Barrick acquires additional interest in Cortez Property

Barrick Gold Corporation has entered into a definitive purchase and sale agreement...

  Barrick Gold Corporation has entered into a definitive purchase and sale agreement with Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc to purchase its 40% interest in the Cortez Joint Venture in Nevada.The total cash consideration is $1.695 billion and the transaction is expected to be completed in the first quarter of 2008, subject to customary closing conditions."We are pleased to consolidate our interest in this Nevada property, a multi-million ounce deposit with tremendous exploration potential," said Greg Wilkins, Barrick President and CEO. "Cortez is expected to contribute almost one million ounces of gold annually to our production profile within a few years. This acquisition reflects the company's strategy of focusing on our core districts, increasing our investors' exposure to gold on a per share basis, and offering investors a quality portfolio with a balanced geo-political risk profile."The acquisition will increase Barrick's share of proven and probable reserves by 4.6 million ounces to 11.5 million ounces (100% basis) and measured and indicated mineral resources by 1.4 million ounces to 3.5 million ounces (100% basis). The Cortez Joint Venture is comprised of the Cortez mine and the Cortez Hills development project.When the Cortez Hills project is commissioned, the Cortez property is expected to become a significant contributor to Barrick's quality Nevada production base, with average annual production between 950,000 - 1,000,000 ounces of gold (100% basis) at total cash costs of $280-$290 per ounce in the first full five years of production.Barrick will be entitled to the production and economic benefit of the remaining 40% interest in the property effective on March 1, 2008."Nevada remains a key focus of our exploration dollars and we see excellent potential on the Cortez property, which shares many of the geological characteristics of our Goldstrike mine," said Alex Davidson, Executive Vice President of Exploration and Corporate Development.