outlook ABG enters 2014 with a single focus - operational delivery. We have a portfolioof high quality assets and our plan is to deliver a continued and sustainablereduction in costs together with production growth. Our balance sheet remainsstrong and we will continue to take the steps required to ensure we are able todeliver free cash flow from the operations, which can then be appropriatelyapplied between exploration, capital projects and returns to shareholders. For 2014 we expect to see increased production of between 650,000 and 690,000ounces of gold. At the mine level, at Bulyanhulu our expectation is forincreased production quarter-on-quarter as we move through the year due toincreased throughput and grade, together with the additional ounces from theCIL Expansion in the second half of the year. At Buzwagi, production will alsoincrease due to improved grades as a result of the mine planning changes. NorthMara will see higher throughput, although with the planned head grade returningto levels close to the reserve grade at the mine we expect to see acorresponding reduction in production. As a result of the Operational Review and further ongoing improvements to thebusiness we are targeting further reductions to our unit costs and we estimatethe cash cost per ounce for the year, including royalties, will be betweenUS$740-US$790 per ounce sold, a reduction of up to 10% on 2013. For 2014 we have further reduced the sustaining capital budget with sustainingcapital expected to be down up to 20% on 2013 at US$90-US$100 million andcapital development inclusive of deferred stripping down by up to 47% toUS$90-US$100 million. The reduction in capital expenditure, together withreduced corporate overheads, means that we estimate AISC per ounce for the yearwill be between US$1,100-US$1,175 per ounce sold, a reduction of up to 19% on2013. Expansionary capital will consist of US$50 million of remaining spend tocomplete construction of the Bulyanhulu CIL Expansion project, which will allbe incurred in the first half of 2014. In addition, as noted above, thecompletion of the transfer of Tulawaka to STAMICO in Q1 2014 has resulted in anupfront one-off payment of US$11.6 million. Overall, our key objectives for 2014 are: achieving Group production of between 650,000-690,000 ounces reducing total cash cost, including royalties, to between US$740-US$790 perounce sold reducing AISC to between US$1,100-US$1,175 per ounce sold reducing total capital expenditure to US$230-US$250 million, comprisingUS$90-US$100 million of sustaining capital including land, US$90-US$100 millionof capital development inclusive of deferred stripping and US$50 million ofexpansion capital reducing total inventory levels delivering on and expanding the stated objectives and targets of theOperational Review commissioning the Bulyanhulu CIL Expansion completing positive feasibility studies at Gokona Underground and BulyanhuluUpper East optimising Group throughput and recoveries further improving our safety record continuing the development of our sustainability practices attracting and retaining the best people in Africa Finally, I would like to thank all of my colleagues for their commitment,enthusiasm and hard work throughout what has been a year of considerablechange. I am excited by what I have seen at ABG and believe we have a greatopportunity to make this company a leader in Africa. I would also like to thankour Board for their support, guidance and commitment through the year and I amvery much looking forward to 2014 and beyond. Brad Gordon, Chief Executive Officer Key statistics Three months ended 31 December Year ended 31 December (Unaudited) 2013 20124 2013 20124 Tonnes mined (thousands of tonnes) 11,570 13,942 54,100 48,301 Ore tonnes mined (thousands of tonnes) 2,151 2,266 7,250 7,070 Ore tonnes processed (thousands of tonnes) 1,817 2,067 7,979 7,698 Process recovery rate (percent) 88.5% 90.0% 88.5% 88.3% Head grade (grams per tonne) 3.2 3.0 2.8 2.9 Attributable gold production (ounces)1 165,374 180,684 641,931 626,212 Attributable gold sold (ounces)1 168,177 159,585 649,742 609,252 Copper production (thousands of pounds) 3,548 4,266 11,970 12,875 Copper sold (thousands of pounds) 3,010 3,239 11,570 11,523 Cash cost per tonne milled2 (US$) 72 74 67 74 Per ounce data (US$) Average spot gold price3 1,276 1,722 1,411 1,669 Average realised gold price2 1,251 1,700 1,379 1,668 Total cash cost2 774 958 827 941 All-in sustaining cost2 1,171 1,675 1,362 1,585 Average realised copper price (US$/lb) 3.31 3.42 3.24 3.57 Financial results - restated to reflect Tulawaka as a discontinued operation Three months ended Year ended 31 31 December December (Unaudited) 2013 20124 2013 20124 (US$'000) Revenue 221,603 275,281 929,004 1,011,738 Cost of sales (169,770) (198,415) (713,806) (720,036) Gross profit 51,833 76,866 215,198 291,702 Corporate administration (8,898) (12,731) (32,157) (47,640) Exploration and evaluation costs (5,979) (9,217) (16,927) (26,752) Corporate social responsibility expenses (3,667) (4,107) (12,237) (13,051) Impairment charges (133,320) - (1,044,310) - Other charges (8,995) (12,527) (30,424) (17,071) (Loss)/profit before net finance cost (109,026) 38,284 (920,857) 187,188 Finance income 598 418 1,670 2,056 Finance expense (2,462) (2,516) (9,552) (10,079) (Loss)/ profit before taxation (110,890) 36,186 (928,739) 179,165 Tax credit/ (expense) 19,232 (33,231) 187,959 (78,693) Net (loss)/ profit from continuing operations (91,658) 2,955 (740,780) 100,472 Discontinued operations: Net loss from discontinued operations (8,684) (48,998) (57,653) (48,979) Net (Loss)/ profit for the period (100,342) (46,043) (798,443) 51,493 Attributed to: Owners of the parent (net (loss)/ earnings) (97,700) (34,753) (781,101) 62,780 - Continuing operations (91,658) 2,955 (740,780) 100,472 - Discontinued operations (6,042) (37,708) (40,321) (37,692) Non-controlling interests (2,642) (11,290) (17,332) (11,287) - Discontinued operations (2,642) (11,290) (17,332) (11,287) Reconciliation of Group Financial Performance split by Continuing andDiscontinued Operations Year ended 31 December 2013 Continuing Discontinued operations operations Total Revenue 929,004 13,514 942,518 Cost of sales (713,806) (30,368) (744,174) Gross profit/(loss) 215,198 (16,854) 198,344 Corporate administration (32,157) (1,311) (33,468) Exploration and evaluation costs (16,927) - (16,927) Corporate social responsibility expenses (12,237) (3,259) (15,496) Impairment charges (1,044,310) (16,701) (1,061,011) Other charges (30,424) (19,442) (49,866) (Loss)/profit before net finance expense and taxation (920,857) (57,567) (978,424) Finance income 1,670 30 1,700 Finance expense (9,552) (116) (9,668) (Loss)/ profit before taxation (928,739) (57,653) (986,392) Tax credit/ (expense) 187,959 - 187,959 Net (loss)/profit for the year (740,780) (57,653) (798,433) Year ended 31 December 20124 Continuing Discontinued operations operations Total Revenue 1,011,738 75,601 1,087,339 Cost of sales (720,036) (77,823) (797,859) Gross profit/(loss) 291,702 (2,222) 289,480 Corporate administration (47,640) (3,928) (51,568) Exploration and evaluation costs (26,752) (2,208) (28,960) Corporate social responsibility expenses (13,051) (1,394) (14,445) Impairment charges - (44,536) (44,536) Other charges (17,071) (600) (17,671) (Loss)/profit before net finance expense and taxation 187,188 (54,888) 132,300 Finance income 2,056 46 2,102 Finance expense (10,079) (226) (10,305) (Loss)/ profit before taxation 179,165 (55,068) 124,097 Tax credit/ (expense) (78,693) 6,089 (72,604) Net (loss)/profit for the year 100,472 (48,979) 51,493 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, all-in sustainingcost per ounce, cash cost per tonne milled, EBITDA, adjusted EBITDA, adjustednet earnings, adjusted net earnings per share and operating cash flow per shareare non-IFRS financial performance measures with no standard meaning underIFRS. Refer to "Non IFRS measures"' on page 28 for definitions. 3 Reflect the London PM fix price. 4 Restated for the impact of capitalised stripping due to the adoption of IFRIC20 and the reclassification of Tulawaka as a discontinued operation. 5 Excludes non-cash reclamation asset adjustments and includes finance leasepurchases. For further information, please visit our website: www.africanbarrickgold.com,or contact: African Barrick Gold plc +44 (0) 207 129 7150 Brad Gordon, Chief Executive Officer Andrew Wray, Chief Financial Officer Giles Blackham, Investor Relations Manager Bell Pottinger +44 (0) 207 861 3232 Daniel Thöle About ABG ABG is Tanzania's largest gold producer and one of the largest gold producersin Africa. We have three producing mines, all located in Northwest Tanzania,and several exploration projects at various stages of development in Tanzaniaand Kenya. We have a high-quality asset base, solid growth opportunities and aclear strategy of optimising, expanding and growing our business. 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 12 February 2014at Noon London time. The access details for the conference call are as follows: Participant dial in: +44 (0) 203 003 2666 / +1 646 843 4608 Password: ABG A recording of the conference call will be made available atwww.africanbarrickgold.com after the call. FORWARD- LOOKING STATEMENTS 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, projects, and statementsregarding future performance. Forward-looking statements are generallyidentified 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 or regulation in countries in which ABG conducts - or may in thefuture conduct - business, industry trends, competition, fluctuations in thespot and forward price of gold or certain other commodity prices (such ascopper and diesel), currency fluctuations (including the US dollar, SouthAfrican rand, Kenyan shilling and Tanzanian shilling exchange rates), ABG'sability to successfully integrate acquisitions, ABG's ability to recover itsreserves or develop new reserves, including its ability to convert itsresources into reserves and its mineral potential into resources or reserves,and to process its mineral reserves successfully and in a timely manner, ABG'sability to complete land acquisitions required to support its miningactivities, operational or technical difficulties which may occur in thecontext of mining activities, delays and technical challenges associated withthe completion of projects, risk of trespass, theft and vandalism, changes inABG's business strategy including, ABG's further implementation of theOperational Review, as well as risks and hazards associated with the businessof mineral exploration, development, mining and production and risks andfactors affecting the gold mining industry in general. Although ABG'smanagement believes that the expectations reflected in such forward-lookingstatements are reasonable, ABG cannot give assurances that such statements willprove to be correct. Accordingly, investors should not place reliance onforward-looking statements contained in this report. Any forward-lookingstatements in this report only reflect information available at the time ofpreparation. Subject to the requirements of the Disclosure and TransparencyRules and the Listing Rules or applicable law, ABG explicitly disclaims anyobligation or undertaking publicly to update or revise any forward-lookingstatements in this report, whether as a result of new information, futureevents or otherwise. Nothing in this report should be construed as a profitforecast or estimate and no statement made should be interpreted to mean thatABG's profits or earnings per share for any future period will necessarilymatch or exceed the historical published profits or earnings per share of ABG. AFRICAN BARRICK GOLD LSE: ABG TABLE OF CONTENTS 2013 Operating Overview 10 Exploration and Development Review 14 Financial Review 17 Non-IFRS measures 28 Risk Review 30 Directors 31 Condensed financial information: - Consolidated Income Statement and Consolidated Statement of 32/Comprehensive Income 33 - Consolidated Balance Sheet 34 - Consolidated Statement of Changes in Equity 35 - Consolidated Statement of Cash Flows 36 - Notes to the condensed financial information 37 Reserves and Resources 55 2013 Operating Overview We made excellent progress across our assets in 2013, delivering totalproduction of 641,931 ounces, a year-on-year increase of 3% and 7% ahead ofguidance as well as reducing cash costs by 12% against 2012, 10% below thebottom of our guidance range. Production at North Mara of 256,732 ounces was 33% higher than that of theprior year. Head grade and mill recovery were positively impacted by anincrease both in ore tonnes mined and in grade, predominantly driven by miningfrom the Gokona pit due to a change in the mine plan incorporating positivegrade reconciliations. At Bulyanhulu, gold production of 198,286 ounces was 16% lower than the prioryear mainly due to lower tonnes mined as a result of reduced equipmentavailability and staff shortages in the first half of the year. This wasfurther impacted by a 3% decrease in grade due to paste fill delays in H1 2013impacting on the availability of high grade stopes. This has since beenaddressed and paste filling has recovered to expected levels. At Buzwagi, gold production for the full year of 181,984 ounces was 10% higherthan the prior year driven by increased throughput as a result of improvedplant reliability as it operated at nameplate capacity during 2013. The impactof the revised mine plan was evident in the second half of the year as we saw asignificant reduction in total tonnes mined. At Tulawaka, we produced 4,929 ounces on an attributable basis with productionceasing in the first half of the year as a result of our decision to close themine. In June 2013 we commenced closure of the site before agreeing itstransfer to STAMICO, the Tanzanian state mining company in November 2013. Thistransfer has subsequently been completed during February 2014. Total tonnes mined amounted to 54.1 million tonnes, an increase of 12% from48.3 million in 2012. This was predominantly H1 weighted prior to the impact ofthe changes to the Buzwagi and North Mara mine plans which reduced materialmovement. Ore tonnes mined from open pits amounted to 6.4 million tonnescompared to 6.0 million in 2012. Increased ore tonnes from North Mara due topositive reserve model reconciliations were partially offset by a reduction oftonnes mined at Buzwagi. Underground tonnes hoisted were negatively impacted byoperational issues at Bulyanhulu and amounted to 0.9 million tonnes compared to1.0 million tonnes in 2012. Ore tonnes processed amounted to 7.9 million tonnes, an improvement of 4% from2012 driven by increased throughput at Buzwagi due to process plantimprovements. Head grade for the year of 2.8 grams per tonne (g/t) was 3% lower than 2.9 g/tin 2012. This was due to a reduction in grade at Bulyanhulu due to limitedavailability of high grade stopes, an increased proportion of group throughputcoming from Buzwagi, our lowest grade mine, partially offset by an increase of40% in the grade at North Mara. Our cash costs for the year were 12% lower than 2012, and amounted to US$827per ounce sold. The decrease was primarily due to: increased capitalised mining expenditure at Buzwagi and North Mara (US$73/oz); reduced labour costs driven by a reduction in expat labour (US$26/oz); and the impact of the increased production base (US$14/oz). This was partially offset by increased contracted services, maintenance andconsumable usage as a result of increased activity at each of the mines. Our all-in sustaining cost for the year was 14% lower than 2012, and amountedto US$1,362 per ounce sold. The decrease was predominantly due to the lowercash costs as explained above together with lower sustaining capital andcorporate costs. Cash costs of US$67 per tonne milled for the year have reduced by 9% on 2012(US$74 per tonne), primarily as a result of the above factors. Gold sales amounted to 649,742 ounces, 1% ahead of production due to the salesof ounces held over from 2012. Our copper production for the year of 12.0 million pounds was 7% lower than2012 (12.9 million pounds), which reflected the lower production base atBulyanhulu but which was partially offset by higher production at Buzwagi. We made further improvements in the Group Total Reportable Injury FrequencyRate ("TRIFR") which reduced by 18% to 0.68. We suffered zero fatalities in theyear. Bulyanhulu Key statistics Three months ended 31 December (Unaudited) 2013 2012 Underground ore tonnes hoisted Kt 222 214 Ore milled Kt 229 230 Head grade g/t 7.9 7.2 Mill recovery % 91.2% 89.8% Ounces produced oz 53,186 47,684 Ounces sold oz 56,735 46,306 Cash cost per ounce sold US$/oz 776 971 AISC per ounce sold US$/oz 1,118 1,596 Cash cost per tonne milled US$/t 193 196 Copper production Klbs 1,348 1,206 Copper sold Klbs 1,304 1,293 Breakdown of Capital expenditure - Sustaining capital US$('000) 4,333 10,936 - Capitalised development US$('000) 10,750 12,235 - Expansionary capital US$('000) 41,581 30,185 56,664 53,356 - Non-cash reclamation asset adjustments US$('000) (5) (2,950) Capital expenditure US$('000) 56,659 50,406 Year ended 31 December (Unaudited) 2013 2012 Underground ore tonnes hoisted Kt 872 959 Ore milled Kt 871 1,012 Head grade g/t 7.8 8.0 Mill recovery % 90.9% 90.6% Ounces produced oz 198,286 236,183 Ounces sold oz 195,304 235,410 Cash cost per ounce sold US$/oz 890 803 AISC per ounce sold US$/oz 1,344 1,245 Cash cost per tonne milled US$/t 200 187 Copper production Klbs 4,855 6,102 Copper sold Klbs 4,508 5,895 Breakdown of Capital expenditure - Sustaining capital US$('000) 25,193 35,193 - Capitalised development US$('000) 45,428 45,605 - Expansionary capital US$('000) 114,912 36,814 185,533 117,612 - Non-cash reclamation asset adjustments US$('000) (10,044) (43) Capital expenditure US$('000) 175,489 117,569 Operating performance For the full year 2013, gold production of 198,286 ounces at Bulyanhulu was 16%lower than the prior year mainly due to lower tonnes mined as a result ofreduced equipment availability and staff shortages noted in the first half ofthe year. This was further impacted by a 3% decrease in grade due to paste filldelays in H1 2013 impacting on the availability of high grade stopes. This hassince been addressed and paste filling has recovered to expected levels. Goldounces sold for the year of 195,304 ounces were 17% below that of the prioryear primarily due to the lower production base. For the full year, copper production of 4.9 million pounds was 20% lower thanthe prior year's production of 6.1 million due to the reduced throughput andgrade profile. Cash costs for the year of US$890 per ounce sold were 11% higher than the prioryear of US$803. Cash costs were negatively impacted by lower production levelsand the resultant lower co-product revenue. This was partially offset by lowermaintenance, consumable usage and labour costs and lower sales related costsdue to lower sales volumes and a lower realised gold price. Cash costs pertonne milled increased to US$200 in 2013 (US$187 in 2012) as a result of thelower throughput and costs outlined above. AISC per ounce sold for the year of US$1,344 was 8% higher than 2012 ofUS$1,245. This was driven by the higher cash cost base, and increased capitalexpenditures per ounce as a result of reduced production, which more thanoffset the 28% reduction in sustaining capital expenditure. Capital expenditure for the year, excluding reclamation asset adjustments, ofUS$185.5 million was 58% higher than the prior year of US$117.6 million mainlydriven by the expansionary capital spend on the CIL expansion project (US$104.9million) and investment in equipment (US$5.2 million) and capitalisedevaluation costs (US$2.3 million) relating to the Upper East project. Keycapital expenditure also included capitalised underground development (US$45.4million), mining equipment related to critical underground equipment (US$10.2million) and investments in tailings and infrastructure (US$10.7 million).Total capital expenditure of US$175.5 million was positively impacted by anegative non-cash reclamation adjustment of US$10.0 million, due to theincrease in risk-free interest rates. The CIL Expansion project, which is expected to add approximately 40,000 ouncesof gold per annum for the first six years of operation, remains on track forcompletion at the end of Q1 2014 with commissioning continuing through Q2 2014.There is approximately US$50 million of remaining capital expenditure to beincurred in 2014. In addition, there are approximately US$15 million ofpayments to be made in H1 2014 which were accrued during 2013. In addition, therevised feasibility study for the Upper East Zone will be completed shortly andpresented to the Board. Following the changes to the mine plan as a result of moving to a higherproportion of mechanised mining and a revised gold price assumption theunderground reserves base at Bulyanhulu now stands at 9.0 million ounces at agrade of 9.5 grams per tonne, with another 0.3 million ounces at a grade of1.23 grams per tonne attributable to surface tailings. Buzwagi Key statistics Three months ended 31 Year ended 31 December December (Unaudited) 2013 20121 2013 20121 Tonnes mined Kt 7,244 7,906 32,177 28,563 Ore tonnes mined Kt 1,250 1,325 3,753 4,233 Ore milled Kt 945 1,062 4,400 3,715 Head grade g/t 1.9 2.1 1.5 1.6 Mill recovery % 88.8% 90.9% 88.2% 87.3% Ounces produced oz 51,830 64,829 181,984 165,770 Ounces sold oz 50,382 51,264 187,348 155,322 Cash cost per ounce sold US$/oz 941 853 945 1,066 AISC per ounce sold US$/oz 1,300 1,539 1,506 1,798 Cash cost per tonne milled US$/t 50 41 40 45 Copper production Klbs 2,200 3,059 7,115 6,773 Copper sold Klbs 1,706 1,945 7,062 5,628 Breakdown of Capital Expenditure - Sustaining capital US$('000) 4,309 19,893 31,589 56,441 - Capitalised development US$('000) 10,812 10,492 60,136 39,455 - Expansionary capital US$('000) - 62 - 62 15,121 30,447 91,725 95,958 - Non-cash reclamationasset adjustments US$('000) (2,318) 7,498 (9,230) 10,494 Capital expenditure US$('000) 12,803 37,945 82,495 106,452 1 Restated for the impact of capitalised stripping due to the adoption of IFRIC20. Operating performance Gold production for the full year of 181,984 ounces was 10% higher than theprior year driven by increased throughput as a result of improved plantreliability as it operated at nameplate capacity during 2013. Gold sold for theyear amounted to 187,348 ounces, 21% above that of the prior year period due tothe increased production base and the sale of concentrate on hand from Q4 2012. For the full year, copper production of 7.1 million pounds was 5% higher thanin 2012 driven by the increased throughput, slightly offset by lower coppergrades. Cash costs for the year of US$945 per ounce sold were 11% lower than the prioryear of US$1,066. Cash costs were positively impacted by increased productionlevels and resultant co-product revenue, lower labour costs, due to asignificant reduction in the international workforce and increased capitalisedstripping costs in H1 2013. This was partially offset by higher consumables,energy and fuel costs and contracted services due to the increased miningactivity and throughput in H1 2013, and higher cost overheads as a result ofwarehouse related costs driven by inventory drawdowns. Cash costs per tonnemilled decreased to US$40 in 2013 (US$45 in 2012) as a result of the costsoutlined above. AISC per ounce sold for the year of US$1,506 was 16% lower than 2012 ofUS$1,798. This was driven by the lower cash cost base, lower sustaining capitalexpenditure and lower corporate administration costs, partly offset by highercapitalised development costs. Capital expenditure for the year, before reclamation asset adjustments, ofUS$91.7 million was 4% lower than the prior year of US$95.9 million, withincreased capitalised stripping in H1 2013 more than offset by lower sustainingcapital expenditure over the year. The significant change to the mine planreduced the levels of waste movement and therefore capitalised stripping in H22013. Key capital expenditure included capitalised stripping costs (US$60.1million), investments in tailings and infrastructure (US$15.7 million) andmining equipment driven by component change outs (US$13.9 million). Totalcapital expenditure of US$82.5 million was positively impacted by a negativenon-cash reclamation adjustment of US$9.2 million, due to the increase inrisk-free interest rates combined with a reduction in closure costs estimates. Following the changes to the mine plan made in July 2013 at Buzwagi, thereserve base of the asset now stands at 1.1 million ounces at a grade of 1.45grams per tonne. North Mara Key statistics Three months ended 31 Year ended 31 December December (Unaudited) 2013 20121 2013 20121 Tonnes mined Kt 4,104 5,788 21,027 18,391 Ore tonnes mined Kt 678 694 2,601 1,711 Ore milled Kt 643 740 2,643 2,786 Head grade g/t 3.4 3.0 3.5 2.5 Mill recovery % 86.0% 88.7% 86.8% 85.4% Ounces produced oz 60,358 63,236 256,732 193,231 Ounces sold oz 61,050 56,800 260,945 186,600 Cash cost per ounce sold US$/oz 636 949 659 953 AISC per ounce sold US$/oz 1,075 1,671 1,227 1,693 Cash cost per tonne milled US$/t 60 73 65 64 Breakdown of Capital Expenditure - Sustaining capital US$('000) 3,562 17,176 38,386 47,759 - Capitalised development US$('000) 13,651 3,955 65,594 28,139 - Expansionary capital US$('000) 445 5,534 949 10,091 17,658 26,665 104,929 85,989 - Non-cash reclamationasset adjustments US$('000) (4,506) 5,805 (11,271) 7,540 Capital Expenditure US$('000) 13,152 32,470 93,658 93,529 1 Restated for the impact of capitalised stripping due to the adoption of IFRIC20. Operating performance Production for the full year of 256,732 ounces was 33% higher than that of theprior year. Head grade and mill recovery were positively impacted by anincrease in ore tonnes mined and grade, predominantly driven by mining from theGokona pit due to a change in the mine plan. Gold ounces sold for the full year of 260,945 ounces were 2% higher thanproduction due to the sale of ounces on hand from Q4 2012, and 40% higher thanthat of 2012 due to the increased production base. Cash costs for the year of US$659 per ounce sold were 31% lower than the prioryear of US$953. Cash costs were positively impacted by increased productionlevels and increased capitalised stripping costs. This was partially offset byhigher contracted services and maintenance costs due to planned equipment andplant maintenance. Cash costs per tonne milled for the year were in line with2012 at US$65 (US$64 in 2012). AISC per ounce sold for the year of US$1,227 was 28% lower than 2012 ofUS$1,693 due to the reasons outlined above combined with a reduction in capitalexpenditure per ounce due to the increased production base. Capital expenditure for the year, before reclamation asset adjustments, ofUS$104.9 million was 22% higher than the prior year of US$86.0 million, due toincreased capitalised development offset by lower sustaining capitalexpenditure and lower expansionary expenditure (2012 included capitaliseddrilling costs related to Gokona and Nyabirama underground projects). Thedeferral of Cut 3 at Gokona in Q4 2013 led to a reduction in tonnes moved andan associated reduction in capitalised development for the fourth quarter. Keycapital expenditure included capitalised stripping costs (US$65.6 million),investments in tailings and infrastructure (US$14.7 million) and investment inmining equipment driven by component change outs (US$13.6 million). Totalcapital expenditure of US$93.7 million was positively impacted by a negativenon-cash reclamation adjustment of US$11.3 million, due to the increase inrisk-free interest rates. We have completed all the conditions required for the lifting of theEnvironmental Protection Order at North Mara and have received a formaldischarge permit from the Lake Victoria Water Board. The removal of the EPOallows ABG to discharge clean water once it has been treated in the watertreatment plant at the mine. Following the changes to the mine plan made in July 2013 at North Mara, thereserve base of the asset now stands at 2.2 million ounces at a grade of 3.17grams per tonne. Exploration and Development Review Overall, 2013 was a successful year of execution and delivery across ourgreenfield and brownfield exploration projects. During the year, US$16.9million of exploration activities were expensed, with a further amount ofUS$4.0 million relating to exploration and evaluation activities beingcapitalised. Key highlights include the successful drilling results frombrownfield exploration projects at Bulyanhulu from both surface and undergrounddrilling and from greenfield exploration programmes at our Kenyan joint ventureproperties in western Kenya. At the Bulyanhulu mine, during the year we commenced surface and undergroundbrownfield exploration drilling programmes. Surface drilling is targetingresource extensions of the Bulyanhulu system between 400 metres and 1.2kilometres west of the mine, while underground drilling is targeting resourceexpansion of the East Zone on the Reef 2 system. By year end the drillingprogrammes on the targets at Bulyanhulu had already delivered positive resultsfrom both surface and underground drill holes. The focus for 2014 will be tocomplete the surface and underground drill programmes according to plan andbudget by Q3 2014 and assess the success of the programmes and any requirementfor further drilling. In Kenya, throughout the year we have continued extensive regional mapping,soil sampling and reconnaissance Aircore geochemical drilling across our twojoint venture projects, the Advance Gold JV Properties and the West Kenya JVProperties. These programmes will continue into 2014 and seek to identify andadvance the best targets within our large land package, so as to be positionedto commence drill testing in 2015. Soil sampling to date has delineated andexpanded more than 50 existing and new kilometer-scale gold-in-soil anomalies.On the Advance Gold JV Properties we have completed drilling of Aircore holeswith over 20% of the holes assayed to date returning anomalous gold interceptsof greater than 0.1 g/t gold. Additionally, in recognition of the increasing maturity of some of ourexploration properties, reduced exploration budgets, and regulatoryrequirements we have embarked on a process of rationalising our explorationportfolio in both Tanzania and Kenya. During 2013, we reduced our landholdings in Tanzania from 2,534sq km to 1,808 sq km, and handed over managementof several joint ventures to our partners. In Kenya, we expect to reduce ourcurrent land holding on completion of the current regional soil samplingprogrammes. We believe that through this process we will continue to focus onthe best projects within our portfolio, while at the same time free upexploration funds to diversify our portfolio outside our current operatingareas. Brownfield Exploration In 2013, near-mine brownfield exploration successfully identified extensions toknown resources. The brownfield exploration programme was entirely focused onthe Bulyanhulu ore body where initial surface and underground diamond coredrilling has returned excellent results from step-out resource drilling on bothReef 1 and Reef 2 mineralised systems. Bulyanhulu Deeps West In Q4 2013, we commenced drilling of three deep diamond core holes west of theBulyanhulu mine, targeting the extension of Reef 1 gold mineralisation. Theongoing programme is comprised of approximately 20,000 metres of diamond corefrom three parent holes with up to 25 daughter holes utilising directionalwedging and navigational drilling. The holes are predominantly testing theextensions of the Reef 1 structure from 400 metres to 1,200 metres west of thecurrent Bulyanhulu resource where historic drilling has shown indications offurther gold mineralisation. The drilling is targeting a potential neweconomic zone and plunge extensions of the Main Zone of Reef 1 at depths ofbetween 1km and 2.5km vertical. As at year end 2013, a total of 4,652 metresof diamond core had been drilled from the surface holes. Two rigs are involvedin this surface drilling program, which will continue well into 2014. Encouragingly, the results from the first two holes to intersect Reef 1,located approximately 400m west of the current resource area, both returnedsignificant intersections including: BGMDD0054W1: 1.64m @ 11.7g/t Au from 1,434m incl. 0.68m @ 23.8g/t Au from1,435m BGMDD0054W2: 4.00m @ 8.42g/t from 1,637m incl. 1.0m @ 24.3g/t Au from 1,638m Additionally, these surface holes also intersected the Reef 2 structure, whichconsists of multiple narrow reefs, and BGMDD0054W2 returned several significantintersections including: BGMDD0054W2: 1.95m @ 26.58g/t Au from 1,033m incl. 0.57m @ 48.2g/t Au from1,033m BGMDD0054W2: 1.45m @ 12.39g/t Au from 1,070m These holes are potentially significant in demonstrating that reserve gradegold mineralisation and average reef widths continue west of the mine whichwould open the potential for a significant expansion of the footprint ofBulyanhulu on both Reef 1 and Reef 2. The drilling programme will continuethrough 2014 and will comprise a further 15,000 metres of diamond core drillingfrom the three planned drill sites. This programme will form an important partof our assessment of how to most effectively develop the mine over the longterm. Bulyanhulu East Deeps Underground Drilling - Reef 2 The East Deeps drilling programme is targeting down dip mineralisation of theBulyanhulu Reef 2 system which is outside the current resource model. Theprogramme is being drilled from several underground drill platforms and isaimed at adding high grade gold resources on the East Zone. Drilling commencedin Q3 2013 with a total of 2,725 metres of diamond core completed from twoholes by year end, and with the results received from one hole returning thefollowing significant intersections: UX4700-407: 1.28m @ 76.7g/t Au from 1,203m including 0.71m @ 108g/t Au from1,204m Whilst the ultimate target was Reef 2 mineralisation, due to the location ofthe drill pad, the hole also intersected Reef 1, returning 0.50m @ 62.8g/t Aufrom 134.7m. The Reef 2 significant intersection has proved continuity at depthof the mineralisation with high grade. Should this be confirmed by furtherresults, this has the potential to add significantly to the mine resource andincrease the life of mine. An additional 3 holes are targeted for completionduring early 2014 at which time the programme will be reviewed before moredrilling is undertaken. Greenfield Exploration Throughout 2013, we have continued our focus on identifying new greenfieldsexploration opportunities to complement our existing exploration portfolio.Collectively, the greenfield exploration programmes we have undertaken havefurther strengthened our portfolio of exploration projects, with the potentialfor new discoveries in the short to medium term. At the same time we continueto look throughout Africa for opportunities to further enhance and diversifyour exploration portfolio through low cost joint ventures or optionagreements.. In Tanzania, during the year, we continued to intersect wide zones of low gradegold mineralisation, including several zones of higher grade mineralisation (>2g/t Au) at the Ochuna prospect (formerly the Dett prospect) west of the NorthMara mine, and scout drilling at the Tagota prospect northwest of the NorthMara mine also intersected significant gold mineralisation. We have made good progress on our Kenyan joint venture projects (Advance GoldJV and West Kenya JV) throughout the year with more than 50 gold-in-soilanomalies generated from an extensive soil sampling programme. In addition,initial Aircore drilling across several gold-in-soil anomalies on the AdvanceGold JV properties has returned significant gold mineralisation, requiringinfill and follow-up drilling. In 2014, we will continue our focus onadvancing the best early stage prospects and targets on the Kenyan jointventure properties ready for drill testing. Tanzania Ochuna Ochuna is a large gold system hosted in granitic and sedimentary rocks locatedapproximately 45 kilometres west of the North Mara gold mine. Historic drillingprogrammes intersected very wide zones of low grade mineralization (0.6-0.9g/tgold) extending from the surface to depths greater than 300 metres. The 2013drilling programmes targeted higher-grade zones within this anomalous goldsystem. Two phases of drilling were completed during the year, with 17 reversecirculation and diamond core holes completed for 3,280 metres. Broad zones of >1g/t Au, including discrete, structurally controlled, higher grade zones (>1.5g/t gold), were intersected by this drilling including: 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 DTD0025 - 78m @ 1.60g/t Au from 163m, including 48m @ 2.29g/t Au from 193m DTRCD0142 - 52m @ 1.05g/t Au from 174m, including 23m @ 1.45g/t Au from 203m DTRCD0143 - 45m @ 1.25g/t Au from 244m, including 18m @ 1.71g/t Au from 244m Geology and mineralisation models were being updated at year end in order tocomplete a preliminary global resource estimate and decide on future targetingand drilling. In addition to positive drill results for 2013, preliminary metallurgical testwork was carried out by ALS Ammtec in Perth and returned encouraging results. Two composite samples obtained from purpose drilled HQ diamond core holes,DTDM0021 and DTDM0022, were submitted to ALS Ammtec for gravity/leach testwork. All samples were of primary (not oxidised) mineralisation. Leach testswere carried out in bottle with roll agitation, and were carried out on -150,-106, -75 and -53µm (micron) grinds. As expected, the -75µm grind producedoptimal results including: Sample #1 returned a calculated head grade of 2.47g/t Au, gravity recovery of58.2% Au, 24hr NaCN leach of 93.5% Au and tail grade of 0.16g/t Au Sample #2 returned a calculated head grade of 1.35g/t Au, gravity recovery24.9% Au, 24hrs NaCN leach of 88.8% Au and tail grade of 0.16g/t Au. Recovery for Samples 1 and 2 after two hours were 87.4% Au and 81.2% Aurespectively, indicating that the bulk of the leachable gold is liberated veryquickly. Additionally, further test work included heap leach test work on lowgrade material, however this work showed that the low grade (

Mine Resources (Measured & Indicated, exclusive of Reserves)