African Barrick Gold plc ( ABG ) reports half year results Continued progress, full year guidance maintained, dividend increased

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1 23 July 2012 LSE: ABG Interim Results for the six months ended 2012 (Unaudited) Based on IFRS and expressed in US Dollars (US$) African Barrick Gold plc ( ABG ) reports half year results Continued progress, full year guidance maintained, dividend increased Operational Highlights Attributable gold production 1 of 297,742 ounces (Group production 1 of 305,692 ounces), 14% below H1 2011, due to expected lower grade material mined at Buzwagi, waste stripping at North Mara and batch processing at Tulawaka. Cash cost per ounce sold 2 of US$938 per ounce, up 43% on H1 2011, primarily due to lower production, higher energy costs and industry wide cost pressures. Board approved the expansion of the Carbon in Leach Circuit at Bulyanhulu. Waste rock permits for North Mara received, critical to the expected production increase in H Continued success in our exploration programmes: - Declared an in-pit gold resource of 3.75 million ounces Indicated and 0.85 million ounces Inferred at Nyanzaga. - Delineated an additional 1 million ounce gold resource at Gokona, North Mara. - Successfully extended Tulawaka s mine life into Financial Highlights Revenue of US$534 million, down 8% on H Cash margin 2 of US$704 per ounce, a decrease of 13% on H Impact of planned lower production levels due to mine sequencing contributed to: - EBITDA 2 of US$171 million, down 30% on H Net profit of US$65 million, down 46% on H1 2011, with EPS of US15.9 cents. Net cash position of US$504 million as at Proposed interim dividend of US4.0 cents per share, up 25% on African Barrick Gold plc Three months ended (Unaudited) Six months ended % change % change Attributable Gold Production (ounces) 1 153, ,950-11% 297, ,857-14% Attributable Gold Sold (ounces) 1 157, ,080-15% 302, ,082-15% Cash cost per ounce sold (US$/ounce) % % Average realised gold price (US$/ounce) 2 1,591 1,524 4% 1,642 1,461 12% (in US$'000) Revenue 266, ,760-14% 534, ,387-8% EBITDA 2 81, ,072-42% 170, ,927-30% Cash generated from operating activities 54,783 99,450-45% 110, ,134-41% Net profit attributable to owners 29,889 69,773-57% 65, ,134-46% Basic earnings per share (EPS) (cents) % % Dividend per share (cents) % % Operating cash flow per share (cents) % % 1 Group production and sold ounces consolidate 100% of Tulawaka s production base. Attributable production and sold ounces reflect equity ounces which exclude 30% of Tulawaka s production and sales base. 2 Cash costs per ounce sold, average realised price, EBITDA, operating cash flow per share and cash margin are non-ifrs financial performance measures with no standard meaning under IFRS. Refer to Non-IFRS measures on page 29 for the definition of each measure. Commenting on the results, CEO Greg Hawkins said: Over the first six months of the year we have delivered solid results, while making significant progress in developing the business. The Board approved our first brownfield growth project, we declared a substantial in-pit resource at Nyanzaga and have further demonstrated our commitment to Tanzania through our new royalty agreement. Over the second half of 2012 our focus will be on continuing to deliver against our mine plan with an expected grade driven increase in production and corresponding decline in cash costs, while maintaining capital discipline. We maintain our guidance for the full year, although expect to be towards the upper end of our cash cost range. With the continuing cost pressure in the industry, we will be intensifying our focus on taking costs out of the business with the aim of maximising returns for shareholders. African Barrick Gold Half Year Report for the six months ended LSE: ABG

2 Current operations As expected, the first half of the year was characterised by the step down to reserve grade at Buzwagi, representing a 38% decrease on the prior year period, the ongoing waste stripping programme at North Mara and the start of batch processing at Tulawaka. As a result, we have seen lower production and higher cash costs than in the prior year period, with H attributable production amounting to 297,742 ounces compared to 345,857 ounces in H As we progress current mining schedules, we remain confident that we will benefit from increased grades during the second half of the year, which should allow us to deliver increased production and lower cost, in line with our guidance. We continued to optimise our gold inventory levels throughout the reporting period and as a result sold 302,641 attributable gold ounces for the first six months of the year, 2% above production. We mined 21.7 million tonnes in the first half of the year, compared to 22.7 million in H1 2011, primarily as a result of waste dumping constraints at North Mara, which have now been alleviated as a result of the grant of the potentially acid forming ( PAF ) waste rock dump permit for the mine. Tonnes of ore processed for the first half of the year totalled 3.7 million, a 4% increase on 2011 levels of 3.6 million tonnes. The average grade for the first half of the year of 2.9 grams per tonne ( g/t ) was in line with plan but 15% lower than H1 2011, driven primarily by the planned reversion to reserve grade at Buzwagi. Our copper production in the first half of the year of 6.1 million pounds represented a 22% decrease on H (7.8 million pounds), driven by lower copper grades at both Bulyanhulu and Buzwagi. We saw a 43% increase in cash costs per ounce sold over the first half of 2011 to US$938. The key contributors and the cash cost per ounce impact to this increase were: lower production base and associated lower co-product revenue, combined with lower realised copper prices (US$137/oz); higher energy costs due to increased usage and pricing of diesel in tandem with increased electricity tariffs (US$66/oz); and increased maintenance costs due to the impact of plant downtime at North Mara and Buzwagi and a revised owner maintenance model at North Mara (US$44/oz). Cash costs of US$76 per tonne milled for the first half of the year were 17% higher than the prior year period, primarily as a result of the key cost factors explained above which were partially offset by the increase in tonnes milled. We expect current cost levels to reduce throughout the second half of the year as head grade and production levels improve at each of our operations. In support of this, we will maintain our focus on minimising the impact of inflationary pressures on each of our operations and will continue to explore opportunities over the next twelve months to reduce costs through localisation efforts, lower cost power sources and the ongoing optimisation of our operations. Bulyanhulu performed in line with expectations and delivered solid results for the reporting period. During the period, the Board also approved our first brownfield expansion project involving the construction of a new 2.4 million tonnes per annum ( Mtpa ) Carbon in Leach ( CIL ) circuit at the process plant which will provide additional production of 600 thousand ounces ( Koz ) over the life of mine ( LOM ) from H As noted above, waste stripping for the first few months of the year was constrained at North Mara, predominantly as a result of delays with PAF permits and land acquisitions. The grant of the PAF permit at the end of April allows us to move ahead with the waste stripping programme, in order to access higher grade areas in the Gokona pit during the second half of the year. As planned, Buzwagi has operated close to its reserve grade of 1.5g/t for the first six months of In addition, ongoing grid instability and a number of unplanned shutdowns have impacted the operation, with the process plant operating at 80% of capacity over the reporting period. As part of the plan to address this, the process plant at Buzwagi has been running predominantly on diesel power generation to ensure the reliability of power supply and we have seen noticeable improvements to date. We are also increasing mining capacity, in order to deliver increased future production, with further additions to the mining fleet. Tulawaka continued to perform in line with expectations during the reporting period, as it transitioned to a solely underground operation and the process plant began to operate under a batch processing method. This led to an expected reduction in production and associated higher cost. An increase in the grade profile is expected during the second half of the year, which should help to increase production levels and lower cash costs at the mine. In addition, we have progressed our exploration drilling programmes and have replaced reserves mined so far in 2012 which will enable the mine to continue operating into mid We will provide further updates later this year as we progress our mine planning for Our Total Reportable Injury Frequency Rate ( TRIFR ) of 0.82 is 31% lower than the corresponding period in 2011 and we continue to implement further initiatives in order to continually improve safety and ensure that all of our employees go home safely every day. It is with great regret that we report a vehicle incident in May at Buzwagi that claimed the life of one of our contractors. We have carried out a thorough investigation into the incident and are in the process of strengthening procedures to ensure this type of accident is not repeated. African Barrick Gold Half Year Report for the six months ended LSE: ABG

3 Financial results Our financial performance over the first half of the year reflected the planned lower production levels when compared to the corresponding period, with the benefit of the 12% increase in the gold price compared to H Notwithstanding the lower production levels, we generated EBITDA of US$171 million and EPS of US15.9 cents, which enabled us to declare an interim dividend of US4.0 cents per share for 2012, up 25% on We are also in a position to continue to invest in profitable growth in our business, as evidenced by the approval of the Bulyanhulu CIL expansion during the period on which we expect to commit up to US$50 million in We have also invested US$119 million over the first half of the year in our ongoing operations in order to maintain our strong operational platform. While we are committed to investing in the business, we also remain focused on improving efficiencies throughout the organisation in order to further enhance cost and capital control. Exploration and growth projects We have made further progress in our portfolio of growth projects in the first half of the year, having announced Board approval for the Bulyanhulu CIL expansion, a project that will add over 600Koz of production over the LOM, starting from 2014 and will help to lower overall cash costs at the mine. In addition, we have made good progress on our other projects as follows: Gokona Expansion: we continue to evaluate the extension of the open pit in parallel with the underground development at the Gokona pit. Following the successful completion of the 18 month drilling programme and initial reworking of the open pit, we have been able to delineate an additional 1.0Moz of resource in the extended open pit and the underground. Bulyanhulu Upper East Project: mining of the test stope is on track to commence in Q to test the mining method and geotechnical assumptions. We have initiated a further drilling programme to test whether Reef 2, which currently sits outside of the project, can be mined in parallel and we will provide further updates in due course. This will not affect the timing of the project. Tulawaka: drilling continues to be successful, and we have been able to replace reserves in the first half, thereby extending the mine life into mid Deeper drilling continues to encounter continuity of mineralisation at depth and we are targeting further extensions of the mine life. Greenfield exploration activities during the reporting period continued to focus on the Nyanzaga project where we were able to declare an initial in-pit resource of 4.1Moz of gold in January and then, in April, upgrade further to 4.6Moz, consisting of 3.75Moz at 1.42g/t Au Indicated and 0.75Moz at 1.81g/t Au Inferred, through the inclusion of Kilimani near surface mineralisation and further material at depth. Interim Dividend In line with ABG s formal dividend policy of paying out between 15% and 30% of earnings in the proportion of approximately one third following the interim results and two thirds following the final results, the Board of ABG has approved an interim dividend for 2012 of US4.0 cents per share, a 25% increase on the amount paid in The interim dividend will be paid on 24 September 2012 to holders on record at 31 August The ex-dividend date will be 29 August ABG will declare the interim dividend in US dollars. Unless a shareholder elects to receive dividends in US dollars, they will be paid in pounds sterling with the US dollar interim dividend being converted into pounds sterling at exchange rates prevailing at the relevant time. The last date for receipt of currency elections will be 3 September The exchange rate conversion for the interim dividend will be made on or around 4 September Outlook Over the past six months, we have made significant progress towards the ongoing development of the business, through both our existing mines and our portfolio of growth projects. We look forward to building on this progress in the second half, where we expect production to increase with a subsequent decline in cash costs per ounce sold, in accordance with our mine plan. As a result, we maintain our production guidance of 675, ,000 ounces of gold for At the same time, we still expect our cash costs for the year to come within the range set of US$ per ounce (US$ per ounce on a cash operating cost basis, excluding royalties), albeit in the upper part of the range. As part of our longer term focus, we continue to drive operational efficiencies to optimise production at our existing assets, whilst focusing on the growth of our business through our organic projects and potential acquisitions. With the ongoing economic uncertainty and challenges within the global market, we remain positive on the outlook for gold, and are confident that the fundamental attraction of the precious metal as a store of value will continue to support future gold prices. African Barrick Gold Half Year Report for the six months ended LSE: ABG

4 Other developments Agreement to Acquire Interests in Kenyan Licences ABG has today announced that it has entered into an agreement with Aviva Corporation Limited ( Aviva, ASX:AVA) to acquire all of the outstanding share capital of Aviva Mining (Kenya) Limited ( AMKL ), the assets of which include interests in a number of Licences in West Kenya, for initial cash consideration of A$20 million. The acquisition is subject to the approval of Aviva s shareholders, which is expected to be sought at a general meeting in late August or early September; and the consent of the Kenyan Competition Authority, with completion expected shortly thereafter. The properties, which have only seen limited previous exploration, contain multiple large gold anomalies and cover five contiguous licences over a land package in excess of 2,800km 2 of the highly prospective Ndori Greenstone Belt in Kenya, which forms part of the Tanzanian Archaean Craton. Sporadic, historic and current exploration activities have identified a large number of targets that justify extensive follow-up, and ABG intends to implement a systematic and focused gold exploration programme. These targets will represent a significant addition to the grassroots and target delineation segments of our exploration pipeline. Board Changes Following his departure from Barrick in June 2012, Aaron Regent stepped down as Chairman of ABG. Since then, Derek Pannell, Senior Independent Director of ABG has been Acting Chairman of the Board. We also welcomed Kelvin Dushnisky, Executive Vice President, Corporate and Legal Affairs of Barrick, as a nominee Director to the Board of ABG during the reporting period, and he brings many complementary and valued skills to the Board. Also, during the first half of the year James Cross stepped down as Non-Executive Director. Mr Cross breadth of experience and detailed knowledge of Africa was a valued source of advice for the Board and we wish him well for the future. More recently, on 19 th July 2012, we welcomed Rick McCreary, Senior Vice President, Corporate Development of Barrick as a nominee Director to the Board of ABG. Before joining Barrick in April 2011, Mr. McCreary worked in mining investment banking for over fourteen years culminating as Head of CIBC World Markets Global Mining investment banking group. Prior to his career in mining investment banking, he worked in the Noranda/Falconbridge organisation for eight years in various areas, including metals marketing, geophysics, geological engineering and technology development. We are in the process of identifying an additional Independent Non-Executive Director for the Board. This will restore the appropriate balance between Independent and Non-Independent Directors following the recent changes to the Board. Regulatory and tax framework During the reporting period we concluded discussions with the Tanzanian Government with respect to the level of royalty payments applicable to our operations. In light of the current gold price environment, we have agreed to a voluntary additional 1% royalty going forward. This is in addition to the 3% rate stipulated in our Mineral Development Agreements ( MDAs ), which remain unchanged. This decision is an important step for ABG and has been taken after careful consideration, based on ABG s overall tax status in Tanzania, in order to ensure we achieve the optimum long-term structure for our operations and all of our stakeholders. North Mara licence renewal and Environmental Protection Order ( EPO ) update The Mining Advisory Board required to approve the renewal of the Special Mining Licence at North Mara was formed during the reporting period and we have been informed that it will deal with the licence renewal as one of its immediate priorities. In the meantime, operations at North Mara will continue under the terms of our existing licence, ensuring that there remains no disruption to our mining activities. The joint water sampling exercise with NEMC, the Tanzanian environmental regulator, and an independent third party, to test the quality of the output from the water treatment plant at North Mara continued through the period and will extend into the second half of Once successfully completed, the EPO should be lifted, which would allow North Mara to discharge water from the mine site. We aim to complete this exercise in the second half of African Barrick Gold Half Year Report for the six months ended LSE: ABG

5 For further information, please visit our website: or contact: African Barrick Gold plc +44 (0) Andrew Wray, Head of Corporate Development & Investor Relations Giles Blackham, Investor Relations Manager RLM Finsbury +44 (0) Charles Chichester About ABG ABG is Tanzania s largest gold producer and one of the five largest gold producers in Africa. We have four producing mines, all located in northwest Tanzania, and several exploration projects at various stages of development. ABG has a high-quality asset base, solid growth opportunities and a clear strategy for growth. The key pillars to our strategy are: 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 to our people, the environment and the communities in which we operate is central to achieving our objectives. ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. ABG reports in US dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this report. Presentation and conference call A presentation will be held for analysts and investors on Monday 23 rd July 2012 at 9:00am BST. Participant Dial In: +44 (0) / Please quote 'ABG' when prompted by the operator There will be a replay facility available for seven days thereafter, with access details as follows: Dial in: +44 (0) Access PIN: # There will also be a conference call for analysts and investors based in North America on Monday 23 rd July at 1.30pm BST Participant Dial In: +44 (0) / Please quote 'ABG' when prompted by the operator There will be a replay facility available for seven days thereafter, with access details as follows: Dial in: +44 (0) Access PIN: # This report includes forward-looking statements that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words plans, expect, anticipates, believes, intends, estimates and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors. Although ABG s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements contained in this report. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations (including the US dollar; South African rand and Tanzanian shilling exchange rates), ABG s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to timely and successfully process its mineral reserves, risks of trespass, theft and vandalism, changes in its business strategy, as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Accordingly, investors should not place reliance on forward-looking statements contained in this report. The forward-looking statements in this report reflect information available at the time of preparing this report. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this report that may occur due to any change in ABG s expectations or to reflect events or circumstances after the date of this report. No statements made in this report regarding expectations of future profits are profit forecasts or estimates, and no statements made in this report should be interpreted to mean that ABG s profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG or any other level. African Barrick Gold Half Year Report for the six months ended LSE: ABG

6 LSE: ABG TABLE OF CONTENTS Key Statistics 7 Interim Operating Review 9 Exploration and Development Update 13 Financial Update 22 Non-IFRS measures 29 Principal Risks and Uncertainties 31 Statement of Directors Responsibility 32 Auditor s Review Report 33 Consolidated Income Statement and Consolidated Statement of Comprehensive Income 34 Consolidated Balance Sheet 35 Consolidated Statement of Changes in Equity 36 Consolidated Statement of Cash Flows 37 Notes to the Consolidated Interim Financial Information 38 African Barrick Gold Half Year Report for the six months ended LSE: ABG

7 Key Statistics African Barrick Gold African Barrick Gold plc Three months ended Six months ended (Unaudited) Operating results Tonnes mined (thousands of tonnes) 11,834 10,901 21,673 22,660 Ore tonnes mined (thousands of tonnes) 1,848 1,614 3,595 3,223 Ore tonnes processed (thousands of tonnes) 1,840 1,693 3,742 3,613 Process recovery rate (percent) 87.4% 88.7% 86.7% 87.9% Head grade (grams per tonnes) Attributable gold production (ounces)¹ 153, , , ,857 Attributable gold sold (ounces)¹ 157, , , ,082 Copper production (thousands of pounds) 3,121 4,068 6,126 7,809 Copper sold (thousands of pounds) 3,443 4,147 5,959 7,882 Cash cost per tonne milled² (US$) Per ounce data (US$/ounce) Average spot gold price³ 1,609 1,506 1,651 1,445 Average realised gold price² 1,591 1,524 1,642 1,461 Cash cost² Amortisation and other costs² Total production cost² 1, , Cash margin² Average realised copper price (US$/lb) Three months ended Six months ended (Unaudited) Financial results (in US$'000) Revenue 266, , , ,387 Cost of sales (201,159) (176,487) (386,981) (344,639) Gross profit 65, , , ,748 Corporate administration (10,454) (7,667) (25,609) (20,525) Exploration and evaluation costs (3,870) (8,621) (10,385) (16,078) Corporate social responsibility expenses 5 (4,611) (642) (6,750) (1,372) Other charges 5 (1,360) (10,260) (4,275) (14,200) Profit before net finance expense and taxation 45, , , ,573 Finance income , Finance expense (2,378) (2,239) (4,689) (4,121) Profit before taxation 43, ,281 96, ,261 Tax expense (14,829) (33,862) (31,335) (54,031) Net profit for the period 29,082 72,419 65, ,230 Profit/ (loss) attributable to: - Non-controlling interests (807) 2, ,096 - Owners of the parent 29,889 69,773 65, ,134 African Barrick Gold Half Year Report for the six months ended LSE: ABG

8 (Unaudited) Other Financial information Three months ended Six months ended (in US$'000 except per share figures) Cash and cash equivalents 503, , , ,077 Cash generated from operating activities 54,783 99, , ,134 Capital expenditure 4 70,835 67, , ,666 EBITDA 2 81, , , ,927 Basic earnings per share (cents) Operational cash flow per share 2 (cents) Equity 2,807,761 2,651,571 2,807,761 2,651,571 1 Production and sold ounces reflect equity ounces which exclude 30% of Tulawaka s production and sales base. 2 Cash cost per tonne milled, average realised gold price, total cash cost per ounce sold, amortisation and other costs per ounce, total production cost per ounce, EBITDA, operational cash flow per share and cash margin are non-ifrs financial performance measures with no standard meaning under IFRS. Refer to "Non-IFRS measures" on page 29 for definitions. 3 Reflects the London PM fix price. 4 Includes non-cash rehabilitation asset adjustments and finance lease purchases during the period. 5 Restated to separately disclose corporate social responsibility expenses on the face of the income statement. African Barrick Gold Half Year Report for the six months ended LSE: ABG

9 Interim Operating Review Bulyanhulu Key statistics Bulyanhulu Three months ended Six months ended (Unaudited) Underground ore tonnes hoisted Kt Ore milled Kt Head grade g/t Mill recovery % 90.4% 90.4% 90.8% 91.1% Ounces produced oz 69,750 69, , ,537 Ounces sold oz 71,201 72, , ,805 Cash cost per ounce sold US$/oz Cash cost per tonne milled US$/t Copper production Klbs 1,851 2,186 3,482 4,224 Copper sold Klbs 1,808 2,202 3,253 4,141 Capital expenditure US$(000) 21,424 18,553 40,239 34,769 Operating performance Bulyanhulu performed in line with management expectations and continued to deliver solid results for the reporting period. Gold production for the first half of the year was 131,586 ounces, 3% lower than the prior year s total of 135,537 ounces due to slightly lower head grade and recoveries. Production for the second quarter of the year increased by 13% on the first quarter and was marginally ahead of the prior year comparative period. Mill throughput for the first half of the year was broadly in line with the prior year period. We saw an improvement in the second quarter of 16% over the first quarter, and we should see further benefit from the investment in plant efficiencies in the second half of We continue to expect the upgrading of our back up power capacity at the mine to be completed during the third quarter. Tonnes hoisted for the year were 6% lower than the prior year period and were negatively impacted by shaft availability due to the impact of power outages and associated maintenance. Copper production for the first half of the year of 3.5 million pounds was 18% lower than that of the same period in 2011 as a result of lower grades. Cash costs for the first half of the year of US$700 per ounce sold were 21% higher than the prior year comparative of US$578. This increase is predominantly attributable to the lower production base and co-product revenue, increased energy costs from the increased necessity to self generate power, and increased maintenance costs to address plant operational inefficiencies. This was in part offset by lower smelting and refining fees and increased capitalised underground development. Cash costs per tonne milled increased to US$176 in 2012 compared to US$152 in the prior year period as a result of the cost increases outlined above. Capital expenditure for the six month period totalled US$40.2 million, 16% higher than the US$34.8 million in the prior year. Key capital expenditure included: i. Capitalised development: capitalised underground development of US$22.1 million; ii. Expansion capital: Bulyanhulu CIL expansion project and Upper East expansion of US$1.2 million; and iii. Sustaining capital: US$16.9 million mostly relating to mining equipment, infrastructure and continuous improvement projects and non-cash rehabilitation asset adjustments of US$1.9 million. African Barrick Gold Half Year Report for the six months ended LSE: ABG

10 Buzwagi Key statistics Buzwagi Three months ended Six months ended (Unaudited) Tonnes mined Kt 7,088 4,347 11,991 9,672 Ore tonnes mined Kt 1, ,108 1,677 Ore milled Kt ,765 1,423 Head grade g/t Mill recovery % 85.6% 89.5% 83.9% 88.0% Ounces produced oz 34,459 41,613 70,731 97,926 Ounces sold oz 37,928 46,932 71, ,033 Cash cost per ounce sold US$/oz 1, , Cash cost per tonne milled US$/t Copper production Klbs 1,270 1,882 2,644 3,585 Copper sold Klbs 1,636 1,945 2,707 3,741 Capital expenditure US$(000) 19,418 17,916 32,485 20,900 Operating performance As planned, Buzwagi has operated close to its reserve grade of 1.5g/t for the first six months of 2012, a 38% decrease on the prior year period. As a result there has been a focus on increasing mining rates in order to maintain production. Tonnes mined for the half year increased by 24% on the comparative prior year period due to an increased focus on waste stripping, additional hauling capacity and the improvement in equipment availability. Equipment availability in the second quarter was notably improved due to enhanced maintenance regimes which led to an increase of 45% in total tonnes mined compared to the first quarter of As a result of the lower grade and resultant lower recoveries, gold production of 70,731 ounces for the six months was 28% lower than the previous year period despite a 24% increase in tonnes milled. Gold ounces sold were broadly in line with production. The process plant has not reached the expected throughput rates over the period as a result of ongoing power related issues and a number of unplanned maintenance shutdowns. As a result of this, during the second quarter Buzwagi moved to running predominantly on diesel power generation to ensure stability of power supply to the process plant. We continue to expect an improvement in throughput as we move into the second half of the year. Copper production for the six month period of 2.6 million pounds was 26% below the prior year s production. This was mainly due to the lower concentrate production as a result of lower grade. Cash costs for the first half of the year were US$1,152 per ounce sold compared to US$620 in H The key drivers of this increase were the step up in mining and processing levels together with the expected reduction in grade compared to the prior year period, as well as the lower production base and co-product revenue. The increased activity led to significantly higher energy costs which were also driven by the increased reliance on self generation, and increased consumable costs due to additional usage. These were partially offset by the capitalisation of waste stripping; higher cost allocation to ore stockpiles on hand predominantly driven by lower throughput compared to mining and a higher cost base; and lower contracted services costs. Cash costs per tonne milled increased to US$47 in H from US$44 in H The increase in costs was primarily due to the key cost factors explained above which was partially offset by increased tonnes milled. Capital expenditure for the reporting period totalled US$32.5 million, 55% higher than the US$20.9 million in the prior year period. Key capital expenditure included: i. Capitalised development: capitalised deferred stripping of US$8.7 million; and ii. Sustaining capital: US$23.8 million relating to plant improvements and mining equipment of which US$5.3 million related to the mining acceleration project and US$2.0 million of non-cash rehabilitation asset adjustments. We are expanding the mining fleet at Buzwagi in order to accelerate mining with a view to delivering increased production, whilst reducing operating risk and cash costs by ensuring the required effective utilisation is maintained. The mining fleet expansion will cost an estimated US$21 million of which approximately US$8 million will be incurred in African Barrick Gold Half Year Report for the six months ended LSE: ABG

11 North Mara Key statistics North Mara Three months ended Six months ended (Unaudited) Tonnes mined Kt 4,461 6,254 8,852 12,390 Ore tonnes mined Kt Ore milled Kt ,337 1,500 Head grade g/t Mill recovery % 82.8% 83.8% 81.1% 81.4% Ounces produced oz 41,515 46,003 76,876 83,602 Ounces sold oz 41,550 49,700 79,600 85,650 Cash cost per ounce sold US$/oz 1, , Cash cost per tonne milled US$/t Capital expenditure US$(000) 21,365 24,468 35,201 52,143 Operating performance The focus for the first six months of the year at North Mara remained on the waste stripping programme in the Gokona and Nyabirama pits. Activity was constrained due to delays in the issuing of waste dumping permits at the newly constructed PAF waste dumps and delays regarding land acquisition and relocation of communities surrounding the Nyabirama pit, resulting in lower tonnes mined. Approval of the PAF permit was obtained at the end of April, and full PAF waste movement commenced in June. This will enable us to deliver in line with the mine plan by accessing higher grade zones in the Gokona pit from the second half of this year. Gold production for the first half of the year was 76,876 ounces, down 8% on H but broadly in line with expectations. Ore mined from the Gokona pit drove overall mine grade slightly higher at 2.2g/t but the impact was more than offset by lower mill throughput as a result of unplanned maintenance. Gold ounces sold amounted to 79,600 ounces for the first half of the year, lower than the same period in 2011, but in line with lower production. The second quarter of 2012 showed a 17% increase in production over the first quarter of the year driven mainly by improved throughput, grade and plant recoveries. Cash costs for the first half of the year were US$1,119 per ounce sold compared to US$814 in the prior year period. The increase in cost was primarily driven by the lower capitalisation of costs compared to H and a reduction in the production base. These were partially offset by lower contractor services costs due to a move away from contract maintenance and a reduction in consumable usage due to lower mining and milling activity. Cash costs per tonne milled increased to US$67 in H from US$46 in H1 2011, primarily due to the key cost factors explained above and lower plant throughput. Capital expenditure for the reporting period totalled US$35.2 million, 32% lower than the US$52.1 million in the prior year period. Key capital expenditure included: i. Capitalised development: capitalised deferred stripping of US$8.2 million; ii. Expansion capital: capitalised exploration drilling of US$4.6 million; and iii. Sustaining capital: US$22.4 million driven predominantly by mining equipment, investment in continuous improvement projects, the water treatment plant and non-cash rehabilitation asset adjustments of US$1.3 million. The joint water sampling exercise with NEMC, the Tanzanian environmental regulator, and an independent third party, to test the quality of the output from the water treatment plant at North Mara continued through the period and will extend into the second half of Once successfully completed, the EPO should be lifted, which would allow North Mara to discharge water from the mine site. We aim to complete this exercise in the second half of In March 2012, we were pleased to announce the signing of individual agreements with all seven villages surrounding the mine, which provide for an investment of US$8.5 million over the next three years in the local communities. These agreements include two new Village Benefit Agreements with the villages of Nyakunguru and Matongo that did not previously have formal agreements in place, together with implementation agreements with each of the five villages (Nyangoto, Kewanja, Kerende, Genkuru and Nyamwaga) that had previously signed Village Benefit Agreements with North Mara in 1995/96. The form of investment in each of the villages will differ, but includes the development of school infrastructure, provision of clean water, the upgrading of a local health centre, rehabilitation of village offices and improvements to the road infrastructure. In addition, we are continuing to invest in a range of initiatives in the communities surrounding all of our operations through the ABG Maendeleo Fund. African Barrick Gold Half Year Report for the six months ended LSE: ABG

12 Tulawaka Key statistics Tulawaka (reflected as 70%) Three months ended Six months ended (Unaudited) Underground ore tonnes hoisted Kt Open pit ore tonnes mined Kt Open pit waste tonnes mined Kt Ore milled Kt Head grade g/t Mill recovery % 95.9% 95.0% 95.6% 94.3% Ounces produced oz 7,376 15,062 18,550 28,792 Ounces sold oz 6,545 15,750 18,375 28,595 Cash cost per ounce sold US$/oz 1, , Cash cost per tonne milled US$/t Capital expenditure (100%) US$(000) 4,442 5,384 9,564 9,279 Operating performance Tulawaka continued to perform in line with expectations during the reporting period. We are progressing our exploration drilling programmes and have replaced reserves mined to date in 2012, allowing the mine life to be extended again, into the middle of Work is currently ongoing to construct a second underground portal, which will provide increased access for mining and future drill platforms. During the second quarter of 2012, Tulawaka focused on process plant optimisation given ore stockpile levels. This resulted in the application of batch milling where the mill was being run at optimum throughput levels for shorter periods of time as opposed to low throughput levels on a consistent basis. This resulted in mill throughput decreasing by 39% in the second quarter of 2012, leading to production for the quarter of 7,376 ounces, 51% lower than As a result of the above, Tulawaka s attributable gold production for the six months was 18,550 ounces, 36% lower than the 28,792 ounces produced in Gold ounces sold were in line with production and 36% lower than in Head grade was 11% lower than 2011 as a result of the blending of the last of the low grade stockpiles into the mill feed in the second quarter and should improve as we progress through the year. Cash costs for the first half of the year were US$1,046 per ounce sold compared to US$686 in the prior year period. This cost increase was mainly due to the lower production base, an increase in mining activity (specifically relating to open pit mining during the first quarter) in combination with the costs incurred to service an ageing mining fleet and increased general administration cost. Cash costs per tonne milled increased to US$178 in H from US$130 in H1 2011, primarily as a result of the higher cost base as explained above and lower mill throughput due to the batch milling campaign. Capital expenditure for the reporting period totalled US$9.6 million, 3% higher than the US$9.3 million in the prior year period. Key capital expenditure included: i. Capitalised development: capitalised underground development of US$3.6 million; ii. Expansion capital: capitalised exploration drilling of US$1.9 million; and iii. Sustaining capital: US$4.1 million sustaining capital including a non-cash rehabilitation asset adjustment credit of US$0.6 million. African Barrick Gold Half Year Report for the six months ended LSE: ABG

13 Exploration and Development Update Exploration and development programmes during the first half of the year met with good success, especially at our North Mara and Nyanzaga projects, where drilling continues to deliver encouraging results. The Exploration and Projects teams remain focused on ABG s strategy of organic growth through near-mine exploration, resource expansion, optimisation of existing assets, and regional exploration programmes. The principal focus for the first half of 2012 has been on advancing the highest ranked projects in ABG s development pipeline. A total of 422 holes for 79,400 metres have been completed across the exploration and development projects and significant progress has been made on most projects. At the Nyanzaga Project, an initial in-pit resource of 4.1Moz of gold, consisting of 3.5Moz at 1.47 g/t Au Indicated and 0.6Moz at 2.05g/t Au Inferred was released in January This represented a fourfold increase on the previously declared resource of 0.3Moz Indicated and 0.6Moz Inferred. Subsequently, in April 2012, we announced the resource had increased by a further 0.5Moz and is now in excess of 4.6Moz Au, consisting of 3.75 Moz at 1.42g/t Au Indicated and 0.85Moz at 1.81g/t Au Inferred. The updated modelling confirms the opportunity to exploit the Tusker and Kilimani mineralised zones in a single open pit and the project is expected to move into the pre-feasibility study stage in the second half of At Bulyanhulu, the ABG Board approved a construction of a new 2.4Mtpa CIL circuit. The project has a pre-tax Internal Rate of Return ( IRR ) of 22.1% at current gold prices and will provide additional life of mine production in excess of 600 thousand ounces ( Koz ) from H at a lower cash cost than the underground mine. This is the first step in the future optimisation of the Bulyanhulu mine. At the Bulyanhulu Upper East Reef 1 Project, the feasibility study is complete and mining of the test stope will commence in Q to assess the proposed mining method as well as geotechnical conditions in the zone. Drilling programmes on near surface material on Bulyanhulu Reef 2 at the Upper East Zone have shown initial success and will be expanded to better delineate reserves and resources between 150 metres and 600 metres below surface, in order to investigate the potential of expanding the Upper East Zone Project to incorporate accessing Reef 2 Upper East ore at the same time as Reef 1. At North Mara, positive results continue to be returned from the infill drilling programme and we have delineated an additional 1.0Moz of resource beneath and within the expanded Gokona open pit. The results of the drilling programme are being incorporated into an updated feasibility study on Gokona Underground which is being undertaken in conjunction with the current optimisation of the open pit expansion. Also at North Mara, testing below the final planned Nyabirama open pit for potential mineable underground resources has been positive with drilling intersecting multiple, high-grade zones. With a number of assays still to be received, we estimate that a resource of 0.5Moz will be delineated. The current phase of drilling is expected to be completed in early H with a second phase of drilling likely to be undertaken once an initial underground resource and study is complete. At Tulawaka East Zone Underground, exploration drilling continues to be successful, and we have been able to fully replace mined reserves in the first half, thereby extending the mine life into Deeper drilling continues to encounter continuity of mineralisation at depth and we continue to be optimistic about extending the mine life further. African Barrick Gold Half Year Report for the six months ended LSE: ABG

14 ORGANIC GROWTH PROJECTS NORTH MARA At North Mara the focus year to date has been on the infill drilling of Inferred resources around the Gokona open pit. Phase one of the resource definition programme at Gokona was completed in late May 2012, and a revised mid-year resource for both the underground and an expanded open pit has been calculated, with the plan now to progress both the pit expansion and the underground feasibility study once all assay results have been received. The Nyabirama Deeps infill programme has been expanded and is moving towards completion with positive results from the drill programme continuing to be received. The aim of all these programmes is to delineate, and ultimately produce, underground ounces at North Mara and at the same time extend the life of mine. Figure 3D view of Gokona open pit models and current underground block model (with blocks greater than 2g/t Au shown) Gokona The successful 2011 and 2012 Gokona drilling programme has effectively added approximately 1.0Moz of resources, split between the expanded open pit (0.5Moz) and the underground (0.5Moz) with only approximately 65% of the original planned programme completed due to access issues in and around the mining infrastructure. Open Pit Expansion Due to the improvement in community relations at North Mara, we now have the opportunity to re-site a public road which had previously constrained access. As a result we have reworked the mine plan to incorporate a lateral cut back of the open pit. Mine plan optimisations remain ongoing but the latest pit designs incorporate an additional 0.5Moz into the open pit. We will provide a further update on this later in the year once we have completed the re-optimisation of the open pit planning. Underground The first phase of a significant resource drill-out programme beneath the planned Gokona and Nyabigena open pits was completed during H A total of 12,636 metres of drilling was completed during H1 2012, bringing the total for the resource definition drill programme to 40,810 metres. An additional resource of 0.5Moz has been calculated with the revised underground resource now to approximately 0.9Moz, which will now be incorporated into an updated feasibility study on the underground which we expect to complete during H Infill drilling has continued to return very positive assay results showing good continuity of mineralised zones encountered in broader spaced exploration drilling. Several wide zones of highgrade gold mineralisation were also returned. Based on the positive results from exploration and infill drilling which show the system remains open and robust in terms of grade at depth, it is anticipated that further deep drilling is warranted and could further expand the underground resources in the future. African Barrick Gold Half Year Report for the six months ended LSE: ABG

15 Selected significant assay results received for H include: GKD334: 17.9g/t Au from 29m, 3.7g/t Au from 174m and 15.4g/t Au from 188m. GKD337: 31.0g/t Au from 457m and 8.2g/t Au from 467m. GKD338W: 5.6g/t Au from 326m and 3m at 24.9g/t Au from 363m. GKD348A: 22.4g/t Au from 415m and 11.8g/t Au from 478m. GKD349: 5.6g/t Au from 347m. GKD351: 8.2g/t Au from 544m, 10.9g/t Au from 562m, 57.0g/t from Au 590m, and 36.2g/t Au from 612m. GKD355A: 12.2g/t Au from 347m, 4.5g/t Au from 444m and 3.9g/t Au from 469m. GKD369: 14.2g/t Au from 320m. GKD371: 18.8g/t Au from 125m. GKD372: 24.8g/t Au from 257m, 5.6g/t Au from 290m, and 16.1g/t Au from 367m. Figure Gokona Deeps - Section 12,625mE (looking mine west) showing recent drill intercepts Nyabirama Resource Definition and Extension Drilling The Nyabirama programme is aimed at defining underground potential from areas previously not able to be drilled from the open pit or during early exploration drilling. During H1 2012, 5,479 metres of core drilling were completed bringing the programme total to 35,660 metres. Assay results received during the half continue to confirm the current resource interpretation, intersecting multiple high-grade gold zones within a broader 1g/t Au mineralised envelope. Based on the drilling to date, and with a number of assays still to be received, we estimate an underground resource of 0.5Moz has been delineated and once all assays are received, we will incorporate the results into the scoping study. Selected significant assay results during H include: NBD040: 143.0g/t Au from 99m and 6m at 5.2g/t Au from 208m. NBD042: 14.1g/t from 84m, 5.60m at 2.6g/t from 122m and 5m at 3.4g/t from 211m. NBD045: 57.0g/t Au from 167m and 22m at 4.4g/t Au from 217m. NBD048: 76.3g/t from 93m, 3.6m at 12.0g/t from 440m and 4m at 13.3g/t from 484m. NBD061: 20.0g/t from 6m and 3m at 12.6g/t from 232m. African Barrick Gold Half Year Report for the six months ended LSE: ABG

16 NBD068: 10.2g/t Au from 159m, 84.8g/t Au from 263 and 6.3g/t Au from 366m. NBD071: 22.2g/t Au from 100m and 23.3g/t Au from 200m. NBD074: 12.6g/t Au from 200.8m, 29.3g/t Au from 237m and 22.1g/t Au from 255m. NBD085: 19.3g/t Au from 39m, 40.1g/t Au from 204m and 13.8g/t Au from 333m. The results received continue to show that mineralisation extends deeper than previously interpreted. Figure Nyabirama drill plan showing location of section 8350mE (below) and planned Nyabirama West holes African Barrick Gold Half Year Report for the six months ended LSE: ABG

17 Figure Nyabirama Deeps cross section 8,350mE (looking mine west) showing recent drill results from infill drilling TULAWAKA East Zone Underground Extensions A total of 73 underground diamond core holes for 9,251 metres were drilled during H from four drill platforms located at Levels 11E (Zone 550), 9E (Zone 250), 10 DD1 and 10 Access (Zone 150) to test the Tulawaka East Zone underground extensions between Level 11 and Level 20 (160m to 400m below the completed pit floor). As a result, we were able to fully replace reserves mined in the first half of 2012 and thereby have been able to extend the life of the mine into Diamond drilling continues to test depth, plunge and strike extensions of the mineralised lodes between Levels 10 and 12, below current reserves in the East Zone and we remain confident in further extending the mine life. The majority of the holes drilled during the period returned patchy grades which confirm the pinch and swell (boudinage) nature of the Tulawaka orebody. During the early part of the year, three of the holes drilled through Zone 550E returned promising high grades with visible gold in core between levels 11 and 12. This re-emphasises the potential of high grade mineralisation at depth, within the 550 Zone even though holes around them did not show the same concentration of mineralisation. Significant intersections made during the period include the following: TUGD00427: 9.8g/t Au. TUGD00430: 13.7g/t Au. TUGD00437: 120.0/t Au and 34.8g/t Au. TUGD00443: 680.0g/t Au. TUGD00470: 11.5g/t Au. TUGD00474: 13.5g/t Au. TUGD00511: 12.0g/t Au. African Barrick Gold Half Year Report for the six months ended LSE: ABG

18 Figure Tulawaka long section showing reserve outline, planned drill programmes and recent assay results Though results received to date consist of narrow intercepts, they are significant in that they confirm the predicted continuity (at depth) of the orebody, within zones 150 and 250. The intersection of 12.0g/t Au from TUGD00511 is around Level 19 (850m RL) in zone 150. This, and the fact that historically, close spaced sampling has realised more ounces than the reserve estimates, provides a good indication of the resource potential at depth. BULYANHULU Bulyanhulu Upper East During the first half of 2012, rehabilitation and dewatering work was completed on the decline to the Upper East Zone. The planned eleven geotechnical and metallurgical test holes were completed with associated test work on the drill core underway. Work on detailed execution design and execution procedures has been completed in advance of the commencement of the test stope which is scheduled to take place in Q In order to manage the test stope with sufficient expertise, additional experienced mining personnel have been contracted to undertake the initial mining and training of the Bulyanhulu staff. Following completion of the test stope, Board approval will be sought to commence development of the zone. In conjunction with the Reef 1 Upper East Zone feasibility work, we have also been completing drilling to test the Upper East Zone on Reef 2. During H1 2012, 52 reverse circulation (RC) holes were drilled for 4,847 metres targeting gold mineralisation at up to150 metres below surface. This relatively shallow RC drilling intersected gold mineralisation that is consistent with Reef 2 style mineralisation over a strike length of approximately 500 metres. At the end of June 2012 we commenced infill definition drilling on the Reef 2 Upper East Zone between 150m and 600m (vertically below surface) to allow investigation of the potential to access Upper East Zone Reef 2 mineralisation in conjunction with Reef 1. We anticipate completion of the infill definition drill programme during Q Selected results from the shallow RC drilling programme include: BGMRC0147: 4.3g/t Au from 72m including 12.7g/t Au from 97m. BGMRC0148: 4.9g/t from 106m including 11.6g/t Au from 106m. BGMRC0150: 6.8g/t Au from 97m including 14.7g/t Au from 97m. BGMRC0151: 3.1g/t Au from 110m. BGMRC0157: 8.8g/t Au from 86m including 14.1g/t Au from 86m. African Barrick Gold Half Year Report for the six months ended LSE: ABG

19 Figure Bulyanhulu collar location plan and significant results for shallow reverse circulation drilling programme Bulyanhulu CIL Circuit Expansion As announced in May 2012, we received Board approval to progress with the construction of the expansion of the new CIL circuit. The project will add production in excess of 40Koz Au per annum for the first six years of the project from H at a lower cost than the existing underground operations, and further incremental production for the remainder of the life of mine. The pre-production capital costs of US$167 million for the project will be split approximately 30% in 2012 and 70% in 2013 and we continue to assess funding options. We have selected a company to execute the project based on an EPC contract and expect to complete contract negotiations in Q Parallel to the detailed design, early works related to site preparation and infrastructure for the construction activities are ongoing. Golden Ridge We continue to evaluate the various scenarios for developing the resource at Golden Ridge, including processing the ore at Bulyanhulu. Based on the outcomes from the value engineering programme in 2011 and as a part of the revised feasibility study, we are undertaking further geo-metallurgical test work, which is 50% complete. The work programme is expected to be completed by the end of H In parallel to the technical work, conceptual work continues to assess environmental and social requirements for the project. GREENFIELD PROJECTS Nyanzaga Project At the Nyanzaga Project, an initial in-pit resource of 4.1Moz Au, consisting of 3.5Moz at 1.47g/t Au Indicated and 0.6Moz at 2.05g/t Au Inferred was released in January This represented a fourfold increase on the previously declared resource of 0.3Moz Indicated and 0.6Moz Inferred. Subsequently, in April 2012, we announced the resource had increased by a further 0.5Moz, through the inclusion of Kilimani near surface mineralisation and additional material at depth, and is now in excess of 4.6Moz Au, consisting of 3.75Moz at 1.42g/t Au Indicated and 0.85Moz at 1.81g/t Au Inferred. The updated modelling now confirms the opportunity to exploit the Tusker and Kilimani mineralised zones in a single open pit. The project is expected to move into the pre-feasibility study stage in H During the first half of 2012 the main focus on the project was to complete geotechnical, metallurgical and hydrological drilling, sampling and technical studies to assist with modelling of the Nyanzaga ore body and open pit scenarios. A total of 26 reverse circulation and diamond core holes were drilled for 8,802 metres, and all drilling and sampling programmes were completed on schedule, with the technical review of data ongoing at the end of June. Preliminary geotechnical studies are complete and were positive indicating the average pit wall angles can be steepened which will result in a reduction in the strip ratio. Likewise, metallurgical testwork is in line with expectations, indicating recoveries in oxidised and transitional material of greater than 94% and in fresh rock between 86% and 92% with standard CIL processing, and as results are received they are African Barrick Gold Half Year Report for the six months ended LSE: ABG

20 being fed into the geometallurgical model. At Kilimani, two hydrological holes as part of the scoping study work returned significant results from shallow depths including intersections of: NYZRCDDHY0006: 22.8g/t Au from 23m. NYZRCDDHY0011: 1.3g/t Au from 4m. In addition to the resource upgrade and ongoing drilling for the technical studies, we continued to receive encouraging assay results for infill and step-out drilling during H that show excellent continuity when compared to the broader spaced drilling. A total of 50 reverse circulation and diamond core holes were drilled, totalling 13,931 metres during the first half of Results from H include intersections of: NYZRCDD0506: 1.6g/t Au from 218m, including 64.7g/t Au from 441m. NYZRCDD0509: 1.5g/t Au from 329m, including 5.4g/t Au from 532m. NYZRCDD0510: 2.7g/t Au from 262m, including 20.2g/t Au from 392m and 2.6g/t Au from 448m, including 9.3g/t Au from 459m. NYZRCDD0512: 1.3g/t Au from 244m and 159m at 2.1g/t Au from 515m, including 9m at 9.0g/t Au from 524m. NYZRCDD0514: 1.8g/t Au from 343m, including 4.0g/t Au from 358m. Additionally, at the Kilimani prospect, infill drilling continued to confirm the width, grade and tenor of gold mineralisation within the near-surface zone from the historical broader-spaced drilling. During H1 2012, drill testing of extensions to the Kilimani Zone in the southeast, outside of the current resource area, identified near-surface gold mineralisation, including selected results: NYZRC0558: 1.9g/t Au from 148m. NYZRC0559: 1.2g/t Au from 73m. NYZRC0560: 1.9g/t Au from 10m. The principal objectives of the ongoing exploration drill programmes are to expand the global resource through delineating strike and down-dip extensions to the Tusker and Kilimani mineralised zones, as well as identifying new zones of gold mineralisation adjacent to the current resource area and potential satellite deposits within 15km of the Nyanzaga resource. Regional exploration work is focused on the Kasubuya property approximately 12-15km southwest of, and contiguous with, the Nyanzaga property. The current programmes at Kasubuya are mapping and rock chip sampling of several multi-kilometre gold anomalies associated with sulphidised banded iron formations, with the aim of advancing the highest priority targets to drill testing stage during the second half of Figure - Nyanzaga (Tusker and Kilimani Zones) drill location plan with the recent 2011 and 2012 holes shown separately African Barrick Gold Half Year Report for the six months ended LSE: ABG

21 Figure Nyanzaga section 2320mN Dett The Dett prospect lies in the western part of the Mara-Musoma Greenstone Belt and is located approximately 65 kilometres north east of North Mara gold mine. During the first half of 2012, a desktop analysis has continued ahead of the planned drill programme in the third quarter which will target further validating and extending the higher grade gold zones and investigating the potential of delineating a large, in excess of g/t Au, mineable resource. African Barrick Gold Half Year Report for the six months ended LSE: ABG