e6vk

Exhibit 99.1

For a full explanation of results, the Financial Statements and Management Discussion & Analysis, 2008 Outlook, mine statistics and gold reserves and resources please see the Company’s website, www.barrick.com.

FOURTH QUARTER AND YEAR-END REPORT 2007

FEBRUARY 21, 2008

Based on US GAAP and expressed in US dollars

Barrick’s Q4 Earnings Increase 28% to $0.62 per share
Grows Reserves and Resources, Delivers on Operating Guidance

Highlights

	•		Q4 net income was $537 million ($0.62 per share), 28% higher than a year ago, and operating cash flow rose 104% to $676 million ($0.78 per share) on gold production of 2.14 million ounces at total cash costs of $375 per ounce¹. The average realized price on gold sales was $799 per ounce compared to the average spot price of $786 per ounce.

	•		Full year production was 8.06 million ounces of gold at total cash costs of $350 per ounce and 402 million pounds of copper at total cash costs of $0.83 per pound¹, in line with our original guidance. This was the fifth consecutive year Barrick met its original operating guidance, despite cost pressures in the mining industry and unanticipated interruptions at a number of operations.

	•		2007 net income was $1.12 billion ($1.29 per share) compared to prior year net income of $1.51 billion ($1.79 per share). Excluding the impact of the elimination of the Corporate Gold Sales Contracts in the first half of the year, 2007 adjusted net income from continuing operations was $1.73 billion ($2.00 per share), an 11% increase from $1.56 billion ($1.86 per share) in 2006².

	•		Gold reserves, based on a $575 gold price, increased to 124.6 million ounces³, more than replacing depletion of 9.5 million ounces, and continue to be the highest in the industry. Measured and indicated gold resources grew 45% to 50.6 million ounces on exploration success at a number of projects.

	•		During the quarter, Barrick acquired 94.7% of Arizona Star Corporation (TSX/AMEX: AZS-V) at a cost of $722 million and is proceeding with the compulsory acquisition of the remaining shares, with completion expected in March.

	•		Barrick announced today that it has entered into a definitive agreement with Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc (“Rio Tinto”) to purchase its 40% interest in the Cortez Joint Venture for a total cash consideration of $1.695 billion. This will consolidate 100% ownership for Barrick of the existing Cortez operation and the Cortez Hills development project. The transaction is expected to close in Q1 2008 (see separate press release).

Barrick Gold Corporation today reported Q4 production of 2.14 million ounces of gold at total cash costs of $375 per ounce compared to 2.44 million ounces produced at total cash costs of $287 per ounce for the prior-year period.

Fourth quarter earnings of $537 million ($0.62 per share) and operating cash flow of $676 million ($0.78 per share) compare to prior-year period earnings of $418 million ($0.48 per share) and cash flow of $331 million ($0.38 per share).


¹		Total cash costs is defined as cost of sales divided by ounces of gold sold or pounds of copper sold. Total cash costs exclude amortization expense and inventory purchase accounting adjustments. For further information on this performance measure see pages 45 to 46 of the Company’s MD&A.

²		Adjusted net income from continuing operations is an operating performance measure with no standardized meaning under GAAP. For further information, see page 43 of the Company’s MD&A.

³		Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Pueblo Viejo is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100-105 of Barrick’s 2007 Year-End Results.



BARRICK FOURTH QUARTER AND YEAR-END 2007		PRESS RELEASE

Fourth quarter 2007 earnings included $37 million of post-tax special items that caused earnings to increase by $0.04 per share.

“This was another successful year for Barrick,” said Greg Wilkins, President and CEO. “We met our original operating guidance despite increases in energy and gold price-related costs and we continued to position the Company for the long term, replacing reserves and recording a large increase in resources.”

PRODUCTION AND COSTS

In Q4 2007, Barrick produced 2.14 million ounces of gold at total cash costs of $375 per ounce. As expected, Q4 was a higher cost quarter due to continued waste stripping and mine sequencing at a number of operations, including activities to access higher grade ore at Goldstrike, which will continue into 2008.

The South American business unit produced 0.62 million ounces of gold in Q4 at total cash costs of $216 per ounce. For the second straight year, the Lagunas Norte mine delivered more than one million ounces of gold, at continued low cash costs near $100 per ounce. Lagunas Norte is expected to produce about one million ounces in 2008 as higher grades are expected to continue. Low equipment availability at Veladero delayed access to higher-grade areas of the Filo Federico pit scheduled for the fourth quarter; however, higher production is expected in 2008 with access to both the Amable and Filo Federico pits.

The North American business unit contributed 0.80 million ounces in Q4 at total cash costs of $396 per ounce. The Goldstrike complex produced 0.36 million ounces at cash costs of $423 per ounce. An extended period of waste removal began in 2007 at the Betze-Post pit and will continue into 2008. During this period, Goldstrike will supplement mill feed with lower-grade stockpiled ore, resulting in lower production levels. Production is expected to improve in the second half of 2008 when higher-grade ore from the pit becomes accessible. During 2007, a modified pressure leaching technology was successfully tested that will extend the life of the Goldstrike autoclaves by allowing them to process ore that would previously have been treated at the roaster facility. The necessary modifications to the autoclave facilities are expected to be completed in Q4 2008 at a cost of about $6 million. The new Ruby Hill mine produced 55,000 ounces at total cash costs of $259 per ounce, completing a successful first year of operation after being commissioned in February, on time and within budget. The Cortez JV produced 83,000 ounces at total cash costs of $419 per ounce. Production levels are expected to increase significantly and cash costs to decrease once Cortez Hills enters production. The Record of Decision allowing construction to begin is expected in the second half of 2008, and production is expected to commence within 15 months of it becoming effective.

The Australia-Pacific business unit produced 0.57 million ounces in Q4 at total cash costs of $462 per ounce. The Porgera operation produced 0.16 million ounces at total cash costs of $467 per ounce in a year in which this operation has been affected by West Wall remediation activities and weather induced power interruptions. However, in the longer term, Porgera is expected to play a significant role in Barrick’s future in this region. As a result, the Company increased its stake to 95% earlier in 2007 and is currently assessing opportunities for a Stage 6 expansion, which could increase production and extend the mine life.

Production from the African business unit was 0.14 million ounces in Q4 at total cash costs of $583 per ounce. Production in 2007 was negatively impacted by heavy rainfall in Tanzania which resulted in pit wall instability at both Tulawaka and North Mara, necessitating changes to the 2007 mine plan and production sequencing. Production from Bulyanhulu was affected by labor disruptions that culminated in an illegal strike in the fourth quarter. The mine has nearly completed a restaffing process and is approaching levels required for normal production.

Due to the strong performance from the Zaldívar and Osborne mines, our copper business had an excellent quarter, producing 101 million pounds in Q4 at total cash costs of $0.81 per pound.



BARRICK FOURTH QUARTER AND YEAR-END 2007				PRESS RELEASE

This has allowed the Company to reinvest the robust cash flows from copper back into its core gold business.

PROJECTS UPDATE

The Buzwagi project in Tanzania commenced construction in August and is approximately 30% complete. All long lead items have been ordered and the project is on track to reach production on time and within its $400 million capital budget by mid-2009. Buzwagi is expected to produce 250,000 to 260,000 ounces per year at total cash costs of $270-$280 per ounce in its first five years. Proven and probable reserves at Buzwagi grew by 1.0 million ounces in 2007 to 3.6 million ounces.

Considerable progress has been made on the Pueblo Viejo project in the Dominican Republic. The Company expects that it will shortly be submitting its feasibility study and project notice. Pre-production capital is expected to be about $2.7 billion on a 100% basis (about $1.6 billion Barrick’s share). The increase in capital from the earlier $2.1 to $2.3 billion estimate primarily reflects a scale up to a throughput rate of 24,000 tonnes per day (tpd) from the 18,000 tpd described previously. This has had the effect of increasing our share of gold production in the first full five years of production to about 600,000 ounces per year from 465,000 to 480,000 ounces per year. Total cash costs are expected to be about $250 per ounce over this period and do not include the potential benefit of a circuit to recover zinc, which continues to be evaluated. The construction period to first gold production is expected to be about three and a half years from project decision. The Company’s equity share of proven and probable reserves at Pueblo Viejo increased by 1.4 million ounces in 2007 to 12.3 million ounces.

At Cortez Hills in Nevada, detailed engineering is substantially complete and the project is on schedule and within the $480-$500 million preproduction capital budget; $88 million was spent in 2007 on open-pit mining equipment and engineering for project infrastructure. 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 at total cash costs of $280-$290 per ounce in the first full five years of production. Barrick’s share of proven and probable reserves at year-end 2007 for the Cortez property was 6.9 million ounces, which would increase by a further 4.6 million ounces on closing of the transaction that increases our ownership interest from 60% to 100%. Measured and indicated resources would increase by 1.4 million ounces on the same basis.

Detailed engineering and construction planning advanced at the Pascua-Lama project in Chile/Argentina while awaiting the remaining sectoral approvals in Argentina and resolution of cross-border regulatory and fiscal tax and royalty items. The timing of these events continues to be largely beyond our control. Proven and probable reserves increased by 1.0 million ounces to 18.0 million ounces in 2007.

At Donlin Creek in Alaska, work in the first half of 2008 will focus on completing a series of optimizing studies for power, logistics, processing and production levels, and will integrate all data from the 2007 program into a final feasibility study. Barrick’s share of measured and indicated resources increased by 8.7 million ounces in 2007 to 14.7 million ounces.

The Reko Diq project has moved into the feasibility stage with completion scheduled for early 2009. A total of 101,000 meters have been drilled to date and results continue to confirm the project’s district exploration potential. At year-end 2007, Barrick’s share of measured and indicated gold resources totaled 3.7 million ounces and its share of measured and indicated copper resources were 4.3 billion pounds. Inferred gold resources grew 6.1 million ounces to 10.5 million ounces and inferred copper resources increased by 9.1 billion pounds to 13.4 billion pounds.

At the Kabanga JV in Tanzania, operator Xstrata Plc is developing a pre-feasibility study on this world-class nickel sulfide deposit. Barrick’s share of measured and indicated resources totaled 0.2 billion pounds of nickel and its share of inferred resources totaled 1.2 billion pounds of nickel at year-end 2007.



BARRICK FOURTH QUARTER AND YEAR-END 2007				PRESS RELEASE

A pre-feasibility study was completed on the Sedibelo platinum project in South Africa during September 2007. Additional studies and exploration drilling in support of a final feasibility study have commenced, with completion expected in the second quarter of 2008.

RESERVES AND RESOURCES

At year-end 2007, the Company added 11.0 million ounces and after depletion of 9.5 million ounces, proven and probable gold reserves increased by 1.5 million ounces to 124.6 million ounces based on a $575 per ounce gold price. The new Monte Oculto zone at Pueblo Viejo contributed 0.9 million ounces to reserves.

Barrick’s measured and indicated resources increased by 45% to 50.6 million ounces and inferred resources grew 28% to 31.9 million ounces, based on a $650 per ounce gold price. At year-end 2007, Barrick’s 60% share of the Cortez Hills Lower Zone contained 0.6 million ounces of indicated resources and a further 1.4 million ounces of inferred resources.

Reserves and resources do not include the Company’s recently acquired interest in Cerro Casale due to insufficient time, after acquisition of our interest in December 2007, to complete the work necessary to incorporate this deposit in year-end results, nor do they include any effect for our acquisition of the remaining 40% interest in the Cortez Joint Venture.

Copper reserves increased to 6.2 billion pounds and measured and indicated copper resources are 5.4 billion pounds.

The Company’s $200 million 2008 exploration budget continues to be weighted towards resource additions and conversion at and around the mine sites but has had considerable success generating quality projects for the future. An $8 million exploration program is planned for the Company’s highly prospective 5,300 square kilometer land package in Papua New Guinea to follow up on identified high grade gold vein targets and further define indicated copper-gold porphyry potential in the district.

CORPORATE DEVELOPMENT

Barrick has entered into a definitive purchase and sale agreement with Rio Tinto to purchase its 40% interest in the Cortez Joint Venture in Nevada for a total cash consideration of $1.695 billion. This will consolidate 100% ownership for Barrick of the existing Cortez operation and the Cortez Hills development project plus any future potential from this property, which is located on one of the world’s most prospective gold trends. Barrick will be entitled to the production and the economic benefit of the remaining 40% interest in the property effective on March 1, 2008. A sliding scale gross royalty on 40% of all future production in excess of 15 million recovered ounces from January 1, 2008 is payable to Rio Tinto. The transaction is expected to be completed in Q1 2008, subject to customary closing conditions.

Subsequent to quarter-end, Barrick also announced a 10-year agreement with Yokohama Rubber Co., Ltd. to help secure the supply of more than $200 million in tires by partially funding its second plant expansion in Japan. “This innovative deal with Yokohama provides direct-from-the-manufacturer pricing and a long-term supply of high quality tires, giving us a strong competitive edge in a very tight market for this key product,” said Greg Wilkins.

Barrick is currently proceeding with the compulsory acquisition of the remaining shares of Arizona Star Resources Corp., with completion expected in March. The transaction adds a 51% interest in the large Cerro Casale gold-copper project in Chile to Barrick’s deep project pipeline.

CORPORATE SOCIAL RESPONSIBILITY

Barrick remains committed to a global strategy to help build sustainable, healthy communities and a goal to reduce its carbon footprint. During 2007, a new wellness clinic was opened in Papua New Guinea and another is scheduled to open shortly at Tulawaka. The Company has entered into a $28-million partnership with the Tanzanian government to fund hydro-electric power lines that will connect



BARRICK FOURTH QUARTER AND YEAR-END 2007				PRESS RELEASE

remote parts of the Mara region with the nation’s power grid by early 2009. This will have the dual advantage of reducing costs for our North Mara mine and benefiting local communities well into the future.

In Peru, more than 100 Barrick volunteers helped build 100 new homes donated to local families in villages devastated by a violent earthquake last August. Barrick spent $16.5 million in 2007 on renewable energy, including a 2 MW wind turbine at Veladero and a 1 MW solar farm at the Western 102 power plant in Nevada that will become operational in March. The Company is pursuing other alternative energy projects, including a 20 MW wind farm in the Coquimbo area of Chile that will supply power to the national grid.

FINANCIAL POSITION

At December 31, 2007, Barrick maintained the gold industry’s strongest credit rating, with a cash balance of $2.2 billion, net debt of $0.9 billion and a $1.5 billion un-drawn credit facility. This strong liquidity gives the Company the ability to fund its project pipeline and pursue value-enhancing investments without the need for equity dilution.

2008 OUTLOOK AND GUIDANCE

The Company expects 2008 gold production of about 7.6 to 8.1 million ounces and copper production of 380 to 400 million pounds. Lower gold production is expected in North America as a result of lower production at Golden Sunlight and Ruby Hill and the end of production from Eskay Creek, while production in South America, Australia and Africa is expected to be similar to 2007 levels. Total cash costs are expected to be $390 to $415 per ounce for gold and $1.15 to $1.25 per pound for copper. Gold cash costs in 2008 are forecast to be higher than 2007 primarily due to higher energy costs, lower by-product silver credits from Eskay Creek, higher gold price related costs and some inflationary related increases. Copper cash costs are expected to be higher due to higher energy and higher acid costs. The Company has assumed an average WTI oil price of $90 per barrel in the 2008 guidance. This compares to an average price of $72 per barrel in 2007.

* * * * *

Barrick’s vision is to be the world’s best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick’s shares are traded on the Toronto and New York stock exchanges.



BARRICK FOURTH QUARTER AND YEAR-END 2007				PRESS RELEASE

Key Statistics


Barrick Gold Corporation	Three months ended				Years ended
(in United States dollars)	December 31,				December 31,
(Unaudited)	2007		2006		2007		2006

Operating Results
Gold production (thousands of ounces)¹		2,143		2,440		8,060		8,643
Gold sold (thousands of ounces)¹		2,042		2,283		8,055		8,390

Per ounce data
Average spot gold price		786	$	614		695	$	604
Average realized gold price⁵		799		468		619		543
Total cash costs²		375		287		350		283
Amortization³		107		86		104		82
Total production costs		482		373		454		365

Copper production (millions of pounds)		101		100		402		367
Copper sold (millions of pounds)		93		100		401		376

Per pound data
Average spot copper price		3.28	$	3.21		3.23	$	3.05
Average realized copper price⁶		2.96		3.01		3.19		3.06
Total cash costs²		0.81		0.82		0.83		0.79
Amortization³		0.31		0.58		0.32		0.43
Total production costs		1.12		1.40		1.15		1.22


Financial Results (millions)
Sales		1,917	$	1,348	$	6,332	$	5,630
Net income		537		418		1,119		1,506
Operating cash flow		676		331		1,732		2,122

Per Share Data (dollars)
Net income (basic)		0.62		0.48		1.29		1.79
Net income (diluted)		0.61		0.48		1.28		1.77
Operating cash flow (basic)		0.78		0.38		2.00		2.52
Operating cash flow (diluted)		0.77		0.38		1.97		2.48

Weighted average basic common shares (millions)⁴		870		864		867		842
Weighted average diluted common shares (millions)⁴		883		877		879		855


	As at		As at
	December 31,		December 31,
	2007		2006

Financial Position (millions)
Cash and equivalents		2,207	$	3,043
Non-cash working capital		1,018		764
Long-term debt		3,153		3,244
Shareholders’ equity		15,256		14,199


¹		Includes equity gold ounces in Tulawaka for 2006 and 2007 and South Deep for 2006 only. Production also includes equity gold ounces in Highland Gold. Gold production also includes an additional 20% share of production from the Porgera mine from April 1,2007 onwards.

²		Represents equity cost of goods sold plus royalties, production taxes and accretion expense, less by-product revenues, divided by equity ounces of gold sold or pounds of copper sold. For further information on this performance measure, refer to pages 45-46 of the Company’s MD&A. Excludes amortization and inventory purchase accounting adjustments.

³		Represents equity amortization expense and inventory purchase accounting adjustments at the Company’s producing mines divided by equity ounces of gold sold or pounds of copper sold.

⁴		Fully diluted, includes dilutive effect of stock options and convertible debt.

⁵		Calculated as consolidated gold sales divided by consolidated ounces sold.

⁶		Realized prices represents gold and copper revenues under US GAAP, adjusted for unrealized gains and losses on non-hedge derivatives. For further information on this performance measure, refer to pages 45-46 of the Company’s MD&A.



BARRICK FOURTH QUARTER AND YEAR-END 2007				SUMMARY INFORMATION

Production and Cost Summary


	Gold Production (attributable ounces) (000’s)								Total Cash Costs (US$/oz)
	Three months ended				Years ended				Three months ended				Years ended
	December 31,				December 31,¹				December 31,				December 31,¹
(Unaudited)	2007		2006		2007		2006		2007		2006		2007		2006

North America		802		933		3,201		3,372	$	396	$	332	$	370	$	314
South America		620		654		2,079		2,104		216		123		197		149
Australia Pacific		566		605		2,123		2,220		462		416		452		353
Africa		136		239		605		914		583		261		408		315
Other		19		9		52		33		439		514		491		481

Total		2,143		2,440		8,060		8,643	$	375	$	287	$	350	$	283


	Copper Production (attributable pounds) (Millions)								Total Cash Costs (US$/lb)
	Three months ended				Years ended				Three months ended				Years ended
	December 31,				December 31,¹				December 31,				December 31,¹
(Unaudited)	2007		2006		2007		2006		2007		2006		2007		2006

South America		77		86		315		308	$	0.77	$	0.63	$	0.70	$	0.62
Australia Pacific		24		14		87		59		1.02		1.77		1.37		1.53

Total		101		100		402		367	$	0.81	$	0.82	$	0.83	$	0.79


	Total Gold Production Costs (US$/oz)
	Three months ended						Years ended
	December 31,						December 31,
(Unaudited)	2007			2006			2007			2006

Direct mining costs at market foreign exchange rates	$	394		$	281		$	359		$	286
Gains realized on currency and commodity hedge contracts		(36	)		(11	)		(24	)		(12	)
By-product credits		(15	)		(11	)		(13	)		(15	)

Cash operating costs		343			259			322			259
Royalties		23			19			20			18
Production taxes		4			4			3			3
Accretion and other costs		5			5			5			3

Total cash costs²		375			287			350			283
Amortization		107			86			104			81
Inventory purchase accounting adjustments		—			—			—			1

Total production costs	$	482		$	373		$	454		$	365


	Total Copper Production Costs (US$/lb)
	Three months ended				Years ended
	December 31,				December 31,
(Unaudited)	2007		2006		2007		2006

Cash operating costs	$	0.79	$	0.80	$	0.81	$	0.77
Royalties		0.01		0.01		0.01		0.01
Accretion		0.01		0.01		0.01		0.01

Total cash costs²		0.81		0.82		0.83		0.79
Amortization		0.31		0.32		0.30		0.17
Inventory purchase accounting adjustments		—		0.26		0.02		0.26

Total production costs	$	1.12	$	1.40	$	1.15	$	1.22


¹		Barrick’s share of acquired Placer Dome mines’ production and total cash costs for the period January 20,2006 to December 31,2006.

²		Total cash costs per ounce/pound excludes amortization and inventory purchase accounting adjustments. Total cash costs per ounce/pound is a performance measure that is used throughout this Year End Report 2007. For more information see pages 45 to 46 of the Company’s MD&A.



BARRICK YEAR-END 2007				SUMMARY INFORMATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (“MD&A”)

Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand Barrick Gold Corporation (“Barrick”, “we”, “our” or the “Company”), our operations, financial performance and present and future business environment. This MD&A, which has been prepared as of February 21,2008, should be read in conjunction with our unaudited consolidated financial statements for the year ended December 31, 2007. Unless otherwise indicated, all amounts are presented in US dollars.

For the purposes of preparing our MD&A, we consider the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of our shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) if it would significantly alter the total mix of information available to investors. We evaluate materiality with reference to all relevant circumstances, including potential market sensitivity.

Continuous disclosure materials, including our most recent Form 40F/Annual Information Form, annual MD&A, audited consolidated financial statements, and Notice of Annual Meeting of Shareholders and Proxy Circular will be available on our website at www.barrick.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. For an explanation of terminology unique to the mining industry, readers should refer to the glossary on page 47.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this MD&A, including any information as to our future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets (such as Canadian and Australian dollars, South African rand, Chilean peso and Papua New Guinean kina versus US dollar); fluctuations in the spot and forward price of gold and copper or certain other commodities (such as silver, diesel fuel and electricity); changes in US dollar interest rates or gold lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Dominican Republic, Australia, Papua New Guinea, Chile, Peru, Argentina, South Africa, Tanzania, Russia, Pakistan or Barbados or other countries in which we do or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increased costs associated with mining inputs and labor; litigation; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion or copper cathode losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this MD&A are qualified by these cautionary statements. Specific reference is made to Barrick’s most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable law.



BARRICK YEAR-END 2007				SUMMARY INFORMATION

INDEX


9	Core Business and Market Overview - Provides an overview of Barrick and outlines our core business, critical success factors and key performance indicators for our business, and market trends within the industry.	28	Financial Outlook - Provides our 2008 forecast trends for key financial and operational performance measures, significant assumptions supporting our forecast, and economic sensitivities for some of these key assumptions.

12	Enterprise Strategy and Our Ability to Deliver Results - Outlines our vision and strategy, our progress in relation to our 2007 strategic objectives and financial priorities, and details the visions and strategies of our operating departments along with their strengths, competencies and strategic goals.	30 31	Review of Quarterly Results- Provides a review of our consolidated financial performance in the fourth quarter, summarizes our results on a quarter by quarter basis, and includes an analysis of key factors impacting quarter to quarter performance. Financial Condition Review - Reviews our cash flow, balance sheet, credit rating and our approach to managing our capital position and capital resources to support our business objectives. It also discusses our contractual obligations, off balance sheet arrangements and financial instruments as at the end of 2007.

16	2007 Financial Results - Provides a review of Barrick’s consolidated financial performance, including significant factors affecting income and cash flow. It also includes a review of our regional operating performance in 2007 along with an update on key projects.	36	Critical Accounting Policies and Estimates - Summarizes key changes in accounting policies in 2007 and for future periods and analyzes critical accounting estimates.
	16 2007 Financial Overview 19 Operational Overview - Gold 19 Reserves 20 Key Business Transactions 20 Operating Segments Review	43	Non-GAAP Operating Performance Measures - Includes various industry accepted measures in tabular format with reconciliation to the closest equivalent GAAP measure.

26	Review of Significant Operating Expenses - - Provides analytics for variances for our significant operating expenditures.	47	Glossary of Technical Terms - Explanation of terminology used in our MD&A that is unique to the mining industry.

CORE BUSINESS AND MARKET OVERVIEW

Core Business

We are the world’s largest gold mining company in terms of market capitalization, annual gold production and gold reserves. We also hold interests in two copper mines and a number of copper projects, a nickel project and two platinum group metals projects. We presently generate revenue and cash flow from the production and sale of gold and copper. We sell our production in the world market through three primary distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies; and copper cathode is sold under copper cathode sales contracts between ourselves and various third parties.

Barrick has grown through a combination of organic growth, with new mineral reserve discoveries, and also through acquisitions. In 2006, we acquired Placer Dome, one of the world’s largest gold mining companies. In 2007, we continued to expand the gold industry’s deepest project pipeline through the acquisition of a 51% interest in the Cerro Casale copper-gold deposit in Chile, through our acquisition of Arizona Star Resources Corp., and highly prospective exploration licenses and the Kainantu Gold mine from Highlands Pacific. We also increased our interest in the Porgera mine from 75% to 95%. In February 2008, we entered into a definitive agreement to increase our ownership in the Cortez mine and Cortez Hills project from 60% to 100%.

Gold Production by Region in 2007



BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

Our project pipeline, funded mainly by reinvestment of cash flow from current operations into exploration and projects, is the key to our long term goal of increasing profitability and building shareholder value. Our profitability is dependent upon our ability to effectively manage and contain total cash costs both at our current operating mines and our next generation of mines. We expect that our next generation of mines, including Buzwagi, Cortez Hills, Pueblo Viejo and Pascua-Lama, should operate at lower average total cash costs than the average total cash costs of our current portfolio of operating mines. The projects in our pipeline are at various stages of development, ranging from scoping to feasibility to construction. We are confident that we have the managerial team and resources to successfully bring these projects into production. These projects will require substantial upfront capital that we expect to fund from a combination of operating cash flow and new financings. We expect the contribution from these new mines to improve our cash margins from gold, and thereby drive operating cash flow and long-term shareholder value.

In 2007, we saw expansion of gold cash margins as gold price increases more than offset cost increases. The gold mining industry is facing cost pressures from factors such as higher labor costs, higher energy costs and commodity prices, higher gold price related costs, and a weakening US dollar. We believe that we have been successful in mitigating the impact of cost pressures and we met our original guidance for total cash costs in 2007.

In fourth quarter 2007, higher market gold prices drove significantly higher earnings and operating cash flow. We believe that Barrick is well positioned to benefit from the present high gold price environment.

Market Overview

The success of a global mining company such as Barrick continues to be driven by global demand for the commodities we produce. In 2007, the trend of higher gold and silver prices continued for the quarter. Copper prices also remained at historically high levels.

Mineral Markets

Gold

The market price of gold is one of the most significant factors in determining the profitability of Barrick’s operations. The price of gold is subject to volatile price movements over short periods of time, and is affected by numerous industry and macroeconomic factors that are beyond our control. In 2007, gold prices ranged from $608 to $841 per ounce with an average market price of $695 per ounce and closed the year at $834 per ounce.

In early 2008, the gold price has traded upwards at an all-time record high of over $900 per ounce.

The price of gold has traded strongly since the fall of 2007, largely in reaction to the economic uncertainty in response to the contraction of global credit markets, interest rate cuts, increased risk and volatility across asset classes, continued strong investment demand, inflation expectations and political unrest. Those trends and expected further US dollar depreciation are supportive of higher gold prices in 2008.

We believe the outlook for mine production from all gold mining companies in the medium to long term, which currently represents over 60% of total global supply, is one of gradual decline over the next 5-10 years. The primary drivers for the global decline are increased difficulty in permitting new projects, high capital costs, scarcity of experienced labor, and lack of new discoveries in the last decade. A decrease in global industry production should be positive for long-term gold prices.

With the elimination of our corporate gold sales contract position in the first half of 2007, our operating mines are selling all production at market gold prices.

Copper

LME copper prices traded in a range of $2.37 — $3.77 per pound in 2007, and averaged $3.23 per pound for the year. Our realized price of $3.19 in 2007 tracked LME spot prices. In early 2007, prices declined on concerns about reduced demand from the US and rising



BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

inventories. However, continued strong demand from Asia supported prices and labor disruptions limited supply for short periods of time, resulting in price volatility. Future copper prices are expected to be influenced by demand from Asia, global economic performance and production levels of mines and smelters. We are fully hedged for our 2008 copper production, with a weighted average floor price of $3.03/lb. 25% of our hedge contracts (approximately 100 million pounds) are capped at $3.50/lb, through our copper-denominated notes, whereas the balance (approximately 300 million pounds) has upside participation to an average price of $3.92/lb.

Currency Exchange Rates

Results of our mining operations outside the United States, reported in US dollars, are affected by currency exchange rates. The largest single exposure we have is to the Australian dollar. We also have significant exposure to the Canadian dollar through a combination of Canadian mine operating costs and corporate administration costs.

A weaker US dollar causes our costs reported in US dollars to increase, subject to protection we have put in place through our currency hedging program. In 2007, the Canadian dollar traded to its highest level against the US dollar in over 50 years due to high energy and base metals prices, investment flows from M&A activity and the continued out-performance of the Canadian economy relative to the US. The Australian dollar has also appreciated, largely due to higher commodity prices, strong economic performance and higher interest rates relative to the US.

About 60-65% of our consolidated production costs are denominated in US dollars and are not exposed to fluctuations in US dollar exchange rates. For the remaining portion, our currency hedge position has mitigated, to a significant extent, the effect of the weakening of the US dollar over the last few years on operating costs at our Australian and Canadian mines.

Over the last three years, our currency hedge position has provided benefits to us in the form of hedge gains when contract exchange rates are compared to prevailing market exchange rates as follows: 2007 — $166 million; 2006 — $84 million; and 2005 — $100 million. These gains are recorded within our operating costs. We have also recorded hedge gains as an offset to corporate administration costs as follows: 2007 — $19 million; 2006-$14 million; 2005 — $16 million.

Our currency hedge position at the end of 2007 provides protection for a significant portion of our Canadian and Australian dollar-based costs. The average hedge rates vary depending on when the contracts were put in place. For hedges in place for future years, average hedge rates are higher than 2007 because some of the contracts were added over time as the US dollar weakened. We are fully hedged in 2008 for expected Australian and Canadian operating expenditures at rates of 0.78 and 0.86, respectively. In addition, we have fully hedged expected 2009 Australian and Canadian operating expenditures at rates of 0.78 and 0.93, respectively. We do not expect any further appreciation of either the Australian or Canadian dollars to have a significant impact on our 2008 or 2009 operating costs. Beyond the next two years, our Canadian dollar-based costs principally represent corporate administration costs at our head office, and the portion of the Australian dollar-based costs that remain unhedged is subject to market currency exchange rates. Further information on our currency hedge positions is included in note 20 to the Financial Statements.

Fuel

We consume on average about 3.5 million barrels of diesel fuel annually across all our mines. Diesel fuel is refined from crude oil and is therefore subject to the same price volatility affecting crude oil prices. With global demand remaining high in 2007, oil prices rose from $61 per barrel at the start of the year to a record high $99 per barrel in November 2007, closing at $96 per barrel at the end of the year. We have a fuel hedge position to mitigate rising oil prices and control the cost



BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

of fuel consumption totaling 5.2 million barrels, which represents about 48% of our total estimated consumption in 2008 and 24% of our total estimated consumption in each of the following five years. The fuel hedge contracts are primarily designated for our Nevada-based mines, and have an average price of $76 per barrel. In 2007, we realized benefits in the form of fuel hedge gains totaling $29 million (2006: $16 million; 2005: $10 million), when fuel hedge prices were compared to market prices. These gains are recorded in our operating costs.

Electricity

We purchase about 36 billion kilowatt hours (“kwh”) of electricity annually across all our mines. Electricity costs represent approximately 35% of our total energy spend to produce gold and copper. We typically buy electricity from regional power utilities, but at some mines we generate our own power. Fluctuations in electricity prices are generally caused by local economic and regulatory factors. Electricity prices have generally been rising in recent years due to increases in the price of diesel fuel, coal and natural gas, which are used by many power generators, as well as increasing demand for electricity. Based on estimates of our 2008 electricity requirements, a 10% increase in the price for electricity would result in an increase in our annual cost of electricity consumed of about $28 million, or $4 per ounce.

US Dollar Interest Rates

As a result of the contraction of global credit markets, the US Federal Reserve reduced short-term US dollar interest rates in the latter half of 2007. The expected trend for 2008 is for further reductions to the short-term rate in order to help alleviate the sub-prime crisis and stimulate economic activity. Volatility in interest rates mainly affects interest receipts on our cash balances ($2.2 billion at the end of 2007), and interest payments on variable-rate debt (approximately $586 million at the end of 2007). The relative amounts of variable-rate financial assets and liabilities may change in the future, depending upon the amount of operating cash flow we generate, as well as amounts invested in capital expenditures.

ENTERPRISE STRATEGY AND OUR ABILITY TO DELIVER RESULTS

Our Vision

To be the world’s best gold mining company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

Our Strategy

To increase total returns for Barrick shareholders, we reinvest cash flow from our mines in exploration and development projects to sustain and grow our business. We aim to increase earnings and operating cash flow, and to provide leverage to gold prices, through annual gold production and growing of our reserve / resource base. It can take a number of years for a project to move from the exploration stage through to mine construction and production. Our business strategy reflects this long lead time by ensuring that we have a deep project pipeline combined with effective management of current operating mines.

In 2006, we set our 2007 strategic and financial performance targets. Our strategic targets focused on share price performance, creating a high performance organization, responsible mining, advancing our project pipeline, meeting our financial and operating targets focused on core areas of production, cost control, and increasing reserves. Our successes in each of these areas have laid the foundation for our 2008 key areas of focus: share price performance, responsible mining and operational excellence, further advancing our projects, building and maintaining a high performance organization.



BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

Key Strategic Performance

2007 Strategic Objectives

Share price performance

	•		Grow the business through a combination of opportunistic acquisitions, new deposit discoveries and replacement of reserves and resources

	•		Advance project pipeline through achievement of milestones, prioritization and effective sequencing

	•		Strong financial management, including hedge book management, balance sheet optimization and realizing Placer Dome acquisition synergies

	•		Operational excellence focused on meeting production and cost targets, realizing savings from ongoing continuous improvement initiatives, and increased focus on R&D

	•		Advance opportunities for vertical integration and effective consumables management

	•		Effective capital management through prioritization, capital allocation and value measurement

Performance

	•		Met original guidance for production and total cash costs

	•		Key acquisitions with additional 20% of the Porgera mine, purchase of Highlands Pacific in Papua New Guinea and a 51% interest in the Cerro Casale copper- gold deposit in Chile through Arizona Star

	•		Advanced our project pipeline with construction started at Buzwagi feasibility studies finalized for Donlin Creek and updated for Pueblo Viejo. Restructured our joint venture agreement for Donlin Creek

	•		Made a new discovery, Monte Oculto, at Pueblo Viejo project in the Dominican Republic

	•		Improved design and enhanced mineral recovery at our new projects

	•		Launched Unlock the Value program

	•		Placer Dome acquisition synergy targets met

	•		The Barrick share price rose significantly through the end of 2007 and into early 2008, outperforming other senior gold producers

Key 2008 Strategic Objectives

Operational Excellence

	•		Meet guidance for production and total cash costs

	•		Excellent financial management in areas of financial risk management, financial reporting, cost control and investor communications

Growth

	•		Continue to focus on exploration to find new reserves and resources

	•		Expanding the role of R&D to add value to our existing operations

	•		Targeted acquisitions to strengthen operational base and complement pipeline

Capital Management and Projects

	•		Effective capital allocation through prioritization and sequencing of projects

	•		Projects built on-time and on-budget through Barrick Development System

	•		Address long-term energy needs and explore alternative energy projects

High performance organization

	•		Leadership development

	•		Optimization of business processes such as planning, project management and risk management

	•		Technology improvements to increase automation and control costs

	•		Compliance with business code of conduct and applicable corporate governance legislation

	•		Lower employee turnover rate in targeted locations

	•		Launched the Powerful Leadership training program worldwide to improve leadership and culture

	•		Launched Business Process Improvement program and commenced rollout of standardized technology solutions and business processes across the company

	•		Conducted Ethics and Integrity seminars for leaders across the organization

	•		Compliance with our Code of Business Conduct and Ethics, SOX and other regulations

High Performance Organization

	•		Strengthen Leadership through sustained training and support for our people

	•		Continue building culture focused on our values, innovation and open communication

	•		Enhanced people management to be the employer of choice by attracting, motivating and retaining top people in competitive markets

	•		Support the business by developing robust infrastructure, standardizing and streamlining business processes

Responsible mining

	•		Achieve safety and health performance targets

	•		Effective government relations and community engagement

	•		Environmental leadership through energy and conservation strategy

	•		Improved our safety record with fewer lost-time and total incidents. No employee fatalities; however, we had two contractor fatalities

	•		Over 21,000 people trained in Courageous Safety Leadership to date

	•		Included in the annual Dow Jones Sustainability Index North America for the first time, ranking best-in-class for our ongoing commitment to sustainability

	•		Lagunas Norte and Pierina certified under the International Cyanide Management Code, joining Cowal, Goldstrike, Round Mountain and Marigold which are all certified. In January, Cortez and Bald Mountain mines in Nevada became the latest mines certified

	•		Veladero achieved ISO 14001 certification for environmental management system. All of Barrick’s producing operations in South America now certified

	•		Started alternative power projects in Tanzania, Chile and Argentina

Responsible Mining

	•		Effective community and government relations that work to strengthen relationships with the communities around our operations

	•		Environmental leadership on climate change, water management, energy management and International Cyanide Management Code implementation

Innovation

	•		Focus on innovation, through R&D efforts, to increase recovery, improve ore characterization, reduce energy requirements and improve plant design

	•		Using technology as an enabler to develop strategy, increase automation and remote management at our mines


BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

Capability to Execute our Strategy

Our capability to execute our financial and operational strategy comes from the strength of our regional business unit structure, our experienced management team and a strong project pipeline that facilitates long-term sustainability of our business.

Regional Business Unit Structure

We manage our business using a regional business unit (“RBU”) structure. We have four RBUs: North America, South America, Australia Pacific and Africa. Each region receives direction from the Corporate Office, but has responsibility for all aspects of its business such as strategy and sustainability of its portfolio of operating mines, including exploration, production and closure. Each team is led by its own Regional President, with oversight by the Corporate Office. Each region has two overriding responsibilities: to optimize current assets and to grow its business.

Each RBU operates as a standalone business unit with a range of functional groups. Since their inception, the RBUs have added significant value to our business by realizing operational efficiencies in the region, allocating resources more effectively and understanding and better managing the local business environment, including labor, consumable costs and supply and government and community relations. In a period of inflationary cost pressures experienced by the mining industry, we believe that our RBU structure has allowed us to better deal with the challenges and issues impacting our industry.

Experienced Management Team and Skilled Workforce

We have an experienced management team with a proven track record in the mining industry. Strong leadership and governance are critical to the successful implementation of our core strategies. We continue to focus on leadership development for key members of our executive team, senior mine management and frontline management. A skilled workforce has a significant impact on the efficiency and effectiveness of our operations. The remote nature of many of our mine sites, as well as strong competition for human resources, presents challenges in maintaining a well-trained and skilled workforce. We continue to focus our efforts on employee retention, recruiting skilled employees and positive labor relations, including training programs, leadership development and succession planning. In 2007, using data from the global HR information system implemented in 2006 and growth projections for the next 5 years, we built a workforce plan to help us anticipate future recruiting and development needs.

Our Engineers-in-Training program continues to mature. The program is aimed at developing skilled personnel to mitigate the risk of future staff shortages. The program has grown to 150 globally (primarily in the Mining, Metallurgy & Geology disciplines) which is implemented regionally and managed by the Corporate office.

Advanced Exploration and Project Pipeline

Our pipeline of advanced exploration targets and projects represents a critical component of our long-term strategy of growing our business. We and others in the mining industry face the challenges associated with finding, acquiring and developing projects. An economic discovery is no longer a guarantee of a new mine, as considerable opposition to new mining projects can develop from institutional NGOs or unstable political climates. The development of a new mine requires successful permitting and government relations, community dialogue and engagement, and significant financial and human capital. In response to these challenges, we have a specialist group that manages our project pipeline and can draw on our considerable company-wide resources and experience to enhance our prospects for success; however, the timeline and cost of developing projects has increased significantly.

During 2007, the capacity of the organization to execute projects was expanded through the addition of experienced staff with the necessary specialized skill set associated with project management. Efforts in this regard will continue in 2008 with a number of positions identified to be added to enhance the Company’s capacity to deliver on the significant project pipeline in the coming years.

Technology and Business Process

Progress was made during the year to standardize and improve technology solutions and business processes. Future benefits from standardization and expanded visibility should result in improved efficiency. We expect that these improvements will allow us to more easily identify value-creating opportunities in existing operating sites and projects through better information sharing and the ability to benchmark operating activities and implement best practices across our operations.

Technical innovation is also being pursued, utilizing our in-house Technology Center where we conduct some of our research and development (“R&D”) activities along with the development of other metallurgical optimization initiatives. Certain of our projects have realized benefits as a result of this R&D work, which has produced modified process designs that yield enhanced gold and metal by-product recoveries. The success of this program resulted in the decision to expand the facility as internal demand for support was beyond the capacity of the existing facility. Examples of the benefits realized


BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

from the work at the lab include changes in metallurgical process design at Pueblo Viejo and Donlin Creek which enhanced gold recoveries and/or non-gold revenue streams and reduced neutralization costs, which we expect will have a positive impact on project economics.

Our Information Management and Technology (IMT) group provides focused and responsive support to enable us to meet our current business objectives and long-term strategy elements. Our key areas of focus are the delivery of the technology solutions to support the benefits of business process reengineering and standardization; the use of established best practice technology solutions to automate business operations for increased safety, productivity and reduced costs; and an architected approach to the delivery of timely and accurate information to decision makers at all levels in the organization.

Supply Chain Management

In 2007, we continued our emphasis on cost control and supply security. Long-term contracts with guaranteed supply and defined costs were executed for critical supplies, including tires, and some other contracts were renegotiated to lower costs. Our continuing focus on commodity management has enabled us to better define our requirements and manage costs, both for ongoing operations and development projects.

On January 30, 2008, as part of this strategy, we announced a $200 million 10-year agreement with Yokohama Rubber Co. to secure a supply of tires, which are a critical component for mining and one of our largest single procurement expenses. Worldwide demand for tires, due to the expansion in the mining and construction industries, has resulted in rising prices and tire shortages. This agreement secures a supply of high quality tires for our operations at direct-from-manufacturer prices.

In 2008, we plan to extend our commodity team approach to key items that may not be in short supply, but which represent major elements of cost. A key component will be the use of our global buying power to attract competitive interest and obtain best value. Examination of low-cost country sources will continue, and these will be pursued where they represent lowest total cost of ownership - particularly to reduce capital costs at our projects.

Maintenance and Equipment Availability

Maintenance costs represent about 20% of our total cash costs and an effective maintenance program helps ensure a cost effective program with optimal equipment utilization. In 2007, our maintenance group focused on developing standardized policies, procedures and processes for asset management. The global enterprise asset management system (Oracle) continued to be rolled out with implementation occurring in Australia. Implementation will continue in Australia and Africa in 2008 and beyond.

Formal regional maintenance networks were developed and implemented and enabled the sharing and resolution of common issues and ideas. The networks are comprised of the senior maintenance leaders from each site in their respective region who meet regularly to discuss and agree on ways of improving maintenance productivity and performance.

Continuous Improvement

Our Continuous Improvement (“CI”) group’s vision is to achieve operational excellence and a company culture that engages every employee in improvement every day. We have a global network of Barrick employees across all sites that focus on CI in all key aspects of our business. Structured problem solving and planning methodologies are used extensively to help identify and execute improvement initiatives while fostering Company-wide learning through knowledge-sharing. Implementation of CI initiatives has led to significant value creation for Barrick in terms of cost mitigation, throughput increases and quality improvements.

A major focus for the global CI group in 2007 was the targeted identification of cash cost improvements to offset inflationary cost pressure, a key component of our share price performance objective. Further training and collaboration with key partners in supply chain allowed us to expand the depth and scope of our operations’ improvements. In sharing our continuous improvement tools, such as value stream mapping, we were able to reduce the cycle times by these selected supply partners as well as significantly improve their on-time delivery performance to our mine sites. A new Best Practices system was introduced to enable the evaluation and global sharing of best practices, allowing rapid adoption of business performance improvement ideas and methods that drive more value and learning throughout the organization.

Environmental, Health and Safety

Responsible mining is one of our key strategic objectives. It is integral to all our activities as we find, develop and produce gold on a global basis. Our Environmental, Health, Safety and Sustainability Executive Committee is responsible for monitoring and reviewing environmental, safety and health policies and programs, assessing performance and monitoring current and future regulatory issues.


BARRICK YEAR-END 2007				MANAGEMENT’S DISCUSSION AND ANALYSIS

As part of our commitment to responsible mining, we focus on continuously improving health and safety programs, systems and resources to help control workplace hazards and eliminate injuries. Continuous monitoring and integration of health and safety into decision-making enables us to operate effectively, while also focusing on health and safety. We introduced the Barrick Health System globally in 2007 and began site-level gap analysis against the Health System standards at our operations.

Courageous Safety Leadership training was first introduced to employees and contractors in 2004, and we have continued to provide this training annually. In 2007, we offered Courageous Safety Leadership refresher courses to all employees and most contractors, as well as one and two-day courses to new employees and contractors.

We are a charter signatory to the International Cyanide Management Code. In March 2006, our Cowal mine became the first facility in the world to obtain the International Cyanide Management Institute Certification. At the end of 2007, seven of our mines had been certified as Code compliant and the remaining mines which use cyanide are preparing for the certification process. We are a signatory to the UN Global Compact, which encourages businesses to support a precautionary approach to environmental challenges, undertake initiatives to promote greater environmental responsibility and encourage the development and diffusion of environmentally friendly technologies.

2007 FINANCIAL RESULTS
2007 Financial Overview
Summary of Key Financial Results ($ millions, except per share, per ounce/pound data in dollars)


For the years ended December 31,	2007		2006		2005

Net income	$	1,119	$	1,506	$	401
Per share¹		1.29		1.79		0.75
Adjusted net income from continuing operations²		1,733		1,561		450
Per share		2.00		1.86		0.84

EBITDA from continuing operations³		2,427		2,308		847
Per share		2.80		2.74		1.58
Adjusted EBITDA from continuing operations³		3,063		2,675		903
Per share		3.53		3.18		1.68

Operating cash flow		1,732		2,122		726
Per share		2.00		2.52		1.35
Adjusted operating cash flow⁴		2,368		2,489		782
Per share		2.73		2.96		1.45

Total assets		21,951		21,510		6,929
Total liabilities	$	6,613	$	7,255	$	3,079


¹		Calculated using net income and weighted average number of shares outstanding.

²		Excluding the impact of deliveries into Corporate Gold Sales Contracts. Adjusted net income from continuing operations is an operating performance measure with no standardized meaning under GAAP. For further information, please see page 43.

³		Adjusted net income from continuing operations excluding income tax expense, interest expense, interest income and amortization. Adjusted EBITDA from continuing operations excludes the impact of deliveries into Corporate Gold Sales Contracts, and is an operating performance measure with no standardized meaning under GAAP. For further information, please see page 43.

⁴		Excluding the impact of deliveries into Corporate Gold Sales Contracts. Adjusted operating cash flow is an operating performance measure with no standardized meaning under GAAP. For further information, please see page 43.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Key Factors Affecting Adjusted Net Income from Continuing Operations¹


¹		Adjusted net income excludes the impact of deliveries into our Corporate Gold Sales Contracts.

In 2007, we reported net income of $1,119 million, compared to $1,506 million in 2006. Adjusted net income from continuing operations was $1,733 million, 11% higher than the prior year period, as higher per ounce margins on gold and copper and a year to date increase in copper sales volumes were partially offset by lower gold sales volumes, higher amortization and higher exploration and development costs.

Special Items-Effect on Income Increase (Decrease)


			2007						2006						2005
($ millions)	Refer to page		Pre-tax			Post–Tax			Pre-tax			Post–Tax			Pre-tax			Post–Tax

Gain on Sale of South Deep			$	—		$	—		$	288		$	288		$	—		$	—
Opportunity cost of deliveries into Corporate Gold Sales Contracts		18		(636	)		(623	)		(367	)		(352	)		(56	)		(55	)
Tanzanian tax valuation allowance release		27		156			156			—			—			—			—
Impact of change of enacted rates in Canada		27		(64	)		(64	)		(12	)		(12	)		—			—
Impairment charges		27		(62	)		(59	)		(23	)		(18	)		(16	)		(16	)
Highland equity gain/(loss)				(20	)		(20	)		51			51			—			—
Gains on sale of Gold Fields and NovaGold shares				52			37			—			—			—			—
Unrealized gold and copper non-hedge derivative gains		34		28			19			—			29			6			4
Deferred Tax Credits				—			—			—			31			—			5

Total			$	(546	)	$	(554	)	$	(63	)	$	17		$	(66	)	$	(62	)

Summary of Key Operational Statistics ($ millions, except per share, per ounce/pound data in dollars)


			Gold				Copper¹
	2007		2006		2005		2007		2006

Production (‘000s oz/millions lbs)^1,2		8,060		8,643		5,460		402		367
Reserves (millions of contained ounces/billions of contained pounds)³		124.6		123.1		88.6		6.2		6.0
Sales⁴
’000s oz/millions lbs		8,055		8,390		5,320		401		376
$ millions	$	5,027	$	4,493	$	2,348	$	1,305	$	1,137
Market price⁵		695		604		444		3.23		3.05
Realized price^5,6		619		543		439		3.19		3.06
Total cash costs^5,7		350		283		227		0.83		0.79
Amortization⁵		104		82		76		0.32		0.43

Total production costs⁵	$	454	$	365	$	303	$	1.15	$	1.22


¹		The 2005 comparative period for copper has been omitted as we did not produce a significant amount of copper prior to the acquisition of Placer Dome.

²		Gold production reflects our equity share of production, including our equity share of production from the South Deep mine sold in 2006. Gold production also includes an additional 20% share of production from the Porgera mine from April 1, 2007 onwards.

³		Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7, (under the Securities and Exchange Act of 1934), as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Pueblo Viejo is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105.

⁴		Gold sales ($ millions) exclude the results of discontinued operations. Gold sales (‘000s oz/) exclude the results of discontinued operations and reflect our equity share of sales.

⁵		Per ounce/pound weighted average. For further information, please see page 46.

⁶		Realized prices exclude unrealized non-hedge derivative gains and losses, and are an operating performance measure that is used throughout this MD&A. For more information see page 44.

⁷		Total cash costs per ounce/pound statistics exclude amortization and inventory purchase accounting adjustments. Total cash costs per ounce/pound is an operating performance measure that is used throughout this MD&A. For further information, please see pages 45 to 46.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Realized gold prices of $619 per ounce in 2007 were 14% higher than in 2006, principally due to higher market gold prices. Realized gold prices in 2007 reflect a reduction of $636 million (2006: $367 million), or $76 per ounce (2006: $44 per ounce), due to the voluntary delivery of 2.5 million ounces (2006: 1.2 million) into Corporate Gold Sales Contracts at average prices below the prevailing spot price, eliminating our Corporate Gold Sales Contracts. Our portfolio of operating mines is now fully leveraged to market gold prices.

Realized copper prices in 2007 were slightly higher than in 2006, with variability quarter to quarter reflecting the variability of market prices.

Cash margins for gold have been increasing over the past three years as higher market gold prices have more than offset increases in total cash costs. Assuming an average spot gold price of $900 dollars per ounce in 2008, we would expect to realize cash margins of about $500 per ounce.


1		Amounts represent cash margins on both spot price and realized price. Cash margins on spot prices reflect margins excluding deliveries to eliminate Corporate Gold Sales Contracts.

Cost of Sales/Total Cash Costs-Gold


	in millions									per ounce
For the years ended December 31	2007			2006			2005			2007			2006			2005

Cost of goods sold^1,2,3	$	2,890		$	2,388		$	1,357		$	359		$	286		$	255
Currency/commodity hedge gains		(195	)		(100	)		(110	)		(24	)		(12	)		(21	)
By-product credits		(105	)		(123	)		(132	)		(13	)		(15	)		(25	)
Royalties/production taxes		190			179			81			23			21			16
Accretion/other costs		37			28			11			5			3			2

Cost of sales/Total cash costs¹	$	2,819		$	2,372		$	1,207		$	350		$	283		$	227


¹		Total cash costs and cost of sales both exclude amortization and inventory purchase accounting adjustments – see pages 45 to 46.

²		Excludes cost of sales related to discontinued operations and non-controlling interests.

³		At market currency exchange and commodity rates, adjusted for non-controlling interest – see pages 45 to 46.

Total production costs in 2007 were $454 per ounce, an increase of $89 compared to the prior year period, due to higher cash costs and amortization expense.

Total cash costs per ounce for 2007 were up $67 per ounce compared to the prior year. Total cash costs were impacted by 22% lower average head grades and continued waste stripping activities, exchange rate fluctuations, inflationary pressures with respect to labor, oil and other consumables, and increases in royalties and production taxes and other gold price linked costs, the weaker US dollar and inflationary cost pressures.

2007 Operational Overview-Gold


For the years ended
December 31	2007		2006		% Change			2005

Tons mined (000’s)		653		600		9	%		359

Ore tons processed (000’s)		172		157		10	%		98

Average Grade (ozs/ton)		0.052		0.067		(22	%)		0.069

Gold Produced (000’s/oz)		8,060		8,643		(7	%)		5,460

Gold Production in 2007 was 583 thousand ounces or 7% lower than in 2006, reflecting lower production in Africa, North America, and Australia.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Tons Mined and Tons Processed


¹		All amounts presented are based on equity production.

Total tons mined and tons processed were up 9% and 10%, respectively, compared to 2006. The higher tons mined and tons processed result from a combination of the start-up of Cowal in mid-2006 and Ruby Hill in early 2007, increased waste stripping activity at certain of our mines, mine sequencing, mine expansion and productivity improvements at our existing mines.

Average Mill Head Grades


¹		All amounts presented based on equity production. Average mill head grades are expressed as the number of ounces of gold contained in a ton of ore processed. Reserve grade represents expected grade over the life of the mine and is calculated based on reserves reported at the end of the immediately preceding year.

Average mill head grades decreased by approximately 22% in 2007 compared to the prior year, primarily due to mine sequencing that resulted in lower ore grades at certain of our mines. We were mining below our average reserve grade in 2007 and we expect average mill head grades to head back towards reserve grade over the next few years. We have taken advantage of the high gold price environment to process material that would otherwise be uneconomical in a lower gold price environment, earning an operational contribution from low-grade material that would otherwise be classified as waste, which has had an impact on average ore grades processed.

Reserves¹

At the end of 2007, we had proven and probable gold reserves of 124.6 million ounces, an increase of 1.5 million ounces from the prior year, based on a $575 per ounce gold price. We also increased gold mineral resources (measured and indicated) by 15.6 million ounces to 50.6 million ounces, and inferred resources by 7.0 million ounces to 31.9 million ounces, based on a $650 per ounce gold price. Reserves and resources do not include the Company’s recently acquired interest in Cerro Casale due to insufficient time, after our acquisition in December 2007, to complete the work necessary to incorporate this deposit in year-end results. Reserves and measured and indicated resources would increase by 4.6 million ounces and 1.4 million ounces respectively, on closing of the transaction to increase our ownership interest in Cortez from 60% to 100%.

We increased proven and probable copper reserves by 0.2 billion pounds to 6.2 billion pounds, with an additional 5.4 billion pounds of measured and indicated resources at year end.

Copper contained in our gold reserves at year end 2007 was 1.5 billion pounds. Silver contained in our gold reserves at year end 2007 was 1.0 billion ounces, primarily at the Pascua-Lama project, one of the largest silver deposits in the world, which contains 731 million ounces of silver contained in gold reserves.

Replacing gold and copper reserves depleted by production year over year is necessary in order to maintain production levels over the long term. If depletion of reserves exceeds discoveries over the long term, then we may not be able to sustain gold and copper production levels. Reserves can be replaced by expanding known ore bodies, acquiring mines or properties or discovering new deposits. Once a site with gold or copper mineralization is discovered, it takes several years from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. Substantial expenditures are required to establish proven and probable reserves and to permit and construct mining and processing facilities.

Key Business Transactions

Acquisition of Arizona Star

In fourth quarter 2007, we acquired over 94% of the outstanding shares, on a fully diluted basis, of Arizona Star Resources Corp, which owns a 51% interest in the Cerro Casale deposit in the Maricunga district of Region


¹		For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105 of this Financial Report 2007.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

III in Chile, for C$722 million in cash. We expect to complete the acquisition in the first quarter 2008. Kinross Gold Corporation owns the remaining 49%. Cerro Casale is one of the world’s largest undeveloped gold and copper deposits.

Acquisition of 40% Interest in Cortez

In February 2008, our subsidiary, Barrick Gold Finance Inc., entered into a definitive purchase agreement with Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc (“Rio Tinto”) to acquire its 40% interest in the Cortez property for $1.695 billion in cash consideration, due on closing, with a further $50 million payable if and when we add an additional 12 million ounces of contained gold resources to our December 31, 2007 reserve statement for Cortez. A sliding scale royalty is payable to Rio Tinto on 40% of all production in excess of 15 million ounces on and after January 1, 2008. The acquisition will consolidate 100% ownership for Barrick of the existing Cortez mine and the Cortez Hills development project plus any future potential from the property, which is located on one of the world’s most prospective gold trends. We expect to fund the purchase price through a combination of our existing cash balances and by drawing down our line of credit. The agreement is subject to the normal and customary closing conditions and is expected to close in the first quarter of 2008.

Other Acquisitions

In fourth quarter 2007, we acquired over 2,900 square kilometers of highly prospective exploration licenses and the Kainantu gold mine in Papua New Guinea from Highlands Pacific Limited for $135 million in cash, net of $7 million held back pending renewal of exploration licenses. With this acquisition, we will have access to over 5,300 square kilometers of contiguous ground for exploration in one of the world’s most highly endowed gold and copper regions that includes our world class Porgera mine.

In third quarter 2007, we increased our interest in the Porgera mine from 75% to 95% for $259 million in cash. The Government of Papua New Guinea holds the remaining 5% interest.

Operating Segments Review

We report our results of operations using a geographical business unit approach: North America, South America, Australia Pacific and Africa. This structure reflects how we manage our business and how we classify our operations for planning and measuring performance.

In our Financial Statements, we present a measure of historical segment income that reflects gold sales and copper sales at average consolidated realized gold and copper prices, respectively, less segment expenses and amortization of segment property, plant and equipment. We monitor segment expenses using “total cash costs per ounce” statistics that represent segment cost of sales divided by ounces of gold, pounds of copper sold or tons processed in each period. The discussion of results for producing mines focuses on this statistic to explain changes in segment expenses.

Regional Production and Total Cash Costs


	Production						Total cash costs
	(000’s ozs/millions lbs)						($ per oz/lb)
Year Ended December 31,	2007		2006		2005		2007		2006		2005

Gold
North America		3,201		3,372		2,863	$	370	$	314	$	244
South America		2,079		2,104		1,234		197		149		126
Australia Pacific		2,123		2,220		934		452		353		257
Africa		605		914		398		408		315		336
Other		52		33		31		491		481		303

Total		8,060		8,643		5,460		350		283		227

Copper¹
South America		315		308		—		0.70		0.62		—
Australia Pacific		87		59		—		1.37		1.53		—

Total		402		367		—	$	0.83	$	0.79	$	—


¹		The 2005 comparative periods for copper have been omitted as we did not produce any significant amounts of copper prior to the acquisition of Placer Dome.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

North America

Key Operating Statistics


For the years ended
December 31	2007		2006		% Change			2005

Tons mined (millions)		335		274		22	%		168

Ore tons processed (millions)		76		69		10	%		50

Average Grade (ozs/ton)		0.040		0.045		(11	%)		0.045

Gold Produced (000’s/oz)		3,201		3,372		(5	%)		2,863

Total Cash Costs (per oz)	$	370	$	314		18	%	$	244

Producing Mines

Tons mined increased 22% in 2007 primarily due to higher waste stripping activities at Goldstrike, Bald Mountain and Cortez (41% of overall increase) and the production start-up at Ruby Hill (46% of overall increase). Tons processed increased by 10% due to higher processing rates at Cortez (63% of overall increase), due to mining areas of the pit that are yielding better ore grades and more ore tons than the prior year, and the production start-up of Ruby Hill (36% of overall increase). Average ore grades decreased by 11% mainly due to sequencing at Goldstrike and Bald Mountain.

At Goldstrike open pit, an extended period of overburden removal commenced to expand the pit running into mid-2008, during which time we will have limited ore production from the pit. During this period, Goldstrike will supplement mill feed with lower-grade stockpiled ore resulting in lower production levels. Production at Goldstrike underground was also impacted by a transition to zone mining in 2007. Production levels at Goldstrike are expected to increase in the second half of 2008 when higher-grade ore becomes accessible. At Eskay Creek, production levels continued to decline as the mine is reaching the end of its life.

Gold production levels for the region declined by 5% in 2007 as the 11% decline in the average ore grade more than offset the 10% increase in tons processed.

Total cash costs of $370 per ounce were 18% higher than the prior year reflecting waste removal costs at Ruby Hill and Storm, which were capitalized in 2006 during the construction phase as development costs ($7 per ounce); lower silver by-product credits mainly at Eskay Creek ($8 per ounce); lower overall production levels in 2007 ($19 per ounce); higher prices and consumption of input commodities used in the production process ($7 per ounce); and higher costs related to labor ($7 per ounce); and higher royalties and production taxes ($2 per ounce). The type of ore processed in 2007 at the Goldstrike autoclave required more consumables such as propane and acid to achieve optimal efficiency. This resulted in higher total cash costs of $17 dollars per ounce for Goldstrike autoclave when compared to the prior year. During 2007, a modified pressure technology was successfully tested that will extend the life of the Goldstrike autoclaves by allowing them to process ore that would have previously have been treated at the roaster facility.

In 2008, we expect gold production of 3.0 to 3.15 million ounces at total cash costs of $450 to $465 per ounce. Production is expected to be lower than 2007 primarily due to the mining of lower-grade ore. Total cash costs per ounce are expected to be higher in 2008 due to the impact of lower production; lower silver credits due to the closure of Eskay Creek, increased labor rates; higher energy costs mainly due to higher oil prices; and higher royalties and production taxes as a result of higher gold prices.

Significant Projects

At the Cortez Hills project in Nevada, we spent $88 million in 2007 (100% basis) for open-pit mining equipment; engineering for the project infrastructure; installation of dewatering wells; ongoing construction of the underground pump station rock work; and completion of an additional 439 meters of the underground exploration decline. Total underground decline development of 4,854 meters has been completed to date. Engineering is approximately 90% complete, resulting in expected permitting during the second half of 2008. Pre-production capital costs are expected to remain in the range of our previous estimate of $480 to $500 million. Production in the first full five years is expected to be in the range of 950 thousand to 1 million ounces (includes Pipeline) at total cash costs of $280 to $290 per ounce. Barrick’s interest in proven and probable reserves at year-end 2007 for the Cortez property was 6.9 million ounces (60% basis).¹On closing of the transaction to increase our interest to 100%, we will report an additional 4.6 million ounces of proven and probable reserves for a total of 11.5 million ounces.

At the Pueblo Viejo project (60% owned), we spent $69 million (100% basis) in 2007 to update the feasibility study, commencement of basic and detail design and engineering, exploration programs for ore reserves and limestone deposits, community development programs and sourcing of electric power and location of power transmission lines. We expect to be in a position to submit our feasibility study and project notice shortly. Pre-production capital is expected to be about $2.7 billion on a 100% basis (about $1.6 billion is Barrick’s share). The increase in capital from the earlier $2.1 to


¹		For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105 of this Financial Report 2007.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

$2.3 billion estimate primarily reflects a scale up to a throughput rate of 24 thousand tonnes per day (tpd), up from the 18 thousand tpd described previously. This has had the effect of increasing our share of gold production in the first full five years of production to about 600 thousand ounces per year from 465 to 480 thousand ounces per year. Total cash costs are expected to be about $250 per ounce over this period and do not include the potential benefit of a circuit to recover zinc, which continues to be evaluated. The construction period to first gold production is expected to be about three and a half years from project decision. Our equity share of proven and probable gold resources at Pueblo Viejo increased by 1.4 million ounces in 2007 to 12.3 million ounces.¹

At the Donlin Creek project, we advised our joint venture partner, NovaGold Resources Alaska Inc., in October 2007 that we had completed work on the feasibility study for the project. In December 2007, we entered into an agreement with NovaGold to form a jointly owned limited liability company on a 50/50 basis to advance the project, with a NovaGold appointee positioned as the initial General Manager. Work completed in 2007 included more than 70 thousand meters of drilling (primarily infill) and collection of additional environmental baseline data, in addition to a wide range of engineering work completed in support of the feasibility study. Work in the first half of 2008 will focus on completing a series of optimizing studies for power, logistics, processing and production levels, and will integrate all data from the 2007 program into a final feasibility study. Barrick’s share of measured and indicated gold resources increased by 8.7 million ounces in 2007 to 14.7 million ounces.²


¹		Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7, (under the Securities and Exchange Act of 1934), as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Pueblo Viejo is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105.

²		For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105 of this Financial Report 2007.

South America

Key Operating Statistics


For the years ended
December 31	2007		2006		% Change			2005

Tons mined (millions)		151		168		(10	%)		134

Ore tons processed (millions)		59		53		11	%		35


Average Grade (ozs/ton)		0.042		0.054		(22	%)		0.048

Gold Produced (000’s/oz)		2,079		2,104		(1	%)		1,234

Total Cash Costs (per oz)	$	197	$	149		32	%	$	126

Producing Mines

Tons mined decreased by 10% in 2007, mainly due to Pierina (56% of overall decrease), where the mine plan was changed to solve a temporary problem of lack of waste dump capacity due to the fuel station relocation, and also at Veladero (32% of overall decrease), where low equipment availability temporarily limited production in 2007. Ore tons processed increased in 2007 by 11%, mainly at Veladero, as higher quantities of material were placed on the leach pad compared to prior year. Average ore grade declined by 22% in 2007, primarily due to Veladero, where lower grade zones were mined in 2007. Gold production levels in 2007 were similar to the prior years as the lower average ore grades were mostly offset by higher processing rates.

Total cash costs per ounce increased by 32% to $197 dollars per ounce in 2007, largely due to higher costs at Veladero as mining transitioned to lower grade ore in the Filo Federico pit beginning in April 2007 and we began expensing waste stripping costs at Filo Federico ($33 an ounce); higher labor and maintenance costs ($7 an ounce); and higher costs for consumables used within the production process ($7 an ounce). Cost pressures were mitigated to a certain extent by operational improvements such as improved maintenance procedures, improved ore recoveries at Pierina, and lower reagent consumption and higher silver production at Lagunas Norte.

In 2008, we expect gold production of 1.95 to 2.05 million ounces at total cash costs of $250 to $270 per ounce. Production is expected to remain consistent with 2007, as higher production at Veladero is expected to be offset by lower production at Pierina. Total cash costs per ounce are expected to be higher in 2008, mainly due to higher energy costs, labor rates and other cost increases.

Significant Projects

The Pascua-Lama project is unique in that it is a binational project with a mineral deposit that spans the border between Argentina and Chile. It is located in the Frontera district within approximately 10 kilometers of our Veladero mine. The project is at an elevation of



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

3,800 to 5,200 meters. In February 2006, the Pascua-Lama project was granted approval by Chilean environmental regulatory authorities. In December 2006, the Province of San Juan, Argentina issued its Declaration of Environmental Impact Assessment which approved the environmental permit submission to Argentina. We have significantly advanced detailed engineering and have essentially completed submission of documentation to obtain the administrative and sectoral permit approvals that are required prior to initiating construction in either country. In addition, the governments of Chile and Argentina must resolve certain remaining fiscal matters, including taxation relating to the bi-national project. The start of construction is contingent upon receipt of sectoral permits and resolution of cross-border regulatory and fiscal tax and royalty items, the timing of which is largely beyond our control. The project team is using this period to advance detailed construction planning and activities as well as supplier and contractor selection through competitive bidding.

As at February 2007, pre-production capital costs were in the range of $2.3 to $2.4 billion and are currently expected to be approximately 15% higher than this estimate primarily due to inflationary pressures and currency impacts. Gold and silver productions are expected to be about 750-775 thousand ounces of gold and about 35 million ounces of silver per year over the first five years. Current silver prices are expected to have a positive impact on total cash costs for the project. An updated feasibility study will be prepared and the capital cost will be updated on the resolution of the cross-border regulatory, fiscal, tax and royalty items, and the granting of the remaining sectoral permits. Proven and probable gold reserves increased by 1.0 million ounces to 18.0 million ounces in 2007.¹

Australia Pacific

Key Operating Statistics


For the years ended
December 31	2007		2006		% Change			2005

Tons mined (millions)		144		137		5	%		167

Ore tons processed (millions)		33		30		10	%		11


Average Grade (ozs/ton)		0.075		0.087		(14	%)		0.083

Gold Produced (000’s/oz)		2,123		2,220		(4	%)		934

Total Cash Costs (per oz)	$	452	$	353		28	%	$	257


¹		For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105 of this Financial Report 2007.

Producing Mines

Tons mined increased by 5% in 2007 as Porgera production levels increased from mid-2007 onwards on completion of west wall remediation activities and a 20% increase in ownership (which represented 63% of the overall increase in tons mined). Production at Porgera in the early part of 2007 was impacted by the Hides Power station damage that occurred in December 2006; a 10 day shutdown of operations in second quarter 2007 due to a dispute with landowners, and a delay in completion of the west wall cutback delayed the start of full-scale mining in Stage 5. At Cowal, tons mined increased reflecting a full-year contribution from the mine that began production in 2006 (37% of the overall increase in tons mined). Tons mined decreased due to: the end of mining in the Lawlers Fairyland open pit in early 2007; the end of open pit mining and transition to underground mining at Granny Smith; and the sale of Paddington assets and the completion of open pit mining at Kanowna. Together, these decreases represented 87% of the offsetting overall decrease in total tons mined. Production in 2008 is expected to be similar to 2007 levels with increases at Porgera (due to a full year of production after completion of the West Wall remediation) and Granny Smith (due to an increase in tons from the underground as the number of working areas increases), offset by lower production at Cowal (due to a wall failure at our open pit).

Ore tons processed increased by 10%, mainly reflecting a full year’s contribution from the Cowal Mine. Mill feed at Lawlers, Granny Smith and Kanowna was maintained by processing low-grade stockpiles to compensate for the lower tons mined in 2007.

Average ore grades declined by 14% in 2007, mainly as a result of processing low-grade stockpiles at Granny Smith, Kalgoorlie and Plutonic. At Granny Smith, low-grade stockpiles were processed while mining transitioned from open-pit to underground. At Kalgoorlie, limited shovel availability early in the year led to the processing of more low-grade stockpiled ore. At Plutonic, lower average grades in 2007 resulted from poor equipment availability, temporary blockages of the Baltic paste fill line with a loss of flexibility in the underground mine, and stope sequencing issues. With the implementation of improvement programs, mining rates and shovel availability, we expect production at these mines to increase in 2008. At Cowal, production continued to improve in the latter half of 2007 due to grade improvements resulting from the conversion to sulfide material milling. The rise of ore tons processed also contributed to the decline in average ore grades. Gold production in 2007 decreased by 4% as the lower average ore grades were partly offset by higher ore processing rates.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Total cash costs at $452 per ounce in 2007 were 28% higher compared to the prior year, due to higher levels of expensed waste stripping activity at Porgera after the west wall remediation was completed mid-year and normal mining operations returned in the pit ($35 per ounce); higher currency exchange rates ($31 per ounce); higher labor costs ($29 per ounce); higher commodity prices ($17 per ounce); offset by lower administrative costs ($9 per ounce). The effective currency hedge rate for 2007 was 0.77 compared to 0.71 in the prior year. At the start of 2007, our currency hedging program provided protection for approximately 80% of our Australian dollar costs, but the remaining portion was subject to varying market rates. We added to our hedge position part way through the year, and as a result, were fully hedged for the latter part of 2007 and for 2008 at an average rate of 0.77 and 0.78, respectively. Low unemployment, particularly in Western Australia, continues to impact wage levels and the ability to attract and retain staff.

In 2008, we expect gold production of 1.975 to 2.15 million ounces at total cash costs of $450 to $475 per ounce. Total cash costs per ounce are expected to be higher in 2008 due to higher currency hedge rates, higher oil prices, labor rate increases and higher royalty costs.

Africa

Key Operating Statistics


For the years ended
December 31	2007		2006		% Change			2005

Tons mined (millions)		23		21		10	%		8

Ore tons processed (millions)		4		5		(20	%)		1


Average Grade (ozs/ton)		0.162		0.188		(14	%)		0.159

Gold Produced (000’s/oz)		605		914		(34	%)		398

Total Cash Costs (per oz)	$	408	$	315		30	%	$	336

Producing Mines

Tons mined increased by 10% in 2007, due mainly to North Mara, where low-grade areas were mined along with increased waste removal due to instability of the west wall, partly offset by the sale of South Deep.

Tons processed decreased by 20% in 2007 due to the sale of South Deep (40% of overall decrease) and lower processing rates across all other mines.

Average ore grades declined by 14% in 2007, mainly due to lower grades at North Mara after a revision to the mine plan resulting from pit wall instability experienced at Gokona Phase 1 pit during late 2006. Lower-grade areas of the pit were mined and processing of lower-grade ore stockpiles occurred while waste at the pit wall was removed. Mining was also affected by unfavorable drilling conditions, excess water in the pit, maintenance downtime on existing mining fleet, and continued low equipment availabilities during the year. Limited mining equipment availability resulted in delayed waste stripping, limiting access to the high-grade areas of the Gokona pit to the last two weeks of December. These access issues impacted ore grades as the limited ore from the Gokona pit was blended with lower grade stockpiles and ore from the Nyabigena pit. On January 1, 2008, a fire started in the engine of the primary excavator. This incident will have a negative impact on normal production capacity for the first half of 2008. An insurance claim for both physical damage and business interruption has been lodged with the insurers.

The combined effect of lower tons processed and lower average ore grades led to a 34% decrease in production in 2007 compared to the prior year. Production in 2007 was impacted by heavy rainfall in Tanzania in late 2006 and early 2007, which resulted in pit wall instability at both Tulawaka and North Mara, and required changes to the 2007 mine plan and production sequencing. At Tulawaka, the impact on production of the pit wall instability was mitigated as a result of mining in higher grade areas of the pit. Underground development commenced at Tulawaka during the third quarter 2007, with underground production expected to begin in early 2008.

At Bulyanhulu, production in 2007 was 26% lower than the prior year period due to lower mining rates caused by low equipment availability, mining in lower-grade areas of the mine, and labor disruptions. Ongoing labor disruptions experienced throughout the year escalated in the fourth quarter, as an illegal labor strike took place at the mine during late October, resulting in the termination of 1,300 employees. As a result of the reduced staff levels, the mine sequencing was revised, impacting our ability to access higher-grade areas and operate the plant at its full capacity. The mine is in the process of increasing its staff levels in stages, and expects to return to normal production capacity in early 2008.

Total cash costs per ounce for the region in 2007 were 30% higher than the prior year due to the lower production at North Mara and Bulyanhulu; higher waste mining at North Mara and Tulawaka; higher maintenance costs ($16 per ounce); and higher labor costs ($12 per ounce) as a result of costs relating to the labor strike at Bulyanhulu.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

In 2008, we expect gold production of 0.625 to 0.7 million ounces at total cash costs of $380 to $400 per ounce. Production is expected to increase primarily at Bulyanhulu, reflecting the resolution of labor issues, improved equipment availability, and higher ore grades. Total cash costs per ounce are expected to be lower in 2008, reflecting the increase in production levels.

Significant Projects

The Buzwagi project was approved for construction on August 1, 2007, and is expected to begin production in mid-2009. We spent $112 million through the end of 2007 as all long lead items have been ordered. Initial capital costs are expected to be about $400 million, which is consistent with our previous guidance. Site access was achieved on August 20, 2007, with the civil and earthworks, security fencing, building and infrastructure and transport and logistics contractors mobilized on site. Buzwagi is expected to produce 250 to 260 thousand ounces per year at total cash costs of $270-280 per ounce in its first five years. Proven and probable gold reserves at Buzwagi grew by 1.0 million ounces in 2007 to 3.6 million ounces.¹

Work on a pre-feasibility study for the Sedibelo platinum project in South Africa commenced in March 2006. Barrick has an earn-in right for a 50% interest. The pre-feasibility study was completed during September 2007 and cost $27 million. Acceptance of the Mining Rights application was received from the Department of Minerals and Energy (DME) in April 2007, and approval of the Mining Rights application is expected in April 2008. This acceptance signifies the start of an approval process during which technical, environmental and social issues are presented to the DME over a period extending into 2008. Study work and exploration drilling in support of a final feasibility study have commenced, with completion expected in the second quarter of 2008.

Other Significant Projects

Fedorova is a platinum and palladium project with nickel, copper and gold by-products located in the Kola Peninsula of the Russian Federation. We hold a 50% interest in Fedorova (with an earn-in right to 79%), and we are also the operator. Fedorova is a large near surface PGM (platinum group metals) deposit. Fedorova Resources successfully passed an inspection by state regulators and was determined to be in compliance with all material aspects of its license and state requirements.

Reko Diq is a large copper-gold porphyry mineral resource on the Tethyan belt, located in southwest Pakistan in the province of Baluchistan. The Tethyan belt is a prospective ground for large copper-gold porphyries. At Reko Diq, the drill program continued in fourth quarter 2007 with a feasibility study scheduled for completion in early 2009. A total of 101 thousand meters have been drilled to date and results continue to confirm the project’s district exploration potential. At year-end 2007, Barrick’s share of measured and indicated gold resources totaled 3.7 million ounces and its share of measured and indicated copper resources were 4.3 billion pounds. Inferred gold resources grew 6.1 million ounces to 10.5 million ounces and inferred copper resources increased by 9.1 billion pounds to 13.4 billion pounds.¹

In 2007, Zaldívar produced 315 million pounds of copper at a total cash cost of $0.70 per pound. Production was temporarily lower in the fourth quarter due to shortages in the availability of acid, power restrictions associated with a November earthquake and lower production from the secondary leach pad. Total cash costs per pound in 2007 were impacted by the increased cost of fuel and acid, which can be expected to increase further in 2008, along with inflationary and exchange rate pressure on labor and consumables, and the availability of electricity.

At Osborne, production increased by 47% to 87 million pounds from 59 million in the prior year, at cash costs of $1.37 compared to $1.53 in the prior year. Production was positively impacted by the paste fill plant that enabled mining of high grade pillars and higher throughput due to the inclusion of ore from the open pit at Trekelano.


¹		For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100 to 105 of this Financial Report 2007.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

REVIEW OF SIGNIFICANT OPERATING EXPENSES

Exploration Expense ($ millions)


	2007		2006		2005		Comments on significant variances

Exploration

North America	$	70	$	64	$	34	No significant change from the prior year.

South America		40		22		19	2007 vs. 2006 – Mainly due to higher activity in Lagunas Norte and Zaldívar.

Australia Pacific		46		44		13	No significant change from the prior year.

Africa		15		22		34	2007 vs. 2006 – Lower activity at Tulawaka and North Mara.

Other		8		19		9	Lower activity due mainly to the sale of exploration properties to Highland, discontinuation of active exploration in China and Turkey.

Total	$	179	$	171	$	109

Project Development Expense ($ millions)


	2007		2006		2005		Comments on significant variances

Mine development	$	146	$	78	$	2	2007 vs. 2006 – Expenditures are higher as development activities increased at Pueblo Viejo (increase of $42 million), and Sedibelo (increase of $12 million), partially offset by Donlin Creek (decrease of $5 million).

Business development/other		22		17		10	In 2007, expenditures were higher primarily as a result of energy feasibility studies. In 2006, expenditures were higher than 2005 due to an increase in research and development activity.

Non-capitalizable project costs		20		24		20	Non-capitalizable costs mainly represent items incurred in the development/construction phase that cannot be capitalized. 2007 vs. 2006 – Expenditures are lower due to additional spending at Pascua-Lama, offset by a decrease at Buzwagi where costs were capitalized starting in May 2007.

Total	$	188	$	119	$	32

Amortization Expense ($ millions)


	Incr. (decr.) due to
For the years ended	2007		Sales						2006		2005
December 31	Amount		Volumes¹			Other²			Amount³		Amount		Comments on other variances

Gold mines

North America	$	314	$	(3	)	$	70		$	247	$	213	Mainly due to the finalization of the Placer Dome purchase price allocation. Although there was a net increase in reserves for South America, reserves for Pierina and Veladero decreased resulting in a significant increase in amortization expense. Furthermore, we acquired an additional 20% interest in Porgera in August 2007, and Cowal in 2006.

South America		234		(22	)		129			127		101

Australia Pacific		239		(10	)		63			186		46

Africa		78		9			(19	)		88		49

Copper mines

South America		80		3			26			51		—	Mainly due to the finalization of the purchase price allocation for long-lived assets acquired with Placer Dome, combined with a net increase in reserves.

Australia Pacific		39		2			20			17		—

Sub total	$	984							$	716	$	409

Corporate assets		20		1						19		18

Total	$	1,004	$	(20	)	$	289		$	735	$	427


¹		For explanation of changes in sales volumes refer to page 17.

²		Other includes increases/decreases in amortization expense due to additions/dispositions of property, plant and equipment, purchase accounting adjustments and the impact of historic changes in reserve estimates on amortization refer to page 39.

³		On finalization of the Placer Dome purchase price allocation in 2007 certain amounts were reclassified for comparative purposes.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Amortization expense recorded in the first nine months of 2006 reflected preliminary purchase price allocations for the acquired Placer Dome mines. In fourth quarter 2006 valuations for the acquired mines were finalized, at which time amortization calculations were prospectively recorded to reflect adjustments to the preliminary allocation. On finalization of the purchase price allocation, consolidated average amortization rates increased by about $17 per ounce of gold and $0.13 per pound of copper due to the impact of final allocations.

Impairment Charges, Corporate Administration, Interest Income and Interest Expense


($ millions)
For the years ended December 31	2007		2006¹		2005		Comments on significant trends and variances

Impairment Charges²	$	65	$	23	$	16	Impairment charges increase in 2007 reflects goodwill impairment charges at our Golden Sunlight and Eskay Creek mines ($42 million) and write-down of Asset-Backed Commercial Paper (“ABCP”) ($20 million).

Corporate administration		155		142		71	2007 vs. 2006 –Mainly due to the strengthening of the Canadian dollar vs. the US dollar as costs are primarily in Canadian dollars.

Interest income		141		110		38	2007 vs. 2006 – Mainly due to higher average cash balances in 2007.

Interest costs

Total incurred		237		251		121	2007 vs. 2006 – Mainly due to a combination of factors: repayment of the $500 million, 7.5% debentures in second quarter 2007, termination of a second credit facility in third quarter 2006, and repayment of the first credit facility’s balance outstanding in October 2006 slightly offset by the $1,000 million of Copper-linked notes issued in October 2006.

Capitalized		124		102		118	Amounts capitalized each period reflect the number of projects in our pipeline. Reko Diq was added in fourth quarter 2006 which caused an increase in 2007. Costs were capitalized at Cowal in 2005 until it began production in April 2006.

Interest expense allocated to discontinued operations		—		23		—	Interest expense in 2006 related to South Deep.

Expensed	$	113	$	126	$	3


¹		Increase in 2006 relates to the increase in scale of the Company after the acquisition of Placer Dome. 2006 and 2007 values are more indicative of full-scale operations subsequent to the acquisition of Placer Dome.

²		As at December 31, 2007, we held $66 million of ABCPs which have matured, but for which no payment has been received. Our ownership of ABCP investments is comprised of trust units which have underlying investments in various securities. The underlying investments are further represented by residential mortgage backed securities, commercial mortgage backed securities, ’other’ asset backed securities and collateralized debt obligations. We have assessed the fair value of the ABCP considering the best available data regarding market conditions for such investments at December 31, 2007. We recorded an impairment of $20 million in 2007 on the ABCP investments. We have based the 30% impairment on our assessment of the credit, liquidity and market risk of the underlying investments in addition to third party valuation information. We believe that the valuation provided approximates fair value. The impairment of our ABCP investments has no affect on our strategy or covenant compliance.

Income Tax


	For the years ended December 31
percentages	2007			2006			2005

Effective tax rate on ordinary income		25	%		20	%		13	%
Deliveries into Corporate Gold Sales Contracts		7	%		4	%		3	%
Net currency translation gains on deferred tax balances		(4	%)		(1	%)		(2	%)
Canadian tax rate changes		3	%		1	%		—
Release of Tanzanian valuation allowances		(8	%)		—			—
Impact of change in Australian tax status		—			(2	%)		(1	%)

Actual effective tax rate		23	%		22	%		13	%

Our effective tax rate on ordinary income increased from 20% to 25% in 2007 primarily due to higher market gold prices, the impact of changes in the mix of production, and on the mix of taxable income in the various tax jurisdictions where we operate.

In 2007 we released valuation allowances totaling $156 million in Tanzania due to the impact of higher market gold prices on expected levels of taxable income in Tanzania.

Currency Translation

Deferred tax balances are subject to remeasurement for changes in currency exchange rates each period. The most significant balances are Canadian deferred tax assets with a carrying amount of approximately $439 million and Australian deferred tax liabilities with a carrying amount of approximately $95 million. In 2007, the appreciation of the Canadian and Australian dollar against the US dollar resulted in net translation gains totaling $76 million. These gains are included within the Canada and Australia deferred tax recovery.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Canadian Tax Rate Changes

In the second and fourth quarters of 2007 and the second quarter of 2006, federal rate changes were enacted in Canada that lowered the applicable tax rate. The impact of this tax rate change was to reduce net deferred tax assets in Canada by $64 million in 2007 and $35 million in 2006 which are recorded as a component of deferred income tax expense in the respective year. Also, in second quarter 2006, due to a change in the tax status of a Canadian subsidiary, we recorded a deferred income tax credit of $23 million to reflect the impact on the measurement of deferred income tax assets and liabilities.

Change in Tax Status in Australia

In first quarter 2006, an interpretative decision (“ID”) was issued by the Australia Tax Office that clarified the tax treatment of currency gains and losses on foreign denominated liabilities. Under certain conditions, for taxpayers who have made the functional currency election, and in respect of debt that existed at the time the election was made, the ID provided clarification that unrealized foreign exchange gains that currently exist on inter-company debt will not crystallize upon repayment of the debt. The effect of the ID was recorded as a $31 million reduction of deferred tax liabilities.

FINANCIAL OUTLOOK

2008 Guidance


	2007
	Actual			2008 Guidance

Gold
Production (millions of ounces)		8.1			7.6 - 8.1
Total cash costs ($ per ounce)	$	350		$	390-415
Amortization ($ per ounce)	$	104		$	105
Copper
Production (millions of pounds)		402			380 - 400
Total cash costs ($ per pound)	$	0.83		$1.15 to $1.25
Amortization ($ per pound)	$	0.32		$	0.35
Corporate administration expense	$	155		$	160
Exploration expense	$	179		$	200
Project expenses:
Project development expense	$	188		$	230
Project expense included in equity pick-up	$	14		$	140
Other expenses	$	208		$	200
Interest income	$	141		$	20
Interest expense	$	113		$	—
Capital expenditures-sustaining	$	690		$	600-800
Capital expenditures-projects	$	400			1,500-1,700
Income tax rate		25	%		30	%

Outlook Assumptions and Economic Sensitivity Analysis


	2008
	Guidance
Sensitivity	Assumption	Comments

Market gold price impact on royalties and production taxes	$800/oz	A 25$/oz increase in the market gold price causes a $1/oz increase in total cash costs.

Crude oil price impact on cost of oil consumption	$90/bbl	A $5 increase per barrel causes a $2/oz direct increase in total cash costs per ounce.

Electricity prices impact on cost of consumption	$280 million total spendw	A 10% increase per kwh causes a $4/oz increase in total cash costs per ounce.

2008 GUIDANCE ANALYSIS

Production

We prepare estimates of future production based on mine plans that reflect the expected method by which we will mine reserves at each mine. Actual gold and copper production may vary from these estimates for a number of reasons, including if the volume of ore mined and ore grade differs from estimates, which could occur because of changing mining rates; ore dilution; varying metallurgical and other ore characteristics; and short-term mining conditions that require different sequential development of ore bodies or mining in different areas of the mine. Mining rates are impacted by various risks and hazards inherent at each operation, including natural phenomena, such as inclement weather conditions, floods and earthquakes, and unexpected labor shortages or strikes.

The Company expects 2008 gold production of about 7.6 to 8.1 million ounces and copper production of about 380 to 400 million pounds. Lower gold production is expected in North America as a result of lower production at Golden Sunlight and Ruby Hill and the end of production from Eskay Creek, while production in South America, Australia and Africa is expected to be similar to 2007 levels.

Total Cash Costs

We prepare estimates of total cash costs based on expected costs associated with mine plans that reflect the expected method by which we will mine reserves at each mine. Total cash costs per ounce/pound are also affected by ore metallurgy that impacts gold and copper recovery rates, labor costs, the cost of mining supplies and services, foreign currency exchange rates and stripping costs incurred during the production phase of the mine. In the normal course of our operations, we



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

attempt to manage each of these risks to mitigate, where possible, the effect they have on our operating results.

Total cash costs are expected to be $390 to $415 per ounce for gold and $1.15 to $1.25 per pound for copper. Gold cash costs in 2008 are forecast to be higher than 2007 primarily due to higher energy costs, lower by-product silver credits from Eskay Creek, higher gold price related costs and some inflationary related increases. The Company has assumed an average WTI oil price of $90 per barrel in the 2008 guidance. This compares to an average price of $72 per barrel in 2007.

Total cash costs for copper are expected to be approximately $0.32 per pound higher than 2007, primarily as a result of increased costs for electricity and acid at Zaldívar.

Exploration and Project Development

Higher costs are expected in 2008 due to higher expenses for Pueblo Viejo as well as at Kainantu and Cerro Casale.

Interest Income and Interest Expense

We expect lower interest income in 2008 primarily due to lower market interest rates and lower average cash balances in 2008, after the acquisitions of Arizona Star; exploration licenses and the Kainantu gold mine from Highlands Pacific for cash consideration in fourth quarter 2007; and closing of the transaction to increase our ownership in Cortez to 100% in 2008. In 2008 we expect that all interest costs will be capitalized to projects.

Project Expenses

Project expenses are classified under a combination of project development expenses and equity method investments on our income statement. In aggregate, we expect to expense $370 million in 2008. The increase in our project expenses compared to 2007 reflects higher activity at our Reko Diq, Kabanga, Sedibelo, Cerro Casale and Kainantu projects in 2008.

The timing of the funding for project expenditures through equity method investments and the subsequent expense recognition vary. The funding is initially recorded as an increase in the carrying amount of our investment. Our share of expenses is recognized as amounts are spent on the projects through “equity in investees” in our consolidated statement of income. In 2008, we expect to recognize $140 million in expenses through equity in investees. Funding of a further $160 million will be reflected as an increase in the carrying amount of the investments in our consolidated balance sheet.

Capital Development Expenditures

Projects

We expect increased activity at our project sites, particularly, Pueblo-Viejo, Buzwagi, and Cortez Hills, resulting in increased expenditures in 2008.

Sustaining Capital

Capital expenditures at our existing operating mines are expected to increase in 2008 primarily in the Africa and Australia-Pacific regions for various drill programs to convert resources to reserves, partially offset by lower expenditures in South America.

Income Tax Rate

Our expected tax rate excludes the impact of currency translation gains/losses and changes in tax valuation allowances. The higher expected rate in 2008 mainly reflects the impact of higher gold prices on the mix of taxable income in the various tax jurisdictions where we operate.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

REVIEW OF QUARTERLY RESULTS

Quarterly Information ($ millions, except where indicated)


	2007									2006
	Q4		Q3		Q2		Q1			Q4		Q3		Q2		Q1

Sales^1,2	$	1,917	$	1,684	$	1,642	$	1,089		$	1,348	$	1,562	$	1,532	$	1,188
Net income		537		345		396		(159	)		418		405		459		224
Per share³ (dollars)		0.62		0.40		0.45		(0.18	)		0.48		0.47		0.53		0.29
Adjusted net income from continuing operations⁴		537		345		453		398			444		396		463		266
Per share³– basic (dollars)		0.62		0.40		0.53		0.46			0.50		0.46		0.54		0.34
EBITDA from continuing operations⁵		793		710		731		193			429		694		762		423
Per share³(dollars)		0.91		0.82		0.85		0.22			0.44		0.80		0.88		0.54
Adjusted EBITDA from continuing operations⁵		793		710		803		757			756		694		762		463
Per share³ (dollars)		0.91		0.82		0.93		0.87			0.88		0.80		0.88		0.62
Operating cash flow		676		557		336		163			331		748		658		385
Per share³(dollars)		0.78		0.64		0.39		0.19			0.38		0.87		0.76		0.50
Adjusted operating cash flow from continuing operations⁶		676		557		408		727			658		748		658		425
Per share³ (dollars)	$	0.78	$	0.64	$	0.47	$	0.84		$	0.76	$	0.87	$	0.76	$	0.55


¹		Prior period sales figures were adjusted for the impact of a change in classification of non-hedge derivative gains and losses. See page 45 for details.

²		Adjusted for the impact of reclassifying sales from our South Deep mine to discontinued operations in third quarter 2006.

³		Calculated using net income and weighted average number of shares outstanding under the basic method of earnings per share.

⁴		Excluding the impact of deliveries into Corporate Gold Sales Contracts. Adjusted net income from continuing operations is an operating performance measure with no standardized meaning under GAAP. For further information, please see page 43.

⁵		EBITDA from continuing operations excluding income tax expense, interest expense, interest income and amortization. Adjusted EBITDA from continuing operations excludes the impact of deliveries into Corporate Gold Sales Contracts, and is an operating performance measure with no standardized meaning under GAAP. For further information see pages 43 to 44.

⁶		Excluding the impact of deliveries into Corporate Gold Sales Contracts. Adjusted operating cash flow is an operating performance measure with no standardized meaning under GAAP. For further information see page 43.

Our financial results for the last eight quarters reflect the following general trends: rising spot gold prices with a corresponding rise in prices realized from gold sales, partly offset by higher total cash costs.

Fourth Quarter Results

Net income for fourth quarter 2007 was $537 million, $119 million higher than the prior year period, as higher per ounce margins on gold and copper sales volumes were partially offset by higher amortization and lower copper sales volumes. Fourth quarter 2006 net income was reduced by $312 million post-tax due to deliveries into Corporate Gold Sales Contracts.

In fourth quarter 2007, we produced 2.14 million ounces of gold and 101 million pounds of copper, compared to 2.44 million ounces and 110 million pounds in the same prior year quarter. Gold production for fourth quarter was lower than the same prior year period mainly due to lower production from Africa and South America.

Total cash costs for fourth quarter 2007 were $375 per ounce, an increase of $88 an ounce from the prior year. As expected, gold production and total cash costs per ounce in fourth quarter 2007 were impacted due to mine sequencing, waste stripping activities and inflationary pressures for items such as labor, energy, commodities, gold related costs and currency exchange rates.

In fourth quarter 2007, we generated adjusted operating cash flow of $676 million compared to $658 million in the same prior year quarter. The positive effects of higher realized gold and copper prices were partially offset by lower gold sales volumes and higher total cash costs.

Effect on Earnings Increase (Decrease)


	Three months ended December 31
	2007						2006
($ millions)	Pre-tax			Post-tax			Pre-tax			Post-tax

Gain on sale of South Deep	$	—		$	—		$	288		$	288
Cost of deliveries into fixed- Price Corporate Gold Sales Contracts		—			—			(327	)		(312	)
Tanzanian Tax Valuation Allowance release		156			156			—			—
Impact of change in enacted rates in Canada		(60	)		(60	)		—			—
Impairment charges		(59	)		(57	)		(23	)		(18	)
Gain on Highland vend-in		—			—			51			51
Unrealized gold and copper non- hedge derivative gains/(losses)		(3	)		(2	)		5			11

Total	$	34		$	37		$	(6	)	$	20



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCIAL CONDITION REVIEW

The following section explains how we manage our liquidity and capital resources to carry out our strategy and deliver results. Liquidity is managed dynamically, and factors that could impact liquidity are regularly monitored. The primary factors that affect liquidity include production levels, realized sales prices, cash production costs, working capital requirements, future capital expenditure requirements, scheduled repayments of long-term debt obligations, our credit capacity and expected future debt market conditions. Counterparties to the financial instrument contracts do not have unilateral and discretionary rights to accelerate settlement of financial instruments, and we are not subject to any margin calls.

Liquidity risk arises from our general funding needs and in the management of our assets, liabilities and optimal capital structure. We manage liquidity risk to maintain sufficient liquid financial resources to fund our balance sheet and meet our project pipeline commitments and obligations in a cost-effective manner.

Contractual Obligations and Commitments


	Payments due
($ millions)											2013 and
At December 31, 2007	2008		2009		2010		2011		2012		thereafter		Total

Long-term debt¹
Repayment of principal	$	101	$	105	$	49	$	29	$	92	$	2,809	$	3,185
Interest		196		190		183		179		175		2,459		3,382
Asset retirement obligations²		71		96		81		93		105		823		1,269
Capital leases		21		24		20		8		3		3		79
Operating leases		10		9		6		5		5		3		38
Restricted share units		14		32		42		—		—		—		88
Pension benefits		61		24		31		24		24		117		281
Other post-retirement obligations		3		3		3		3		3		11		26
Derivative liabilities³		101		27		25		9		3		—		165
Purchase obligations for supplies and consumables⁴		323		194		96		101		70		208		992
Capital commitments⁵		263		4		—		—		—		—		267
Social Development Costs		63		15		14		7		7		92		198

Total	$	1,227	$	723	$	549	$	458	$	487	$	6,525	$	9,969


¹		Long-term Debt and Interest-Included in long-term debt is $131 million in financing related to North Mara that is payable on demand. Our debt obligations do not include any subjective acceleration clauses or other clauses that enable the holder of the debt to call for early repayment, except in the event that we breach any of the terms and conditions of the debt or for other customary events of default. The Bulyanhulu and Veladero financings are collateralized by assets at the Bulyanhulu and Veladero mines, respectively. Other than this security, we are not required to post any collateral under any debt obligations. The terms of our debt obligations would not be affected by deterioration in our credit rating. Projected interest payments on variable rate debt were based on interest rates in effect at December 31, 2007. Interest is calculated on our long-term debt obligations using both fixed and variable rates.

²		Asset Retirement Obligations-Amounts presented in the table represent the undiscounted future payments for the expected cost of asset retirement obligations.

³		Derivative Liabilities-Amounts presented in the table relate to hedge contracts disclosed under notes 2 and 20 to the Financial Statements. Payments related to derivative contracts cannot be reasonably estimated given variable market conditions.

⁴		Purchase Obligations for Supplies and Consumables – Primarily include commitments related to community development costs to be incurred at the Pascua-Lama project in Chile and Argentina.

⁵		Capital Commitments-Purchase obligations for capital expenditures include only those items where binding commitments have been entered into. Commitments at the end of 2008 mainly related to construction capital at our projects.

Capital Expenditures Not Yet Committed

We expect to incur capital expenditures during the next five years for both projects and producing mines. The projects are at various development stages, from primarily exploration or scoping study stage through to the construction execution stage. The ultimate decision to incur capital at each potential site is subject to positive results which allow the project to advance past decision hurdles. Primary and significant projects in Barrick’s portfolio at December 31, 2007 include Cortez Hills, Buzwagi, Pascua-Lama, Pueblo Viejo, Donlin Creek, Fedorova and Reko Diq (refer to pages 21 to 25 for further details).

Contingencies – Litigation

We are currently subject to various litigation as disclosed in note 28 to the Financial Statements, and we may be involved in disputes with other parties in the future that may result in litigation. If we are unable to resolve these disputes favorably, it may have a material adverse impact on our financial condition, cash flow and results of operations.



BARRICK YEAR–END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Sources and Uses of Cash

Our liquidity needs can be met through a variety of sources, including: cash generated from operations, short-term borrowings and the issuance of long-term debt.

Cash inflow (outflow)


($ millions)
For the years ended December 31	2007			2006			2005

Operating activities	$	1,732		$	2,122		$	726
Investing activities		(1,562	)		(1,593	)		(1,180	)
Financing activities		(1,036	)		(1,347	)		93
Change in cash and equivalents	$	(836	)	$	2,006		$	(361	)

Operating cash flow decreased by $390 million in 2007 to $1,732 million compared to the prior year. Adjusted operating cash flow decreased by $121 million to $2,368 million compared to the $2,489 million recorded in 2006.


¹		Operating Cash flows adjusted for deliveries into Corporate Gold Sales Contracts.

Cash used in investing activities amounted to $1,562 million, primarily due to our ongoing acquisitions and capital expenditures to advance our project pipeline, partially offset by proceeds received from the sale of other investments. Significant investing activities in 2007 included the $722 million cash acquisition of Arizona Star, the $135 million cash acquisition of Kainantu, and the $259 million cash acquisition of an additional 20% interest in the Porgera mine. Capital expenditures, including capitalized interest, amounted to $1,046 million. We also realized $625 million in proceeds related to the sale of investments, the most significant being NovaGold ($221 million) and Gold Fields ($356 million).

Capital Expenditures


	For the year ended
	December 31
($ millions)	2007		2006		2005

Project capital expenditures

Pascua-Lama	$	175	$	113	$	98

Cowal		—		104		258

Ruby Hill		—		29		35

Cortez Hills		91		26		—

Buzwagi		75		—		—

Veladero		—				213

Lagunas Norte		—		—		100

Western 102 Power Plant		—		—		80

Tulawaka		—		—		5

Other		—		13		—

Sub-total	$	341	$	285	$	789

Regional capital expenditures

North America	$	156	$	202	$	103

South America		197		248		114

Australia Pacific		223		255		50

Africa		112		85		40

Other		17		12		8

Sub-total		705		802		315

Total	$	1,046	$	1,087	$	1,104

Cash used in financing activities for 2007 was $1,036 million, including repayment of $500 million of debentures that matured in 2007, $261 million of dividends paid, and $197 million to settle Placer Dome derivative positions, partially offset by $142 million in proceeds received on exercise of employee stock options.

Key Financial Ratios (millions, except ratios and percentage amounts)


					%
						inc/(dec)
	2007		2006		2007

Non–cash working capital¹	$	1,018	$	764		33	%
Net debt²	$	1,179	$	1,064		11	%
Net debt to equity ratio³		0.08:1		0.07:1		14	%
Current ratio⁴		4.03:1		4.85:1		(17	%)


¹		Represents current assets, excluding cash and equivalents, less current liabilities, excluding short-term debt obligations.

²		Represents long-term and short-term debt less cash and equivalents.

³		Represents net debt divided by total shareholders’ equity.

⁴		Represents current assets divided by current liabilities, excluding short-term debt obligations.

Non-cash working capital increased in 2007 mainly due to increases in inventory and other current asset levels



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

as compared to the prior year. Lower cash balances, partly offset by higher accounts payable at the close of 2007, caused our current ratio to decrease.

Through the combination of a strong balance sheet and positive operating cash flows, we have been able to secure financing, as required, to fund our capital projects and acquisitions. At current gold prices, we expect to continue to generate a significant amount of operating cash flow. We expect to use this cash flow predominantly to fund the capital requirements of our pipeline of projects.

Alternatives for sourcing our future capital needs include our significant cash position, unutilized credit facilities, future operating cash flow, project financings and public debt financings. These alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. We expect that, absent a material adverse change in a combination of our sources of liquidity and/or a significant decline in gold and copper prices, present levels of liquidity will be adequate to meet our expected capital needs. If we are unable to access project financing due to unforeseen political or other problems, we expect that we will be able to access public debt markets as an alternative source of financing. Any additional indebtedness would increase our debt payment obligations, and may negatively impact our results of operations.

Capital Structure
Shareholders’ Equity


Outstanding Share Data	Shares outstanding

As at February 7, 2008	No. of shares

Common shares		870,465,549
Special voting shares		1
Exchangeable shares¹		3,465,892
Stock options		12,706,450


¹		Represents Barrick Gold Inc. (“BGI”) exchangeable shares. Each BGI share is exchangeable for 0.53 Barrick common shares. At January 17th, 2008, these shares were convertible into approximately 1,836,923 Barrick common shares.

For further information regarding the outstanding shares and stock options, please refer to the Financial Statements and our 2007 Management Information Circular and Proxy Statement.

Dividend Policy

In 2007, we increased our annual dividend from $0.22 per common share to $0.30 per common share. The 36% increase in the dividend reflects our ability to generate substantial cash flows in the current strong gold price environment. With strong cash flow and an A-rated balance sheet, we have the financial resources to return additional value to shareholders and fund our project pipeline. The amount and timing of any dividends is within the discretion of our Board of Directors. The Board of Directors reviews the dividend policy semi-annually based on the cash requirements of our operating assets, exploration and development activities, as well as potential acquisitions, combined with our current and projected financial position.

Comprehensive Income

Comprehensive income consists of net income or loss, together with certain other economic gains and losses, that collectively are described as “other comprehensive income” or “OCI”, and excluded from the income statement.

In 2007, other comprehensive income of $32 million, after-tax, mainly included: gains of $257 million on hedge contracts designated for future periods, caused primarily by changes in currency exchange rates, copper prices, gold prices and fuel prices; reclassification adjustments totaling $185 million for gains on hedge contracts designated for 2007 that were transferred to earnings in 2007; $71 million transferred to earnings related to gains recorded on the sale of NovaGold and Gold Fields’ shares, and $58 million recorded as a result of changes in the fair value of investments held during the year.

Included in accumulated other comprehensive income at December 31, 2007 were unrealized pre-tax gains on currency hedge contracts totaling $356 million, based on December 31, 2007 market foreign exchange rates. The related hedge contracts are designated against operating costs and capital expenditures primarily over the next three years and are expected to help protect against the impact of the strengthening of the Australian and Canadian dollar against the US dollar. The hedge gains are expected to be recorded in earnings at the same time as the corresponding hedged operating costs and amortization of capital expenditures are also recorded in earnings.

Credit Rating


At February 21, 2008 from major rating agencies:

Standard and Poor’s (“S&P”)		A-
Moody’s		Baa1
DBRS		A

Through 2007, our ratings, as established by S&P, Moody’s and DBRS, have remained stable. Our ability to access unsecured debt markets and the related cost of debt financing is, in part, dependent upon maintaining an acceptable credit rating. Deterioration in our credit rating would not adversely affect existing debt securities, but could impact funding costs for any new debt



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

financing. The key factors impacting our credit rating include the following: our market capitalization; the strength of our balance sheet, including the amount of net debt and our debt-to-equity ratio; our net cash flow, including cash generated by operating activities and expected capital expenditure requirements; the quantity of our gold reserves; and our geo-political risk profile.

Off Balance Sheet Arrangements

Financial Instruments

We use a mixture of cash and long-term debt to maintain an efficient capital structure and ensure adequate liquidity exists to meet the cash needs of our business. A discussion of our liquidity and capital structure can be found on pages 32 to 33. We use interest rate contracts to mitigate interest rate risk that is implicit in our cash balances and outstanding long-term debt. In the normal course of business, we are inherently exposed to currency and commodity price risk. We use currency and commodity hedging instruments to mitigate these inherent business risks. We also hold certain derivative instruments that do not qualify for hedge accounting treatment. These non-hedge derivatives are described in note 20 to our Financial Statements. For a discussion of certain risks and assumptions that relate to the use of derivatives, including market risk, market liquidity risk and credit risk, refer to notes 2 and 20 to our Financial Statements. For a discussion of the methods used to value financial instruments, as well as any significant assumptions, refer to note 20 to our Financial Statements.

Summary of Financial Instruments¹ As at and for the year ended December 31, 2007


	Principal/Notional					Amounts
Financial Instrument	Amount	Associated Risks	Amounts Recorded in Earnings			Recorded in OCI

Cash and equivalents	$2,207 million	• Interest rate	$	138	million	—
		• Credit

Investments in available- for-sale securities	$ 142 million	• Market	$	71	miilion	$41 million

Long-term debt	$3,255 million	• Interest rate	$	113	million	—

Hedging instruments - - currency contracts	C $450 million A$4,518 million CLP 42 million	• Market/liquidity	$	190	million	$264 million

Copper hedges	444 million lbs	• Market/liquidity • Credit	$	(32)	million	$ 14 million

Acquired Placer Dome Gold hedges		• Market/liquidity • Credit	$	2	million	$ 15 million

Hedging instruments - fuel and propane contracts	4.5 million bbls	• Market/liquidity • Credit	$	29	million	$ 79 million

Debt hedging instruments - interest rate contracts	—	• Market/liquidity • Credit		—		$(17) million

Cash hedging instruments - interest rate contracts	—	• Market/liquidity • Credit	$	(3)	million	—

Non-hedge derivatives	various	• Market/liquidity • Credit	$	41	million	—


¹		Refer to pages 34 to 36 for information on gold and silver sales contracts.

At December 31, 2006, Barrick’s Corporate Gold Sales Contracts totaled 2.5 million ounces. In 2007, we reduced the Corporate Gold Sales Contract book to zero.

Project Gold Sales Contracts

In anticipation of building our projects, and in support of any related financing, we have 9.5 million¹ ounces of existing gold sales contracts specifically allocated to these projects. The allocation of these contracts will help reduce gold price risk at the projects and are expected to help secure financing for construction. We expect that the allocation of these contracts will eliminate any requirement by lenders to add any incremental gold sales contracts in the future to support any financing requirements. The contracting parties are bullion banks whose business includes entering into contracts to purchase gold from mining companies. The terms of our gold and silver sales contracts enable us to deliver gold and silver whenever we choose over the primarily ten-year term of the contracts. The forward sales prices on our Project Gold Sales Contracts have not been fully fixed, and thus remain sensitive to long-term interest rates. As part of our Master Trading Agreements (“MTAs”), Project Gold Sales Contracts are not subject to

1 Includes floating spot-price gold contracts under which we are committed to deliver 1.7 million ounces of gold at spot prices less an average fixed-price adjustment of $456 per ounce.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

any provisions regarding any financial go-ahead decisions with construction, or any possible delay or change in the project.

Key Aspects of Project Gold Sales Contracts


(as of December 31, 2007)

Expected delivery dates.¹	2011-2019, the approximate terms of expected financing
Future estimated average realizable selling price²	$435/ounce
Mark-to-market value at December 31, 2007 (millions) ³		$ (4,626	)


¹		The contract termination dates are in 2017 in most cases, but we currently expect to deliver production against these contracts starting in 2011, subject to production commencing at certain projects which is dependant on the timing of receipt of approvals of the environmental impact assessments, as well as the resolution of other external issues, both of which are largely beyond our control.

²		Upon delivery of production from 2011–2019, the term of expected financing. Approximate estimated value based on current market US dollar interest rates and on an average lease rate assumption of 0.75%.

³		At a spot gold price of $834 per ounce and market interest rates. Based on closing spot price of $913 per ounce on February 15, 2008, the mark-to-market liability is $(5,095).

The allocation of gold sales contracts to projects involves: (i) the identification of contracts in quantities and for terms that mitigate gold price risk for the project during the term of the expected financing (contracts were chosen where the existing termination dates are spread between the targeted first year of production and the expected retirement of financing for the project); and (ii) the eventual settlement of proceeds from these contracts for the benefit of production.

Through allocation of these gold sales contracts to these projects, we reduce capital risk. It protects the gold price during the term of the forecasted financing, while leaving the remaining reserves fully levered to spot gold prices.

Under the Project Gold Sales Contracts, we have an obligation to deliver gold by the termination date (currently 2017 in most cases). However, because we typically fix the price of gold under our gold sales contracts to a date that is earlier than the termination date of the contract (referred to as the “interim price-setting date”), the actual realized price on the contract termination date depends upon the actual gold market forward premium (“contango”) between the interim price-setting date and the termination date. Therefore, the $435/oz price estimate could change over time due to a number of factors, including, but not limited to: US dollar interest rates, gold lease rates, spot gold prices and extensions of the termination date. This price estimate, which is an average for the total Project Gold Sales Contract position, is not necessarily representative of the prices that may be realized for actual deliveries into gold sales contracts, in particular, if we choose to settle any gold sales contract in advance of the termination date (which we have the right to do at our discretion). If we choose to accelerate gold deliveries, this would likely lead to reduced contango that would otherwise have built up over time (and therefore a lower realized price).

Contango is typically closely correlated with the difference between US dollar interest rates and gold lease rates. An increase or decrease in US dollar interest rates would generally lead to a corresponding increase or decrease in contango, and therefore an increase or decrease in the estimated future price of the contract at the termination date. Furthermore, the greater the time period between the interim price-setting date and the termination date, the greater the sensitivity of the final realized price to US dollar interest rates.

A short-term spike in gold lease rates would not have a material negative impact on us because we are not significantly exposed under our Project Gold Sales Contracts to short-term gold lease rate variations. A prolonged rise in gold lease rates could result in lower contango (or negative contango, i.e. “backwardation”). Gold lease rates have historically tended to be low, and any spikes short-lived, because of the large amount of gold available for lending relative to demand.

Fixed-Price Silver Sales Contracts


(as of December 31, 2007)

Millions of silver ounces		10.5
Current termination date of silver sales contracts	2017 in most cases
Average estimated realizable selling price at 2017 termination date¹	$	9.04
Mark-to-market value at December 31, 2007²	$	(80	)


¹		Approximate estimated value based on current market contango of 2.50%. Accelerating silver deliveries could potentially lead to reduced contango that would otherwise have built up over time. Barrick may choose to settle any silver sales contract in advance of this termination date at any time, at its discretion. Historically, delivery has occurred in advance of the contractual termination date.

²		At a spot silver price of $14.76 per ounce.

We also have floating spot-price silver sales contracts under which we are committed to deliver 7.65 million ounces of silver over the next ten years at spot prices, less an average fixed-price adjustment, of $4.06 per ounce. These floating spot–price contracts were previously fixed-price contracts, for which, under the price-setting mechanisms of the MTAs, we elected to receive a price based on the market silver spot price at the time of delivery, adjusted by the difference between the spot price and the contract price at the time of such election.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Key Terms of Gold and Silver Sales Contracts

In all of our MTAs, which govern the terms of gold and silver sales contracts with our 18 counterparties, the following applies.

The counterparties do not have unilateral and discretionary “right to break” provisions.

There are no credit downgrade provisions.

We are not subject to any margin calls, regardless of the price of gold or silver.

We have the right to settle our gold and silver sales contracts on two days notice at any time during the life of the contracts, or keep these forward gold and silver sales contracts outstanding for up to 10 years.

At our option, we can sell gold or silver at the market price or the contract price, whichever is higher, up to the termination date of the contracts (currently 2017 in most cases).

The MTAs with our counterparties do provide for early close out of certain transactions in the event of a material adverse change in our ability, or our principal hedging subsidiary’s ability, to perform our or its gold and silver delivery and other obligations under the MTAs and related parent guarantees, a lack of gold or silver market and for customary events of default such as covenant breaches, insolvency or bankruptcy. The principal financial covenants are:

We must maintain a minimum consolidated net worth of at least $2 billion; it was $15 billion at year end. The MTAs exclude unrealized mark-to-market valuations in the calculation of consolidated net worth.

We must maintain a maximum long-term debt to consolidated net worth ratio of less than 2:1; we have consistently been below 1:1 for the entire year. In most cases, under the terms of the MTAs, the period over which we are required to deliver gold is extended annually by one year, or kept “evergreen”, regardless of the intended delivery dates, unless otherwise notified by the counterparty. This means that, with each year that passes, the termination date of most MTAs is extended into the future by one year.

As spot gold prices increase or decrease, the value of our gold mineral reserves and amount of potential operating cash inflows generally increase or decrease. The unrealized mark-to-market loss on our fixed-price gold sales contracts also increases or decreases. The mark-to-market value represents the cancellation value of these contracts based on current market levels, and does not represent an immediate economic obligation for payment by us. Our obligations under the project gold sales contracts are to deliver an agreed upon quantity of gold at a contracted price by the termination date of the contracts (currently 2017 in most cases). Project Gold Sales Contracts are not recorded on our balance sheet. The economic impact of these contracts is reflected in our Financial Statements within gold sales based on selling prices under the contracts at the time we record revenue from the physical delivery of gold and silver under the contracts.

Fair Value of Derivative Positions


As at December 31, 2007	Unrealized
($ millions)	Gain/(Loss)

Project Gold Sales Contracts	$	(3,888	)
Floating Spot-Price Gold Sales Contracts		(738	)
Silver Sales Contracts		(80	)
Floating Spot-Price Silver Sales Contracts		(31	)
Foreign currency contracts		241
Interest rate and gold lease contracts		(10	)
Fuel contracts		84
Copper contracts		74

Total	$	(4,348	)

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management has discussed the development and selection of our critical accounting estimates with the Audit Committee of the Board of Directors, and the Audit Committee has reviewed the disclosure relating to such estimates in conjunction with its review of this MD&A. The accounting policies and methods we utilize determine how we report our financial condition and results of operations, and they may require management to make estimates or rely on assumptions about matters that are inherently uncertain.

Our financial condition and results of operations are reported using accounting policies and methods prescribed by US GAAP. In certain cases, US GAAP allows accounting policies and methods to be selected from two or more alternatives, any of which might be reasonable yet result in our reporting materially different amounts. We exercise judgment in selecting and applying our accounting policies and methods to ensure that, while US GAAP compliant, they reflect our judgment



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

of an appropriate manner in which to record and report our financial condition and results of operations.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with US GAAP.

The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s Financial Statements. Due to its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may change.

Barrick’s annual management report on internal control over financial reporting and the integrated audit report of Barrick auditors for the year ended December 31, 2007 will be included in Barrick’s 2007 Annual Report and its 2007 Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities.

Accounting Policy Changes in 2007

This section includes a discussion of significant accounting changes that were adopted in our 2007 Financial Statements.

FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109 (“FIN 48”)

In June 2006, the Financial Accounting Standards Board (FASB) issued FIN 48, to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing that a minimum recognition threshold tax position is required to be met before being recognized in the financial statements. FIN 48 also provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. We adopted the provisions of FIN 48 on January 1, 2007. As a result of the implementation of FIN 48, an adjustment to the liability for unrecognized tax benefits was not required; consequently there was no cumulative effect adjustment to the January 1, 2007 balance of retained earnings.

Future Accounting Policy Changes

This section includes a discussion of future accounting changes that may have a significant impact on our Financial Statements.

FAS 157, Fair Value Measurements (FAS 157)

In September 2006, the FASB issued FAS 157 that provides enhanced guidance for using fair value to measure assets and liabilities. FAS 157 is meant to ensure that the measurement of fair value is more comparable and consistent, and improve disclosure about fair value measures. As a result of FAS 157 there is now a common definition of fair value to be used throughout US GAAP. FAS 157 applies whenever US GAAP requires (or permits) measurement of assets or liabilities at fair value. FAS 157 does not address when the use of fair value measurements is required.

In December 2007, the FASB issued FSP FAS 157-b, which provided a one year deferral for the implementation of FAS 157 for non-financial assets and liabilities. The deferral is intended to provide the FASB additional time to consider the effects of various implementation issues that have arisen, or that may arise, from the application of FAS 157. Barrick is required to implement the FAS 157 for financial assets and liabilities that are carried at fair value effective January 1, 2008. We do not expect the adoption of FAS 157 to have any significant impact on valuations of investments or derivative instruments.

FAS 141(R), Business Combinations (FAS 141(R))

In December 2007, the FASB issued FAS 141(R), which will replace FAS 141 prospectively effective for business combinations consummated after the effective date of December 15, 2008. Early adoption is not permitted. Under FAS 141(R), business acquisitions will be accounted for under the “acquisition method”, compared to the “purchase method” mandated by FAS 141.

The more significant changes to Barrick’s accounting for business combinations that will result from applying the acquisition method include: (i) the definition of a business



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

is broadened to include development stage entities, and therefore more acquisitions will be accounted for as business combinations rather than asset acquisitions; (ii) the measurement date for equity interests issued by the acquirer is the acquisition date instead of a few days before and after terms are agreed to and announced, which may significantly change the amount recorded for the acquired business if share prices differ from the agreement and announcement date to the acquisition date; (iii) all future adjustments to income tax estimates will be recorded to income tax expense, whereas under FAS 141 certain changes in income tax estimates were recorded to goodwill; (iv) acquisition-related costs of the acquirer, including investment banking fees, legal fees, accounting fees, valuation fees, and other professional or consulting fees will be expensed as incurred, whereas under FAS 141 these costs are capitalized as part of the business combination; (v) the assets acquired and liabilities assumed are recorded at 100% of fair value even if less than 100% is obtained, whereas under FAS 141 only the controlling interest’s portion is recorded at fair value; and (vi) the non-controlling interest will be recorded at its share of fair value of net assets acquired, including its share of goodwill, whereas under FAS 141 the non-controlling interest is recorded at its share of carrying value of net assets acquired with no goodwill being allocated.

FAS 160, Non-controlling Interests in Consolidated Financial Statements (FAS 160)

In December 2007, the FASB issued FAS 160, which is effective for fiscal years beginning after December 15, 2008. Under FAS 160, the non-controlling interest will be measured at 100% of the fair value of assets acquired and liabilities assumed. Under current standards, the non-controlling interest is measured at book value. For presentation and disclosure purposes, non-controlling interests will be classified as a separate component of shareholders’ equity. In addition, FAS 160 will change the manner in which increases/decreases in ownership percentages are accounted for. Changes in ownership percentages will be recorded as equity transactions and no gain or loss will be recognized as long as the parent retains control of the subsidiary. When a parent company deconsolidates a subsidiary but retains a non-controlling interest, the non-controlling interest is re-measured at fair value on the date control is lost and a gain or loss is recognized at that time. Finally, under FAS 160, accumulated losses attributable to the non-controlling interests are no longer limited to the original carrying amount, and therefore non-controlling interests could have a negative carrying balance. The provisions of FAS 160 are to be applied prospectively with the exception of the presentation and disclosure provisions, which are to be applied for all prior periods presented in the financial statements. Early adoption is not permitted.

Critical Accounting Estimates and Judgments

Certain accounting estimates have been identified as being “critical” to the presentation of our financial condition and results of operations because they require us to make subjective and/or complex judgments about matters that are inherently uncertain; or there is a reasonable likelihood that materially different amounts could be reported under different conditions or using different assumptions and estimates.

Reserve Estimates Used to Measure Amortization of Property, Plant and Equipment

We record amortization expense based on the estimated useful economic lives of long-lived assets. Changes in reserve estimates are generally calculated at the end of each year and cause amortization expense to increase or decrease prospectively. The estimate that most significantly affects the measurement of amortization is quantities of proven and probable gold and copper reserves, because we amortize a large portion of property, plant and equipment using the units-of-production method. The estimation of quantities of gold and copper reserves, in accordance with the principles in Industry Guide No. 7, issued by the US Securities and Exchange Commission (“SEC”) is complex, requiring significant subjective assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. Actual gold and copper production could differ from expected gold and copper production based on reserves, and an adverse change in gold or copper prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and gold, silver and copper recovery rates from estimates.

A key trend that could reasonably impact reserve estimates is rising market mineral prices, because the mineral price assumption is closely related to the trailing three–year average market price. As this assumption rises, it could result in an upward revision to reserve estimates as material not previously classified as a reserve becomes economic at higher gold prices. Following the recent trend in market gold prices over the last three years, the mineral price assumption used to measure reserves has also been rising. The gold price



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

assumption was $575 per ounce in 2007 (2006: $475 per ounce; 2005: $400 per ounce). The copper price assumption was $2.00 per pound in 2007 (2006: $1.75 for Osborne and $1.50 for all other copper reserves).

The impact of a change in reserve estimates is generally more significant for mines near the end of the mine life because the overall impact on amortization is spread over a shorter time period. Also, amortization expense is more significantly impacted by changes in reserve estimates at underground mines than open-pit mines due to the following factors: (1) underground development costs incurred to access ore at underground mines are significant and amortized using the units-of-production method; and (2) reserves at underground mines are often more sensitive to mineral price assumptions and changes in production costs. Production costs at underground mines are impacted by factors such as dilution, which can significantly impact mining and processing costs per ounce.

Impact of Historic Changes in Reserve Estimates on Amortization For the years ended Dec.31


	2007						2006
($ millions, except	Reserves		Amortization			Reserves		Amortization
reserves in millions of	increase		increase			increase		increase
contained oz/pounds)	(decrease)¹		(decrease)			(decrease)¹		(decrease)

Gold

North America		5.0	$	3			1.7	$	(6	)
South America		0.1		23			0.1		(35	)
Australia Pacific		3.5		(2	)		0.6		(16	)
Africa		0.5		(2	)		3.0		(18	)

Total Gold		9.1	$	22			5.4	$	(75	)

Copper
Australia Pacific		89		(6	)		—		—
South America		255		10			—		—

Total Copper		344	$	4			—	$	—


¹		Each year we update our reserve estimates as at the end of the year as part of our normal business cycle. Reserve changes presented were calculated at the beginning of the applicable fiscal year and are in millions of contained ounces.

Impairment Assessments of Operating Mines & Development Projects

We review and test the carrying amounts of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. We group assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For operating mines and development projects, all assets related to a mine or project are included in one group. If there are indications that impairment may have occurred at a particular mine site, we compare the sum of the undiscounted cash flows expected to be generated from that mine or project to its carrying amount. If the sum of undiscounted cash flows is less than the carrying amount, an impairment loss is recognized if the carrying amount of the individual long-lived assets within the group exceeds their fair values. Long-lived assets subject to potential impairment at operating mines and development projects include buildings, plant and equipment, and capitalized mineral property acquisition and mine development costs. For impairment assessment purposes, the estimated fair value of buildings, plant and equipment is based on a combination of current depreciated replacement cost and current market value. The estimated fair value of capitalized mineral property acquisition and mine development costs is based on a discounted cash flow model.

In fourth quarter 2007, Eskay Creek and Golden Sunlight were identified as having potential impairments. As a result, we compared the estimated fair value of the long-lived assets at Golden Sunlight and Eskay Creek to their carrying amount and determined that the fair value of the long-lived assets exceeded their carrying amounts.

Impairment Assessments of Exploration Projects

After acquisition, various factors can affect the recoverability of the capitalized cost of land and mineral rights, particularly the results of exploration drilling. The length of time between the acquisition of land and mineral rights and when we undertake exploration work varies based on the prioritization of our exploration projects and the size of our exploration budget. If we conclude that an impairment may exist, we compare the carrying amount to its fair value. The fair value for exploration projects is based on a discounted cash flow model. For projects that do not have reliable cash flow projections, a market approach is applied. In the event land and mineral rights are impaired, we reduce the carrying amount to the estimated fair value and an impairment loss is recognized.

Accounting for Goodwill and Goodwill Impairment

We allocate goodwill arising from business combinations to reporting units acquired by preparing estimates of the fair value of the entire reporting unit and comparing this amount to the fair value of assets and liabilities (including intangibles) in the reporting unit. The difference represents the amount of goodwill allocated to each reporting unit. We believe that goodwill arises principally because of the following factors: (1) the going concern value implicit in the Company’s ability to sustain/grow its business by increasing reserves and resources through new discoveries whose potential value was not identified at the time of acquisition; and (2) the ability to capture unique synergies from a business combination that can be realized from managing a portfolio of mines and mineral properties in the same geographic region.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

We test for impairment of goodwill on an annual basis and at any other time if events or a change in circumstances indicate that it is more likely than not that the fair value of a reporting unit has been reduced below its carrying amount. Circumstances that could trigger an impairment test include, but are not limited to: a significant adverse change in the business climate or legal factors; an adverse action or assessment by a regulator; the likelihood that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; adverse results of testing for recoverability of a significant asset group within a reporting unit; and a significant change to the operating plans for the reporting unit. The impairment test for goodwill is a two-step process. Step one consists of a comparison of the fair value of a reporting unit to its carrying amount, including the allocated goodwill. If the carrying amount of the reporting unit exceeds the fair value, step two requires the fair value of the reporting unit to be allocated to the underlying assets and liabilities of that reporting unit, resulting in an implied fair value of goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, we record an impairment charge equal to the excess.

In 2006, we determined that goodwill should be allocated to reporting units that would either represent components (individual mineral properties) or aggregations of components up to a regional business unit level. As at December 31, 2006, the process of determining the appropriate level to allocate goodwill was ongoing. In fourth quarter 2006, we completed impairment tests of goodwill assuming both no aggregation of mineral properties, and aggregation of mineral properties up to the regional business unit level and determined that there was no impairment at that date under either scenario. In second quarter 2007, we determined that each individual mineral property, that is an operating mine, is a reporting unit for the purposes of allocating goodwill. On this basis, we allocated goodwill arising from the Placer Dome acquisition to both acquired and existing mineral properties. Future impairment testing will be completed at that level.

Goodwill was allocated to acquired mineral properties considering the values of mineral properties exclusive of synergies between Barrick and Placer Dome. In addition, synergy values were allocated to all mineral properties, both existing and acquired, expected to benefit from the combination of the two companies. Allocating goodwill to individual mineral properties, which by their very nature have a limited useful life, will result in future goodwill impairment charges by the end of the mine life.

The timing and amount of future goodwill impairment charges is difficult to determine and will be dependent on a multitude of factors that impact valuations of mineral properties, including changes in observed market multiples for valuation purposes, changes in geo-political risk and country specific discount rates, changes in market gold prices and total cash costs, success in finding new reserves, future exploration potential and future capital requirements.

Gold mining companies typically trade at a market capitalization that is based on a multiple of net asset value (“NAV”), whereby NAV represents a discounted cash flow valuation based on projected future cash flows. For goodwill impairment testing purposes, we estimate the fair value of a gold property by applying a multiple to the reporting unit’s NAV, which is calculated based on projected cash flows from its most recent life of mine plan. For copper properties, the estimated fair value is based on their NAV and no multiple is applied. The process for determining these fair values is subjective and requires management to make estimates and assumptions including, but not limited to, projected future revenues (based on estimates of production and long-term metals prices), operating expenses, capital expenditures, remaining economic life of individual mineral properties, discount rates and NAV multiples. These estimates and assumptions are subject to change in the future due to uncertain competitive and market conditions or changes in business strategies. The projected future revenues, operating expenses, capital investment and estimated economic life for each individual mineral property is based on internal life of mine plans prepared for each property that we update in the fourth quarter of each fiscal year. Discount rates are based on a country-level real weighted average cost of capital. For individual mineral properties, the NAV multiple considers the median and/or average of observed multiples for comparable public gold companies with operations in similar geographic areas, as well as the property’s remaining economic life. In particular, our assumptions with respect to long-term gold prices and the appropriate NAV multiple to apply have a significant impact on our estimate of fair value. In fourth quarter 2007, we completed our annual goodwill impairment test using a long-term gold price of $800 per ounce and applying NAV multiples ranging from 1.0 to 2.0 depending on each property’s geographic location and remaining economic life. Based on this analysis, we recorded a goodwill impairment charge of $35 million at our Golden Sunlight mine and $7 million at our Eskay Creek mine. The goodwill charges at these mines are primarily a result of their short remaining economic lives of less than 1 year. No goodwill remains at our Eskay Creek mine and $9 million in goodwill remains at Golden Sunlight.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Individual mineral properties are wasting assets. Consequently, properties with a short remaining economic life are at a greater risk of incurring a near-term goodwill impairment charge. Based on our most recent life of mine plans, our Tulawaka, Henty, Pierina and Granny Smith mines have remaining economic lives of three years or less. The aggregate goodwill for these mineral properties is approximately $190 million.

Production Start Date

We assess each mine construction project to determine when a mine moves into production stage. The criteria used to assess the start date are determined based on the unique nature of each mine construction project, such as the complexity of a plant or its location. We consider various relevant criteria to assess when the mine is substantially complete and ready for its intended use and moved into production stage. Some of the criteria considered would include, but are not limited to, the following: (1) the level of capital expenditures compared to construction cost estimates; (2) completion of a reasonable period of testing of mine plant and equipment; (3) ability to produce minerals in saleable form (within specifications); and (4) ability to sustain ongoing production of minerals.

When a mine construction project moves into the production stage, the capitalization of certain mine construction costs ceases and costs are either capitalized to inventory or expensed, except for capitalizable costs related to property, plant and equipment additions or improvements, underground mine development or reserve development.

Fair Value of Asset Retirement Obligations (“AROs”)

AROs arise from the acquisition, development, construction and normal operation of mining property, plant and equipment, due to government controls and regulations that protect the environment and public safety on the closure and reclamation of mining properties. We record the fair value of an ARO in our Financial Statements when it is incurred and capitalize this amount as an increase in the carrying amount of the related asset. At operating mines, the increase in an ARO is recorded as an adjustment to the corresponding asset carrying amount and results in a prospective increase in amortization expense. At closed mines, any adjustment to an ARO is charged directly to earnings.

The fair values of AROs are measured by discounting the expected cash flows using a discount factor that reflects the credit-adjusted risk-free rate of interest. We prepare estimates of the timing and amounts of expected cash flows when an ARO is incurred, which are updated to reflect changes in facts and circumstances, or if we are required to submit updated mine closure plans to regulatory authorities. In the future, changes in regulations or laws or enforcement could adversely affect our operations; and any instances of non-compliance with laws or regulations that result in fines or injunctions or delays in projects, or any unforeseen environmental contamination at, or related to, our mining properties, could result in us suffering significant costs. We mitigate these risks through environmental and health and safety programs under which we monitor compliance with laws and regulations and take steps to reduce the risk of environmental contamination occurring. We maintain insurance for some environmental risks, however, for some risks, coverage cannot be purchased at a reasonable cost. Our coverage may not provide full recovery for all possible causes of loss. The principal factors that can cause expected cash flows to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics that ultimately impact the environment; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. In general, as the end of the mine life nears, the reliability of expected cash flows increases, but earlier in the mine life, the estimation of an ARO is inherently more subjective. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over periods up to 40 years and the assessment of the extent of environmental remediation work is highly subjective. Considering all of these factors that go into the determination of an ARO, the fair value of AROs can materially change over time.

At our operating mines, we continue to record AROs based on disturbance of the environment over time. It is reasonably possible that circumstances could arise during or by the end of the mine life that will require material revisions to AROs. In particular, the extent of water treatment can have a material effect on the fair value of AROs, and the expected water quality at the end of the mine life, which is the primary driver of the extent of water treatment, can change significantly. We periodically prepare updated studies for our mines, following which it may be necessary to adjust the fair value of AROs. The period of time over which we have assumed that water quality monitoring and treatment will be required has a significant impact on AROs at closed mines. The amount of AROs recorded reflects the expected cost, taking into account the probability of particular scenarios. The difference between the upper end of the range of these assumptions and the lower end



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

of the range can be significant, and consequently changes in these assumptions could have a material effect on the fair value of AROs and future earnings in a period of change.

At one closed mine, the principal uncertainty that could impact the fair value of the ARO is the manner in which a tailings facility will need to be remediated. In measuring the ARO, we have concluded that there are two possible methods that could be used. We have recorded the ARO using the more costly method until such time that the less costly method can be proven as technically feasible and approved.


AROs at December 31, 2007 ($ millions)	2007		2006

Operating mines	$	769	$	683
Closed mines		197		200
Development projects		—		10

Total	$	966	$	893

Deferred Tax Assets and Liabilities

Measurement of Temporary Differences

We are periodically required to estimate the tax basis of assets and liabilities. Where applicable tax laws and regulations are either unclear or subject to varying interpretations, it is possible that changes in these estimates could occur that materially affect the amounts of deferred income tax assets and liabilities recorded in our Financial Statements. Changes in deferred tax assets and liabilities generally have a direct impact on earnings in the period of changes.

Valuation Allowances

Each period, we evaluate the likelihood of whether some portion or all of each deferred tax asset will not be realized. This evaluation is based on historic and future expected levels of taxable income, the pattern and timing of reversals of taxable temporary timing differences that give rise to deferred tax liabilities, and tax planning activities. Levels of future taxable income are affected by, among other things, market gold prices, and production costs, quantities of proven and probable gold and copper reserves, interest rates and foreign currency exchange rates. If we determine that it is more likely than not (a likelihood of more than 50%) that all or some portion of a deferred tax asset will not be realized, then we record a valuation allowance against the amount we do not expect to realize. Changes in valuation allowances are recorded as a component of income tax expense or recovery for each period. The most significant recent trend impacting expected levels of future taxable income and the amount of valuation allowances, has been rising gold and copper prices. A continuation of this trend could lead to the release of some of the valuation allowances recorded, with a corresponding effect on earnings in the period of release. In 2007, we released $156 million of an end of year valuation allowances in Tanzania due to the estimated effect of higher market gold prices on the ability to utilize deferred tax assets. We released other valuation allowances during 2007 totaling $88 million, partly because sources of income became available that enabled tax losses to be realized.

In 2006, we released $25 million of valuation allowances in the United States due to the estimated effect of higher market gold prices on the ability to utilize deferred tax assets. Also in 2006, we released $9 million of valuation allowances in a Chilean entity due to the availability of income, and we released valuation allowances of $19 million in Canada, reflecting utilization of capital losses.

In 2005, we released valuation allowances totaling $31 million in Argentina relating to the effect of the higher gold price environment and the anticipated commencement of sales in 2006. We released valuation allowances of $2 million in Canada reflecting utilization of capital losses.


Valuation allowances at December 31 ($ millions)	2007		2006

United States	$	190	$	211
Chile		105		110
Argentina		26		46
Canada		55		59
Tanzania		30		217
Other		13		15

Total	$	419	$	658

United States: most of the valuation allowances relate to Alternative Minimum (AMT) Tax credits, which have an unlimited carry-forward period. Increasing levels of future taxable income due to higher gold selling prices and other factors and circumstances may result in our becoming a regular taxpayer under the US regime, which may cause us to release some, or all, of the valuation allowance on the AMT credits.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Chile, Argentina and Tanzania: the valuation allowances relate to the full amount of tax assets in subsidiaries that do not have any present sources of gold production or taxable income. In the event that these subsidiaries have sources of taxable income in the future, we may release some or all of the valuation allowances.

Canada: substantially all of the valuation allowances relate to capital losses that can only be utilized if any capital gains are realized.

NON-GAAP OPERATING PERFORMANCE MEASURES

Adjusted Net Income and Adjusted Operating Cash Flow

Adjusted net income, adjusted net income per share, adjusted operating cash flow and adjusted operating cash flow per share, each exclude the impact of deliveries into Corporate Gold Sales Contracts. These are non GAAP financial measures. Management uses these measures internally to better assess performance trends for the Company as a whole. Management understands that a number of investors and others who follow the Company’s performance also assess performance in this way. Barrick’s elimination of all its remaining Corporate Gold Sales Contracts in the first half of 2007 resulted in an unusually large opportunity cost of $623 million. Management believes that these measures better reflect Barrick’s performance for the current period and are a better indication of its expected performance in future periods. Barrick management’s budgeting, operational and capital investment decisions are based on production being sold at an assumed spot price, rather than the price under the Corporate Gold Sales Contracts. The presentation of these performance measures enable investors to understand performance based on selling gold production at spot market prices, which is the method expected from third quarter 2007 onwards. Adjusted net income, adjusted net income per share, adjusted operating cash flow and adjusted operating cash flow per share are intended to provide additional information, do not have any standardized meaning prescribed by US GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with US GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under US GAAP. Other companies may calculate these measures differently. The following table reconciles these non-GAAP measures to the most directly comparable US GAAP measure.

Reconciliation of Net Income to Adjusted Net Income and Operating Cash Flow to Adjusted Operating Cash Flow


	For the years ended
	December 31
($ millions, except per share amounts in dollars	2007		2006		2005

Net income from continuing operations	$	1,110	$	1,209	$	395
Impact of elimination of Corporate Gold Sales Contracts		623		352		55
Adjusted net income from continuing operations	$	1,733	$	1,561	$	450

Earnings per share from continuing operations¹	$	1.28	$	1.44	$	0.74
Impact of elimination of Corporate Gold Sales Contracts		0.72		0.42		0.10
Adjusted net income per share from continuing operations¹	$	2.00	$	1.86	$	0.84

Operating cash flow from continuing operations	$	1,732	$	2,122	$	726
Impact of elimination of Corporate Gold Sales Contracts		636		367		56
Adjusted operating cash flow from continuing operations	$	2,368	$	2,489	$	782

Operating cash flow per share from continuing operations¹	$	2.00	$	2.52	$	1.35
Impact of elimination of Corporate Gold Sales Contracts		0.73		0.44		0.10
Adjusted operating cash flow per share from continuing operations¹	$	2.73	$	2.96	$	1.45


¹		Calculated using net income and weighted average number of shares outstanding under the Basic method of earnings per share.

EBITDA and Adjusted EBITDA

EBITDA, adjusted EBITDA, EBITDA per share and adjusted EBITDA per share are non-GAAP financial measures. EBITDA and EBITDA per share represent net income, excluding income tax expense, interest expense, interest income and amortization. Adjusted EBITDA and adjusted EBITDA per share represents net income, excluding income tax expense, interest expense, interest income and amortization, adjusted to reflect the impact of the deliveries into Corporate Gold Sales Contracts. We believe that EBITDA, adjusted EBITDA, EBITDA per share and adjusted EBITDA per share trends are valuable indicators of whether our operations are able to produce sufficient operating cash flow to fund working capital needs, to service our debt obligations, and to fund capital expenditures. We currently use the results depicted by



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

EBITDA, adjusted EBITDA, EBITDA per share and adjusted EBITDA per share for these purposes. EBITDA, adjusted EBITDA , EBITDA per shares and adjusted EBITDA per share are intended to provide additional information, do not have any standardized meaning prescribed by US GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with US GAAP. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under US GAAP. Other companies may calculate these measures differently. The following table reconciles these non-GAAP measures to the most directly comparable US GAAP measure.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA


	For the Years ended
	December 31
($ millions, except per share amounts in dollars)	2007			2006			2005

Net income from continuing operations	$	1,110		$	1,209		$	401
Income taxes		(341	)		(348	)		(60	)
Interest expense		(113	)		(126	)		(3	)
Interest income		141			110			38
Amortization		1,004			735			427

EBITDA from continuing operations	$	2,427		$	2,308		$	847
per share ¹		2.80			2.74			1.58
Impact of elimination of Corporate Gold Sales Contracts		636			367			56
Adjusted EBITDA from continuing operations¹		3,063			2,675			903
per share²	$	3.53		$	3.18		$	1.68


¹		Calculated using EBITDA and weighted average number of shares outstanding under the Basic method of earnings per share.

²		Calculated using adjusted EBITDA and weighted average number of shares outstanding under the Basic method of earnings per share.

Realized Prices

Management uses a performance measure internally that represents revenues under US GAAP, adjusted for unrealized gains and losses on non-hedge derivatives. The use of this measure is intended to enable management to better understand the price realized each period for gold and copper sales. Management believes that this measure better reflects Barrick’s performance in each period and is a better indication of its expected performance in future periods. Changes in the unrealized mark-to-market value of non-hedge gold and copper derivatives occur each period due to changes in market factors such as spot and forward gold and copper prices. The exclusion of such unrealized mark-to-market gains and losses from the presentation of this performance measure enables investors to understand performance based on the realized proceeds of selling gold and copper production. Management includes such unrealized mark-to-market gains and losses in a list of “special items” that have affected its results. These gains and losses relate to derivative instruments that mature in future periods, at which time the gains and losses will become realized. The amounts of these gains and losses reflect fair values based on market valuation assumptions at the end of each period and do not necessarily represent the amounts that will become realized on maturity. Barrick’s realized price statistics, excluding unrealized mark-to-market value of non-hedge gold and copper derivatives, are intended to provide additional information, do not have any standardized meaning prescribed by US GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with US GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under US GAAP. Other companies may calculate these measures differently. The following table reconciles these non-GAAP measures to the most directly comparable US GAAP measure.



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Illustration of Impact of Excluding Unrealized Gains and Losses on Non-Hedge Derivatives from Realized Prices


	For the Years ended
	December 31
	Gold								Copper
	2007			2006		2005			2007			2006

Sales¹	$	5,027		$	4,493	$	2,348		$	1,305		$	1,137
Sales attributable to non-controlling interests²		(38	)		52		(15	)		—			—
Sales – equity basis		4,989			4,545		2,333			1,305			1,137
Unrealized non-hedge gold/copper derivative (gains) losses		(2	)		7		—			(26	)		14
Sales — equity basis, excluding non-hedge gold/copper derivative (gains) losses		4,987			4,552		2,333			1,279			1,151
Sales (thousands of ounces/millions lbs)		8,055			8,390		5,320			401			376
Realized gold/copper price per oz/lb (including unrealized non-hedge gold/copper derivative gains and losses)		619			542		439			3.25			3.02
Unrealized non-hedge gold/copper derivative (gains) losses–per ounce/pound		—			1		—			(0.06	)		0.04
Realized gold/copper price per oz/lb (excluding unrealized non-hedge gold/copper derivative gains and losses)	$	619		$	543	$	439		$	3.19		$	3.06


¹		As per Barrick’s income statement.

²		Gold sales include sales attributable to South Deep in 2006, included in discontinued operations.

Total Cash Costs

Total cash costs per ounce are a non-GAAP financial measure. Total cash costs per ounce include all costs absorbed into inventory, as well as royalties, by-product credits, production taxes and accretion expense, and exclude inventory purchase accounting adjustments and amortization. The presentation of these statistics in this manner allows us to monitor and manage those factors that impact production costs on a monthly basis. We calculate total cash costs based on our equity interest in production from our mines. Total cash costs per ounce/pound are calculated by dividing the aggregate of these costs by gold ounces, copper pounds sold or ore tons mined. Total cash costs and total cash costs per ounce/pound are calculated on a consistent basis for the periods presented. In our income statement, we present amortization separately from cost of sales. Some companies include amortization in cost of sales, which results in a different measurement of cost of sales in the income statement. We have provided below reconciliations to illustrate the impact of excluding amortization and inventory purchase accounting adjustments from total cash costs per ounce/pound statistics. Under purchase accounting rules, we recorded the fair value of acquired work in progress and finished goods inventories as at the date of the Placer Dome acquisition. As the acquired inventory is sold, any purchase accounting adjustments, reflected in the carrying amount of inventory at acquisition, impacts cost of sales. The method of valuing these inventories is based on estimated selling prices less costs to complete and a reasonable profit margin. Consequently, the fair values do not necessarily reflect costs to produce consistent with ore mined and processed into gold and copper after the acquisition.

We believe that using an equity interest presentation is a fairer, more accurate way to measure economic performance than using a consolidated basis. For mines where we hold less than a 100% share in the production, we exclude the economic share of gold production that flows to our partners who hold a non-controlling interest. Consequently, for the Tulawaka mine, although we fully consolidated this mine in our Financial Statements, our production and total cash cost statistics only reflect our equity share of the production.
In managing our mining operations, we disaggregate cost of sales between amortization and the other components of cost of sales. We use total cash costs per ounce/pound statistics as a key performance measure internally to monitor the performance of our regional business units. We use these statistics to assess how well our regional business units are performing against internal plans, and also to assess the overall effectiveness and efficiency of our mining operations. We also use amortization costs per ounce/pound statistics to monitor business performance. By disaggregating cost of sales into these two components and separately monitoring them, we are able to better identify and address key performance trends. We believe that the presentation of these statistics in this manner in our MD&A, together with commentary explaining trends and changes in these statistics, enhances the ability of investors to assess our performance. These statistics also enable investors to better understand year-over-year changes in cash production costs, which in turn affect our profitability and ability to generate cash flow.

The principal limitation associated with total cash costs per ounce/pound statistics is that they do not reflect the total costs to produce gold/copper, which in turn impacts the earnings of Barrick. We believe that we have



BARRICK YEAR-END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

compensated for this limitation by highlighting the fact that total cash costs exclude amortization and inventory purchase accounting adjustments as well as providing details of the financial effect. We believe that the benefits of providing disaggregated information outweigh the limitation in the method of presentation of total cash costs per ounce/pound statistics.

Total cash costs per ounce/pound statistics are intended to provide additional information, do not have any standardized meaning prescribed by US GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with US GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under US GAAP. Other companies may calculate these measures differently.

Illustration of Impact of Excluding Certain Costs from Total Cash Costs per Ounce/Pound


	For the years ended December.31
				Gold						Copper¹
($ millions, except per ounce/pound information in dollars)	2007			2006			2005			2007			2006

Cost of sales²	$	2,842		$	2,348		$	1,214		$	342		$	393
Cost of sales at South Deep included in discontinued operations		—			101			—			—			—
Cost of sales attributable to non-controlling interests³		(15	)		(63	)		(8	)		—			—
Inventory purchase accounting adjustments included in cost of sales⁴		—			(11	)		—			(9	)		(97	)

Cost of sales – equity basis		2,827			2,375			1,206			333			296

Amortization at producing mines – consolidated		865			648			409			119			68
Amortization at South Deep included in discontinued operations		—			18			—			—			—
Amortization at producing mines attributable to non-controlling interests³		(6	)		(16	)		(5	)		—			—

Amortization at producing mines – equity basis		859			650			404			119			68
Inventory purchase accounting adjustments⁴		—			11			—			9			97

Cost of sales including amortization and inventory purchase accounting adjustments – equity basis	$	3,686		$	3,036		$	1,610		$	461		$	461


¹		The 2005 comparative periods for copper have been omitted as we did not produce any significant amounts of copper prior to the production from the copper mines acquired with Placer Dome.

²		The aggregate amount of cost of sales for gold and copper is as per Barrick’s income statement.

³		Relates to a 70% interest in Tulawaka and a 50% interest in South Deep prior to 2007.

⁴		Based on our equity interest.

Total cash costs per ounce/pound (per ounce/pound information in dollars)


	For the years ended December 31
				Gold						Copper¹
(Per ounce/pound information in dollars)	2007			2006			2005			2007		2006

Ounces/pounds sold – consolidated (thousands/millions)		8,108			8,566			5,333			401		376

Sales attributable to non-controlling interests¹		(53	)		(176	)		(13	)		—		—

Ounces/pounds sold – equity basis		8,055			8,390			5,320			401		376

Total cash costs per ounce/pound – equity basis	$	350		$	283		$	227		$	0.83	$	0.79

Amortization per ounce/pound – equity basis		104			81			76			0.30		0.17

Inventory purchase accounting adjustments per ounce/pound		—			1			—			0.02		0.26
Cost of sales and amortization per ounce/pound attributable to non-controlling interests²		1			9			8			—		—

Total costs per ounce/pound³ – consolidated basis	$	455		$	374		$	311		$	1.15	$	1.22


¹		The 2005 comparative periods for copper have been omitted as we did not produce any significant amounts of copper prior to the production from the copper mines acquired with Placer Dome.

²		Relates to a 70% interest in Tulawaka and a 50% interest in South Deep prior to 2007.

³		Includes amortization, amounts attributable to non-controlling interests and inventory purchase accounting adjustments.



BARRICK YEAR–END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

GLOSSARY OF TECHNICAL TERMS

AUTOCLAVE: Oxidation process in which high temperatures and pressures are applied to convert refractory sulfide mineralization into amenable oxide ore.

BACKFILL: Primarily waste sand or rock used to support the roof or walls after removal of ore from a stope.

BY-PRODUCT: A secondary metal or mineral product recovered in the milling process such as copper and silver.

CONCENTRATE: A very fine, powder-like product containing the valuable ore mineral from which most of the waste mineral has been eliminated.

CONTAINED OUNCES: Represents ounces in the ground before reduction of ounces not able to be recovered by the applicable metallurgical process.

CONTANGO. The positive difference between the spot market gold price and the forward market gold price. It is often expressed as an interest rate quoted with reference to the difference between inter-bank deposit rates and gold lease rates.

DEVELOPMENT: Work carried out for the purpose of opening up a mineral deposit. In an underground mine this includes shaft sinking, crosscutting, drifting and raising. In an open pit mine, development includes the removal of overburden.

DILUTION: The effect of waste or low-grade ore which is unavoidably included in the mined ore, lowering the recovered grade.

DORÉ: Unrefined gold and silver bullion bars usually consisting of approximately 90 percent precious metals that will be further refined to almost pure metal.

DRILLING:

Core: drilling with a hollow bit with a diamond cutting rim to produce a cylindrical core that is used for geological study and assays. Used in mineral exploration.

In-fill: any method of drilling intervals between existing holes, used to provide greater geological detail and to help establish reserve estimates.

EXPLORATION: Prospecting, sampling, mapping, diamond-drilling and other work involved in searching for ore.

GRADE: The amount of metal in each ton of ore, expressed as troy ounces per ton or grams per tonne for precious metals and as a percentage for most other metals.

Cut-off grade: the minimum metal grade at which an orebody can be economically mined (used in the calculation of ore reserves).

Mill-head grade: metal content of mined ore going into a mill for processing.

Recovered grade: actual metal content of ore determined after processing.

Reserve grade: estimated metal content of an orebody, based on reserve calculations.

HEAP LEACHING: A process whereby gold is extracted by “heaping” broken ore on sloping impermeable pads and continually applying to the heaps a weak cyanide solution which dissolves the contained gold. The gold-laden solution is then collected for gold recovery.

HEAP LEACH PAD: A large impermeable foundation or pad used as a base for ore during heap leaching.

MILL: A processing facility where ore is finely ground and thereafter undergoes physical or chemical treatment to extract the valuable metals.

MINERAL RESERVE: See pages 100 to 105 — “Summary Gold Mineral Reserves and Mineral Resources.”

MINERAL RESOURCE: See pages 100 to 105 — “Summary Gold Mineral Reserves and Mineral Resources.”

MINING CLAIM: That portion of applicable mineral lands that a party has staked or marked out in accordance with applicable mining laws to acquire the right to explore for and exploit the minerals under the surface.

MINING RATE: Tons of ore mined per day or even specified time period.

OPEN PIT: A mine where the minerals are mined entirely from the surface.

ORE: Rock, generally containing metallic or non–metallic minerals, which can be mined and processed at a profit.

ORE BODY: A sufficiently large amount of ore that can be mined economically.

OUNCES: Troy ounces of a fineness of 999.9 parts per 1,000 parts.

RECLAMATION: The process by which lands disturbed as a result of mining activity are modified to support beneficial land use. Reclamation activity may include the removal of buildings, equipment, machinery and other physical remnants of mining, closure of tailings storage facilities, leach pads and other mine features, and contouring, covering and re–vegetation of waste rock and other disturbed areas.

RECOVERY RATE: A term used in process metallurgy to indicate the proportion of valuable material physically recovered in the processing of ore. It is generally stated as a percentage of the material recovered compared to the total material originally present.

REFINING: The final stage of metal production in which impurities are removed from the molten metal.

STRIPPING: Removal of overburden or waste rock overlying an ore body in preparation for mining by open pit methods. Expressed as the total number of tons mined or to be mined for each ounce of gold.

TAILINGS: The material that remains after all economically and technically recoverable precious metals have been removed from the ore during processing.



BARRICK YEAR–END 2007		MANAGEMENT’S DISCUSSION AND ANALYSIS

Consolidated Statements of Income

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars, except per share data)


	2007			2006			2005

Sales (notes 4 and 5)	$	6,332		$	5,630		$	2,348

Costs and expenses
Cost of sales¹ (note 6)		3,184			2,741			1,198
Amortization (note 4)		1,004			735			427
Corporate administration		155			142			71
Exploration (notes 4 and 7)		179			171			109
Project development expense (note 7)		188			119			32
Other expense (note 8A)		208			216			114
Impairment charges (note 8B)		65			23			16

		4,983			4,147			1,967

Interest income		141			110			38
Interest expense (note 20B)		(113	)		(126	)		(3	)
Other income (note 8C)		103			93			46

		131			77			81

Income from continuing operations before income taxes and other items		1,480			1,560			462
Income tax expense (note 9)		(341	)		(348	)		(60	)
Non-controlling interests (note 2C)		14			1			(1	)
Equity in investees (note 12)		(43	)		(4	)		(6	)

Income from continuing operations		1,110			1,209			395
Income from discontinued operations (note 3G)		9			297			—

Income before cumulative effect of changes in accounting principles		1,119			1,506			395
Cumulative effect of changes in accounting principles		—			—			6

Net income for the year	$	1,119		$	1,506		$	401

Earnings per share data (note 10)
Income from continuing operations
Basic	$	1.28		$	1.44		$	0.74
Diluted	$	1.27		$	1.42		$	0.73
Net income
Basic	$	1.29		$	1.79		$	0.75
Diluted	$	1.28		$	1.77		$	0.75


¹		Exclusive of amortization (note 6).

The accompanying notes are an integral part of these consolidated financial statements.



BARRICK YEAR-END 2007		FINANCIAL STATEMENTS (UNAUDITED)

Consolidated Statements of Cash Flow

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)


	2007			2006			2005

OPERATING ACTIVITIES
Net income	$	1,119		$	1,506		$	401
Amortization (note 4)		1,004			735			427
Income tax expense (notes 9 and 23)		341			348			60
Gains on sale of investments (note 8C)		(71	)		(6	)		(17	)
Revisions to AROs at closed mines (notes 8A and 21)		6			53			15
Income taxes paid		(585	)		(280	)		(80	)
Income from discontinued operations (note 3H)		(9	)		(297	)		—
Other items (note 11A)		(73	)		63			(80	)

Net cash provided by operating activities		1,732			2,122			726

INVESTING ACTIVITIES
Property, plant and equipment
Capital expenditures (note 4)		(1,046	)		(1,087	)		(1,104	)
Sales proceeds		100			8			8
Acquisitions, net of cash acquired of $13 million (2006: $1,108 million) (note 3)		(1,122	)		(208	)		—
Investments (note 12)
Purchases		(11	)		(369	)		(89	)
Sales		625			46			10
Reclassifications (note 12)		(66	)		—			—
Other investing activities (note 11B)		(42	)		17			(5	)

Net cash used in investing activities		(1,562	)		(1,593	)		(1,180	)

FINANCING ACTIVITIES
Capital stock
Proceeds on exercise of stock options		142			74			92
Dividends (note 24A)		(261	)		(191	)		(118	)
Long-term debt (note 20B)
Proceeds		408			2,189			179
Repayments		(1,128	)		(1,581	)		(59	)
Settlement of derivative instruments acquired with Placer Dome		(197	)		(1,840	)		—
Other financing activities		—			2			(1	)

Net cash (used in) provided by financing activities		(1,036	)		(1,347	)		93

CASH FLOW OF DISCONTINUED OPERATIONS
Operating activities		21			29			—
Investing activities		—			2,788			—
Financing activities		—			11			—

		21			2,828			—

Effect of exchange rate changes on cash and equivalents		9			(4	)		—

Net increase (decrease) in cash and equivalents		(836	)		2,006			(361	)
Cash and equivalents at beginning of year (note 20A)		3,043			1,037			1,398

Cash and equivalents at end of year (note 20A)	$	2,207		$	3,043		$	1,037

The accompanying notes are an integral part of these consolidated financial statements.



BARRICK YEAR-END 2007		FINANCIAL STATEMENTS (UNAUDITED)

Consolidated Balance Sheets

Barrick Gold Corporation
At December 31,
(in millions of United States dollars)


	2007		2006

ASSETS
Current assets
Cash and equivalents (note 20A)	$	2,207	$	3,043
Accounts receivable (note 14)		256		234
Inventories (note 13)		1,118		931
Other current assets (note 14)		707		588

		4,288		4,796

Non-current assets
Investments (note 12)		142		646
Equity method investments (note 12)		1,074		327
Property, plant and equipment (note 15)		8,596		8,390
Intangible assets (note 16)		68		75
Goodwill (note 17)		5,847		5,855
Other assets (note 18)		1,936		1,421

Total assets	$	21,951	$	21,510

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable		808	$	686
Short-term debt (note 20B)		233		863
Other current liabilities (note 19)		255		303

		1,296		1,852

Non-current liabilities
Long-term debt (note 20B)		3,153		3,244
Asset retirement obligations (note 21)		892		843
Deferred income tax liabilities (note 23)		841		798
Other liabilities (note 22)		431		518

Total liabilities		6,613		7,255

Non-controlling interests		82		56

Shareholders’ equity
Capital stock (note 24)		13,273		13,106
Retained earnings		1,832		974
Accumulated other comprehensive income (note 25)		151		119

Total shareholders’ equity		15,256		14,199

Contingencies and commitments (notes 15 and 28)

Total liabilities and shareholders’ equity	$	21,951	$	21,510

The accompanying notes are an integral part of these consolidated financial statements.



BARRICK YEAR-END 2007		FINANCIAL STATEMENTS (UNAUDITED)

Consolidated Statements of Shareholders’ Equity

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)


	2007			2006			2005

Common shares (number in millions)
At January 1		864			538			534
Issued on exercise of stock options (note 26A)		6			3			4
Issued on acquisition of Placer Dome		—			323			—

At December 31		870			864			538

Common shares
At January 1	$	13,106		$	4,222		$	4,129
Issued on exercise of stock options (note 26A)		142			74			93
Issued on acquisition of Placer Dome (note 3G)		—			8,761			—
Options issued on acquisition of Placer Dome (note 3G)		—			22			—
Recognition of stock option expense (note 26A)		25			27			—

At December 31		13,273			13,106			4,222

Retained earnings (deficit)
At January 1		974			(341	)		(624	)
Net income		1,119			1,506			401
Dividends (note 24A)		(261	)		(191	)		(118	)

At December 31		1,832			974			(341	)

Accumulated other comprehensive income (loss) (note 25)		151			119			(31	)

Total shareholders’ equity at December 31	$	15,256		$	14,199		$	3,850

Consolidated Statements of Comprehensive Income

Barrick Gold Corporation
For the years ended December 31,
(in millions of United States dollars)


	2007		2006		2005

Net income	$	1,119	$	1,506	$	401
Other comprehensive income (loss), net of tax (note 25)		32		150		(100	)

Comprehensive income	$	1,151	$	1,656	$	301

The accompanying notes are an integral part of these consolidated financial statements.



BARRICK YEAR-END 2007		FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Barrick Gold Corporation. Tabular dollar amounts in millions of United States dollars, unless otherwise shown. References to C$, A$, ZAR, EUR, CLP, ARS, PGK and TZS are to Canadian dollars, Australian dollars, South African Rands, Euros, Chilean Pesos, Argentinean Pesos, Papua New Guinea Kina and Tanzanian Schillings respectively.

1 > NATURE OF OPERATIONS

Barrick Gold Corporation (“Barrick” or the “Company”) principally engages in the production and sale of gold, as well as related activities such as exploration and mine development. We also produce some copper and hold interests in a platinum group metals development project and a nickel development project, both located in Africa, and a platinum group metals project located in Russia. Our mining operations are concentrated in our four regional business units: North America, South America, Africa and Australia Pacific. We sell our gold production into the world market and we sell our copper production into the world market and to private customers.

2 > SIGNIFICANT ACCOUNTING POLICIES

A Basis of Preparation

These consolidated financial statements have been prepared under United States generally accepted accounting principles (“US GAAP”). In 2007, we amended the income statement classification of certain income and expense items, including non-hedge derivative gains and losses (see note 2E), to provide enhanced disclosure of significant business activities and reflect the increasing significance of amounts spent on those activities. To ensure comparability of financial information, prior year amounts have been reclassified to reflect changes in the financial statement presentation.

B Principles of Consolidation

These consolidated financial statements include the accounts of Barrick Gold Corporation and those entities we have the ability to control either through voting rights or means other than voting rights. FIN 46R provides guidance on the identification and reporting of entities controlled through means other than voting rights and defines such entities as variable interest entities (“VIEs”). We apply this guidance to all entities, including those in the development stage, except for unincorporated joint ventures, which are outside the scope of FIN 46R. For VIEs where we are the primary beneficiary, we consolidate the entity and record a non-controlling interest, measured initially at its estimated fair value, for the interest held by other entity owners. For VIEs where we are not the primary beneficiary we use the equity method of accounting.

For incorporated joint ventures (“JVs”) where we have the ability to exercise control, subject in some cases to protective rights held by our JV partners, we consolidate the JV and record a non-controlling interest for the interest held by our JV partner. For incorporated JVs where we do not have the ability to exercise control, we account for our investment using the equity method of accounting. For unincorporated JVs under which we hold an undivided interest in the assets and liabilities of the joint venture, we include our pro rata share of the assets and liabilities in our financial statements.

The following table illustrates our policy used to account for significant entities where we hold less than a 100% economic interest. We consolidate all other wholly owned entities.



BARRICK YEAR–END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Consolidation Method at December 31, 2007


	Entity type at Dec 31, 2007	Economic Interest			Method

North America
Round Mountain Mine	Unincorporated JV		50	%	Pro Rata
Hemlo Property Mine	Unincorporated JV		50	%	Pro Rata
Marigold Mine	Unincorporated JV		33	%	Pro Rata
Cortez Mine¹	Unincorporated JV		60	%	Pro Rata
Turquoise Ridge Mine	Unincorporated JV		75	%	Pro Rata
Pueblo Viejo Project	VIE		60	%	Consolidation
Donlin Creek Project²	VIE		50	%	Equity Method
South America
Cerro Casale Project	VIE		51	%	Equity Method
Australia
Kalgoorlie Mine	Unincorporated JV		50	%	Pro Rata
Porgera Mine³	Unincorporated JV		95	%	Pro Rata
Reko Diq Project⁴	VIE		37.5	%	Equity Method
Africa
Tulawaka Mine	Corporate Joint Venture		70	%	Consolidation
Kabanga Project⁵	VIE		50	%	Equity Method
Sedibelo Project⁶	Not Applicable		50	%	Consolidation
Russia
Fedorova Project⁷	VIE		50	%	Consolidation


¹		Including Cortez Hills Project.

²		For the period from January 2006 until November 2007, we recorded our proportionate 70% share of project expenditures in project development expense based on the previous joint venture agreement. Effective in November 2007, a new agreement was reached with our partner which caused us to classify our interest as an equity method investment on a prospective basis (note 12).

³		We hold an undivided interest in our share of assets and liabilities at the Porgera mine. In August 2007, we increased our ownership interest from 75% to 95% (note 3E).

⁴		We hold a 50% interest in Atacama Copper, which has a 75% interest in the Reko Diq project. We use the equity method to account for our interest in Atacama Copper (note 12).

⁵		In accordance with an agreement with our partner, in 2007 and 2006 our partner was responsible for funding 100% of exploration and project expenditures and we did not record any amounts for our economic interest in this period. After our partner has funded $145 million of exploration and project expenditures we will be responsible for funding our share of future expenditures. At December 31, 2007 our partner had spent $103 million of this funding commitment.

⁶		Until completion of a bankable feasibility study (“BFS”), we are responsible for funding 100% of project expenditures at the Sedibelo project. In the year ended December 31, 2007, we recorded project development expenses totaling $22 million (2006: $10 million). On completion of a BFS, as part of our earn-in agreement, we are entitled to earn a 50% economic interest in the entity that owns the Sedibelo project and to recoup from our partner their 50% share of the costs to complete the BFS.

⁷		In accordance with our agreement with minority shareholders, we have an earn-in option for an additional 29% interest in the entity that owns the rights to the Fedorova project (for a total 79% interest), provided that we deliver a BFS by January 1, 2009. We are responsible for funding 100% of project expenditures until the BFS is finalized, and therefore a non-controlling interest has not been recorded through December 31, 2007.

Entities Consolidated using the Pro Rata Method
Income Statement and Cash Flow Information (100%)


For the years ended Dec.31	2007			2006			2005

Revenues	$	2,076		$	1,776		$	1,009
Costs and expenses		(1,665	)		(1,457	)		(796	)

Net income	$	411		$	319		$	213

Operating activities¹	$	147		$	473		$	318
Investing activities¹	$	(139	)	$	(284	)	$	(75	)
Financing activities^1,2	$	81		$	(185	)	$	(237	)


¹		Net cash inflow (outflow).

²		Includes cash flows between the joint ventures and joint venture partners.

Balance Sheet Information (100%)


At December 31	2007		2006

Assets
Inventories	$	430	$	365
Property, plant and equipment		2,620		2,468
Other assets		462		126

	$	3,512	$	2,959

Liabilities
Current liabilities	$	216	$	205
Long-term obligations		267		202
Deferred tax		47		42

	$	530	$	449



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Non-controlling Interests – Income Statement


For the years ended December 31	2007			2006			2005

Pueblo Viejo project	$	30		$	9		$	—
Tulawaka mine		(16	)		(8	)		(2	)
Other		—			—			1

	$	14		$	1		$	(1	)

C Foreign Currency Translation

The functional currency of all our operations is the US dollar. We translate non-US dollar balances into US dollars as follows:

Ø		Property, plant and equipment, intangible assets and equity method investments using historical rates;

Ø		Available for sale securities using closing rates with translation gains and losses recorded in other comprehensive income;

Ø		Asset retirement obligations using historical rates;

Ø		Long-term debt using closing rates;

Ø		Deferred tax assets and liabilities using closing rates with translation gains and losses recorded in income tax expense;

Ø		Other assets and liabilities using closing rates with translation gains and losses recorded in other income/expense; and

Ø		Income and expenses using average exchange rates, except for expenses that relate to non-monetary assets and liabilities measured at historical rates, which are translated using the same historical rate as the associated non-monetary assets and liabilities.

D Use of Estimates

The preparation of these financial statements requires us to make estimates and assumptions. The most significant ones are: quantities of proven and probable mineral reserves; fair values of acquired assets and liabilities under business combinations, including the value of mineralized material beyond proven and probable mineral reserves; future costs and expenses to produce proven and probable mineral reserves; future commodity prices for gold, copper, silver and other products; the future cost of asset retirement obligations; amounts and likelihood of contingencies; the fair values of reporting units that include goodwill; and uncertain tax positions. Using these and other estimates and assumptions, we make various decisions in preparing the financial statements including:

Ø		The treatment of expenditures at mineral properties prior to when production begins as either an asset or an expense (note 15);

Ø		Whether tangible and intangible long-lived assets are impaired, and if so, estimates of the fair value of those assets and any corresponding impairment charge (note 15);

Ø		Our ability to realize deferred income tax assets and amounts recorded for any corresponding valuation allowances (note 23);

Ø		The useful lives of tangible and intangible long-lived assets and the measurement of amortization (note 15);

Ø		The fair value of asset retirement obligations (note 21);

Ø		Whether to record a liability for loss contingencies and the amount of any liability (notes 15 and 28);

Ø		Whether investments are other than temporarily impaired (note 12);

Ø		The amount of income tax expense (note 9);

Ø		Allocations of the purchase price in business combinations to assets and liabilities acquired, including goodwill (notes 3 and 17);

Ø		Whether any impairments of goodwill have occurred and if so the amounts of impairment charges (note 17);

Ø		Transfers of value beyond proven and probable reserves to amortized assets (note 15);

Ø		Amounts recorded for uncertain tax positions (note 23), and

Ø		The timing and amounts recorded of proceeds for insurable losses under insurance claims (note 15).

As the estimation process is inherently uncertain, actual future outcomes could differ from present estimates and assumptions, potentially having material future effects on our financial statements.

E Accounting Changes

Accounting Changes Implemented in 2007

FSP AUG AIR - 1 - Accounting for Planned Major Maintenance Activities (FSP AIR-1)

On January 1, 2007, we adopted FSP AIR-1 which amends guidance from the AICPA Industry Audit Guide, Audits of Airlines (“Airline Guide”) with respect to planned major maintenance activities and makes this guidance applicable to entities in all industries. Of the three methods of accounting for planned major maintenance allowed by FSP AIR-1, we adopted the built-in overhaul method. The built-in overhaul method is based on segregation of plant and equipment costs into those that should be depreciated over the useful life of the asset and those that require overhaul at periodic intervals. The estimated cost of the overhaul component included in the purchase price of an asset is set up separately from the cost of the asset and is amortized to the expected date of the initial overhaul. The cost of the initial overhaul is then capitalized and amortized to the next overhaul, at which time the process is repeated. We adopted FSP AIR-1 on January 1, 2007. The implementation of this standard did not have a material impact on our Financial Statements.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

FASB Interpretation No. 48 — Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109 (Accounting for Income Taxes) (FIN 48)

In June 2006, the Financial Accounting Standards Board (FASB) issued FIN 48 to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006.

We adopted the provisions of FIN 48, Accounting for Uncertainty in Income Taxes, on January 1, 2007. As a result of the implementation of FIN 48, no adjustment was required to the liability for unrecognized tax benefits.

Change in Financial Statement Presentation — Derivative Gains and Losses

In 2007, we made a change in the financial statement classification of changes in the fair value of derivative instruments that do not qualify for hedge accounting under FAS 133 (non-hedge derivatives), which was retroactively applied. Prior to this change, we recorded the change in fair value of all non-hedge derivative gains and losses as a component of other income, with the exception of changes in the fair value of embedded derivatives implicit in concentrate sales contracts, which were recorded as a component of revenue.

Beginning in 2007, we record changes in the fair value of non-hedge derivatives in a manner consistent with the intended purpose of the instrument as follows: gold and copper derivative instruments are recorded in revenue; silver and fuel derivative contracts are recorded in cost of sales; interest rate swaps are recorded in interest income or interest expense, depending on the intended purpose of the swap; and share purchase warrants are recorded in other income.

The impact of this change in accounting policy for prior periods was as follows:


	Increase (decrease)
For the years ended December 31	2006			2005

Gold revenue	$	8		$	(2	)
Copper revenue		(14	)		—
Cost of sales		5			(16	)
Other expense		—			20
Interest income		9			—
Interest expense		—			(4	)
Other income		2			2

Accounting Changes Implemented in 2006

FAS 123R, Accounting for Stock—Based Compensation

On January 1, 2006, we adopted FAS 123R. Prior to this date we applied FAS 123 and accounted for stock options under the intrinsic value method, recording compensation cost for stock options as the excess of the market price of the stock at the grant date of an award over the exercise price. Historically, the exercise price of stock options equaled the market price of the stock at the grant date resulting in no recorded compensation cost. We provided pro forma disclosure of the effect of expensing the fair value of stock options.

We adopted FAS 123R using the modified prospective method, which meant that financial statements for periods prior to adoption were not restated. From January 1, 2006 we recorded compensation expense for all new stock option grants based on the grant date fair value, amortized on a straight-line basis over the vesting period. We also recorded compensation expense for the unvested portion of stock option grants occurring prior to January 1, 2006, based on the grant date fair value that was previously estimated and used to provide for pro forma disclosures for financial statement periods prior to 2006, amortized on a straight-line basis over the remaining vesting period for those unvested stock options. Details of stock-based compensation expense are included in note 26.

The application of FAS 123R to Restricted Share Units (RSUs) and Deferred Share Units (DSUs) did not result in any significant change in the method of accounting for RSUs or DSUs.

FAS 151, Inventory Costs

FAS 151 specifies the general principles applicable to the pricing and allocation of certain costs to inventory. Under FAS 151, abnormal amounts of idle facility expense, freight, handling costs and wasted materials are recognized as current period charges rather than capitalized to inventory. FAS 151 also requires that the allocation of fixed production overhead to the cost of inventory be based on the normal capacity of production facilities.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

FAS 151 was applicable prospectively from January 1, 2006 and we modified our inventory accounting policy consistent with its requirements. Under our modified accounting policy for inventory, production-type costs that are considered abnormal are excluded from inventory and charged directly to the cost of sales. Interruptions to normal activity levels at a mine could occur for a variety of reasons including equipment failures and major maintenance activities, strikes, power supply interruptions and adverse weather conditions. When such interruptions occur we evaluate the impact on the cost of inventory produced in the period, and to the extent the actual cost exceeds the cost based on normal capacity we expense any excess directly to cost of sales. The adoption of FAS 151 did not have any significant effect on our financial statements.

FAS 158, Employers’ Accounting for Defined Benefit Pension and Other Post-retirement Plans

In September 2006, the FASB issued FAS 158 that requires employers to fully recognize the obligations associated with single-employer defined benefit pension, retiree health care and other post-retirement plans in their financial statements. FAS 158 was developed to respond to concerns that past accounting standards needed to be revisited to improve the transparency and usefulness of the information reported. Under past accounting standards, the funded status of an employer’s post-retirement benefit plan (i.e., the difference between the plan assets and obligations) was not completely reported in the balance sheet. Employers reported an asset or liability that differed from the plan’s funded status because previous accounting standards allowed employers to delay recognition of certain changes in plan assets and obligations that affected the costs of providing such benefits. Past standards only required an employer to disclose the funded status of its plans in the notes to the financial statements.

FAS 158 requires recognition of the funded status of a benefit plan on the balance sheet – measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation, as at the fiscal year-end. For a pension plan, the benefit obligation is the projected benefit obligation; for any other post-retirement benefit plan, such as a retiree health care plan, the benefit obligation is the accumulated post-retirement benefit obligation. FAS 158 also requires recognition, as a component of other comprehensive income, net of tax, of the gains or losses and prior service costs or credits that arise during the period but are not recorded as components of net periodic benefit cost. Amounts recorded in accumulated other comprehensive income are adjusted as they are subsequently recorded as components of net periodic cost. FAS 158 requires disclosure of information about certain effects of net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation.

We adopted the provisions of FAS 158 in 2006, as required, except for the requirement to measure the plan assets and benefit obligations at the fiscal year-end, which is effective in fiscal years ending after December 15, 2008. The adoption of FAS 158 did not significantly impact our financial statements.

SEC Staff Accounting Bulletin No. 108 – Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (SAB 108)

In September 2006, the SEC issued SAB 108, which was effective in fourth quarter 2006 for Barrick. SAB 108 addresses the multiple methods used to quantify financial statement misstatements and evaluate the accumulation of misstatements on the balance sheet. SAB 108 requires registrants to evaluate prior period misstatements using both a balance sheet approach (“the iron curtain method”) and an income statement approach (“the rollover method”). Barrick historically used the rollover method in quantifying potential financial statement misstatements. As required by SAB 108, we re-evaluated prior period immaterial errors using the iron curtain method. Based upon the result of our evaluation, we did not identify any material errors or misstatements that were previously deemed not material under the rollover approach.

Accounting Changes Implemented in 2005

EITF 04-6 Accounting for Stripping Costs Incurred During Production in the Mining Industry

In 2005, we adopted EITF 04-6 and changed our accounting policy for stripping costs incurred in the production phase. Prior to adopting EITF 04-6, we capitalized stripping costs incurred in the production phase, and we recorded amortization of the capitalized costs as a component of the cost of inventory produced each period. Under EITF 04-6, stripping costs are recorded directly as a component of the cost of inventory produced each period. Using an effective date of adoption of January 1, 2005, we recorded a decrease in capitalized mining costs of $226 million; an increase in the cost of inventory of $232 million; and a $6 million credit to earnings for the cumulative effect of this change. For 2005, the effect of adopting EITF 04-6 compared to the prior policy was an increase in net income of $44 million ($0.08 per share), excluding the cumulative effect on prior periods.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

F Accounting Developments

FAS 157, Fair Value Measurements (FAS 157)

In September 2006, the FASB issued FAS 157 that provides enhanced guidance for using fair value to measure assets and liabilities. FAS 157 is meant to ensure that the measurement of fair value is more comparable and consistent, and improve disclosure about fair value measures. As a result of FAS 157, there is now a common definition of fair value to be used throughout US GAAP. FAS 157 applies whenever US GAAP requires (or permits) measurement of assets or liabilities at fair value. FAS 157 does not address when the use of fair value measurements is required.

In December 2007 the FASB issued FSP FAS 157-b, which provided a one year deferral until January 1, 2009 for the implementation of FAS 157 for non-financial assets and liabilities. The deferral is intended to provide the FASB additional time to consider the effects of various implementation issues that have arisen, or that may arise, from the application of FAS 157. Barrick is required to implement FAS 157 for financial assets and liabilities that are carried at fair value effective January 1, 2008. We do not expect the adoption of FAS 157 to have any significant impact on valuations of investments or derivative instruments.

FAS 159 — The Fair Value Option for Financial Assets and Financial Liabilities (FAS 159)

In February 2007 the FASB issued FAS 159, which allows an irrevocable option, Fair Value Option (FVO), to carry eligible financial assets and liabilities at fair value, with the election made on an instrument-by-instrument basis. Changes in fair value for these instruments would be recorded in earnings. The objective of FAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions.

Under FAS 159 an entity must elect whether to use the FVO on the date an item is initially recognized, with limited exceptions. Since the FVO is an instrument-by-instrument election, companies may record identical financial assets and liabilities either at fair value or on another measurement basis permitted by US GAAP, such as amortized cost. One exception to the instrument-by-instrument guidance is that for investments that would otherwise fall under equity method accounting, the election must be made for all of the investor’s financial interests (equity and debt, including guarantees) in the same entity.

FAS 159 will be effective for Barrick beginning in first quarter 2008 and must be applied prospectively. Barrick will not adopt the FVO on its eligible financial instruments, which include available-for-sale securities, equity method investments and long-term debt, existing as at January 1, 2008.

FAS 141(R), Business Combinations (FAS 141(R))

In December 2007 the FASB issued FAS 141(R), which will replace FAS 141 prospectively for business combinations consummated after the effective date of December 15, 2008. Early adoption is not permitted. Under FAS 141(R), business acquisitions will be accounted for under the “acquisition method”, compared to the “purchase method” mandated by FAS 141.

The more significant changes that will result from applying the acquisition method include: (i) the definition of a business is broadened to include development stage entities, and therefore more acquisitions will be accounted for as business combinations rather than asset acquisitions; (ii) the measurement date for equity interests issued by the acquirer is the acquisition date instead of a few days before and after terms are agreed to and announced, which may significantly change the amount recorded for the acquired business if share prices differ from the agreement and announcement date to the acquisition date; (iii) all future adjustments to income tax estimates will be recorded to income tax expense, whereas under FAS 141 certain changes in income tax estimates were recorded to goodwill; (iv) acquisition-related costs of the acquirer, including investment banking fees, legal fees, accounting fees, valuation fees, and other professional or consulting fees will be expensed as incurred, whereas under FAS 141 these costs are capitalized as part of the cost of the business combination; (v) the assets acquired and liabilities assumed are recorded at 100% of fair value even if less than 100% is obtained, whereas under FAS 141 only the controlling interest’s portion is recorded at fair value; and (vi) the non-controlling interest will be recorded at its share of fair value of net assets acquired, including its share of goodwill, whereas under FAS 141 the non-controlling interest is recorded at its share of carrying value of net assets acquired with no goodwill being allocated.

FAS 160, Non-controlling Interests in Consolidated Financial Statements (FAS 160)

In December 2007 the FASB issued FAS 160, which is effective for fiscal years beginning after December 15, 2008. Under FAS 160, non-controlling interests will be measured at 100% of the fair value of assets acquired and liabilities assumed. Under current standards, the non-controlling interest is measured at book value. For



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

presentation and disclosure purposes, non-controlling interests will be classified as a separate component of shareholders’ equity. In addition, FAS 160 will change the manner in which increases/decreases in ownership percentages are accounted for. Changes in ownership percentages will be recorded as equity transactions and no gain or loss will be recognized as long as the parent retains control of the subsidiary. When a parent company deconsolidates a subsidiary but retains a non-controlling interest, the non-controlling interest is re-measured at fair value on the date control is lost and a gain or loss is recognized at that time. Under FAS 160, accumulated losses attributable to the non-controlling interests are no longer limited to the original carrying amount, and therefore non-controlling interests could have a negative carrying balance. The provisions of FAS 160 are to be applied prospectively with the exception of the presentation and disclosure provisions, which are to be applied for all prior periods presented in the financial statements. Early adoption is not permitted.

G Other Notes to the Financial Statements


	Note		Page

Significant acquisitions and divestitures		3		58
Segment information		4		62
Revenue and gold sales contracts		5		63
Cost of sales		6		64
Exploration and project development expense		7		65
Other (income) expense		8		66
Income tax expense		9		67
Earnings per share		10		68
Cash flow - other items		11		69
Investments		12		70
Inventories		13		73
Accounts receivable and other current assets		14		74
Property, plant and equipment		15		74
Intangible assets		16		77
Goodwill		17		77
Other assets		18		78
Other current liabilities		19		78
Financial instruments		20		78
Asset retirement obligations		21		88
Other non - current liabilities		22		88
Deferred income taxes		23		88
Capital stock		24		91
Other comprehensive income (loss)		25		92
Stock - based compensation		26		92
Post - retirement benefits		27		95
Litigation and claims		28		98

3 > SIGNIFICANT ACQUISITIONS AND DIVESTITURES


For the years ended December 31	2007		2006		2005

Cash paid on acquisition¹
Arizona Star	$	722	$	—	$	—
Porgera (additional 20% interest)		259		—		—
Kainantu		135		—		—
Pioneer Metals		6		48		—
Placer Dome		—		160		—

	$	1,122	$	208	$	—

Cash proceeds on sale¹
Celtic²		21		—		—
Paddington Mill³		30		—		—
Grace Claim³		54		—		—

	$	105	$	—	$	—

Cash proceeds on sale of discontinued operations
South Deep mine	$	—	$	1,209	$	—
Operations sold to Goldcorp		—		1,619		—

	$	—	$	2,828	$	—



¹		All amounts are presented net of cash acquired/divested. Potential deferred tax adjustments may arise from these acquisitions.

²		Included within investment sales in the Consolidated Statement of Cash Flow

³		Included within Property, Plant and Equipment sales in the Consolidated Statement of Cash flow

A Acquisition of 40% Interest in Cortez

In February 2008, our subsidiary, Barrick Gold Finance Inc., entered into a definitive purchase agreement with Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc (“Rio Tinto”) to acquire its 40% interest in the Cortez property for $1.695 billion in cash consideration, due on closing, with a further $50 million payable as of the date an additional 12 million ounces of measured and indicated and/or inferred gold resources are discovered, above that which was reported for the Cortez property on our Reserve and Resource Statement for the Cortez property dated December 31, 2007. A sliding scale royalty is payable to Rio Tinto after production of 15 million ounces from the closing date. The acquisition will consolidate 100% ownership for Barrick of the existing Cortez mine and the Cortez Hills development project plus any future potential from the property, which is located on one of the world’s most prospective gold trends. We expect to fund the purchase price through a combination of our existing cash balances and by drawing down our line of credit. The agreement is subject to the normal and customary closing conditions and is expected to close in the first quarter of 2008.

B Acquisition of Arizona Star Resources Corporation (“Arizona Star”)

On December 19, 2007, we paid $722 million which reflects the purchase price net of cash acquired of $8 million, for 40.7 million common shares of Arizona Star.


BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

These shares represent 94% of the outstanding common shares of Arizona Star on a fully-diluted basis. It is our intention to acquire the remaining outstanding Arizona Star common shares by way of a compulsory acquisition. The Offer price for Arizona Star’s common shares was CDN$18.00. Arizona Star owns a 51% interest in the Cerro Casale deposit in the Maricunga district of Region III in Chile. The acquisition of Arizona Star has been accounted for as an asset purchase. The purchase price allocation will be finalized in 2008 with the determination of the deferred tax portion, if any.


Purchase Cost

Purchase cost per agreement	$	728
Purchase price adjustments and transaction costs		2
Less: cash acquired		(8	)

	$	722


Preliminary Purchase Price Allocation

Equity investment in Cerro Casale project	$	732

Total assets		732

Accounts payable		8
Non-controlling interest		2

Total liabilities		10

Net assets acquired	$	722

C Kamantu Acquisition

On December 12, 2007 we completed the acquisition of the Kainantu mineral property and various exploration licenses in Papua New Guinea from Highlands Pacific Limited for $135 million in cash, which reflects the purchase price, net of $7 million withheld pending certain permit renewals. The acquisition has been accounted for as a purchase of assets. The purchase price allocation will be finalized in 2008.

D Sale of Paddington Mill

In 2007, we completed the sale of the Paddington mill and associated land tenements in Australia to Norton Goldfields Limited and the sale of certain land tenements to Apex Minerals for total proceeds of $32 million, $30 million in cash and $2 million in Apex Minerals NL shares, respectively. We recorded a gain of $8 million in other income on closing.

E Porgera Mine Acquisition

In 2007, we completed the acquisition of an additional 20% interest in the Porgera mine in Papua New Guinea from Emperor Mines Limited, for cash consideration of $259 million. The acquisition has been accounted for as a business combination. Following this transaction our interest in the Porgera mine increased from 75% to 95%. The Government of Papua New Guinea holds the remaining 5% undivided interest in Porgera. We have entered into a call option deed regarding the possible sale of up to a 5% interest to the Government of Papua New Guinea, for the proportionate acquisition cost paid by Barrick.


Purchase Cost

Purchase cost per agreement with Emperor Mines Limited	$	250
Purchase price adjustments and transaction costs		14
Less: cash acquired		(5	)

	$	259


Summary Purchase Price Allocation

Inventories	$	17
Other current assets		2
Property, plant and equipment		145
Non-current ore in stockpiles		60
Deferred tax assets		20
Goodwill		34

Total assets		278

Current liabilities		11
Asset retirement obligations		8

Total liabilities		19

Net assets acquired	$	259

F Acquisition of Pioneer Metals Inc. (“Pioneer”)

In 2006, we acquired control of Pioneer through the acquisition of 59.2 million shares, representing approximately 91% of the outstanding shares of Pioneer, for cash consideration of $54 million. Pioneer had a portfolio of exploration properties and interests, including the Grace property which is adjacent to NovaGold Resources Inc.’s (“NovaGold”) Galore Creek project. In 2007, we acquired all of the remaining outstanding shares of Pioneer for cash consideration of $6 million and recorded purchase price adjustments totaling $3 million.


Purchase Cost

Purchase cost	$	63
Less: cash acquired		(9	)

	$	54

The acquisition has been accounted for as a purchase of assets. The purchase price allocation was as follows:


Summary Purchase Price Allocation

Property, plant and equipment		69

Total assets		69
Current liabilities		—
Deferred tax liabilities		15

Total liabilities		15

Net assets acquired	$	54


BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

In third quarter 2007 we sold the Grace property to NovaGold for cash proceeds of $54 million. There was no after-tax gain or loss arising on closing.

G Acquisition of Placer Dome Inc. (“Placer Dome”)

In first quarter 2006 we acquired 100% of the outstanding common shares of Placer Dome. Placer Dome was one of the world’s largest gold mining companies. It had 12 mining operations based in North America, South America, Africa and Australia/Papua New Guinea, as well as four projects that are in various stages of exploration/development. Its most significant mines were Cortez in the United States, Zaldivar in Chile, Porgera in Papua New Guinea, North Mara in Tanzania and South Deep in South Africa. The most significant projects are Cortez Hills and Donlin Creek LLC (“Donlin Creek”) in the United States, and Pueblo Viejo in the Dominican Republic. The business combination between ourselves and Placer Dome was an opportunity to create a Canadian-based leader in the global gold mining industry, which strengthens our competitive position, including in respect of gold reserves, gold production, growth opportunities, and balance sheet strength.

Accounting for the Placer Dome Acquisition

The Placer Dome acquisition has been accounted for as a purchase business combination, with Barrick as the accounting acquirer. We acquired Placer Dome on January 20, 2006, with the results of operations of Placer Dome consolidated from January 20, 2006 onwards. The purchase cost was $10 billion and was funded through a combination of common shares issued, the drawdown of a $1 billion credit facility, and cash resources.



Value of 322.8 million Barrick common shares issued at $27.14 per share¹	$	8,761
Value of 2.7 million fully vested stock options		22
Cash		1,239
Transaction costs		32

	$	10,054


¹		The measurement of the common share component of the purchase consideration represents the average closing price on the New York Stock Exchange for the two days prior to and two days after the public announcement on December 22, 2005 of our final offer for Placer Dome.

In accordance with the purchase method of accounting, the purchase cost was allocated to the underlying assets acquired and liabilities assumed based primarily upon their estimated fair values at the date of acquisition. The estimated fair values were based on a combination of independent appraisals and internal estimates. The excess of purchase cost over the net identifiable tangible and intangible assets acquired represents goodwill. Goodwill arising on the acquisition of Placer Dome principally represents the ability for the company to continue as a going concern by finding new mineral reserves as well as the value of synergies that we expect to realize as a direct consequence of the acquisition of Placer Dome. Details of the allocation of goodwill arising on acquisition are included in note 17.

On the acquisition of Placer Dome in first quarter 2006, we completed a preliminary purchase price allocation for assets and liabilities acquired. Amortization expense for the first three quarters of 2006 was based on this preliminary purchase price allocation. In fourth quarter 2006, we completed final purchase price allocations and updated our calculations of amortization expense prospectively. The effect of the final purchase price allocation on the amount of amortization expense recorded in 2007 compared to amounts recorded in 2006 based on the preliminary allocation, was an increase of $189 million.

The principal valuation methods for major classes of assets and liabilities were:


Inventory		Finished goods and work in process valued at estimated selling prices less disposal costs, costs to complete and a reasonable profit allowance for the completing and selling effort.

Building and equipment		Reproduction and/or replacement cost or market value for current function and service potential, adjusted for physical, functional and economic obsolescence.

Proven and probable reserves and value beyond proven and probable reserves at producing mines		Multi-period excess earnings approach considering the prospective level of cash flows and fair value of other assets at each mine.

Development projects		Discounted future cash flows considering the prospective level of cash flows from future operations and necessary capital cost expenditures.

Exploration properties		Appraised values considering costs incurred, earn-in agreements and comparable market transactions, where applicable.

Long-term debt and derivative instruments		Estimated fair values consistent with the methods disclosed in note 20C.

Asset retirement obligations		Estimated fair values consistent with the methods disclosed in note 21.


BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


Final Summary Purchase Price Allocation

Cash	$	1,102
Inventories		428
Other current assets		198
Property, plant and equipment
Buildings, plant and equipment		2,946
Proven and probable reserves		1,571
Value beyond proven and probable reserves		419
Intangible assets		85
Assets of discontinued operations¹		1,744
Deferred tax assets		93
Other assets		254
Goodwill		6,506

Total assets		15,346

Current liabilities		669
Liabilities of discontinued operations¹		107
Derivative instrument liabilities		1,729
Long-term debt		1,252
Asset retirement obligations		387
Deferred income tax liabilities		686

Total liabilities		4,830

Non-controlling interests		462

Net assets acquired	$	10,054



¹		Includes operations that were sold to Goldcorp Inc.

At acquisition we recorded liabilities totaling $48 million that primarily relate to employee severance at Placer Dome offices that were closed during the year. All amounts were settled by the end of 2007.

H Discontinued Operations

Results of Discontinued Operations


For the years ended Dec.31	2007		2006		2005

Gold sales
South Deep operations	$	—	$	158	$	—
Operations sold to Goldcorp		—		83		—

	$	—	$	241	$	—

Income before tax
South Deep		9		8		—
Gain on sale of South Deep		—		288
Operations sold to Goldcorp		—		1		—

	$	9	$	297	$	—

South Deep

On December 1, 2006, we sold our 50% interest in the South Deep mine in South Africa to Gold Fields Limited (“Gold Fields”). The consideration on closing was $1,517 million, of which $1,209 million was received in cash and $308 million in Gold Fields shares. On closing we recorded a gain of $288 million, representing the consideration received less transaction costs and the carrying amount of net assets of South Deep, including goodwill relating to South Deep of $651 million.

The results of the operations of South Deep in 2006 are presented under “discontinued operations” in the income statement and cash flow statement. As required by accounting rules applicable to discontinued operations, amortization of property, plant and equipment at South Deep ceased on September 1, 2006, the date when they were classified as held for sale, and we allocated interest expense of $2 million to these discontinued operations.

In second quarter 2006, a loaded skip and 6.7 kilometers of rope fell 1.6 kilometers down the South Deep mine’s Twin Shaft complex during routine maintenance, causing extensive damage but no injuries. Repair costs for assets that were damaged were expensed as incurred. We were insured for property damage and a portion of business interruption losses. In fourth quarter 2006 we recorded a receivable for insurance recoveries of $12 million related to this incident. In second quarter 2007, a final settlement was reached with Gold Fields on the allocation of insurance proceeds and, as a result, we recorded further proceeds of $9 million within income from discontinued operations. During the third quarter, $21 million was received in cash and has been classified under Cash Flows of Discontinued Operations in our Consolidated Statement of Cash Flows.

Operations Sold to Goldcorp

In second quarter 2006, we sold all of Placer Dome’s Canadian properties and operations (other than Placer Dome’s office in Vancouver), including all mining, reclamation and exploration properties, Placer Dome’s interest in the La Coipa mine in Chile, 40% of Placer Dome’s interest in the Pueblo Viejo project in the Dominican Republic, certain related assets and, our share in Agua de la Falda S.A., which included our interest in the Jeronimo project, to Goldcorp Inc. (“Goldcorp”) (collectively, the “Operations sold to Goldcorp”). Goldcorp is responsible for all liabilities relating solely to these properties and operations, including employment commitments and environmental, closure and reclamation liabilities.

The sales proceeds for the operations sold to Goldcorp were $1,641 million. The aggregate net amount of assets and liabilities of these operations were recorded in the purchase price allocation at $1,641 million based on the terms of the sale agreement with Goldcorp that was in place at the time we acquired Placer Dome. The results of the operations sold to Goldcorp were included under “discontinued operations” in the income statement and cash flow statement until closing. Interest expense of $21 million was allocated to the results from the operations sold to Goldcorp. No gain or loss arose on closing of the sale.


BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

4 > SEGMENT INFORMATION

Income Statement Information


	Sales						Segment cost of sales						Segment income¹
For the years ended December 31	2007		2006		2005		2007		2006		2005		2007		2006		2005

Gold
North America	$	2,001	$	1,791	$	1,247	$	1,194	$	1,052	$	693	$	493	$	492	$	341
South America		1,306		1,131		506		408		311		137		664		693		268
Australia Pacific		1,292		1,144		411		945		757		260		108		201		105
Africa		428		427		184		295		228		108		55		111		27
Copper South America		1,065		955		—		233		283		—		752		621		—
Australia Pacific		240		182		—		109		110		—		92		55		—

	$	6,332	$	5,630	$	2,348	$	3,184	$	2,741	$	1,198	$	2,164	$	2,173	$	741



¹		Segment income represents segment sales, less cost of sales and amortization.

Income Statement Information (cont’d)


	Exploration¹									Regional business unit costs¹
For the years ended December 31	2007		2006			2005			2007			2006			2005

North America	$	70		$	64		$	34		$	27		$	32		$	16
South America		40			22			19			23			19			6
Australia Pacific		46			44			13			38			38			16
Africa		15			22			34			11			1			—
Other expenses outside reportable segments		8			19			9			—			—			—

	$	179		$	171		$	109		$	99		$	90		$	38



¹		Exploration and regional business unit costs are excluded from the measure of segment income but are reported separately by operating segment to the Chief Operating Decision Maker.

Geographic Information


	Long-lived assets¹						Sales²
For the years
ended Dec.31	2007		2006		2005		2007		2006		2005

North America
United States	$	2,638	$	2,518	$	1,431	$	1,882	$	1,702	$	1,068
Canada		1,528		976		313		119		89		179
Dominican Republic		139		78		—		—		—		—
South America
Peru		392		492		540		1,033		878		506
Chile		1,764		1,599		269		1,065		955		—
Argentina		1,048		1,014		843		273		253		—
Australia Pacific
Australia		1,724		2,142		815		1,250		1,116		411
Papua New Guinea		702		438		—		282		210		—
Africa
Tanzania		1,336		993		669		428		427		184
Other		477		534		301		—		—		—

	$	11,748	$	10,784	$	5,181	$	6,332	$	5,630	$	2,348



¹		Long-lived assets include property, plant and equipment and other tangible non-current assets

²		Presented based on the location in which the sale originated.

Reconciliation of Segment Income to Income from Continuing Operations Before Income Taxes and Other Items


For the years ended Dec.31	2007			2006			2005

Segment income	$	2,164		$	2,173		$	741
Amortization of corporate assets		(20	)		(19	)		(18	)
Exploration		(179	)		(171	)		(109	)
Project development expense		(188	)		(119	)		(32	)
Corporate administration		(155	)		(142	)		(71	)
Other expenses		(208	)		(216	)		(114	)
Impairment charges¹		(65	)		(23	)		(16	)
Interest income		141			110			38
Interest expense		(113	)		(126	)		(3	)
Other income		103			93			46

Income from continuing operations before income taxes and other items	$	1,480		$	1,560		$	462



¹		In 2007, impairment charges include $42 million of goodwill impairments in the North America region.


BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Asset Information


	Segment long-lived assets						Amortization						Segment capital expenditures¹
For the years ended Dec.31	2007		2006		2005		2007		2006		2005		2007		2006		2005

Gold
North America	$	4,305	$	3,572	$	1,744	$	314	$	247	$	213	$	236	$	226	$	218
South America		1,922		1,829		1,652		234		127		101		343		343		525
Australia Pacific		2,310		2,434		815		239		186		46		208		313		308
Africa		1,336		993		669		78		88		49		240		93		45
Copper
South America		1,282		1,276		—		80		51		—		27		17		—
Australia Pacific		116		146		—		39		17		—		11		22		—

Segment total		11,271		10,250		4,880		984		716		409		1,065		1,014		1,096
Cash and equivalents		2,207		3,043		1,037		—		—		—		—		—		—
Other current assets		2,081		1,753		711		—		—		—		—		—		—
Intangible assets		68		75		—		—		—		—		—		—		—
Goodwill		5,847		5,855		—		—		—		—		—		—		—

Other items not allocated to segments		477		534		301		20		19		18		25		17		8

Enterprise total	$	21,951	$	21,510	$	6,929	$	1,004	$	735	$	427	$	1,090	$	1,031	$	1,104


¹		Segment capital expenditures are presented on an accrual basis. Capital expenditures in the Consolidated Statements of Cash Flows are presented on a cash basis. In 2007, cash expenditures were $1,046 million (2006: $1,087 million; 2005: $1,104 million) and the increase in accrued expenditures were $44 million (2006: $(56) million; 2005: nil).

5> REVENUE AND GOLD SALES CONTRACTS


For the years ended Dec.31	2007		2006		2005

Gold bullion sales¹
Spot market sales	$	3,823	$	3,957	$	1,938
Gold sales contracts		1,026		369		300

		4,849		4,326		2,238
Concentrate sales²		178		167		110

	$	5,027	$	4,493	$	2,348

Copper sales^1,3
Copper cathode sales	$	1,063	$	937	$	—
Concentrate sales		242		200		—

	$	1,305	$	1,137	$	—


¹		Revenues include amounts transferred from OCI to earnings for commodity cash flow hedges (see note 20C and 25).

²		Gold sales include gains and losses on gold derivative contracts which have been economically offset, but not yet settled, and on embedded derivatives in smelting contracts: 2007: $4 million loss (2006: $4 million gain; 2005: $3 million gain).

³		Copper sales include gains and losses on economic copper hedges that do not qualify for hedge accounting treatment and on embedded derivatives in copper smelting contracts: 2007: $53 million gain (2006: $14 million loss; 2005: $nil).

Principal Products

All of our gold mining operations produce gold in doré, form, except Eskay Creek, which produces gold concentrate and gold doré,; Bulyanhulu which produces both gold doré, and gold concentrate; and Osborne which produces a concentrate that contains both gold and copper. Gold doré, is unrefined gold bullion bars usually consisting of 90% gold that is refined to pure gold bullion prior to sale to our customers. Gold concentrate is a processing product containing the valuable ore mineral (gold) from which most of the waste mineral has been eliminated, that undergoes a smelting process to convert it into gold bullion. Gold bullion is sold primarily in the London spot market or under gold sales contracts. Gold concentrate is sold to third-party smelters. At our Zaldívar mine we produce pure copper cathode, which consists of 99.9% copper, a form that is deliverable for sale in world metals exchanges.

Revenue Recognition

We record revenue when the following conditions are met: persuasive evidence of an arrangement exists; delivery and transfer of title (gold revenue only) have occurred under the terms of the arrangement; the price is fixed or determinable; and collectability is reasonably assured. Revenue in 2007 is presented net of direct sales taxes of $15 million (2006: $16 million; 2005: $nil).

Gold Bullion Sales

We record revenue from gold and silver bullion sales at the time of physical delivery, which is also the date that title to the gold or silver passes. The sales price is fixed at the delivery date based on either the terms of gold sales contracts or the gold spot price. Incidental revenues from the sale of by-products such as silver are classified within cost of sales.

Gold Sales Contracts

At December 31, 2006, we had 2.5 million ounces of Corporate Gold Sales Contracts. We delivered 2.5 million ounces into the Corporate Gold Sales Contracts at an



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

average price of $404 per ounce in the first half of 2007. At December 31, 2007, there were no remaining Corporate Gold Sales Contracts. At December 31, 2007, we had Project Gold Sales Contracts with various customers for a total of 9.5 million ounces of future gold production of which 1.7 million ounces are at floating spot prices.

The terms of gold sales contracts are governed by master trading agreements (MTAs) that we have in place with customers. The contracts have final delivery dates primarily over the next 10 years, but we have the right to settle these contracts at any time over this period. Contract prices are established at inception through to an interim date. If we do not deliver at this interim date, a new interim date is set. The price for the new interim date is determined in accordance with the MTAs which have contractually agreed price adjustment mechanisms based on the market gold price. The MTAs have both fixed and floating price mechanisms. The fixed-price mechanism represents the market price at the start date (or previous interim date) of the contract plus a premium based on the difference between the forward price of gold and the current market price. If at an interim date we opt for a floating price, the floating price represents the spot market price at the time of delivery of gold adjusted based on the difference between the previously fixed price and the market gold price at that interim date. The final realized selling price under a contract primarily depends upon the timing of the actual future delivery date, the market price of gold at the start of the contract and the actual amount of the premium of the forward price of gold over the spot price of gold for the periods that fixed selling prices are set.

Mark-to-Market Value


	Total ounces		At Dec.31,
$ millions	in millions		2007 value¹

Project Gold Sales Contracts		9.5	$	(4,626	)


¹		At a spot gold price of $834 per ounce.

Concentrate Sales

Under the terms of concentrate sales contracts with independent smelting companies, gold and copper sales prices are set on a specified future date after shipment based on market prices. We record revenues under these contracts at the time of shipment, which is also when title passes to the smelting companies, using forward market gold and copper prices on the expected date that final sales prices will be fixed. Variations between the price recorded at the shipment date and the actual final price set under the smelting contracts are caused by changes in market gold and copper prices, and result in an embedded derivative in the accounts receivable. The embedded derivative is recorded at fair value each period until final settlement occurs, with changes in fair value classified as a component of revenue. The notional amount outstanding in accounts receivable is typically between ten and fifteen thousand ounces of gold and four and seven million pounds of copper.

Copper Cathode Sales

Under the terms of copper cathode sales contracts, copper sales prices are set on a specified future date based upon market commodity prices plus certain price adjustments. Revenue is recognized at the time of shipment when risk of loss passes to the customer, and collectability is reasonably assured. Revenue is measured using forward market prices on the expected date that final selling prices will be fixed. Variations occur between the price recorded on the date of revenue recognition and the actual final price under the terms of the contracts due to changes in market copper prices, which result in the existence of an embedded derivative in the accounts receivable. This embedded derivative is recorded at fair value each period until final settlement occurs, with changes in fair value classified as a component of revenue. The notional amount outstanding in accounts receivable is between twenty and thirty million pounds of copper.

6> COST OF SALES


	Gold									Copper
For the years ended Dec.31	2007			2006			2005			2007			2006			2005

Cost of goods sold¹	$	2,757		$	2,294		$	1,249		$	337		$	390		$	—
By-product revenues^2,3		(105	)		(123	)		(132	)		(2	)		(1	)		—
Royalty expense		161			150			63			7			4			—
Mining production taxes		29			27			18			—			—			—

	$	2,842		$	2,348		$	1,198		$	342		$	393		$	—


¹		Cost of goods sold includes accretion expense at producing mines of $40 million (2006: $31 million; 2005: $11 million). Cost of goods sold includes charges to reduce the cost of inventory to net realizable value as follows: $13 million in 2007; $28 million in 2006 and $15 million in 2005. The cost of inventory sold in the period reflects all components capitalized to inventory, except that, for presentation purposes, the component of inventory cost relating to amortization of property, plant and equipment is classified in the income statement under “amortization”. Some companies present this amount under “cost of sales”. The amount presented in amortization rather than cost of sales was $984 million in 2007; $716 million in 2006 and $409 million in 2005.



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


²		We use silver sales contracts to sell a portion of silver produced as a by-product. Silver sales contracts have similar delivery terms and pricing mechanisms as gold sales contracts. At December 31, 2007, we had sales contract commitments to deliver 18.2 million ounces of silver over periods up to 10 years. The mark-to-market on silver sales contracts at December 31, 2007 was negative $111 million (2006: negative $100 million; 2005: $52 million).

³		By-product credits include gains and losses on economic silver hedges that do not qualify for hedge accounting treatment: 2007: $nil (2006: $5 million loss; 2005: $nil).

Royalties

Certain of our properties are subject to royalty arrangements based on mineral production at the properties. The most significant royalties are at the Goldstrike, Bulyanhulu and Veladero mines and the Pascua-Lama project. The primary type of royalty is a net smelter return (NSR) royalty. Under this type of royalty we pay the holder an amount calculated as the royalty percentage multiplied by the value of gold production at market gold prices less third-party smelting, refining and transportation costs. Other types of royalties include:

		Ø Net profits interest (NPI) royalty,

		Ø Net smelter return sliding scale (NSRSS) royalty,

		Ø Gross proceeds sliding scale (GPSS) royalty,

		Ø Gross smelter return (GSR) royalty,

		Ø Net value (NV) royalty, and a

		Ø Land tenement (LT) royalty

Royalty expense is recorded at the time of sale of gold production, measured using the applicable royalty percentage for NSR royalties or estimates of NPI amounts.


Producing mines		Type of royalty

North America
Goldstrike		0%-5% NSR, 0%-6% NPI
Eskay Creek		1% NSR
Williams		1.5% NSR, 0.5% NV, 1% NV
David Bell		3% NSR
Round Mountain		3.53%-6.35% NSRSS
Bald Mountain		3.5%-4% NSR
Ruby Hill		3% modified NSR
Cortez		1.5% GSR
Cortez — Pipeline/South Pipeline deposit		0.4%-5% GSR
Cortez — portion of Pipeline/South Pipeline deposit		5% NV
South America
Veladero		3.75% modified NSR
Lagunas Norte		2.51% NSR
Australia
Porgera		2% NSR
Queensland and Western Australia production		2.5%-2.7% of gold revenue
Africa
Bulyanhulu		3% NSR
North Mara		3% NSR
North Mara — Gokona pit		3% NSR, 1.1% LT

7 > EXPLORATION AND PROJECT DEVELOPMENT EXPENSE


For the years ended Dec. 31	2007		2006		2005

Exploration:
Minesite exploration	$	63	$	54	$	27
Projects		116		117		82

	$	179	$	171	$	109

Project development expense:
Pueblo Viejo¹		67		25		—
Donlin Creek²		32		37		—
Sedibelo		22		10		—
Fedorova		18		—		—
Buzwagi		5		12		5
Pascua-Lama		12		8		7
Cowal³		—		1		9
Other		32		26		11

	$	188	$	119	$	32


¹		Represents 100% of project expenditures. We record a non-controlling interest credit for our partner’s share of expenditures within “non-controlling interests” in the income statement.

²		Amounts for 2007 include a recovery of $64 million of cumulative project costs from our partner. See note 12 for further details.

³		The Cowal mine began production in second quarter 2006.

Accounting Policy

We capitalize costs incurred at projects that meet the definition of an asset after mineralization is classified as proven and probable gold reserves (as defined by United States reporting standards). Before classifying mineralization as proven and probable reserves, costs incurred at projects are considered project development expenses that are expensed as incurred. Project costs include: drilling costs; costs to prepare engineering scoping and feasibility studies; metallurgical testing; permitting; and sample mining. The cost of start-up activities at mines and projects such as recruiting and training are also expensed as incurred within project development expense. Drilling costs incurred at our operating mines are expensed as incurred as mine site exploration expense, unless we can conclude with a high degree of confidence, prior to the commencement of a drilling program, that the drilling costs will result in the conversion of a mineral resource into a proven and probable reserve. Our assessment of confidence is based on the following factors: results from previous drill programs; results from geological models; results from a mine scoping study confirming economic viability of the resource; and preliminary estimates of mine inventory, ore grade, cash flow and mine life. The costs of a drilling



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

program that meets our highly confident threshold are capitalized as mine development costs.

The Pueblo Viejo, Donlin Creek, Sedibelo, and Fedorova projects are in various stages and none of the projects had met the criteria for cost capitalization at December 31, 2007. The Reko Diq project is owned through an equity investee and project expenses are included in “equity investees” in the income statement (see note 12).

Effective May 1, 2007, we determined that mineralization at Buzwagi met the definition of proven and probable reserves for United States reporting purposes. Following this determination, we began capitalizing costs that meet the definition of an asset at Buzwagi.

Funding of our partner’s share of ongoing project expenses for Donlin Creek, which is recoverable from the other partner, is shown under loans issued to joint venture partners under investing activities in the cash flow statement.

8 > OTHER EXPENSE

A Other expenses


For the years ended Dec.31	2007		2006		2005

Regional business unit costs¹	$	99	$	90	$	38
Community development costs²		28		15		—
Environmental costs		15		11		17
World Gold Council fees		12		13		10
Changes in estimate of AROs at closed mines³		6		53		15
Accretion expense at closed mines (note 21)		10		8		10
Non-hedge derivative losses (note 20C)		8		—		12
Currency translation losses		1		—		—
Pension and other post-retirement benefit expense (notes 27B and 27E)⁴		5		3		8
Other items		24		23		4

	$	208	$	216	$	114


¹		Relates to costs incurred at regional business unit offices.

²		In 2007, amounts relate to community programs in Peru, Tanzania and Papua New Guinea. In 2006, amounts related to community programs in Peru and Tanzania.

³		In 2006, amount relates to change in estimate of the ARO at the Nickel Plate property In British Columbia, Canada.

⁴		For the year ended December 31, 2007, $nil million of pension credit that relates to active employees at producing mines is included in cost of sales (2006: $4 million; 2005: $nil), and $nil million is included in corporate administration (2006: $2 million; 2005: $nil).

Environmental Costs

During the production phases of a mine, we incur and expense the cost of various activities connected with environmental aspects of normal operations, including compliance with and monitoring of environmental regulations; disposal of hazardous waste produced from normal operations; and operation of equipment designed to reduce or eliminate environmental effects. In limited circumstances, costs to acquire and install plant and equipment are capitalized during the production phase of a mine if the costs are expected to mitigate risk or prevent future environmental contamination from normal operations.

When a contingent loss arises from the improper use of an asset, a loss accrual is recorded if the loss is probable and reasonably estimable. Amounts recorded are measured on an undiscounted basis, and adjusted as further information develops or if circumstances change. Recoveries of environmental remediation costs from other parties are recorded as assets when receipt is deemed probable.

B Impairment Charges


For the years ended Dec.31	2007		2006		2005

Impairment of goodwill (note 17) ¹	$	42	$	—	$	—
Impairment charges on investments (note 12) ²		23		6		16
Impairment of long-lived assets³		—		17		—

	$	65	$	23	$	16


¹		In 2007, the carrying amounts of Eskay Creek and Golden Sunlight were tested for impairment as part of the annual goodwill impairment test. Impairment charges of $7 million and $35 million respectively, were recorded to reduce the carrying amount for goodwill to its implied fair value.

²		In 2007, we recorded an impairment charge on Asset Backed Commercial Paper of $20 million.

³		In 2006, the carrying amount of Cuerpo Sur, an extension of Pierina, was tested for impairment on completion of the annual life of mine planning process. An impairment charge of $17 million was recorded to reduce the carrying amount to the estimated fair value.

C Other Income


For the years ended Dec.31	2007		2006		2005


Non-hedge derivative gains (note 20C)	$	—	$	2	$	—
Currency translation gains		—		2		3
Gains on sale of assets¹		2		9		5
Gains on sale of investments (note 12)		71		6		17
Gain on vend-in to Highland Gold (note 12)		—		51		—
Royalty income		17		10		6
Sale of water rights		5		5		—
Other		8		8		15

	$	103	$	93	$	46


¹		In 2007, we sold certain properties in South America and Australia, including an $8 million gain on the sale of the Paddington Mill. In 2006, we sold certain properties in Canada and Chile. In 2005, we sold some land positions in Australia.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
	66

9> INCOME TAX EXPENSE


For the years ended Dec.31	2007			2006			2005

Current
Canada	$	(3	)	$	13		$	(3	)
International		518			444			93

	$	515		$	457		$	90

Deferred
Canada	$	19		$	(131	)	$	(6	)
International		(25	)		46			(8	)

	$	(6	)	$	(85	)	$	(14	)

Income tax expense before elements below	$	509		$	372		$	76
Net currency translation gains on deferred tax balances		(76	)		(5	)		(11	)
Canadian tax rate changes		64			12			—
Change in tax status in Australia		—			(31	)		(5	)
Release of end of year valuation allowances — Tanzania		(156	)		—			—

Total expense	$	341		$	348		$	60

Currency Translation

Deferred tax balances are subject to remeasurement for changes in currency exchange rates each period. The most significant balances are Canadian deferred tax assets with a carrying amount of approximately $439 million and Australian deferred tax liabilities with a carrying amount of approximately $95 million. In 2007, the appreciation of the Canadian and Australian dollar against the US dollar resulted in net translation gains arising totaling $76 million. These gains are included within deferred tax expense/recovery.

Canadian Tax Rate Changes

In the second and fourth quarters of 2007 and the second quarter of 2006, federal rate changes were enacted in Canada that lowered the applicable tax rate. The impact of this tax rate change was to reduce net deferred tax assets in Canada by $64 million in 2007 and $35 million in 2006 that was recorded as a component of deferred income tax expense. Also in second quarter 2006, on change of tax status of a Canadian subsidiary, we recorded a deferred income tax credit of $23 million to reflect the impact on the measurement of deferred income tax assets and liabilities.

Change in Tax Status in Australia

In first quarter 2006, an interpretative decision (“ID”) was issued by the Australia Tax Office that clarified the tax treatment of currency gains and losses on foreign denominated liabilities. Under certain conditions, for taxpayers who have made the functional currency election, and in respect of debt that existed at the time the election was made, the ID provided clarification that unrealized foreign exchange gains that currently exist on intercompany debt will not crystallize upon repayment of the debt. The effect of the ID was recorded as a $31 million reduction of deferred tax liabilities.

Release of Tanzanian Valuation Allowances

In 2007, we released $156 million of end of year deferred tax valuation allowances in Tanzania due to the impact of higher market gold prices.

Reconciliation to Canadian Statutory Rate


For the years ended Dec.31	2007			2006			2005

At 36.12% (2006 36.12% and 2005: 38%) statutory rate	$	535		$	563		$	176
Increase (decrease) due to:
Allowances and special tax deductions¹		(99	)		(55	)		(92	)
Impact of foreign tax rates²		38			(131	)		(54	)
Expenses not tax-deductible		63			20			9
Net currency translation gains on deferred tax balances		(76	)		(5	)		(11	)
Release of end of year valuation allowances – Tanzania		(156	)		—			—
Release of valuation allowances -
Other		(88	)		(53	)		(32	)
Valuation allowances set up against current year tax losses		5			7			59
Impact of changes in tax status in Australia		—			(31	)		(5	)
Canadian tax rate changes		64			12			—
Withholding taxes		17			19			8
Mining taxes		19			9			1
Other items		19			(7	)		1

Income tax expense	$	341		$	348		$	60


¹		We are able to claim certain allowances and tax deductions unique to extractive industries that result in a lower effective tax rate.

²		We operate in multiple foreign tax jurisdictions that have tax rates different than the Canadian statutory rate. Additionally, we have reinvested earnings and cash flow generated by the Zaldívar mine in Chile to fund a portion of the construction cost of Pascua-Lama. The reinvestment of these earnings and cash flow resulted in a lower tax rate applied for the period. Amounts in 2007 included the impact of losses realized on deliveries into corporate gold sales contracts in a low tax jurisdiction.



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

10 > EARNINGS PER SHARE


For the years ended Dec.31
($ millions, except shares in millions and per share amounts in dollars)	2007				2006				2005

	Basic		Diluted		Basic		Diluted		Basic		Diluted

Income from continuing operations	$	1,110	$	1,110	$	1,209	$	1,209	$	395	$	395
Plus: interest on convertible debentures		—		2		—		4		—		—

Income available to common shareholders and after assumed conversions		1,110		1,112		1,209		1,213		395		395
Income from discontinued operations		9		9		297		297		—		—

Income before cumulative effect of changes in accounting principles		1,119		1,121		1,506		1,510		395		395
Cumulative effect of changes in accounting principles		—		—		—		—		6		6

Net income	$	1,119	$	1,121	$	1,506	$	1,510	$	401	$	401

Weighted average shares outstanding		867		867		842		842		536		536
Effect of dilutive securities
Stock options		—		3		—		4		—		2
Convertible debentures		—		9		—		9		—		—

		867		879		842		855		536		538

Earnings per share
Income from continuing operations	$	1.28	$	1.27	$	1.44	$	1.42	$	0.74	$	0.73
Income before cumulative effect of changes in accounting principles	$	1.29	$	1.28	$	1.79	$	1.77	$	0.74	$	0.73
Net income	$	1.29	$	1.28	$	1.79	$	1.77	$	0.75	$	0.75

Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if additional common shares are assumed to be issued under securities that entitle their holders to obtain common shares in the future. For stock options, the number of additional shares for inclusion in diluted earnings per share calculations is determined using the treasury stock method. Under this method, stock options, whose exercise price is less than the average market price of our common shares, are assumed to be exercised and the proceeds are used to repurchase common shares at the average market price for the period. The incremental number of common shares issued under stock options and repurchased from proceeds is included in the calculation of diluted earnings per share. For convertible debentures, the number of additional shares for inclusion in diluted earnings per share calculations is determined using the as if converted method. The incremental number of common shares issued is included in the number of weighted average shares outstanding and interest on the convertible debentures is excluded from the calculation of income.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

11 > CASH FLOW-OTHER ITEMS

A Operating Cash Flows — Other Items


For the years ended Dec.31	2007			2006			2005

Adjustments for non-cash income statement items:
Currency translation (gains) losses (note 8A and 8C)		1			(2	)		(3	)
Accretion expense (note 21)		50			39			21
Cumulative accounting changes		—			—			(6	)
Amortization of discount/premium on debt securities (note 20B)		(3	)		(12	)		—
Amortization of debt issue costs (note 20B)		9			12			2
Stock option expense (note 26)		25			27			—
Non-hedge derivative gold options		30			14			—
Hedge losses on acquired gold hedge position		2			165			—
Gain on Highland vend-in (note 8C)		—			(51	)		—
Gain on Kabanga transaction (note 8C)		—			—			(15	)
Equity in investees (note 12)		43			4			6
Gain on sale of long-lived assets (note 8C)		(2	)		(9	)		(5	)
Impairment charges (note 8B and 12)		65			23			16
Losses on write-down of inventory (note 13)		13			28			15
Non-controlling interests (note 2B)		(14	)		(1	)		1
ARO reduction		(15	)		—			—
Net changes in operating assets and liabilities		(244	)		(142	)		(82	)
Settlement of AROs (note 21)		(33	)		(32	)		(30	)

Other net operating activities	$	(73	)	$	63		$	(80	)

Operating cash flow includes payments for:
Pension plan contributions (note 27A)	$	49		$	36		$	20
Interest (net of amounts capitalized)	$	236		$	211		$	108

B Investing Cash Flows — Other Items


For the years ended Dec.31	2007			2006		2005

Loans to joint venture partners	$	(47	)		—		—
Non-hedge derivative copper options		(23	)		—		—
Decrease in restricted cash (note 14)		19			—		—
Other		9			17		(5	)

Other net investing activities	$	(42	)	$	17	$	(5	)

C Non-Cash Investing and Financing Activities

Donlin Creek

In 2007, we formed a limited liability company with NovaGold to advance the Donlin Creek project. We determined that we share joint control with NovaGold and we use the equity method of accounting for our investment in Donlin Creek. The initial cost of our investment is $64 million.

Placer Dome Acquisition

We purchased all of the common shares of Placer Dome in 2006 for $10,054 million (see note 3G). In conjunction with the acquisition, liabilities were assumed as follows:


Fair value of assets acquired¹	$	15,346
Consideration paid		10,054

Liabilities assumed²	$	4,830


¹		Includes cash of $1,102 million.

²		Includes debt obligations of $1,252 million (note 20B).

Vend-in of Assets to Highland Gold (“Highland”)

In 2006, we exchanged various interests in mineral properties for 34.3 million Highland shares with a value of $95 million at the time of closing of the transaction (see note 12).

Sale of South Deep

In 2006 we sold the South Deep mine to Gold Fields Limited (“Gold Fields”) for $1,517 million. The proceeds included 18.7 million Gold Fields common shares with a value of $308 million (see note 3H).



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

12 > INVESTMENTS


At Dec.31	2007					2006

			Gains
	Fair		(losses)			Fair		Gains in
	value		in OCI			value		OCI

Available-for-sale Securities in an unrealized gain position
Benefit plans:¹
Fixed-income securities	$	4	$	—		$	5	$	—
Equity securities		14		1			16		2
Other investments:
NovaGold		—		—			231		13
Gold Fields		—		—			314		6
Other equity securities		73		41			77		33

		91		42			643		54

Securities in an unrealized loss position
Other equity securities²		5		(1	)		3		(1	)

	$	96	$	41		$	646	$	53

Held-to-maturity securities
Asset-Backed Commercial Paper		46		—			—		—

	$	142	$	41		$	646	$	53


¹		Under various benefit plans for certain former Homestake executives, a portfolio of marketable fixed-income and equity securities are held in a rabbi trust that is used to fund obligations under the plans.

²		Other equity securities in a loss position consist of investments in various junior mining companies.

Accounting Policy for Available-for-Sale Securities

Available-for-sale securities are recorded at fair value with unrealized gains and losses recorded in other comprehensive income (“OCI”). Realized gains and losses are recorded in earnings when investments mature or on sale, calculated using the average cost of securities sold. Investments in debt securities that we intend to hold to maturity are classified as held-to-maturity. Held-to-maturity investments are recorded at amortized cost. If the fair value of an investment declines below its carrying amount, we undertake an assessment of whether the impairment is other-than-temporary. We consider all relevant facts and circumstances in this assessment, particularly: the length of time and extent to which fair value has been less than the carrying amount; the financial condition and near-term prospects of the investee, including any specific events that have impacted its fair value; both positive and negative evidence that the carrying amount is recoverable within a reasonable period of time; and our ability and intent to hold the investment for a reasonable period of time sufficient for an expected recovery of the fair value up to or beyond the carrying amount. We record in earnings any unrealized declines in fair value judged to be other than temporary.

Available-for-Sale Securities Continuity


	Goldfields			NovaGold			Other			Total

January 1,2005	$	—		$	—		$	61		$	61
Purchases		—			—			31			31
Sales proceeds		—			—			(10	)		(10	)
Mark to market adjustments		—			—			(20	)		(20	)

January 1,2006		—			—			62			62
Purchases		—			218			27			245
Received in consideration for sale of South Deep (note 3H)		308			—			—			308
Sales proceeds		—			—			(46	)		(46	)
Mark to market adjustments		6			13			58			77

January 1,2007		314			231			101			646
Purchases		—			—			11			11
Sales proceeds		(356	)		(221	)		(48	)		(625	)
Mark to market adjustments		42			(10	)		32			64

December 31, 2007	$	—		$	—		$	96		$	96

Gold Fields Limited (“Gold Fields”)

The investment in Gold Fields was acquired on December 1, 2006, as partial consideration for the sale of our interest in South Deep and was recorded net of an initial liquidity discount of $48 million to reflect a 120-day restriction on our ability to trade the shares. During 2007, we sold our entire position of 18.7 million shares for proceeds of $356 million and recorded a gain of $48 million.

NovaGold Resources Inc. (“NovaGold”)

During 2007, we sold our entire investment in NovaGold for proceeds of $221 million and we recorded a gain of $3 million on the sale.

Asset-Backed Commercial Paper (“ABCP”)

As at December 31, 2007, we held $66 million of Asset-Backed Commercial Paper (“ABCP”) which has matured, but for which no payment has been received. On August 16, 2007, it was announced that a group representing banks, asset providers and major investors had agreed to a standstill with regard to all non-bank sponsored ABCP (the “Montreal Proposal ABCP”).

On December 23, 2007, a tentative deal was reached between investors and banks to restructure the majority of the Montreal Proposal ABCP. It has been determined that our ABCP investments are ineligible for inclusion in the proposed Master Asset Partnerships. As with other ineligible Montreal Proposal ABCP, our investments will be restructured on an individual basis and will not be pooled with other Montreal Proposal ABCP assets. Our investments will maintain exposure to the existing underlying ineligible assets. New floating rate notes will be issued with maturities and interest rates based on the respective maturities and amounts available from the



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

underlying investments. We have assessed the fair value of the ABCP considering the best available data regarding market conditions for such investments at December 31, 2007. We recorded an impairment of $20 million in 2007 on the ABCP investments.

Our ownership of ABCP investments is comprised of trust units which have underlying investments in various securities. The underlying investments are further represented by residential mortgage-backed securities, commercial mortgage-backed securities, other asset-backed securities and collateralized debt obligations. We have based the 30% impairment on our assessment of the inherent risks associated with the underlying investments. The 30% impairment is comprised of reductions for credit, liquidity and market risk of 5%, 20% and 5%, respectively. The impairment is further supported by an indicative value obtained from a third party. We believe that our valuation approximates fair value. The impairment of our ABCP investments has no effect on our investment strategy or covenant compliance.

There is currently no certainty regarding the outcome of the ABCP investments and therefore there is uncertainty in estimating the amount and timing of cash flows associated. This ABCP was classified under Other Investments at December 31, 2007, and as an investing activity in the Consolidated Statement of Cash Flow.

Equity Method Investment Continuity


	Highland			Atacama			Cerro Casale		Donlin Creek		Other			Total

At January 1,2005	$	86		$	—		$	—	$	—	$	—		$	86
Purchases		50			—			—		—		8			58
Equity pick-up		(5	)		—			—		—		(1	)		(6	)

At January 1,2006		131			—			—		—		7			138
Purchases		—			123			—		—		1			124
Vend-in		71			—			—		—		—			71
Equity pick-up		(3	)		—			—		—		(1	)		(4	)
Impairment charges		—			—			—		—		(2	)		(2	)

At January 1,2007		199			123			—		—		5			327
Acquired under Arizona Star acquisition		—			—			732		—		—			732
Reclassifications		—			—			—		64		(4	)		60
Equity pick-up		(30	)		(14	)		—		—		1			(43	)
Impairment charges		—			—			—		—		(2	)		(2	)

At December 31,2007	$	169		$	109		$	732	$	64	$	—		$	1,074

Accounting Policy for Equity Method Investments

Under the equity method, we record our equity share of the income or loss of equity investees each period. On acquisition of an equity investment, the underlying identifiable assets and liabilities of an equity investee are recorded at fair value and the income or loss of equity investees is based on these fair values. For an investment in a company that represents a business, if the cost of any equity investment exceeds the total amount of the fair value of identifiable assets and liabilities, any excess is accounted for in a manner similar to goodwill, with the exception that an annual goodwill impairment test is not required. Additional funding into an investee is recorded as an increase in the carrying value of the investment. The carrying amount of each investment in an equity investee is evaluated for impairment using the same method as an available-for-sale security.

Highland Gold Mining Ltd. (“Highland”)

We acquired 11 million common shares for cash of $50 million in 2005; and 34.3 million common shares as part of a vend-in transaction in 2006.

On November 17, 2006, we entered into an agreement with Highland to transfer ownership of certain companies holding Russian and Kyrgyz licenses in return for 34.3 million Highland common shares increasing our ownership of Highland from 20% to 34%. In effect, we contributed our 50% interest in the Taseevskoye deposit, as well as other exploration properties in Russia and Central Asia, to Highland, thereby consolidating ownership of these properties under one company. As part of the transaction, we seconded several of our employees to Highland, and received two additional Board seats. Completion of the transaction occurred on December 15, 2006. On closing, the fair value of Highland common shares exceeded the carrying amount of assets exchanged by $76 million. We recorded this difference as a gain of $51 million in other income to the extent of the ownership in Highland held by independent



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

third parties, and the balance of $25 million as a reduction in the carrying amount of our investment in Highland. The Fedorova PGM deposit was not included in this transaction.

The difference between the cost of our investment in Highland and the underlying historic cost of net assets was $111 million at June 30, 2007.

During 2007, Highland announced the issue of 130.1 million new shares for $400 million. The equity was purchased by Millhouse LLC (“Millhouse”) in two tranches. The first tranche of 65 million shares was completed on December 11, 2007 giving Millhouse a 25% interest in Highland and reducing our position to 25.4%. The second tranche of 65 million shares was completed on January 16, 2008 giving Millhouse a 40% interest in Highland and further reducing our interest to 20.3%.

On completion of the first tranche, Millhouse is entitled to appoint 3 of 9 Directors to the Board. On completion of the second tranche, Millhouse is entitled to appoint the CEO of Highland who will not serve on the Board. Our ability to appoint Directors has been reduced from 3 to 2. We continue to account for the investment in Highland under the equity method of accounting.

Donlin Creek

In January 2006, as part of the acquisition of Placer Dome, we acquired an interest in the Donlin Creek project. Under a pre-existing joint venture agreement we held the right to earn a 70% interest in the project subject to meeting certain conditions under the agreement. In December 2007, we restructured our agreement with our joint venture partner and formed a limited liability company, Donlin Creek LLC, to advance the Donlin Creek project. Donlin Creek has a board of four directors, with two nominees selected by each company. All significant decisions related to Donlin Creek require the approval of both companies. We own 50% of the limited liability company.

We determined that Donlin Creek LLC is a VIE and consequently used the principles of FIN 46R to determine how to account for our ownership interest. We concluded that neither ourselves nor NovaGold are a primary beneficiary and neither ourselves nor NovaGold have the right to control Donlin Creek under the limited liability company agreement. We determined that we share joint control with NovaGold, and because Donlin Creek is a corporate joint venture, we use the equity method of accounting for our investment in Donlin Creek. The initial cost of our investment in Donlin Creek is $64 million and represents the cost basis of assets transferred into the limited liability company. Our maximum exposure to loss in this entity is limited to the carrying amount of our investment in Donlin Creek, which totaled $64 million and accounts receivable from our partner totaling a further $64 million that are collateralized against NovaGold’s interest in the value of Donlin Creek as of December 31, 2007.

Atacama Copper Pty Limited (“Atacama Copper”)

In September 2006, we acquired a 50% interest in Atacama Copper. The other 50% interest in Atacama Copper is owned by Antofagasta plc. Atacama Copper is responsible for advancing the Reko Diq project. The Reko Diq project is located in Pakistan and comprises a variety of exploration licenses, an interest in some of which has been retained by the government of Balochistan.

We determined that Atacama Copper is a VIE and consequently we have used the principles of FIN 46R to determine how to account for our ownership interest. We concluded that neither ourselves nor Antofagasta are a primary beneficiary and consequently we evaluated whether either ourselves or Antofagasta have the right to control Atacama under the joint venture agreement. We determined that we share joint control with Antofagasta and because Atacama is a corporate joint venture we use the equity method of accounting for our investment. Our maximum exposure to loss in this entity is limited to our investment in Atacama, which totaled $109 million as of December 31, 2007, and amounts we will prospectively fund for Atacama’s interim exploration program.

Compania Minera Casale (“Cerro Casale”)

In December 2007, we acquired 94% of the common shares of Arizona Star. We have determined that Arizona Star’s interest in the entity that holds the Cerro Casale deposit is a VIE and consequently we have used the principles of FIN 46R to determine how to account for this ownership interest. We evaluated whether either ourselves or Kinross have the right to control Cerro Casale under the joint venture agreement and we determined that we share joint control with Kinross. Therefore, neither ourselves nor Kinross are a primary beneficiary and because Cerro Casale is a corporate joint venture, we use the equity method of accounting for Arizona Star’s investment in Cerro Casale. Our maximum exposure to loss in this entity is limited to our investment in Cerro Casale, which totaled $732 million as of December 31, 2007.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

13 > INVENTORIES


At Dec.31	Gold						Copper

	2007			2006			2007			2006

Raw materials
Ore in stockpiles	$	698		$	485		$	63		$	51
Ore on leach pads		149			104			81			76
Mine operating supplies		351			284			20			16
Work in process		109			89			5			25
Finished products
Gold dore/bullion		87			98			—			—
Copper cathode		—			—			9			12
Copper concentrate		—			—			16			5
Gold concentrate		40			54			—			—

		1,434			1,114			194			185

Non-current ore in stockpiles¹		(414	)		(298	)		(96	)		(70	)

	$	1,020		$	816		$	98		$	115


¹		Ore that we do not expect to process in the next 12 months.

Accounting Policy for Inventory

Material extracted from our mines is classified as either ore or waste. Ore represents material that we expect to be processed into a saleable form, and sold at a profit. Ore is recorded as an asset that is classified within inventory at the point it is extracted from the mine. Ore is accumulated in stockpiles that are subsequently processed into gold/copper in a saleable form under a mine plan that takes into consideration optimal scheduling of production of our reserves, present plant capacity, and the market price of gold/copper. Gold/copper in process represents gold/copper in the processing circuit that has not completed the production process, and is not yet in a saleable form.

Gold ore stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Copper ore stockpiles are measured estimating the number of tons added and removed from the stockpile. Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to a stockpile based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead, depreciation, depletion and amortization relating to mining operations, and removed at each stockpile’s average cost per recoverable unit.

We record gold in process, gold dore and gold in concentrate form at average cost, less provisions required to reduce inventory to market value. Average cost is calculated based on the cost of inventory at the beginning of a period, plus the cost of inventory produced in a period. Costs capitalized to inventory include direct and indirect materials and consumables; direct labor; repairs and maintenance; utilities; amortization of property, plant and equipment; waste stripping costs; and local mine administrative expenses. Costs are removed from inventory and recorded in cost of sales and amortization expense based on the average cost per ounce of gold in inventory. Mine operating supplies are recorded at purchase cost.

We record provisions to reduce inventory to net realizable value, to reflect changes in economic factors that impact inventory value or to reflect present intentions for the use of slow moving and obsolete supplies inventory.


For the years ended Dec.31	2007		2006		2005

Inventory impairment charges	$	13	$	28	$	15

Heap Leach Inventory

The recovery of gold and copper from certain oxide ores is achieved through the heap leaching process. Our Pierina, Lagunas Norte, Veladero, Cortez, Bald Mountain, Round Mountain, Ruby Hill and Marigold mines all use a heap leaching process for gold and our Zaldivar mine uses a heap leaching process for copper. Under this method, ore is placed on leach pads where it is treated with a chemical solution, which dissolves the gold or copper contained in the ore. The resulting “pregnant”solution is further processed in a plant where the gold or copper is recovered. For accounting purposes, costs are added to ore on leach pads based on current mining and leaching costs, including applicable depreciation, depletion and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces or pounds are recovered based on the average cost per recoverable ounce of gold or pound of copper on the leach pad.

Estimates of recoverable gold or copper on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 35% and 95% of the ounces or pounds placed on the pads.

Although the quantities of recoverable gold or copper placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of gold or copper actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

results over time. Historically, our operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of gold or copper on our leach pads. At December 31, 2007, the weighted average cost per recoverable ounce of gold and recoverable pound of copper on leach pads was $287 per ounce and $0.39 per pound, respectively (2006: $180 per ounce of gold and $0.45 per pound of copper). Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

The ultimate recovery of gold or copper from a leach pad will not be known until the leaching process is concluded. Based on current mine plans, we expect to place the last ton of ore on our current leach pads at dates for gold ranging from 2013 to 2020 and for copper ranging from 2024 to 2029. Including the estimated time required for residual leaching, rinsing and reclamation activities, we expect that our leaching operations will terminate within a period of up to six years following the date that the last ton of ore is placed on the leach pad.

The current portion of ore inventory on leach pads is determined based on estimates of the quantities of gold or copper at each balance sheet date that we expect to recover during the next 12 months.

Ore in Stockpiles


At Dec.31	2007		2006

Gold
Goldstrike
Ore that requires roasting	$	320	$	239
Ore that requires autoclaving		67		84
Kalgoorlie		75		58
Porgera		88		17
Cowal		36		9
Veladero		23		9
Cortez		19		3
Turquoise Ridge		15		15
Golden Sunlight		15		1
Other		40		50
Copper
Zaldívar		63		51

	$	761	$	536

At Goldstrike, we expect to fully process the ore in stockpiles by 2031. At Kalgoorlie, we expect to fully process the stockpile by 2018. At Porgera, we expected to fully process the stockpile by 2021. At Zaldívar, we expect to fully process the stockpile by 2029.

14 > ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS


At Dec.31	2007		2006

Accounts receivable
Amounts due from concentrate sales	$	19	$	24
Amounts due from copper cathode sales		89		83
Other receivables		148		127

	$	256	$	234

Other current assets
Derivative assets (note 20C)	$	334	$	201
Goods and services taxes recoverable		161		137
Restricted cash		131		150
Prepaid expenses		40		32
Other		41		68

	$	707	$	588

15 > PROPERTY, PLANT AND EQUIPMENT


At Dec.31	2007			2006

Assets not subject to amortization
Acquired mineral properties and capitalized mine development costs^{1, 4}	$	2,010		$	1,856
Assets subject to amortization
Capitalized mineral property acquisition and mine development costs^4,5		6,297			6,436
Buildings, plant and equipment^2,5		8,192			7,017

		16,499			15,309
Accumulated amortization³		(7,903	)		(6,919	)

	$	8,596		$	8,390


¹		Assets in the exploration or development stages that are not subject to amortization.

²		Includes $146 million (2006: $131 million) of assets under capital leases.

³		Includes $66 million (2006: $41 million) of accumulated amortization for assets under capital leases.

⁴		Includes a $176 million reclassification from amortized assets to assets not subject to amortization for Cortez Hills. This reclassification has no impact on total property, plant & equipment and no impact on amortization expense.

⁵		Includes a $108 million reclassification in 2006 from Buildings, plant and equipment to Capitalized mine development costs. This classification has no impact on total property, plant and equipment and no impact on amortization expense.



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

A Unamortized Assets

Acquired Mineral Properties and Capitalized Mine
Development Costs


	Carrying		Carrying
	amount at		amount at
	Dec.31, 2007		Dec.31, 2006

Exploration projects and other land positions	$	109	$	287
Value beyond proven and probable reserves at producing mines		299		353
Projects
Ruby Hill		—		49
Pascua-Lama		609		459
Cortez Hills¹		361		306
Pueblo Viejo		157		152
Sedibelo		81		76
Donlin Creek²		—		66
Buzwagi		224		108
Punta Colorada Wind Farm		35		—
Kainantu and PNG exploration licenses		135

	$	2,010	$	1,856


¹		$176 million and $48 million have been classified from acquired mineral properties and capitalized mine development costs and value beyond proven and probable reserves of producing mines, respectively, to the Cortez Hills development stage project for 2007 and 2006. This reclassification has no effect on the total property, plant and equipment balance and no effect on net income in either year.

²		See note 12 for further details.

Value beyond proven and probable reserves (“VBPP”)

At the end of each fiscal year, as part of our annual business cycle, we prepare estimates of proven and probable gold and copper mineral reserves for each mineral property. An amount is transferred out of VBPP into amortizable assets based on the quantity of resources converted into reserves. In 2007, we transferred $54 million from VBPP to amortizable assets (2006 and 2005: $nil).

Acquisitions

We capitalize the cost of acquisition of land and mineral rights. On acquiring a mineral property, we estimate the fair value of proven and probable reserves as well as the value beyond proven and probable reserves and we record these amounts as assets at the date of acquisition. At the time mineralized material is converted into proven and probable reserves, we classify the capitalized acquisition cost associated with those reserves as a component of acquired mineral properties, which are subject to amortization. When production begins, capitalized acquisition costs that are subject to amortization are amortized to operations using the units-of-production method.

In 2007, amortization of property, plant and equipment began at our Ruby Hill mine after it moved from construction into the production phase. (2006: Cowal mine; 2005: Tulawaka, Lagunas Norte and Veladero mines). Amortization also began in 2005 at the Western 102 power plant in Nevada that was built to supply power for the Goldstrike mine as it moved from construction into the production phase.

Gold and Copper Mineral Reserves

At the end of each fiscal year, as part of our annual business cycle, we prepare estimates of proven and probable gold and copper mineral reserves for each mineral property, including the transfer of the values beyond proven and probable (“VBPP”) reserves to assets subject to amortization. We prospectively revise calculations of amortization of property, plant and equipment. The effect of changes in reserve estimates and transfers of VBPP reserves to assets subject to amortization on amortization expense for 2007 was an increase of $31 million (2006: $75 million decrease; 2005: $28 million decrease).

Interest Costs

Interest cost is considered an element of the historical cost of an asset when a period of time is necessary to prepare it for its intended use. We capitalize interest costs to assets under development or construction while activities are in progress. We also capitalize interest costs on the value assigned to projects acquired from third parties. We also capitalize interest costs on the carrying amount of eligible equity method investments.

B Assets Subject to Amortization

Capitalized Mineral Property Acquisition and Mine Development Costs

We start amortizing capitalized mineral property acquisition and mine development costs when production begins. Amortization is calculated using the “units-of- production” method, where the numerator is the number of ounces produced and the denominator is the estimated recoverable ounces of gold contained in proven and probable reserves.

During production at underground mines, we incur development costs to build new shafts, drifts and ramps that will enable us to physically access ore underground. The time over which we will continue to incur these costs depends on the mine life, and in some cases could be up to 25 years. These underground development costs are capitalized as incurred. Costs incurred and capitalized to enable access to specific ore blocks or areas of the mine, and which only provide an economic benefit over the period of mining that ore block or area, are attributed to earnings using the units-of-production method where the



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

denominator is estimated recoverable ounces of gold contained in proven and probable reserves within that ore block or area. If capitalized underground development costs provide an economic benefit over the entire mine life, the costs are attributed to earnings using the units-of-production method, where the denominator is the estimated recoverable ounces of gold contained in total accessible proven and probable reserves. At our Open Pit mining operations, costs of moving overburden waste materials are capitalized until the production stage has commenced.

Buildings, Plant and Equipment

We record buildings, plant and equipment at cost. We capitalize costs that extend the productive capacity or useful economic life of an asset. Costs incurred that do not extend the productive capacity or useful economic life of an asset are considered repairs and maintenance and expensed as incurred. We amortize the capitalized cost of assets less any estimated residual value, using the straight-line method over the estimated useful economic life of the asset based on their expected use in our business. The longest estimated useful economic life for buildings and equipment at ore processing facilities is 25 years and for mining equipment is 15 years.

In the normal course of our business, we have entered into certain leasing arrangements whose conditions meet the criteria for the leases to be classified as capital leases. For capital leases, we record an asset and an obligation at an amount equal to the present value at the beginning of the lease term of minimum lease payments over the lease term. In the case of our capital leasing arrangements, there is transfer of ownership of the leased assets to us at the end of the lease term and therefore we amortize these assets on a basis consistent with our other owned assets.

C Impairment Evaluations

Producing Mines and Development Projects

Long-lived assets subject to potential impairment at operating mines and development projects include buildings, plant and equipment, and capitalized mineral property acquisition and mine development costs. For impairment assessment purposes, the estimated fair value of buildings, plant and equipment is based on a combination of current depreciated replacement cost and current market value. The estimated fair value of capitalized mineral property acquisition and mine development costs is based on a discounted cash flow model.

Exploration Projects

After acquisition, various factors can affect the recoverability of the capitalized cost of land and mineral rights, particularly the results of exploration drilling. The length of time between the acquisition of land and mineral rights and when we undertake exploration work varies based on the prioritization of our exploration projects and the size of our exploration budget. If we conclude that an impairment may exist, we compare the carrying amount to its fair value. The fair value for exploration projects is based on a discounted cash flow model. For projects that do not have reliable cash flow projections, a market approach is applied. In the event land and mineral rights are impaired, we reduce the carrying amount to estimated fair value and an impairment charge is recorded.

D Capital Commitments

In addition to entering into various operational commitments in the normal course of business, we had commitments of approximately $159 million at December 31, 2007 for construction activities at our development projects.

E Insurance

We purchase insurance coverage for certain insurable losses, subject to varying deductibles, at our mineral properties including losses such as property damage and business interruption. We record losses relating to insurable events as they occur. Proceeds receivable from insurance coverage are recorded at such time as receipt is probable and the amount receivable is fixed or determinable.

Insurance Proceeds


	2007		2006		2005

Cost of sales	$	16	$	—	$	—
Discontinued operations		21		12		—

	$	37	$	12	$	—



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

16 > INTANGIBLE ASSETS


For the years ended Dec.31	2007						2006
	Gross				Net		Gross				Net
	carrying		Accumulated		carrying		carrying		Accumulated		carrying
	amount		amortization		amount		amount		amortization		amount

Water rights¹	$	28	$	—	$	28	$	28	$	—	$	28
Technology²		17		—		17		17		—		17
Supply contracts³		23		15		8		23		9		14
Royalties⁴		17		2		15		17		1		16

	$	85	$	17	$	68	$	85	$	10	$	75

Aggregate period amortization expense	$	—	$	7	$	—	$	—	$	10	$	—


For the years ended Dec.31	2008		2009		2010		2011		2012

Estimated aggregate amortization expense	$	5	$	3	$	1	$	1	$	1


¹		The water rights at Zaldívar are subject to annual impairment testing and will be amortized when we use them in the future.

²		The acquired technology will be used at the Pueblo Viejo project. The amount will be amortized using the units-of-production method over the estimated proven and probable reserves of the mine, with no assumed residual value.

³		Supply contracts are being amortized over the weighted average contract lives of 4-8 years, with no assumed residual value.

⁴		Royalties are being amortized using the units-of-production method over the total ounces subject to royalty payments under the agreement.

Supply Agreement with Yokohama Rubber Co. Ltd.
(“Yokohama”)

In December 2007, we signed an agreement with Yokohama to secure the supply of tires. Under the agreement, in January 2008, we advanced Yokahama $35 million to fund expansion of their production facility and secure supply of tires for a 10-year period.

17 > GOODWILL


	Gold							Copper
	North					South							South
	America			Australia		America		Africa			Australia		America		Total

Opening balance, January 1, 2006	$	—		$	—	$	—	$	—		$	—	$	—	$	—
Additions¹		2,423			1,811		441		1,024			64		743		6,506
Disposals²		—			—		—		(651	)		—		—		(651	)

Closing balance, December 31, 2006	$	2,423		$	1,811	$	441	$	373		$	64	$	743	$	5,855
Additions³		—			34		—		—			—		—		34
Impairments⁴		(42	)		—		—		—			—		—		(42	)

Closing balance, December 31, 2007	$	2,381		$	1,845	$	441	$	373		$	64	$	743	$	5,847


¹		Represents goodwill acquired as a result of the acquisition of Placer Dome Inc. No portion of this goodwill is expected to be deductible for income tax purposes.

²		Represents goodwill associated with the sale of our 50% interest in the South Deep mine to Gold Fields Ltd.

³		Represents goodwill acquired as a result of the acquisition of an additional 20% interest in Porgera. This goodwill is expected to be deductible for income tax purposes (note 3E).

⁴		Impairment charges recorded in the fourth quarter related to the Golden Sunlight ($35 million) and Eskay Creek ($7 million) mines, as a result of our annual goodwill impairment test. The goodwill impairment charges are primarily due to the short remaining lives of these mines.

Accounting Policy for Goodwill and Goodwill Impairment

Under the purchase method, the cost of business acquisitions is allocated to the assets acquired and liabilities assumed based on the estimated fair value at the date of acquisition. The excess of purchase cost over the net fair value of identified tangible and intangible assets and liabilities acquired represents goodwill that is allocated to reporting units. We believe that goodwill arises principally because of the following factors: (1) The going concern value implicit in our ability to sustain and/or grow our business by increasing reserves and resources through new discoveries; and (2) The ability to capture unique synergies that can be realized from managing a portfolio of both acquired and existing mines and mineral properties in our regional business units.



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

unit level. As at December 31, 2006, the process of determining the appropriate level to allocate goodwill was ongoing. In fourth quarter 2006, we completed impairment tests of goodwill assuming both no aggregation of mineral properties, and aggregation of mineral properties up to the regional business unit level and determined that there were no impairments at that date under either methodology. In second quarter 2007, we determined that an individual mineral property that is an operating mine is a reporting unit for the purposes of allocating goodwill. On this basis, we allocated goodwill arising from the Placer Dome acquisition to both acquired and existing mineral properties.

Allocations for goodwill arising on the acquisition of Placer Dome were calculated by first comparing the fair value of acquired reporting units to the fair value of net identified assets allocated to the reporting units. Secondly, the fair value of estimated synergies arising on the combination between Barrick and Placer Dome was used to allocate goodwill both to reporting units acquired and existing Barrick reporting units expected to benefit from the combination.

On an annual basis in the fourth quarter of our fiscal year, we evaluate the carrying amount of goodwill assigned to reporting units for potential impairment. This impairment assessment involves estimating the fair value of each reporting unit that includes goodwill. We compare this fair value to the total carrying amount of each reporting unit (including goodwill). If the carrying amount exceeds this fair value, then we estimate the fair values of all identifiable assets and liabilities in the reporting unit, and compare this net fair value of assets less liabilities to the estimated fair value of the entire reporting unit. The difference represents the implied fair value of the reporting unit’s goodwill, which is compared to its carrying amount. Any excess of the carrying value over the fair value is charged to earnings.

18 > OTHER ASSETS


At Dec.31	2007		2006

Non-current ore in stockpiles (note 13)	$	510	$	368
Derivative assets (note 20C)		220		209
Goods and services taxes recoverable		54		48
Deferred income tax assets (note 23)		722		528
Debt issue costs		27		36
Deferred share-based compensation (note 26B)		75		36
Notes receivable		97		65
Deposits receivable		147		82
Other		84		49

	$	1,936	$	1,421

Debt Issue Costs

In 2007, no new debt financings were put into place and there were no additions to debt issue costs. Amortization of debt issue costs is calculated using the interest method over the term of each debt obligation, and classified as a component of interest cost (see note 20B).

19 > OTHER CURRENT LIABILITIES


At Dec.31	2007		2006

Asset retirement obligations (note 21)	$	74	$	50
Derivative liabilities (note 20C)		100		82
Post-retirement benefits (note 27)		11		11
Deferred revenue		23		—
Income taxes payable (note 9)		38		159
Other		9		1

	$	255	$	303

20 > FINANCIAL INSTRUMENTS

Financial instruments include cash; evidence of ownership in an entity; or a contract that imposes an obligation on one party and conveys a right to a second entity to deliver/receive cash or another financial instrument. Information on certain types of financial instruments is included elsewhere in these financial statements as follows: accounts receivable - note 14; investments - note 12; restricted share units - note 26B.



BARRICK YEAR-END 2007				NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

A Cash and Equivalents

Cash and equivalents include cash, term deposits and treasury bills with original maturities of less than 90 days. Cash and equivalents include $480 million (2006: $605 million) held in Argentinean and Chilean subsidiaries that have been designated for use in funding construction costs at our Pascua-Lama project.

B Long-Term Debt⁶


	2007									2006											2005
																			Assumed on
	At																		acquisition of		At
	Dec.31			Proceeds		Repayments		Amortization⁵		At Dec.31			Proceeds		Repayments		Amortization ⁵		Placer Dome		Dec.31			Proceeds		Repayments		Amortization⁵

7.50% debentures ¹	$	—		$	—	$	500	$	—	$	498		$	—	$	—	$	—	$	—	$	490		$	—	$	—	$	—
5.80%/4.875% notes		745			—		—		—		745			—		—		—		—		745			—		—		—
Veladero financing		163			—		57		—		220			13		30		—		—		237			39		—		—
Bulyanhulu financing		51			—		34		—		85			—		34		—		—		119			—		31		—
Other debt²		923					101				1,024			50		—		6		867		113			50		—		—
Copper-linked notes		515			—		393		—		908			995		87		—		—		—			—		—		—
US dollar notes		480			393		—		—		87			87		—		—		—		—			—		—		—
Senior convertible debentures		293			—		—		3		296			—		—		4		300		—			—		—		—
Capital leases		85			15		24		—		94			7		16		—		6		97			90		28		—
Series B Preferred Securities		—			—		—		—		—			—		77		2		79		—			—		—		—
First credit facility³		—			—		—		—		—			1,000		1,000		—		—		—			—		—		—

		3,255			408		1,109		3		3,957			2,152		1,244		12		1,252		1,801			179		59		—
Less: current portion		(102	)		—		—		—		(713	)		—		—		—		—		(80	)		—		—		—

	$	3,153		$	408	$	1,109	$	3	$	3,244		$	$2,152	$	1,244	$	12	$	1,252	$	1,721		$	179	$	59	$	—

Short-term debt
Demand financing facility		131			—		19		—		150			—		—		—		150		—			—		—		—
Second credit facility⁴		—			—		—		—		—			37		337		—		300		—			—		—		—

	$	131		$	—	$	19	$	—	$	150		$	37	$	337	$	—	$	450	$	—		$	—	$	—	$	—


¹		During second quarter 2007, we repaid the $500 million 7.5% debentures from existing cash balances and proceeds from the sale of investments.

²		The debt has an aggregate principal amount of $923 million, of which $163 million is subject to floating interest rates and $760 million is subject to fixed interest rates ranging from 6.37% to 7.75%. The notes mature at various times between 2009 and 2035.

³		We have a credit and guarantee agreement with a group of banks (the “Lenders”), which requires the Lenders to make available to us a credit facility of up to $1.5 billion or the equivalent amount in Canadian currency. The credit facility, which is unsecured, has an interest rate of Libor plus 0.25% to 0.35% on drawn down amounts, and a commitment rate of 0.07% to 0.08% on undrawn amounts. We increased the limit of this facility from $1 billion in August 2006. The facility currently matures in 2011.

⁴		During third quarter 2006, we terminated a second credit facility which consisted of unused bank lines of credit of $850 million with an international consortium of banks.

⁵		Amortization of debt discount/premium.

⁶		The agreements which govern our long-term debt each contain various provisions which are not summarized herein. In certain cases, these provisions allow Barrick to, at its option, redeem indebtedness prior to maturity at specified prices and also may permit redemption of debt by Barrick upon the occurrence of certain specified changes in tax legislation.

Veladero Financing

One of our wholly owned subsidiaries, Minera Argentina Gold S.A. in Argentina, has a limited recourse amortizing loan facility for $250 million, the majority of which has a variable interest rate. We have guaranteed the loan until completion occurs, after which it will become non-recourse to the parent company. As at December 31, 2007, completion as defined in the loan agreement has not occurred. The loan is insured for political risks by branches of the Canadian and German governments.

Copper-Linked Notes/US Dollar Notes

In October 2006, we issued $1,000 million of Copper-Linked Notes. During the first three years, the full $1,000 million obligation of these notes is to be repaid through the delivery of (the US dollar equivalent of) 324 million pounds of copper. At December 31, 2007, 156 million pounds of copper remained to be delivered (2008 — 103 million pounds; 2009 — 53 million pounds). Coincident with the repayment of (the US dollar equivalent of) 324 million pounds of copper, we will reborrow $1,000 million. Over the next two years, the total amount outstanding under these notes will continue to be $1,000 million, with a portion repayable in a copper-linked equivalent and a portion repayable in a fixed amount of US dollars at the maturity of the notes (2016 and 2036). As the copper-linked equivalent is repaid, the fixed US dollar obligation will increase. After



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

2009, only the fixed US dollar obligation will remain. The accounting principles applicable to these Copper-Linked Notes require separate accounting for the future delivery of copper (a fixed-price forward sales contract that meets the definition of a derivative that must be separately accounted for) and for the underlying bond (see note 20C).

Senior Convertible Debentures

The convertible senior debentures (the “Securities”) mature in 2023 and had an aggregate principal amount of $293 million outstanding as at the end of 2007. Holders of the Securities may, upon the occurrence of certain circumstances and within specified time periods, convert their Securities into common shares of Barrick. These circumstances are: if the closing price of our common shares exceeds 120% of the conversion price for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter; if certain credit ratings assigned to the Securities fall below specified levels or if the Securities cease to be rated by specified rating agencies or such ratings are suspended or withdrawn; if for each of five consecutive trading days, the trading price per $1,000 principal amount of the Securities was less than 98% of the product of the closing price of our common shares and the then current conversion rate; if the Securities have been called for redemption provided that only such Securities called for redemption may be converted and upon the occurrence of specified corporate transactions. On December 31, 2007 the conversion rate per each $1,000 principal amount of Securities was 39.99 common shares and the effective conversion price was $25.01 per common share. The conversion rate is subject to adjustment in certain circumstances. As such, the effective conversion price may also change.

The Securities were convertible from October 1, 2007 through December 31, 2007. No holder of Securities converted during this period. However, had all the Securities been converted and settlement occurred on December 31, 2007, we would have issued approximately 9.2 million common shares with an aggregate fair value of approximately $386.7 million based on our closing share price on December 31, 2007. The Securities are also convertible from January 1, 2008 through March 31, 2008.

We may redeem the Securities at any time on or after October 20, 2010 and prior to maturity, in whole or in part, at a prescribed redemption price that varies depending upon the date of redemption from 100.825% to 100% of the principal amount, plus accrued and unpaid interest. The maximum amount we could be required to pay to redeem the securities is $232 million plus accrued interest. Holders of the Securities can require the repurchase of the Securities for 100% of their principal amount, plus accrued and unpaid interest, on October 15, 2013 and October 15, 2018. In addition, if specified designated events occur prior to maturity of the Securities, we will be required to offer to purchase all outstanding Securities at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. For accounting purposes the Securities are classified as a “conventional convertible debenture” and the conversion feature has not been bifurcated from the host instrument.

Series B Preferred Securities

On December 18, 2006, we redeemed all of the outstanding 8.5% Series B Preferred Securities due December 31, 2045 for total cash of $80 million. The redemption price was comprised of the outstanding principal amount of $77 million plus accrued and unpaid interest to December 17, 2006 of $3 million.

Demand Financing Facility

We have a demand financing facility that permits borrowings of up to $150 million. The terms of the facility require us to maintain cash on deposit with the lender as a compensating balance equal to the amount outstanding under the facility, which is restricted as to use. The net effective interest rate is 0.4% per annum. At December 31, 2007, $131 million had been drawn on the facility and an equal amount had been placed on deposit that is included in restricted cash (see note 14).



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Interest


	For the years ended Dec.31
	2007						2006						2005
	Interest			Effective			Interest			Effective			Interest			Effective
	cost			rate ¹			cost			rate¹			cost			rate¹

7.50% debentures	$	16			9.9	%	$	49			9.8	%	$	41			8.21	%
5.80%/4.875% notes		41			5.6	%		41			5.5	%		42			5.6	%
Veladero financing		21			10.2	%		25			10.2	%		20			8.6	%
Bulyanhulu financing		5			6.2	%		6			5.5	%		10			7.5	%
Other debt		60			6.1	%		53			5.4	%		3			4.1	%
Copper-linked notes/US dollar notes		63			6.2	%		13			5.8	%		—			—
Senior convertible debentures		2			0.8	%		6			2.0	%		—			—
Capital leases		6			7.7	%		6			6.7	%		6			6.2	%
Series B Preferred Securities		—			—			3			4.4	%		—			—
Demand financing facility		13			8.9	%		12			8.8	%		—			—
First credit facility		1			—			29			7.4	%		—			—
Second credit facility		—			—			6			5.0	%		—			—
Other interest		9						2						(1	)

		237						251						121

Less: interest allocated to discontinued operations		—						(23	)					—
Less: interest capitalized		(124	)					(102	)					(118	)

	$	113					$	126					$	3

Cash interest paid	$	236					$	211					$	108
Amortization of debt issue costs		9						12						2
Amortization of premium		(3	)					(12	)					—
Losses on interest rate hedges		4						12						5
Increase (decrease) in interest accruals		(9	)					28						6

Interest cost	$	237					$	251					$	121


¹		The effective rate includes the stated interest rate under the debt agreement, amortization of debt issue costs and debt discount/premium and the impact of interest rate contracts designated in a hedging relationship with long—term debt.

Scheduled Debt Repayments


	2008		2009		2010		2011		2012 and thereafter

5.80%/4.875% notes	$	—	$	—	$	—	$	—	$	750
Veladero financing		48		53		30		10		22
Bulyanhulu financing		34		17		—		—		—
Copper-linked notes/US dollar notes¹		—		—		—		—		1,000
Other debt		—		16		—		—		844
Senior convertible debentures		—		—		—		—		230

	$	82	$	86	$	30	$	10	$	2,846

Minimum annual payments under capital leases	$	21	$	24	$	20	$	8	$	6


¹		The Copper-linked notes/US dollar notes have scheduled repayments through the delivery of pre-determined amounts of copper (see Copper-Linked Notes/US Dollar Notes).

C Use of Derivative Instruments (“Derivatives”) in Risk Management

In the normal course of business, our assets, liabilities and forecasted transactions are impacted by various market risks including:



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


Item		Impacted by
•	Sales	•	Prices of gold and copper
•	Cost of sales
	o Consumption of diesel fuel and propane	•	Prices of diesel fuel, propane and natural gas
	o Local currency denominated expenditures	•	Currency exchange rates — US dollar versus A$, C$, CLP, ARS, PGK and TZS
	o By-product credits	•	Prices of silver and copper
•	Administration, exploration and business development costs in local currencies	•	Currency exchange rates — US dollar versus A$, ZAR, CLP, ARS, PGK and C$
•	Capital expenditures in local currencies	•	Currency exchange rates — US dollar versus A$, C$, CLP, ARS, PGK and EUR
•	Interest earned on cash	•	US dollar interest rates
•	Fair value of fixed—rate debt	•	US dollar interest rates

Under our risk management policy, we seek to mitigate the impact of these market risks to provide certainty for a portion of our revenues and to control costs and enable us to plan our business with greater certainty. The timeframe and manner in which we manage these risks varies for each item based upon our assessment of the risk and available alternatives for mitigating risk. For these particular risks, we believe that derivatives are an effective means of managing risk.

The primary objective of the hedging elements of our derivative positions is that changes in the values of hedged items are offset by changes in the values of derivatives. Most of the derivatives we use meet the FAS 133 hedge effectiveness criteria and are designated in a hedge accounting relationship. Some of the derivative positions are effective in achieving our risk management objectives but they do not meet the strict FAS 133 hedge effectiveness criteria, and they are classified as “non-hedge derivatives”. The change in fair value of these non-hedge derivatives is recorded in earnings, in a manner consistent with the derivative positions’ intended use.

Non-Hedge Derivative Gains/Losses


		Income statement
		classification

Gold contracts		Revenue
Copper contracts		Revenue
Silver contracts		Cost of sales
Fuel contracts		Cost of sales
Currency contracts		Other expense
Interest rate swaps		Interest income/expense
Share purchase warrants		Other income

Summary of Derivatives at Dec.31, 2007¹


	Notional Amount by Term to										Accounting Classification by							Fair
	Maturity										Notional Amount							value
	Within 1		2 to 5			Over 5					Cash flow		Fair value		Non-
	year		years			years		Total			hedge		hedge		Hedge

US dollar interest rate contracts
Receive-fixed swaps (millions)	$	—	$	50		$	—	$	50		$	—	$	—	$	50		$	1
Pay-fixed swaps (millions)		—		(125	)		—		(125	)		—		—		(125	)		(11	)

Net swap position	$	—	$	(75	)	$	—	$	(75	)	$	—	$	—	$	(75	)	$	(10	)

Currency contracts
C$:US$ contracts (C$ millions)	C$	331	C$	219		C$	—	C$	550		C$	450	C$	—	C$	100		$	31
A$:US$ contracts (A$ millions)	A$	1,379	A$	3,232		A$	—	A$	4,611		A$	4,518	A$	—	A$	93			210
EUR:US$ contracts (€ million)	€	4	€	—		€	—	€	4		€	1	€	—	€	3			—
CLP:US$ contracts (CLP billions)	CLP	42	CLP	—		CLP	—	CLP	42		CLP	42	CLP	—	CLP	—			—

Commodity contracts
Copper call option spread contracts (millions of pounds)		103		53			—		156			—		—		156		$	25
Copper sold forward contracts (millions of pounds)		100		72			—		172			172		—		—			—
Copper collar contracts (millions of pounds)		299		—			—		299			272		—		27			49
Diesel forward contracts (thousands of barrels)²		1,868		2,910			440		5,218			4,505		—		713			84


¹		Excludes gold sales contracts (see note 5), gold lease rate swaps (see note 5),

²		Diesel commodity contracts represent a combination of WTI, WTB, MOPS and JET hedge contracts and diesel price contracts based on the price of WTI, WTB, MOPS, and JET, respectively, plus a spread. WTI represents West Texas intermediate, WTB represents Water Borne, MOPS represents Mean of Platts Singapore, JET represents Jet Fuel.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

US Dollar Interest Rate Contracts

Receive-fixed swaps totaling $300 million were closed out in third quarter 2007. They had been designated against the Copper-linked notes/US dollar notes, included in long-term debt, as a hedge of the variability in the fair value of the debentures caused by changes in LIBOR. For these hedges, prospective hedge effectiveness was assessed by comparing the effects of theoretical shifts in forward interest rates on the fair value of both the debt and the swaps. The retrospective assessment involved comparing the effect of changes in the underlying interest rate (i.e., LIBOR) on both the debt and the swaps.

In the second quarter, receive-fixed swaps totaling $500 million expired. These swaps were set up as fair value hedges of the $500 million 7.5% debentures which matured on May 1, 2007. Changes in fair value of the swaps, together with changes in fair value of the debentures caused by changes in LIBOR, were recorded in earnings each period. Also, as interest payments on the debentures are recorded in earnings, an amount equal to the net of the fixed-rate interest receivable and the variable-rate interest payable is recorded in earnings as a component of interest costs.

Currency Contracts

Cash Flow Hedges

Currency contracts totaling C$450 million, A$4,518 million, €1 million and CLP 42 billion have been designated against forecasted local currency denominated expenditures as a hedge of the variability of the US dollar amount of those expenditures caused by changes in currency exchange rates over the next four years. Hedged items are identified as the first stated quantity of dollars of forecasted expenditures in a future month. For a C$450 million, A$4,452 million, €1 million and CLP 42 billion portion of the contracts, we have concluded that the hedges are 100% effective under FAS 133 because the critical terms (including notional amount and maturity date) of the hedged items and currency contracts are the same. For the remaining A$66 million, prospective and retrospective hedge effectiveness is assessed using the hypothetical derivative method under FAS 133. The prospective test involves comparing the effect of a theoretical shift in forward exchange rates on the fair value of both the actual and hypothetical derivative. The retrospective test involves comparing the effect of historic changes in exchange rates each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the currency contracts is recorded in OCI until the forecasted expenditure impacts earnings. For expenditures capitalized to the cost of inventory, this is upon sale of inventory, and for capital expenditures, this is when amortization of the capital assets is recorded in earnings.

Non-hedge Contracts

On December 31, 2007 we had non-hedge Canadian currency contracts of $100M. We entered these contracts to hedge the purchase price of Arizona Star. The contracts qualified for hedge accounting treatment from the designation date to the acquisition date of December 20, 2007. After December 20, 2007, the contracts were no longer considered hedges under FAS 133, and all changes in fair value subsequent to that date were recorded in current period earnings. These non-hedge contracts matured at the end of January 2008.

During 2007, we entered into a series of A$ contracts as identified above. A$93 million contracts were not designated as hedges and are outstanding as of December 31, 2007.

Commodity Contracts

Cash Flow Hedges

Commodity contracts totaling 4,505 thousand barrels of diesel fuel have been designated against forecasted purchases of the commodities for expected consumption at our mining operations. The contracts act as a hedge of the impact of variability in market prices on the cost of future commodity purchases over the next seven years. Hedged items are identified as the first stated quantity in millions of barrels/gallons of forecasted purchases in a future month. Prospective and retrospective hedge effectiveness is assessed using the hypothetical derivative method under FAS 133. The prospective test is based on regression analysis of the month–on–month change in fair value of both the actual derivative and a hypothetical derivative caused by actual historic changes in commodity prices over the last three years. The retrospective test involves comparing the effect of historic changes in commodity prices each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the commodity contracts is recorded in OCI until the forecasted transaction impacts earnings. The cost of commodity consumption is capitalized to the cost of inventory, and therefore this is upon the sale of inventory.

The terms of a series of copper-linked notes resulted in an embedded fixed-price forward copper sales contract for 324 million pounds that meets the definition of a derivative and must be separately accounted for. At December 31, 2007, embedded fixed-price forward copper sales contracts for 156 million pounds were



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

outstanding due to deliveries of copper totaling 168 million pounds. The resulting copper derivative has been designated against future copper cathode at the Zaldívar mine as a cash flow hedge of the variability in market prices of those future sales. Hedged items are identified as the first stated quantity of pounds of forecasted sales in a future month. Prospective hedge effectiveness is assessed on these hedges using a dollar offset method. The dollar offset assessment involves comparing the effect of theoretical shifts in forward copper prices on the fair value of both the actual hedging derivative and a hypothetical hedging derivative. The retrospective assessment involves comparing the effect of historic changes in copper prices each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the copper contracts is recorded in OCI until the forecasted copper sale impacts earnings.

During 2007 we added 392 million pounds of copper collar contracts which provide a floor price and a cap price for copper sales. 315 million pounds of the collars were designated against copper cathode sales at our Zaldívar mine and 77 million pounds are designated against copper concentrate sales at our Osborne mine. At December 31, 2007 we had 207 million pounds of copper collar contracts remaining at Zaldívar and 65 million pounds at Osborne.

For collars designated against copper cathode production, the hedged items are identified as the first stated quantity of pounds of forecasted sales in a future month. Prospective hedge effectiveness is assessed on these hedges using a dollar offset method. The dollar offset assessment involves comparing the effect of theoretical shifts in forward copper prices on the fair value of both the actual hedging derivative and a hypothetical hedging derivative. The retrospective assessment involves comparing the effect of historic changes in copper prices each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the copper contracts is recorded in OCI until the forecasted copper sale impacts earnings.

Concentrate sales at our Osborne mine contain both gold and copper, and as a result, are exposed to price changes of both commodities. Prospective hedge effectiveness is assessed using a regression method. The regression method involves comparing month-by-month changes in fair value of both the actual hedging derivative and a hypothetical derivative (derived from the price of concentrate) caused by actual historical changes in commodity prices over the last three years. The retrospective assessment involves comparing the effect of historic changes in copper prices each period on the fair value of both the actual and hypothetical derivative using a dollar offset approach. The effective portion of changes in fair value of the copper contracts is recorded in OCI until the forecasted copper sale impacts earnings. During 2007, we recorded ineffectiveness of $5 million on these hedges. The ineffectiveness was caused by changes in the price of gold impacting the hypothetical derivative, but not the hedging derivative. Prospective effectiveness tests indicate that these hedges are expected to be highly effective in the future.

Non–hedge Contracts

Non–hedge fuel contracts are used to mitigate the risk of oil price changes on other fuel consumption. On completion of regression analysis, we concluded that the contracts do not meet the “highly effective” criterion in FAS 133 due to currency and basis differences between contract prices and the prices charged to the mines by oil suppliers. Despite not qualifying as an accounting hedge, the contracts protect the Company to a significant extent from the effects of oil price changes. Changes in fair value of non-hedge fuel contracts are recorded in current period cost of sales.

In first quarter 2007, we purchased and sold call options on 274 million pounds of copper over the next 2 1/2 years. These options, when combined with the aforementioned fixed-price forward copper sales contracts, economically lock in copper sales prices between $3.08/lb and $3.58/lb over a period of 2 1/2 years. At December 31, 2007, the notional amount of options outstanding had decreased to 156 million pounds due to expiry of options totaling 118 million pounds in 2007. These contracts do not meet the “highly effective” criterion for hedge accounting in FAS 133. We paid net option premiums of $23 million for these positions that were included under investing activities in the cash flow statement. Changes in fair value of these copper options are recorded in current period revenue.

During 2007, we entered into a series of copper collar contracts for 27 million pounds of copper that were not designated as hedges and were outstanding as of December 31, 2007.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Non-hedge Derivative Gains (Losses)


For the years ended	2007			2006			2005			Income statement classification

Commodity contracts
Copper	$	48		$	(14	)	$	—		Revenue
Gold		(8	)		7			(4	)	Revenue
Silver		—			(5	)		—		Cost of sales
Fuel		7			1			8		Cost of sales
Currency contracts		(7	)		—			3		Other income/expense
Interest rate contracts		(2	)		8			2		Interest income/expense
Share purchase warrants		(1	)		—			(5	)	Other income/expense

		37			(3	)		4

Hedge ineffectiveness
Ongoing hedge inefficiency		4			3			1		Various
Due to changes in timing of hedged items		—			—			1		Various

	$	41		$	—			6

Derivative Assets and Liabilities


	2007			2006

At Jan.1	$	178		$	204
Acquired with Placer Dome		—			(1,707	)
Derivatives cash (inflow) outflow
Operating activities		(309	)		(184	)
Financing activities		197			1,840
Investing activities		23			—
Change in fair value of:
Non-hedge derivatives		33			(3	)
Cash flow hedges
Effective portion		257			17
Ineffective portion		9			3
Share purchase warrants		(1	)		—
Fair value hedges		2			8

At Dec.31	$	389		$	178

Classification:
Other current assets	$	334		$	201
Other assets		220			209
Other current liabilities		(100	)		(82	)
Other long—term obligations		(65	)		(150	)

	$	389		$	178


¹		Derivative assets and liabilities are presented net by offsetting related amounts due to/from counterparties if the conditions of FIN No. 39, Offsetting of Amounts Related to Certain Contracts, are met. Amounts receivable from counterparties netted against derivative liabilities totaled $5 million at December 31, 2007.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Cash Flow Hedge Gains (Losses) in OCI


	Commodity price hedges									Currency hedges									Interest rate hedges
										Operating			Administration			Capital			Cash			Long-term
	Gold/Silver			Copper			Fuel			costs			costs			expenditures			balances			debt			Total

At Dec.31, 2004		—			—			2			240			33			48			3			(25	)		301
Effective portion of change in fair value of hedging instruments		—			—			46			(38	)		13			(4	)		1			5			23
Transfers to earnings:
On recording hedged items in earnings		—			—			(10	)		(100	)		(16	)		(4	)		(6	)		2			(134	)
Hedge ineffectiveness due to changes in timing of hedged items		—			—			—			—			—			(1	)¹		—			—			(1	)

At Dec.31, 2005		—			—			38			102			30			39			(2	)		(18	)		189
Effective portion of change in fair value of hedging instruments		(148	)		29			(1	)		137			(2	)		4			(2	)		—			17
Transfers to earnings:

On recording hedged items in earnings		165			28			(16	)		(84	)		(14	)		(4	)¹		1			1			77

At Dec.31, 2006	$	17		$	57		$	21		$	155		$	14		$	39		$	(3	)	$	(17	)	$	283
Effective portion of change in fair value of hedging instruments		—			(75	)		87			249			32			(35	)		—			(1	)		257
Transfers to earnings:
On recording hedged items in earnings		(2	)		32			(29	)		(166	)		(19	)		(5	)¹		3			1			(185	)

At Dec.31, 2007	$	15		$	14		$	79		$	238		$	27		$	(1	)	$	—		$	(17	)	$	355

	Gold			Copper			Cost of			Cost of									Interest			Interest
Hedge gains/losses classified within	sales			sales			sales			sales			Administration			Amortization			income			expense

Portion of hedge gain (loss) expected to affect 2008 earnings²	$	2		$	24		$	27		$	141		$	18		$	—		$	—		$	(1	)	$	211


¹		On determining that certain forecasted capital expenditures were no longer likely to occur within two months of the originally specified time frame.

²		Based on the fair value of hedge contracts at December 31, 2007.

D Fair Value of Financial Instruments

Fair value is the value at which a financial instrument could be closed out or sold in a transaction with a willing and knowledgeable counterparty over a period of time consistent with our risk management or investment strategy. Fair value is based on quoted market prices, where available. If market quotes are not available, fair value is based on internally developed models that use market-based or independent information as inputs. These models could produce a fair value that may not be reflective of future fair value.

Fair Value Information


At Dec.31	2007				2006
	Carrying		Estimated		Carrying		Estimated
	amount		fair value		amount		fair value

Financial assets
Cash and equivalents¹	$	2,207	$	2,207	$	3,043	$	3,043
Accounts receivable ¹		256		256		234		234
Available-for-sale securities ²		96		96		646		646
Equity-method investments³		1,074		1,113		204		212
Derivative assets ⁴		554		554		410		410
Held-to-maturity securities⁵		46		46		—		—

	$	4,233	$	4,272	$	4,537	$	4,545

Financial liabilities
Accounts payable¹	$	808	$	808	$	686	$	686
Long-term debt⁶		3,255		3,151		3,957		3,897
Derivative liabilities ⁴		165		165		232		232
Restricted share units⁷		100		100		42		42
Deferred share units⁷		4		4		2		2

	$	4,332	$	4,228	$	4,919	$	4,859


¹		Recorded at cost. Fair value approximates the carrying amounts due to the short-term nature and generally negligible credit losses.

²		Recorded at fair value. Quoted market prices are used to determine fair value.

³		Recorded at cost, adjusted for our share of income/loss and dividends of equity investees. Excludes the investment in Atacama Pty for which there is no readily determinable fair value.

⁴		Recorded at fair value based on internal valuation models that reflect forward market commodity prices, currency exchange rates and interest rates, and a discount factor that is based on market US dollar interest rates. If a forward market does not exist, we obtain broker-dealer quotations. Valuations assume all counterparties have an AA credit rating.

⁵		Includes ABCP.



BARRICK YEAR—END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


⁶		Long-term debt is generally recorded at cost except for obligations that are designated in a fair-value hedge relationship, which are recorded at fair value in periods where a hedge relationship exists. The fair value of long-term debt is calculated by discounting the future cash flows under a debt obligation by a discount factor that is based on US dollar market interest rates adjusted for our credit quality.

⁷		Recorded at fair value based on our period end closing market share price.

E Credit Risk

Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and accounts receivable, credit risk represents the carrying amount on the balance sheet, net of any overdraft positions.

For derivatives, when the fair value is positive, this creates credit risk. When the fair value of a derivative is negative, we assume no credit risk. In cases where we have a legally enforceable master netting agreement with a counterparty, credit risk exposure represents the net amount of the positive and negative fair values for similar types of derivatives. For a net negative amount, we regard credit risk as being zero. A net positive amount for a counterparty is a reasonable measure of credit risk when there is a legally enforceable master netting agreement. We mitigate credit risk by:

Ø		entering into derivatives with high credit-quality counterparties;

Ø		limiting the amount of exposure to each counterparty; and

Ø		monitoring the financial condition of counterparties.

Location of credit risk is determined by physical location of the bank branch, customer or counterparty.

Credit Quality of Financial Assets


At Dec.31, 2007	S&P Credit rating
	AA-or			A-or
	higher			higher			B to BBB		Total

Cash and equivalents¹	$	2,225		$	30		$	—	$	2,255
Derivatives²		405			—			—		405
Accounts receivable		—			—			256		256
Other non-current assets³		42			3			1		46

	$	2,672		$	33		$	257	$	2,962

Number of counterparties		22			3

Largest counterparty (%)		31	%		96	%

Concentrations of Credit Risk


	United				Other
At Dec.31, 2007	States		Canada		International		Total

Cash and equivalents¹	$	1,831	$	103	$	321	$	2,255
Derivatives²		151		139		115		405
Accounts receivable		191		46		19		256
Other non-current assets³		46		—		—		46

	$	2,219	$	288	$	455	$	2,962


¹		The amounts presented reflect the outstanding bank balance held with institutions as at December 31, 2007.

²		The amounts presented reflect the net credit exposure after considering the effect of master netting agreements.

³		Other non-current assets include ABCP.

F Risks Relating to the Use of Derivatives

By using derivatives, in addition to credit risk, we are affected by market risk and market liquidity risk. Market risk is the risk that the fair value of a derivative might be adversely affected by a change in commodity prices, interest rates, gold lease rates, or currency exchange rates, and that this in turn affects our financial condition. We manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We mitigate this risk by establishing trading agreements with counterparties under which we are not required to post any collateral or make any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative.

Market liquidity risk is the risk that a derivative cannot be eliminated quickly, by either liquidating it or by establishing an offsetting position. Under the terms of our trading agreements, counterparties cannot require us to immediately settle outstanding derivatives, except upon the occurrence of customary events of default such as covenant breaches, including financial covenants, insolvency or bankruptcy. We generally mitigate market liquidity risk by spreading out the maturity of our derivatives over time.



BARRICK YEAR—END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

21 > ASSET RETIREMENT OBLIGATIONS

Asset Retirement Obligations (AROs)


	2007			2006

At Jan.1	$	893		$	446
AROs acquired with Placer Dome		—			387
AROs arising in the period		53			27
Impact of revisions to expected cash flows
Revisions to carrying amount of assets		—			(7	)
Recorded in earnings¹		6			53
Settlements
Cash payments		(33	)		(32	)
Settlement gains		(3	)		(4	)
AROs reclassified under “Liabilities of discontinued operations”		—			(16	)
Accretion		50			39

At Dec.31		966			893
Current portion		(74	)		(50	)

	$	892		$	843


¹		In 2006, we recognized an increase of $37 million for a change in estimate of the ARO at the Nickel Plate property in British Columbia, Canada. The adjustment was made on receipt of an environmental study that indicated a requirement to treat ground water for an extended period of time. The increase was recorded as a component of other expense (note 8A).

Each period we assess cost estimates and other assumptions used in the valuation of AROs at each of our mineral properties to reflect events, changes in circumstances and new information available. Changes in these cost estimates and assumptions have a corresponding impact on the fair value of the ARO. For closed mines, any change in the fair value of AROs results in a corresponding charge or credit within other expense, whereas at operating mines the charge is recorded as an adjustment to the carrying amount of the corresponding asset. In 2007, we recorded adjustments of $53 million for changes in estimates of the AROs at our Hemlo, Cowal, Bulyanhulu, Lagunas Norte and Veladero operating mines. In 2007, charges of $6 million were recorded for changes in cost estimates for AROs at closed mines (2006: $53 million; 2005: $15 million expense).

AROs arise from the acquisition, development, construction and normal operation of mining property, plant and equipment, due to government controls and regulations that protect the environment on the closure and reclamation of mining properties. The major parts of the carrying amount of AROs relate to tailings and heap leach pad closure/rehabilitation; demolition of buildings/mine facilities; ongoing water treatment; and ongoing care and maintenance of closed mines. The fair values of AROs are measured by discounting the expected cash flows using a discount factor that reflects the credit-adjusted risk–free rate of interest. We prepare estimates of the timing and amount of expected cash flows when an ARO is incurred. We update expected cash flows to reflect changes in facts and circumstances. The principal factors that can cause expected cash flows to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics that impact required environmental protection measures and related costs; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. When expected cash flows increase, the revised cash flows are discounted using a current discount factor whereas when expected cash flows decrease the reduced cash flows are discounted using a historic discount factor, and then in both cases any change in the fair value of the ARO is recorded. We record the fair value of an ARO when it is incurred. At producing mines AROs incurred and changes in the fair value of AROs are recorded as an adjustment to the corresponding asset carrying amounts. At closed mines, any adjustment to the fair value of an ARO is charged directly to earnings. AROs are adjusted to reflect the passage of time (accretion) calculated by applying the discount factor implicit in the initial fair-value measurement to the beginning-of-period carrying amount of the AROs. For producing mines, accretion is recorded in the cost of goods sold each period. For development projects and closed mines, accretion is recorded in other expense. Upon settlement of an ARO, we record a gain or loss if the actual cost differs from the carrying amount of the ARO. Settlement gains/losses are recorded in other (income) expense. Other environmental remediation costs that are not AROs as defined by FAS 143 are expensed as incurred (see note 8A).

22 > OTHER NON-CURRENT LIABILITIES


At Dec.31	2007		2006

Pension benefits (note 27)	$	87	$	85
Other post-retirement benefits (note 27)		27		33
Derivative liabilities (note 20C)		65		150
Restricted share units (note 26B)		94		42
Deferred revenue		88		136
Other		70		72

	$	431	$	518

23 > DEFERRED INCOME TAXES

Recognition and Measurement

We record deferred income tax assets and liabilities where temporary differences exist between the carrying amounts of assets and liabilities in our balance sheet and their tax bases. The measurement and recognition of deferred income tax assets and liabilities takes into account: enacted rates that will apply when temporary



BARRICK YEAR—END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

differences reverse; interpretations of relevant tax legislation; tax planning strategies; estimates of the tax bases of assets and liabilities; and the deductibility of expenditures for income tax purposes. We recognize the effect of changes in our assessment of these estimates and factors when they occur. Changes in deferred income tax assets, liabilities and valuation allowances are allocated between net income and other comprehensive income based on the source of the change.

Deferred income taxes have not been provided on the undistributed earnings of foreign subsidiaries, which are considered to be reinvested indefinitely outside Canada. The determination of the unrecorded deferred income tax liability is not considered practicable.

Sources of Deferred Income Tax Assets and Liabilities


At Dec.31	2007			2006

Deferred tax assets
Tax loss carry forwards	$	729		$	798
Capital tax loss carry forwards		—			30
Alternative minimum tax (“AMT”) credits		247			198
Asset retirement obligations		342			303
Property, plant and equipment		331			333
Inventory		—			95
Post-retirement benefit obligations		23			40
Other		3			3

		1,675			1,800
Valuation allowances		(419	)		(658	)

		1,256			1,142

Deferred tax liabilities
Property, plant and equipment		(1,243	)		(1,377	)
Derivative instruments		(122	)		(9	)
Other		(10	)		(26	)

	$	(119	)	$	(270	)

Classification:
Non-current assets (note 18)	$	722		$	528
Non-current liabilities		(841	)		(798	)

	$	(119	)	$	(270	)

Expiry Dates of Tax Losses and AMT Credits


											No
											expiry
	'08		'09		'10		'11		'12+		date		Total

Tax losses¹
Canada	$	3	$	5	$	—	$	—	$	1,583	$	—	$	1,591
Australia		—		—		—		—		—		150		150
Barbados		—		—		—		—		1,056		—		1,056
Chile		—		—		—		—		—		679		679
Tanzania		—		—		—		—		—		242		242
U.S.		—		—		—		—		67		—		67
Other		—		—		2		—		—		—		2

	$	3	$	5	$	2	$	—	$	2,706	$	1,071	$	3,787

AMT credits²		—		—		—		—		—	$	247	$	247


¹		Represents the gross amount of tax loss carry forwards translated at closing exchange rates at December 31, 2007.

²		Represents the amounts deductible against future taxes payable in years when taxes payable exceed “minimum tax” as defined by United States tax legislation.

Net Deferred Tax Assets


	2007			2006

Gross deferred tax assets
Canada	$	494		$	487
Chile		117			113
Tanzania		197			217
United States		225			247
Other		108			122

		1,141			1,186

Valuation allowances
Canada		(55	)		(59	)
Chile		(105	)		(110	)
Tanzania		(30	)		(217	)
United States		(190	)		(211	)
Other		(39	)		(61	)

	$	(419	)	$	(658	)

Non-current assets	$	722		$	528

Valuation Allowances

We consider the need to record a valuation allowance against deferred tax assets, taking into account the effects of local tax law. A valuation allowance is not recorded when we conclude that sufficient positive evidence exists to demonstrate that it is more likely than not that a deferred tax asset will be realized. The main factors considered are:

Ø		Historic and expected future levels of taxable income;

Ø		Tax plans that affect whether tax assets can be realized; and

Ø		The nature, amount and expected timing of reversal of taxable temporary differences.

Levels of future taxable income are mainly affected by: market gold and silver prices; forecasted future costs



BARRICK YEAR—END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

and expenses to produce gold reserves; quantities of proven and probable gold reserves; market interest rates and foreign currency exchange rates. If these factors or other circumstances change, we record an adjustment to valuation allowances to reflect our latest assessment of the amount of deferred tax assets that will more likely than not be realized.

A deferred income tax asset totaling $439 million has been recorded in Canada. This deferred tax asset primarily arose due to mark-to-market losses realized for acquired Placer Dome derivative instruments. Projections of various sources of income support the conclusion that the realizability of this deferred tax asset is more likely than not, and consequently no valuation allowance has been set up for this deferred tax asset.

A deferred tax asset of $167 million has been recorded in Tanzania following the release of tax valuation allowances totaling $189 million in 2007. The release of tax valuation allowances resulted from the impact of rising market gold prices on expectations of future taxable income and the ability to realize these tax assets.

A partial valuation allowance of $190 million has been set up against deferred tax assets in the United States at December 31, 2007. The majority of this valuation allowance relates to AMT credits in periods when partly due to low market gold prices, Barrick was an AMT taxpayer in the United States. If market gold prices continue to rise, it is reasonably possible that some or all of these valuation allowances could be released in future periods.

A valuation allowance of $105 million exists as at December 31, 2007 against tax loss carry forwards in Chile that exist in entities that have no present sources of income.

Source of Changes in Deferred Tax Balances


For the years ended Dec.31	2007			2006			2005

Temporary differences
Property, plant and equipment	$	24		$	(1,111	)	$	30
Asset retirement obligations		39			128			(69	)
Tax loss carry forwards		(69	)		546			38
Derivatives		(113	)		52			(34	)
Other		9			(17	)		(3	)

	$	(110	)	$	(402	)	$	(38	)
Net currency translation gains on deferred tax balances		76			5			11
Canadian tax rate changes		(64	)		(12	)		—
Adjustment to deferred tax balances due to change in tax status¹		—			31			(5	)
Release of end of year Tanzanian
valuation allowances		156			—			—
Release of other valuation allowances		88			53			(32	)

	$	146		$	(325	)	$	(64	)

Intraperiod allocation to:
Income from continuing operations before income taxes	$	174		$	109		$	(30	)
Placer Dome acquisition (note 3G)		—			(432	)		—
Porgera mine acquisition (note 3E)		20			—			—
OCI (note 25)		(48	)		(2	)		(34	)
Other		5			28			(5	)

	$	151		$	(297	)	$	(69	)


¹		Relates to changes in tax status in Australia (note 9).

Unrecognized Tax Benefits


Balance at January 1,2007	20
Additions based on tax positions related to the current year	1
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(2	)
Settlements	(4	)

Balance at December 31, 2007^1,2	15


¹		If recognized, the total amount of $15 million would be recognized as a benefit to income taxes on the income statement, and therefore would impact the reported effective tax rate.

²		Includes interest and penalties of $1 million.

We expect the amount of unrecognized tax benefits to decrease within 12 months of the reporting date by approximately $2 to $3 million, related primarily to the expected settlement of Canadian income and mining tax assessments.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Tax Years Still Under Examination


Canada		2003-2007
United States		2003-2007
Peru		2004-2007
Chile		2004-2007
Argentina		2002-2007
Australia	all years open
Papua New Guinea		2002-2007
Tanzania	all years open

Peruvian Tax Assessment

On September 30, 2004, the Tax Court of Peru issued a decision in our favor in the matter of our appeal of a 2002 income tax assessment for an amount of $32 million, excluding interest and penalties. The assessment mainly related to the validity of a revaluation of the Pierina mining concession, which affected its tax basis for the years 1999 and 2000. The full life-of-mine effect on current and deferred income tax liabilities totaling $141 million was fully recorded at December 31, 2002, as well as other related costs of about $21 million.

In January 2005, we received written confirmation that there would be no appeal of the September 30, 2004 Tax Court of Peru decision. In December 2004, we recorded a $141 million reduction in current and deferred income tax liabilities and a $21 million reduction in other accrued costs. The confirmation concluded the administrative and judicial appeals process with resolution in Barrick’s favor.

Notwithstanding the favorable Tax Court decision we received in 2004 on the 1999 to 2000 revaluation matter, on an audit concluded in 2005, SUNAT has reassessed us on the same issue for tax years 2001 to 2003. On October 19, 2007, SUNAT confirmed their reassessment. The tax assessment is for $49 million of tax, plus interest and penalties of $116 million. We filed an appeal to the Tax Court of Peru within the statutory period. We believe that the audit reassessment has no merit, that we will prevail in court again, and accordingly no liability has been recorded for this reassessment.

24 > CAPITAL STOCK

A Common Shares

Our authorized capital stock includes an unlimited number of common shares (issued 869,886,631 common shares); 9,764,929 First preferred shares Series A (issued nil); 9,047,619 Series B (issued nil); 1 Series C special voting share (issued 1); and 14,726,854 Second preferred shares Series A (issued nil).

In 2007, we declared and paid dividends in US dollars totaling $0.30 per share ($261 million) (2006: $0.22 per share, $191 million; 2005: $0.22 per share, $118 million).

B Exchangeable Shares

In connection with a 1998 acquisition, Barrick Gold Inc. (“BGI”). issued 11.1 million BGI exchangeable shares, which are each exchangeable for 0.53 of a Barrick common share at any time at the option of the holder, and have essentially the same voting, dividend (payable in Canadian dollars), and other rights as 0.53 of a Barrick common share. BGI is a subsidiary that holds our interest in the Hemlo and Eskay Creek Mines.

At December 31, 2007,1.4 million (2006 — 1.4 million) BGI exchangeable shares were outstanding, which are equivalent to 0.7 million Barrick common shares (2006 -0.7 million common shares), and are reflected in the number of common shares outstanding. We have the right to require the exchange of each outstanding BGI exchangeable share for 0.53 of a Barrick common share. While there are exchangeable shares outstanding, we are required to present summary consolidated financial information relating to BGI.

Summarized Financial Information for BGI


For the years ended Dec.31	2007		2006		2005

Total revenues and other income	$	213	$	233	$	181
Less: costs and expenses¹		202		215		186

Income (loss) before taxes	$	11	$	18	$	(5	)

Net income	$	22	$	33	$	21


At Dec.31	2007			2006

Assets
Current assets	$	123		$	127
Non-current assets		47			50

	$	170		$	177

Liabilities and shareholders’equity
Liabilities
Other current liabilities		22			25
Intercompany notes payable		409			387
Other long-term liabilities		109			80
Shareholders’equity		(370	)		(315	)

	$	170		$	177


¹		2006 includes a $37 million increase in the ARO at the Nickel Plate property (see note 21).



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

25 > OTHER COMPREHENSIVE INCOME (LOSS) (“OCI”)


	2007			2006			2005

Accumulated OCI at Jan.1
Cash flow hedge gains, net of tax of $60, $61, $95	$	223		$	128		$	206
Investments, net of tax of $7, $nil,$nil		46			12			21
Currency translation adjustments, net of tax of $nil, $nil, $nil		(143	)		(143	)		(146	)
Pension plans and other post-retirement benefits, net of tax of $4, $nil, $nil		(7	)		(28	)		(12	)

	$	119		$	(31	)	$	69

Other comprehensive income (loss) for the period:
Changes in fair value of cash flow hedges		257			17			23
Changes in fair value of investments		58			43			(8	)
Currency translation adjustments		—			—			3
Pension plans and other post-retirement benefits:
Adjustments to minimum pension liability prior to adoption of FAS 158		—			15			(16	)
FAS 158 adjustments (note 27C):
Elimination of minimum pension liability		—			13			—
Net actuarial gain (loss)		19			(9	)		—
Transition obligation		1			(2	)		—
Less: reclassification adjustments for gains/losses recorded in earnings:
Transfers of cash flow hedge (gains) losses to earnings:
On recording hedged items in earnings		(185	)		77			(134	)
Hedge ineffectiveness due to changes in timing of hedged items		—			—			(1	)
Investments:
Other than temporary impairment charges		1			4			16
Gains realized on sale		(71	)		(6	)		(17	)

Other comprehensive income (loss), before tax		80			152			(134	)
Income tax recovery (expense) related to OCI		(48	)		(2	)		34

Other comprehensive income (loss), net of tax	$	32		$	150		$	(100	)

Accumulated OCI at Dec.31
Cash flow hedge gains, net of tax of $105, $60, $61		250			223			128
Investments, net of tax of $4, $7, $nil		37			46			12
Currency translation adjustments, net of tax of $nil, $nil, $nil		(143	)		(143	)		(143	)
Pension plans and other post-retirement benefits, net of tax of $2, $4, $nil		7			(7	)		(28	)

	$	151		$	119		$	(31	)

26 > STOCK-BASED COMPENSATION

A Stock Options

In September 2006, the SEC released a letter on accounting for stock options. The letter addresses the determination of the grant date and measurement date for stock option awards. For Barrick, the stock option grant date is the date when the details of the award, including the number of options granted by individual and the exercise price, are approved. The application of the principles in the letter issued by the SEC did not change the date that has been historically determined as the measurement date for stock option grants.

Under Barrick’s stock option plan certain officers and key employees of the Corporation may purchase common shares at an exercise price that is equal to the closing Share price on the day before the grant of the option. Stock options vest evenly over four years, beginning in the year after granting. Options granted in July 2004 and prior are exercisable over 10 years, whereas options granted since December 2004 are exercisable over 7 years. At December 31, 2007,10 million (2006:13 million; 2005:12 million) common shares, in addition to those currently outstanding, were available for granting options. Stock options when exercised result in an increase to the number of common shares issued by Barrick.

Compensation expense for stock options was $25 million in 2007 (2006: $27 million; 2005: $nil), and is presented as a component of cost of sales, corporate administration and other expense, consistent with the classification of other elements of compensation expense for those employees who had stock options. The recognition of compensation expense for stock options reduced earnings per share for 2007 by $0.03 per share (2006: $0.03 per share).

Total intrinsic value relating to options exercised in 2007 was $58 million (2006: $27 million; 2005: $22 million).



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Employee Stock Option Activity (Number of Shares in Millions)


	2007					2006					2005
	Shares			Average price		Shares			Average price		Shares			Average price

C$ options
At Jan.1		11.9		$	28		14.7		$	28		19.4		$	28
Granted		—		$	—		—		$	—		—		$	—
Issued on acquisition of Placer Dome		—		$	—		1.7		$	34		—		$	—
Exercised		(3.9	)	$	28		(2.4	)	$	26		(3.8	)	$	25
Forfeited		(0.1	)	$	29		(0.2	)	$	27		(0.8	)	$	27
Cancelled/expired		(0.8	)	$	35		(1.9	)	$	40		(0.1	)	$	40

At Dec.31		7.1		$	27		11.9		$	28		14.7		$	28

US$ options
At Jan.1		7.7		$	25		6.9		$	24		5.9		$	22
Granted		1.4		$	40		1.1		$	30		2.1		$	25
Issued on acquisition of Placer Dome		—		$	—		1.0		$	19		—		$	—
Exercised		(1.7	)	$	23		(0.9	)	$	21		(0.3	)	$	15
Forfeited		(0.3	)	$	25		(0.4	)	$	24		(0.4	)	$	28
Cancelled/expired		(0.1	)	$	22		—		$	25		(0.4	)	$	26

At Dec.31		7.0		$	28		7.7		$	25		6.9		$	24

Stock Options Outstanding (Number of Shares in Millions)


	Outstanding								Exercisable
Range of exercise prices					Average life		Intrinsic Value¹						Intrinsic Value¹
	Shares		Average price		(years)		($ millions)		Shares		Average price		($ millions)

C$ options
$22 - $27		3.2	$	24		4	$	57		3.2	$	24	$	57
$28 - $31		3.8	$	29		4	$	47		3.7	$	29	$	46
$32 - $43		0.1	$	32		4	$	1		0.1	$	32	$	1

		7.1	$	27		4	$	105		7.0	$	27	$	104

US$ options
$9- $19		0.2	$	13		5	$	5		0.2	$	13	$	5
$20-$27		4.3	$	24		4	$	77		2.8	$	24	$	51
$28 - $41		2.5	$	35		8	$	16		0.3	$	30	$	4

		7.0	$	28		6	$	98		3.3	$	24	$	60


¹		Based on the closing market share price on Dec.31, 2007 of C$41.78 and US$42.05.

Option Information


For the years ended Dec.31
(per share and per option amounts in dollars)	2007			2006			2005

Valuation assumptions	Lattice^1,2			Lattice¹²				Black-Scholes¹			Lattice²
Expected term (years)		4.5-5			4.5-5				5			5
Expected volatility²		30%-38	%		30%-38	%			23%-30	%		31%-38	%
Weighted average expected volatility²		36.6	%		31.6	%			n/a			33.3	%
Expected dividend yield		0.7%-0.9	%		0.7%-0.9	%			0.8%-1.0	%		0.9	%
Risk-free interest rate²		3.2%-5.1	%		4.3%-5.1	%			3.8%-4.0	%		4.3%-4.5	%


Options granted (in millions)³		1.4			1.1				1.1			1.0
Lighted average fair value per option	$	12.91		$	9.42			$	7.30		$	8.13


¹		Different assumptions were used for the multiple stock option grants during the year.

²		Stock option grants issued after September 30,2005 were valued using the Lattice valuation model. The volatility and risk-free interest rate assumption varied over the expected term of these stock option grants.

³		Excludes 2.7 million fully vested options issued on the acquisition of Placer Dome.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

We changed the model used to value stock option grants from the Black-Scholes model to the Lattice valuation model for stock options granted after September 30, 2005. We believe the Lattice valuation model provides a more representative fair value because it incorporates more attributes of stock options such as employee turnover and voluntary exercise patterns of option holders. For options granted before September 30, 2005, fair value was determined using the Black-Scholes method. The expected volatility assumptions have been developed taking into consideration both historical and implied volatility of our US dollar share price. The risk-free rate for periods within the contractual life of the option is based on the US Treasury yield curve in effect at the time of the grant.

We use the straight-line method for attributing stock option expense over the vesting period. Stock option expense incorporates an expected forfeiture rate. The expected forfeiture rate is estimated based on historical forfeiture rates and expectations of future forfeitures rates. We make adjustments if the actual forfeiture rate differs from the expected rate.

Under the Black-Scholes model the expected term assumption takes into consideration assumed rates of employee turnover and represents the estimated average length of time stock options remain outstanding before they are either exercised or forfeited. Under the Lattice valuation model, the expected term assumption is derived from the option valuation model and is in part based on historical data regarding the exercise behavior of option holders based on multiple share-price paths. The Lattice model also takes into consideration employee turnover and voluntary exercise patterns of option holders.

As at December 31, 2007, there was $33 million (2006: $39 million; 2005: $56 million) of total unrecognized compensation cost relating to unvested stock options. We expect to recognize this cost over a weighted average period of 2 years (2006: 2 years; 2005: 2 years).

For years prior to 2006, we utilized the intrinsic value method of accounting for stock options, which resulted in no compensation expense. If compensation expense had been determined in accordance with the fair value provisions of SFAS No. 123 pro-forma net income and net income per share would have been as follows:

Stock Option Expense


For the years ended Dec.31
($ millions, except per share amounts in dollars)	2005

Pro forma effects
Net income, as reported		401
Stock option expense		(26	)

Pro forma net income		375

Net income per share:
As reported — basic	$	0.75
As reported — diluted	$	0.75

Pro forma¹	$	0.70


¹		Basic and diluted.

B Restricted Share Units (RSUs) and Deferred Share Units (DSUs)

Under our RSU plan, selected employees are granted RSUs where each RSU has a value equal to one Barrick common share. RSUs vest at the end of a three year period and are settled in cash on the third anniversary of the grant date. Additional RSUs are credited to reflect dividends paid on Barrick common shares over the vesting period.

A liability for RSUs is recorded at fair value on the grant date, with a corresponding amount recorded as a deferred compensation asset that is amortized on a straight-line basis over the vesting period. Changes in the fair value of the RSU liability are recorded each period, with a corresponding adjustment to the deferred compensation asset. Compensation expense for RSUs incorporates an expected forfeiture rate. The expected forfeiture rate is estimated based on historical forfeiture rates and expectations of future forfeiture rates. We make adjustments if the actual forfeiture rate differs from the expected rate. At December 31, 2007, the weighted average remaining contractual life of RSUs was 2.5 years.

Compensation expense for RSUs was $16 million in 2007 (2006: $6 million; 2005: $2 million) and is presented as a component of cost of sales, corporate administration and other expense, consistent with the classification of other elements of compensation expense for those employees who had RSUs. As at December 31, 2007 there was $75 million of total unamortized compensation cost relating to unvested RSUs (2006: $36 million; 2005: $11 million).

Under our DSU plan, Directors must receive a specified portion of their basic annual retainer in the form of DSUs, with the option to elect to receive 100% of such retainer in DSUs. Each DSU has the same value as one Barrick common share. DSUs must be retained until the Director leaves the Board, at which time the cash value



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

of the DSUs will be paid out. Additional DSUs are credited to reflect dividends paid on Barrick common shares. DSUs are recorded at fair value on the grant date and are adjusted for changes in fair value. The fair value of amounts granted each period together with changes in fair value are expensed.

DSU and RSU Activity


	DSUs			Fair value			RSUs			Fair value
	(thousands)			(millions)			(thousands)			(millions)
At Dec.31, 2004		31		$	0.7			235		$	5.6
Settled for cash		(3	)		(0.1	)		—			—
Forfeited		—			—			(38	)		(0.9	)
Granted		19			0.5			415			11.1
Converted to stock options		—			—			(3	)		(0.1	)
Credits for dividends		—			—			2			0.1
Change in value		—			0.3			—			0.6

At Dec.31, 2005		47		$	1.4			611		$	16.4
Settled for cash		—			—			(82	)		(2.5	)
Forfeited		—			—			(58	)		(1.6	)
Granted¹		22			0.7			893			27
Converted to stock options¹		—			—			(18	)		(0.5	)
Credits for dividends		—			—			8			0.2
Change in value					—			—			2.6

At Dec.31, 2006		69		$	2.1			1,354		$	41.6
Settled for cash		(11	)		(0.3	)		(119	)		(4.9	)
Forfeited		—			—			(38	)		(1.4	)
Granted		42			1.4			1,174			47.5
Credits for dividends		—			—			12			0.4
Change in value		—			0.9			—			17.0

At Dec.31, 2007		100		$	4.1			2,383		$	100.2


¹		In January 2006, under our RSU plan, 18,112 restricted share units were converted to 72,448 stock options.

C Employee Share Purchase Plan

During the first quarter of 2008, Barrick is expected to launch an Employee Share Purchase Plan. This plan will enable Barrick employees to purchase Company shares through payroll deduction. Each year, employees may contribute 1%-6% of their combined base salary and annual bonus, and Barrick will match 50% of the contribution, up to a maximum of $5,000 per year.

27 POST-RETIREMENT BENEFITS

A Defined Contribution Pension Plans

Certain employees take part in defined contribution employee benefit plans. We also have a retirement plan for certain officers of the Company, under which we contribute 15% of the officer’s annual salary and bonus. Our share of contributions to these plans, which is expensed in the year it is earned by the employee, was $49 million in 2007, $36 million in 2006 and $20 million in 2005.

B Defined Benefit Pension Plans

We have qualified defined benefit pension plans that cover certain of our United States, Canadian and Australian employees and provide benefits based on employees’ years of service. Through the acquisition of Placer Dome, we acquired pension plans in the United States, Canada and Australia. Our policy is to fund the amounts necessary on an actuarial basis to provide enough assets to meet the benefits payable to plan members. Independent trustees administer assets of the plans, which are invested mainly in fixed-income and equity securities. On June 30, 2007, one of our qualified defined benefit plans in Canada was wound-up. No curtailment gain or loss resulted and the obligations of the plans are expected to be settled at the end of 2008. On November 30, 2007, one of our defined benefit plans in Australia was wound-up and on December 31, 2007, the other defined benefit plan in Australia was wound-up. No curtailment gain or loss resulted for either plan. In 2006, actuarial assumptions were amended for one of our qualified defined benefit plans in Canada and on June 30, 2006, one of our other plans in Canada was partially wound-up; no curtailment gain or loss resulted for either plan. Also in 2006, one of our qualified defined benefit plans was amended to freeze benefits in the United States accruals for all employees, resulting in a curtailment gain of $8 million.

As well as the qualified plans, we have non-qualified defined benefit pension plans covering certain employees and former directors of the Company. An irrevocable trust (“rabbi trust”) was set up to fund these plans. The fair value of assets held in this trust was $19 million in 2007 (2006: $21 million), and is recorded in our consolidated balance sheet under available-for-sale securities.

Actuarial gains and losses arise when the actual return on plan assets differs from the expected return on plan assets for a period, or when the expected and actuarial accrued benefit obligations differ at the end of the year. We amortize actuarial gains and losses over the average remaining life expectancy of plan participants, in excess of a 10% corridor.

Pension Expense (Credit)


For the years ended Dec.31	2007			2006			2005
Expected return on plan assets	$	(21	)	$	(20	)	$	(11	)
Service cost		2			4			—
Interest cost		21			22			12
Actuarial losses		1			1			—
Curtailment gains		—			(8	)		—

	$	3		$	(1	)	$	1



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

C Pension Plan Information

Fair Value of Plan Assets


For the years ended Dec.31	2007			2006			2005
Balance at Jan.1	$	301		$	166		$	170
Increase for plans assumed on acquisition of Placer Dome		—			127			—
Actual return on plan assets		31			35			10
Company contributions		10			10			10
Settlements		(14	)		—			—

Benefits paid		(35	)		(37	)		(24	)

Balance at Dec.31	$	293		$	301		$	166


				2007					2006
At Dec.31	Target			Actual			Actual		Actual
Composition of plan assets:
Equity securities		60	%		45	%	$	130	$	180
Debt securities		40	%		42	%		123		106
Fixed income securities					12	%		35		—
Real estate					—			—		9
Other					2	%		5		6

					100	%	$	293	$	301

Projected Benefit Obligation (PBO)


For the years ended Dec.31	2007			2006
Balance at Jan.1	$	389		$	224
Increase for plans assumed on acquisition of Placer Dome		—			191
Service cost		2			4
Interest cost		21			22
Actuarial (gains) losses		1			(7	)
Benefits paid		(35	)		(37	)
Curtailments		(14	)		(8	)

Balance at Dec.31	$	364		$	389

Funded status¹	$	(71	)	$	(88	)

ABO^2,3	$	254		$	386


¹		Represents the fair value of plan assets less projected benefit obligations. Plan assets exclude investments held in a rabbi trust that are recorded separately on our balance sheet under Investments (fair value $19 million at December 31, 2007). In the year ending December 31, 2008, we do not expect to make any further contributions.

²		For 2007, we used a measurement date of December 31, 2007 to calculate accumulated benefit obligations.

³		Represents the accumulated benefit obligation (“ABO”) for all plans. The ABO for plans where the PBO exceeds the fair value of plan assets was $254 million (2006: $110 million).

Pension Plan Assets/Liabilities


For the years ended Dec.31	2007			2006
Non-current assets	$	25		$	5
Current liabilities		(8	)		(8	)
Non-current liabilities		(87	)		(85	)
Other comprehensive income¹		(8	)		6

	$	(78	)	$	(82	)


¹		Amounts represent actuarial (gains) losses.

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2007 and 2006 were as follows:


For the years ended Dec.31	2007		2006
Projected benefit obligation, end of year	$	329	$	111
Fair value of plan assets, end of year	$	258	$	62

The projected benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2007 and 2006 were as follows:


For the years ended Dec.31	2007		2006
Projected benefit obligation, end of year	$	329	$	111
Accumulated benefit obligation, end of year	$	330	$	110
Fair value of plan assets, end of year	$	258	$	62

Expected Future Benefit Payments


For the years ending Dec.31
2008	$	61
2009		24
2010		31
2011		24
2012		24
2013 — 2017	$	117

D Actuarial Assumptions


For the years ended Dec.31	2007			2006			2005
Discount rate¹
Benefit obligation		4.50-6.30	%		4.40-5.90	%		5.50	%
Pension cost		4.50-5.81	%		4.40-5.90	%		5.50	%
Return on plan assets¹		4.50-7.25	%		7.00-7.25	%		7.00	%
Wage increases		3.50-5.00	%		3.5-5.00	%		5.00	%


¹		Effect of a one-percent change: Discount rate: $25 million decrease in ABO and $1 million increase in pension cost; Return on plan assets: $3 million decrease in pension cost.

Pension plan assets, which consist primarily of fixed-income and equity securities, are valued using current market quotations. Plan obligations and the annual pension expense are determined on an actuarial basis and are affected by numerous assumptions and



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

estimates including the market value of plan assets, estimates of the expected return on plan assets, discount rates, future wage increases and other assumptions. The discount rate, assumed rate of return on plan assets and wage increases are the assumptions that generally have the most significant impact on our pension cost and obligation.

The discount rate for benefit obligation and pension cost purposes is the rate at which the pension obligation could be effectively settled. This rate was developed by matching the cash flows underlying the pension obligation with a spot rate curve based on the actual returns available on high-grade (Moody’s Aa) US corporate bonds. Bonds included in this analysis were restricted to those with a minimum outstanding balance of $50 million. Only non-callable bonds, or bonds with a make-whole provision, were included. Finally, outlying bonds (highest and lowest 10%) were discarded as being non-representative and likely to be subject to a change in investment grade. The resulting discount rate from this analysis was rounded to the nearest 25 basis points. The procedure was applied separately for pension and post-retirement plan purposes, and produced the same rate in each case.

The assumed rate of return on assets for pension cost purposes is the weighted average of expected long-term asset return assumptions. In estimating the long-term rate of return for plan assets, historical markets are studied and long-term historical returns on equities and fixed-income investments reflect the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are finalized.

Wage increases reflect the best estimate of merit increases to be provided, consistent with assumed inflation rates.

E Other Post-retirement Benefits

We provide post-retirement medical, dental, and life insurance benefits to certain employees. We use the corridor approach in the accounting for post-retirement benefits. Actuarial gains and losses resulting from variances between actual results and economic estimates or actuarial assumptions are deferred and amortized over the average remaining life expectancy of participants when the net gains or losses exceed 10% of the accumulated post-retirement benefit obligation.

Other Post-retirement Benefits Expense


For the years ended Dec.31	2007		2006		2005
Interest cost	$	2	$	2	$	2
Other		—		—		5

	$	2	$	2	$	7

Fair Value of Plan Assets


For the years ended Dec.31	2007			2006			2005
Balance at Jan.1	$	—		$	—		$	—
Contributions		2			3			4
Benefits paid		(2	)		(3	)		(4	)

Balance at Dec.31	$	—		$	—		$	—

Accumulated Post-retirement Benefit Obligation (APBO)


For the years ended Dec.31	2007			2006			2005
Balance at Jan. 1	$	37		$	39		$	29
Interest cost		2			2			2
Actuarial losses		(7	)		(1	)		11
Benefits paid		(2	)		(3	)		(3	)

Balance at Dec. 31	$	30		$	37		$	39

Funded status		(30	)		(37	)		(38	)
Unrecognized net transition obligation		n/a			n/a			1
Unrecognized actuarial losses		n/a			n/a			6

Net benefit liability recorded		n/a			n/a		$	(31	)

Other Post-retirement Assets/Liabilities


For the year ended Dec.31	2007			2006
Current liability	$	(3	)	$	(3	)
Non-current liability		(27	)		(33	)
Accumulated other comprehensive income		(1	)		5

	$	(31	)	$	(31	)

Amounts recognized in accumulated other comprehensive income consist of:¹


For the year ended Dec.31	2007			2006
Net actuarial loss (gain)	$	(2	)	$	3
Transition obligation (asset)		1			2

	$	(1	)	$	5


¹		The estimated amounts that will be amortized into net periodic benefit cost in 2008.

We have assumed a health care cost trend of 9% in 2008, decreasing ratability to 5% in 2010 and thereafter. The assumed health care cost trend had a minimal effect on the amounts reported. A one percentage point change in the assumed health care cost trend rate at December 31, 2007 would have had no significant effect on the post-retirement obligation and would have had no significant effect on the benefit expense for 2007.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Expected Future Benefit Payments


For the years ending Dec. 31
2008	$	3
2009		3
2010		3
2011		3
2012		3
2013 — 2017	$	11

28 LITIGATION AND CLAIMS

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, the Company and its legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.

If the assessment of a contingency suggests that a loss is probable, and the amount can be reliably estimated, then a loss is recorded. When a contingent loss is not probable but is reasonably possible, or is probable but the amount of loss cannot be reliably estimated, then details of the contingent loss are disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case we disclose the nature of the guarantee. Legal fees incurred in connection with pending legal proceedings are expensed as incurred.

Wagner Complaint

On June 12, 2003, a complaint was filed against Barrick and several of its current or former officers in the U.S. District Court for the Southern District of New York. The complaint is on behalf of Barrick shareholders who purchased Barrick shares between February 14, 2002 and September 26, 2002. It alleges that Barrick and the individual defendants violated U.S. securities laws by making false and misleading statements concerning Barrick’s projected operating results and earnings in 2002. The complaint seeks an unspecified amount of damages. Other parties filed several other complaints, making the same basic allegations against the same defendants. In September 2003, the cases were consolidated into a single action in the Southern District of New York. The plaintiffs filed a Third Amended Complaint on January 6, 2005. On May 23, 2005, Barrick filed a motion to dismiss part of the Third Amended Complaint. On January 31, 2006, the Court issued an order granting in part and denying in part Barrick’s motion to dismiss. Both parties moved for reconsideration of a portion of the Court’s January 31, 2006 Order. On December 12, 2006, the Court issued its order denying both parties’ motions for reconsideration. On February 15, 2008, the Court issued an order granting the plaintiffs’ motion for class certification. Discovery is ongoing. We intend to defend the action vigorously. No amounts have been accrued for any potential loss under this complaint.

Marinduque Complaint

Placer Dome has been named the sole defendant in a Complaint filed on October 4, 2005, by the Provincial Government of Marinduque, an island province of the Philippines (“Province”), with the District Court in Clark County, Nevada. The action was removed to the Nevada Federal District Court on motion of Placer Dome. The Complaint asserts that Placer Dome is responsible for alleged environmental degradation with consequent economic damages and impacts to the environment in the vicinity of the Marcopper mine that was owned and operated by Marcopper Mining Corporation (“Marcopper”). Placer Dome indirectly owned a minority shareholding of 39.9% in Marcopper until the divestiture of its shareholding in 1997. The Province seeks “to recover damages for injuries to the natural, ecological and wildlife resources within its territory”, but “does not seek to recover damages for individual injuries sustained by its citizens either to their persons or their property”. In addition to damages for injury to natural resources, the Province seeks compensation for the costs of restoring the environment, an order directing Placer Dome to undertake and complete “the remediation, environmental cleanup, and balancing of the ecology of the affected areas,” and payment of the costs of environmental monitoring. The Complaint addresses the discharge of mine tailings into Calancan Bay, the 1993 Maguila-guila dam breach, the 1996 Boac river tailings spill, and alleged past and continuing damage from acid rock drainage.

At the time of the amalgamation of Placer Dome and Barrick Gold Corporation, a variety of motions were pending before the District Court, including motions to dismiss the action for lack of personal jurisdiction and for forum non conveniens (improper choice of forum). However, on June 29, 2006, the Province filed a Motion to join Barrick Gold Corporation as an additional named Defendant and for leave to file a Third Amended Complaint. The Court granted that motion on March 2, 2007. On March 6, 2007, the Court issued an order setting a briefing schedule on the Company’s motion to dismiss on grounds of forum non conveniens. Briefing was completed on May 21, 2007, and on June 7, 2007, the Court issued an order granting the Company’s motion to dismiss. On June 25, 2007, the Province filed a motion requesting the Court to reconsider its Order dismissing the action. The Company opposed the motion for reconsideration. On July 6, 2007, the Province filed a Notice of Appeal to the Ninth Circuit



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

from the Order on the motion to dismiss. On August 8, 2007, the Ninth Circuit issued an order holding the appeal in abeyance pending the district court’s resolution of the motion for reconsideration. On January 16, 2008, the district court issued an order denying the Province’s motion for reconsideration. Following the district court order, the Province has filed an amended Notice of Appeal. We will challenge the claims of the Province on various grounds and otherwise vigorously defend the action. No amounts have been accrued for any potential loss under this complaint.

Calancan Bay (Philippines) Complaint

On July 23, 2004, a complaint was filed against Marcopper and Placer Dome Inc. (“PDI”) in the Regional Trial Court of Boac, on the Philippine island of Marinduque, on behalf of a putative class of fishermen who reside in the communities around Calancan Bay, in northern Marinduque. The complaint alleges injuries to health and economic damages to the local fisheries resulting from the disposal of mine tailings from the Marcopper mine. The total amount of damages claimed is approximately US$900 million.

On October 16, 2006, the court granted the plaintiffs’ application for indigent status, allowing the case to proceed without payment of filing fees. On January 17, 2007, the Court issued a summons to Marcopper and PDI. To date, we are unaware of any attempts to serve the summons on PDI, nor do we believe that PDI is properly amenable to service in the Philippines. If service is attempted, the Company intends to defend the action vigorously. No amounts have been accrued for any potential loss under this complaint.

Pakistani Constitutional Litigation

On November 28, 2006, a Constitutional Petition was filed in the High Court of Balochistan by three Pakistan citizens against: Barrick, the governments of Balochistan and Pakistan, the Balochistan Development Authority (“BDA”), Tethyan Copper Company (“TCC”), Antofagasta Plc (“Antofagasta”), Muslim Lakhani and BHP (Pakistan) Pvt Limited (“BHP”).

The Petition alleged, among other things, that the entry by the BDA into the 1993 Joint Venture Agreement (“JVA”) with BHP to facilitate the exploration of the Reko Diq area and the grant of related exploration licenses were illegal and that the subsequent transfer of the interests of BHP in the JVA and the licenses to TCC was also illegal and should therefore be set aside. Barrick currently indirectly holds 50% of the shares of TCC, with Antofagasta indirectly holding the other 50%.

On June 26, 2007, the High Court of Balochistan dismissed the Petition against Barrick and the other respondents in its entirety. On August 23, 2007, the petitioners filed a Civil Petition for Leave to Appeal in the Supreme Court of Pakistan. The Supreme Court of Pakistan has not yet considered the Civil Petition for Leave to Appeal. Barrick intends to defend this action vigorously. No amounts have been accrued for any potential loss under this complaint.

NovaGold Litigation

On August 24, 2006, during the pendency of Barrick’s unsolicited bid for NovaGold Resources Inc., NovaGold filed a complaint against Barrick in the United States District Court for the District of Alaska. The complaint was amended on several occasions with the most recent amendment having been filed in January 2007. The complaint, as amended, sought a declaration that Barrick will be unable to satisfy the requirements of the Mining Venture Agreement between NovaGold and Barrick which would allow Barrick to increase its interest in the Donlin Creek joint venture from 30% to 70%. NovaGold also asserted that Barrick breached its fiduciary and contractual duties to NovaGold, including its duty of good faith and fair dealing, by misusing confidential information of NovaGold regarding NovaGold’s Galore Creek project in British Columbia. NovaGold sought declaratory relief, an injunction and an unspecified amount of damages. Barrick’s Motion to Dismiss NovaGold’s amended complaint was heard on February 9, 2007. On July 17, 2007 the Court issued its order granting the Motion to Dismiss with respect to all claims. On August 28, 2007, NovaGold filed a notice of appeal as to a portion of the district court’s order granting Barrick’s motion to dismiss.

On August 11, 2006, NovaGold filed a complaint against Barrick in the Supreme Court of British Columbia. The complaint asserted that in the course of discussions with NovaGold of a potential joint venture for the development of the Galore Creek project, Barrick misused confidential information of NovaGold regarding that project to, among other things, wrongfully acquire Pioneer Metals, a company that holds mining claims adjacent to NovaGold’s project. NovaGold asserted that Barrick breached fiduciary duties owed to NovaGold, intentionally and wrongfully interfered with NovaGold’s interests and has been unjustly enriched. NovaGold sought a constructive trust over the shares in Pioneer acquired by Barrick and an accounting for any profits of Barrick’s conduct, as well as an unspecified amount of damages.

On December 3, 2007 Barrick and NovaGold announced that a global settlement of all disputes between them had been reached. As a result of this settlement, all pending legal actions between Barrick and NovaGold have been dismissed.



BARRICK YEAR-END 2007		NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

SUMMARY GOLD MINERAL RESERVES AND MINERAL RESOURCES⁽¹⁾


For the year ended December 31, 2007		2007						2006
		Tons		Grade		Ounces		Tons		Grade		Ounces
Based on attributable ounces		(000’s)		(oz/ton)		(000’s)		(000’s)		(oz/ton)		(000’s)

NORTH AMERICA
Goldstrike Open Pit	(proven and probable		94,914		0.128		12,194		105,206		0.125		13,122
	(mineral resource)		34,532		0.052		1,788		20,184		0.050		1,013

Goldstrike Underground	(proven and probable)		7,423		0.364		2,700		7,662		0.370		2,834
	(mineral resource)		4,129		0.329		1,359		4,143		0.338		1,400

Goldstrike Property Total	(proven and probable)		102,337		0.146		14,894		112,868		0.141		15,956
	(mineral resource)		38,661		0.081		3,147		24,327		0.099		2,413

Pueblo Viejo (60%)	(proven and probable)		129,125		0.095		12,258		118,574		0.092		10,873
	(mineral resource)		41,674		0.064		2,655		16,316		0.078		1,280

Cortez (60%)	(proven and probable)		86,457		0.080		6,884		110,411		0.061		6,691
	(mineral resource)		45,744		0.045		2,076		26,680		0.041		1,087

Bald Mountain	(proven and probable)		128,093		0.024		3,059		109,922		0.031		3,457
	(mineral resource)		36,493		0.024		861		23,289		0.035		824

Turquoise Ridge (75%)	(proven and probable)		8,429		0.458		3,858		6,327		0.544		3,443
	(mineral resource)		2,469		0.409		1,010		3,601		0.432		1,556

Round Mountain (50%)	(proven and probable)		78,117		0.018		1,442		113,042		0.017		1,952
	(mineral resource)		16,883		0.022		366		13,067		0.020		263

Ruby Hill	(proven and probable)		18,763		0.050		930		19,479		0.055		1,080
	(mineral resource)		3,202		0.077		245		601		0.088		53

Hemlo (50%)	(proven and probable)		7,419		0.085		633		9,046		0.079		718
	(mineral resource)		2,971		0.122		361		2,900		0.111		322

Marigold (33%)	(proven and probable)		31,106		0.020		631		34,290		0.021		708
	(mineral resource)		17,053		0.020		346		31,529		0.018		555

Golden Sunlight	(proven and probable)		2,495		0.056		140		4,683		0.080		376
	(mineral resource)		8,300		0.054		451		925		0.066		61

Eskay Creek	(proven and probable)		35		0.457		16		136		0.757		103
	(mineral resource)		—		—		—		36		0.694		25

South Arturo (60%)	(proven and probable)		—		—		—		—		—		—
	(mineral resource)		10,757		0.070		752		12,644		0.060		754

Donlin Creek (50%) ⁽²⁾	(proven and probable)		—		—		—		—		—		—
	(mineral resource)		204,869		0.072		14,668		82,041		0.072		5,926

SOUTH AMERICA
Pascua-Lama	(proven and probable)		444,610		0.040		17,978		390,985		0.043		16,988
	(mineral resource)		99,158		0.038		3,760		75,828		0.041		3,099

Veladero	(proven and probable)		388,445		0.030		11,660		371,563		0.031		11,368
	(mineral resource)		27,344		0.018		503		5,179		0.038		195

Lagunas Norte	(proven and probable)		222,176		0.039		8,733		205,833		0.043		8,804
	(mineral resource)		105,075		0.025		2,644		85,114		0.028		2,394

Pierina	(proven and probable)		40,108		0.027		1,073		32,634		0.037		1,209
	(mineral resource)		12,480		0.016		194		500		0.044		22

AUSTRALIA PACIFIC
Porgera (95%) ⁽³⁾	(proven and probable)		79,060		0.104		8,239		63,876		0.111		7,067
	(mineral resource)		56,610		0.074		4,199		33,286		0.053		1,756

Kalgoorlie (50%)	(proven and probable)		79,412		0.058		4,589		87,675		0.058		5,090
	(mineral resource)		2,835		0.062		175		5,771		0.067		387

Cowal	(proven and probable)		81,463		0.035		2,876		86,687		0.037		3,187
	(mineral resource)		23,076		0.035		819		23,508		0.036		856

Plutonic	(proven and probable)		12,111		0.151		1,824		18,646		0.121		2,247
	(mineral resource)		18,819		0.144		2,704		19,708		0.148		2,913

Kanowna	(proven and probable)		8,874		0.171		1,519		12,890		0.149		1,924
	(mineral resource)		4,318		0.157		677		7,182		0.127		909

Darlot	(proven and probable)		5,208		0.126		655		5,654		0.136		768
	(mineral resource)		3,531		0.121		428		3,421		0.110		377

Granny Smith	(proven and probable)		3,449		0.133		458		7,395		0.093		690
	(mineral resource)		3,035		0.155		469		1,681		0.076		127

Lawlers	(proven and probable)		3,199		0.127		407		3,276		0.130		426
	(mineral resource)		6,777		0.166		1,128		7,506		0.172		1,293

Henty	(proven and probable)		626		0.236		148		741		0.266		197
	(mineral resource)		79		0.165		13		56		0.196		11

Osborne	(proven and probable)		4,181		0.020		82		7,817		0.020		155
	(mineral resource)		3,602		0.027		97		4,626		0.027		127

Reko Diq (37.5%)	(proven and probable)		—		—		—		—		—		—
	(mineral resource)		444,831		0.008		3,741		525,797		0.007		3,610

AFRICA
Bulyanhulu	(proven and probable)		36,052		0.334		12,043		30,456		0.367		11,185
	(mineral resource)		1,516		0.427		647		1,202		0.483		580

North Mara	(proven and probable)		36,461		0.099		3,594		31,791		0.103		3,276
	(mineral resource)		12,537		0.064		801		7,225		0.085		614

Buzwagi	(proven and probable)		72,687		0.049		3,593		45,168		0.058		2,640
	(mineral resource)		19,993		0.030		608		7,219		0.056		407

Tulawaka (70%)	(proven and probable)		739		0.307		227		926		0.356		330
	(mineral resource)		178		0.281		50		204		0.505		103

OTHER	(proven and probable)		346		0.419		145		363		0.435		158
	(mineral resource)		—		—		—		165		0.400		66

TOTAL	(proven and probable)		2,111,583		0.059		124,588		2,043,154		0.060		123,066
	(mineral resource)		1,274,870		0.040		50,595		1,053,134		0.033		34,965


⁽¹⁾		See accompanying footnote #1

⁽²⁾		See accompanying footnote #2

⁽³⁾		See accompanying footnote #3

100

GOLD MINERAL RESERVES ⁽¹⁾


As at December 31, 2007	PROVEN						PROBABLE						TOTAL
	Tons		Grade		Contained ozs		Tons		Grade		Contained ozs		Tons		Grade		Contained ozs
Based on attributable ounces	(000’s)		(oz/ton)		(000’s)		(000’s)		(oz/ton)		(000’s)		(000’s)		(oz/ton)		(000’s)

NORTH AMERICA Goldstrike Open Pit		64,828		0.119		7,734		30,086		0.148		4,460		94,914		0.128		12,194
Goldstrike Underground		2,623		0.493		1,293		4,800		0.293		1,407		7,423		0.364		2,700
Goldstrike Property Total		67,451		0.134		9,027		34,886		0.168		5,867		102,337		0.146		14,894
Pueblo Viejo (60%)		7,233		0.105		757		121,892		0.094		11,501		129,125		0.095		12,258
Cortez (60%)		9,342		0.127		1,186		77,115		0.074		5,698		86,457		0.080		6,884
Bald Mountain		73,449		0.025		1,827		54,644		0.023		1,232		128,093		0.024		3,059
Turquoise Ridge (75%)		6,239		0.477		2,978		2,190		0.402		880		8,429		0.458		3,858
Round Mountain (50%)		30,846		0.022		672		47,271		0.016		770		78,117		0.018		1,442
Ruby Hill		18,325		0.050		916		438		0.032		14		18,763		0.050		930
Hemlo (50%)		5,771		0.079		456		1,648		0.107		177		7,419		0.085		633
Marigold (33%)		14,767		0.021		311		16,339		0.020		320		31,106		0.020		631
Golden Sunlight		2,495		0.056		140		—		—		—		2,495		0.056		140
Eskay Creek		35		0.457		16		—		—		—		35		0.457		16
SOUTH AMERICA
Pascua-Lama		42,947		0.049		2,113		401,663		0.039		15,865		444,610		0.040		17,978
Veladero		30,352		0.030		910		358,093		0.030		10,750		388,445		0.030		11,660
Lagunas Norte		12,043		0.051		618		210,133		0.039		8,115		222,176		0.039		8,733
Pierina		14,681		0.029		432		25,427		0.025		641		40,108		0.027		1,073

AUSTRALIA PACIFIC
Porgera (95%) ⁽²⁾		56,639		0.099		5,611		22,421		0.117		2,628		79,060		0.104		8,239
Kalgoorlie (50%)		45,859		0.052		2,399		33,553		0.065		2,190		79,412		0.058		4,589
Cowal		8,061		0.025		204		73,402		0.036		2,672		81,463		0.035		2,876
Plutonic		374		0.158		59		11,737		0.150		1,765		12,111		0.151		1,824
Kanowna		4,303		0.184		792		4,571		0.159		727		8,874		0.171		1,519
Darlot		2,228		0.124		276		2,980		0.127		379		5,208		0.126		655
Granny Smith		1,116		0.108		121		2,333		0.144		337		3,449		0.133		458
Lawlers		644		0.085		55		2,555		0.138		352		3,199		0.127		407
Henty		—		—		—		626		0.236		148		626		0.236		148
Osborne		1,755		0.024		42		2,426		0.016		40		4,181		0.020		82
AFRICA
Bulyanhulu		1,299		0.396		515		34,753		0.332		11,528		36,052		0.334		12,043
North Mara		22,828		0.100		2,289		13,633		0.096		1,305		36,461		0.099		3,594
Buzwagi		144		0.056		8		72,543		0.049		3,585		72,687		0.049		3,593
Tulawaka (70%)		300		0.100		30		439		0.449		197		739		0.307		227

OTHER		—		—		—		346		0.419		145		346		0.419		145

TOTAL		481,526		0.072		34,760		1,630,057		0.055		89,828		2,111,583		0.059		124,588

COPPER MINERAL RESERVES ⁽¹⁾


	PROVEN						PROBABLE						TOTAL
	Tons		Grade		Contained lbs		Tons		Grade		Contained lbs		Tons		Grade		Contained lbs
Based on attributable pounds	(000’s)		(%)		(millions)		(000’s)		(%)		(millions)		(000’s)		(%)		(millions)

Zaldivar		221,808		0.566		2,510		328,001		0.537		3,521		549,809		0.548		6,031
Osborne		1,755		2.128		75		2,426		2.019		98		4,181		2.065		173
TOTAL		223,563		0.578		2,585		330,427		0.548		3,618		553,990		0.560		6,203


⁽¹⁾		See accompanying footnote #1

⁽²⁾		See accompanying footnote #3

101

GOLD MINERAL RESOURCES^(1,2)


As at December 31, 2007	MEASURED (M)						INDICATED (I)						(M) + (I)		INFERRED
	Tons		Grade		Contained ozs		Tons		Grade		Contained ozs		Contained ozs		Tons		Grade		Contained ozs
Based on attributable ounces	(000’s)		(oz/ton)		(000’s)		(000’s)		(oz/ton)		(000’s)		(000’s)		(000’s)		(oz/ton)		(000’s)

NORTH AMERICA
Goldstrike Open Pit		20,561		0.052		1,072		13,971		0.051		716		1,788		5,014		0.064		321
Goldstrike Underground		893		0.431		385		3,236		0.301		974		1,359		2,747		0.371		1,020
Goldstrike Property Total		21,454		0.068		1,457		17,207		0.098		1,690		3,147		7,761		0.173		1,341
Pueblo Viejo (60%)		1,407		0.063		89		40,267		0.064		2,566		2,655		7,728		0.062		476
Cortez (60%)		4,516		0.042		191		41,228		0.046		1,885		2,076		11,604		0.153		1,776
Bald Mountain		13,000		0.025		331		23,493		0.023		530		861		24,648		0.017		411
Turquoise Ridge (75%)		1,790		0.407		728		679		0.415		282		1,010		1,500		0.440		660
Round Mountain (50%)		4,911		0.024		116		11,972		0.021		250		366		15,665		0.015		237
Ruby Hill		3,067		0.071		217		135		0.207		28		245		6		0.333		2
Hemlo (50%)		1,357		0.101		137		1,614		0.139		224		361		3,298		0.122		402
Marigold (33%)		7,000		0.020		137		10,053		0.021		209		346		67,531		0.012		841
Golden Sunlight		7,346		0.055		404		954		0.049		47		451		48		0.021		1
South Arturo (60%)		—		—		—		10,757		0.070		752		752		367		0.022		8
Donlin Creek (50%) ⁽³⁾		2,378		0.071		169		202,491		0.072		14,499		14,668		25,609		0.068		1,729
SOUTH AMERICA
Pascua-Lama		9,965		0.044		439		89,193		0.037		3,321		3,760		15,227		0.037		568
Veladero		1,572		0.018		28		25,772		0.018		475		503		96,223		0.012		1,191
Lagunas Norte		4,740		0.023		109		100,335		0.025		2,535		2,644		52,126		0.027		1,423
Pierina		2,775		0.017		47		9,705		0.015		147		194		159		0.025		4

AUSTRALIA PACIFIC
Porgera (95%)⁽⁴⁾		33,500		0.082		2,747		23,110		0.063		1,452		4,199		10,645		0.093		993
Kalgoorlie (50%)		1,655		0.055		91		1,180		0.071		84		175		1,212		0.173		210
Cowal		—		—		—		23,076		0.035		819		819		9,821		0.029		281
Plutonic		64		0.250		16		18,755		0.143		2,688		2,704		4,295		0.192		825
Kanowna		2,496		0.149		373		1,822		0.167		304		677		7,515		0.118		887
Darlot		460		0.126		58		3,071		0.120		370		428		222		0.180		40
Granny Smith		560		0.186		104		2,475		0.147		365		469		8,003		0.222		1,775
Lawlers		53		0.113		6		6,724		0.167		1,122		1,128		1,923		0.151		291
Henty		—		—		—		79		0.165		13		13		73		0.247		18
Osborne		1,425		0.025		36		2,177		0.028		61		97		4,760		0.019		89
Reko Diq (37.5%)		69,757		0.010		679		375,074		0.008		3,062		3,741		1,417,219		0.007		10,490
AFRICA
Bulyanhulu		—		—		—		1,516		0.427		647		647		10,253		0.459		4,704
North Mara		6,534		0.062		402		6,003		0.066		399		801		1,416		0.069		98
Buzwagi		56		0.036		2		19,937		0.030		606		608		947		0.045		43
Tulawaka (70%)		—		—		—		178		0.281		50		50		53		0.245		13


OTHER		—		—		—		—		—		—		—		370		0.295		109


TOTAL		203,838		0.045		9,113		1,071,032		0.039		41,482		50,595		1,808,227		0.018		31,936

COPPER MINERAL RESOURCES^(1,2)

As at December 31, 2007

MEASURED (M)

INDICATED (I)

(M) + (I)

INFERRED

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Based on attributable pounds

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

Zaldívar

27,104

0.477

258

71,247

0.431

614

873

176,453

0.510

1,801

Osborne

1,425

2.214

2,177

1.782

141

4,760

1.440

137

Reko Diq (37.5%)

69,757

0.528

737

375,074

0.480

3,601

4,337

1,417,219

0.474

13,427

TOTAL

98,286

0.538

1,058

448,498

0.479

4,292

5,351

1,598,432

0.481

15,366


⁽¹⁾		Resources which are not reserves do not have demonstrated economic viability.

⁽²⁾		See accompanying footnote #1

⁽³⁾		See accompanying footnote #2

⁽⁴⁾		See accompanying footnote #3

102

CONTAINED SILVER WITHIN REPORTED GOLD RESERVES ⁽¹⁾


For the year ended Dec. 31, 2007	IN PROVEN GOLD RESERVES						IN PROBABLE GOLD RESERVES						TOTAL
	Tons		Grade		Contained ozs		Tons		Grade		Contained ozs		Tons		Grade		Contained ozs		Process
Based on attributable ounces	(000s)		(oz/ton)		(000s)		(000s)		(oz/ton)		(000s)		(000s)		(oz/ton)		(000s)		recovery %

NORTH AMERICA
Pueblo Viejo (60%)		7,233		0.67		4,828		121,892		0.54		65,551		129,125		0.55		70,379		86.6	%
Eskay Creek		35		25.60		896								35		25.60		896		90.3	%

SOUTH AMERICA
Pascua-Lama		42,947		1.77		76,100		401,663		1.63		655,277		444,610		1.64		731,377		78.5	%
Lagunas Norte		12,043		0.11		1,377		210,133		0.10		21,007		222,176		0.10		22,384		18.8	%
Veladero		30,352		0.42		12,656		358,093		0.50		178,413		388,445		0.49		191,069		7.0	%
Pierina		14,681		0.25		3,598		25,427		0.20		5,088		40,108		0.22		8,686		40.0	%

AFRICA
Bulyanhulu		1,296		0.23		300		34,753		0.25		8,832		36,049		0.25		9,132		65.0	%

TOTAL		108,587		0.92		99,755		1,151,961		0.81		934,168		1,260,548		0.82		1,033,923		64.1	%


⁽¹⁾		Silver is accounted for as a by-product credit against reported or projected gold production costs.

CONTAINED COPPER WITHIN REPORTED GOLD RESERVES ⁽¹⁾

For the year ended Dec. 31, 2007

IN PROVEN GOLD RESERVES

IN PROBABLE GOLD RESERVES

TOTAL

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Process

Based on attributable pounds

(000s)

(%)

(millions)

(000s)

(%)

(millions)

(000s)

(%)

(millions)

recovery %

NORTH AMERICA

Pueblo Viejo (60%)

7,233

0.125

18.0

121,892

0.097

236.1

129,125

0.098

254.2

88.0

SOUTH AMERICA

Pascua-Lama

42,947

0.094

81.0

401,663

0.072

581.5

444,610

0.074

662.5

57.7

AFRICA

Buzwagi

144

0.148

0.4

72,543

0.121

174.9

72,687

0.121

175.3

77.6

Bulyanhulu

1,296

0.441

11.4

34,753

0.611

424.7

36,049

0.605

436.1

85.0

TOTAL

51,620

0.107

110.9

630,851

0.112

1,417.2

682,471

0.112

1,528.1

72.8


⁽¹⁾		Copper is accounted for as a by-product credit against reported or projected gold production costs.

CONTAINED ZINC WITHIN REPORTED GOLD RESERVES⁽¹⁾

For the year ended Dec. 31, 2007

IN PROVEN GOLD RESERVES

IN PROBABLE GOLD RESERVES

TOTAL

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Process

Based on attributable pounds

(000s)

(%)

(millions)

(000s)

(%)

(millions)

(000s)

(%)

(millions)

recovery %

NORTH AMERICA

Pueblo Viejo (60%)

7,233

0.794

114.9

121,892

0.623

1,518.1

129,125

0.632

1,633.0

83.2


⁽¹⁾		Zinc is accounted for as a by-product credit against reported or projected gold production costs.

103

CONTAINED SILVER WITHIN REPORTED GOLD RESOURCES ⁽¹⁾


For the year ended Dec. 31, 2007	MEASURED (M)						INDICATED (I)						(M) + (I)		INFERRED
	Tons		Grade		Contained ozs		Tons		Grade		Contained ozs		Ounces		Tons		Grade		Contained ozs
Based on attributable ounces	(000’s)		(oz/ton)		(000’s)		(000’s)		(oz/ton)		(000’s)		(000’s)		(000’s)		(oz/ton)		(000’s)

NORTH AMERICA
Eskay Creek		—		—		—		—		—		—		—		—		—		—
Pueblo Viejo (60%)		1,407		0.40		567		40,267		0.36		14,303		14,870		7,728		0.46		3,548

SOUTH AMERICA
Lagunas Norte		3,320		0.07		222		55,193		0.07		4,107		4,329		18,470		0.03		606
Pascua-Lama		9,965		0.60		6,001		89,193		0.52		46,171		52,172		15,227		0.72		11,039
Pierina		2,775		0.32		879		9,705		0.31		2,99		23,871		159		0.12		19
Veladero		1,572		0.47		737		25,772		0.43		10,988		11,725		96,223		0.39		37,364

AFRICA
Bulyanhulu		—		—		—		1,516		0.29		442		442		10,253		0.38		3,899

TOTAL		19,039		0.44		8,406		221,646		0.36		79,003		87,409		148,060		0.38		56,475

CONTAINED COPPER WITHIN REPORTED GOLD RESOURCES ⁽¹⁾

For the year ended Dec. 31, 2007

IN MEASURED (M) GOLD RESOURCES

IN INDICATED (I) GOLD RESOURCES

(M) + (I)

INFERRED

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Based on attributable pounds

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

NORTH AMERICA

Pueblo Viejo (60%)

1,407

0.078

2.2

40,267

0.070

56.5

58.7

7,728

0.046

7.1

SOUTH AMERICA

Pascua-Lama

9,965

0.064

12.8

89,193

0.063

112.8

125.6

15,227

0.029

8.9

AFRICA

Buzwagi

0.065

0.1

19,937

0.090

35.8

947

0.126

2.4

TOTAL

11,428

0.066

15.1

149,397

0.069

205.1

220.1

23,902

0.039

18.4

CONTAINED ZINC WITHIN REPORTED GOLD RESOURCES ⁽¹⁾

For the year ended Dec. 31, 2007

IN MEASURED (M) GOLD RESOURCES

IN INDICATED (I) GOLD RESOURCES

(M) + (I)

IN INFERRED GOLD RESOURCES

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Based on attributable pounds

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

NORTH AMERICA

Pueblo Viejo (60%)

1,407

0.574

16.2

40,267

0.409

329.5

345.6

7,728

0.258

39.8

NICKEL MINERAL RESOURCES ⁽¹⁾

For the year ended Dec. 31, 2007

MEASURED (M)

INDICATED (I)

(M) + (I)

INFERRED

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Tons

Grade

Contained lbs

Based on attributable pounds

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

(000’s)

(%)

(millions)

AFRICA

Kabanga (50%)

—

5,131

2.350

241.2

21,385

2.800

1,197.5

PLATINUM MINERAL RESOURCES ⁽¹⁾

For the year ended Dec. 31, 2007

MEASURED (M)

INDICATED (I)

(M) + (I)

INFERRED

Tons

Grade

Contained ozs

Tons

Grade

Contained ozs

Ounces

Tons

Grade

Contained ozs

Based on attributable ounces

(000’s)

(oz/ton)

(000’s)

(oz/ton)

(000’s)

(oz/ton)

(000’s)

RUSSIA

Fedorova (50%)

—

31,231

0.01

262

51,873

0.01

312

PALLADIUM MINERAL RESOURCES ⁽¹⁾

For the year ended Dec. 31, 2007

MEASURED (M)

INDICATED (I)

(M) + (I)

INFERRED

Tons

Grade

Contained ozs

Tons

Grade

Contained ozs

Ounces

Tons

Grade

Contained ozs

Based on attributable ounces

(000’s)

(oz/ton)

(000’s)

(oz/ton)

(000’s)

(oz/ton)

(000’s)

RUSSIA

Fedorova (50%)

—

31,231

0.03

1,073

1,073

51,873

0.03

1,308


⁽¹⁾		Resources, which are not reserves, do not have demonstrated economic viability.

104

MINERAL RESERVES AND RESOURCES NOTES

1. Mineral reserves (“reserves”) and mineral resources (“resources”) have been calculated as at December 31, 2007 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7, (under the Securities and Exchange Act of 1934), as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Pueblo Viejo is classified as mineralized material. In addition, while the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to National Instrument 43-101, the U.S. Securities and Exchange Commission does not recognize such terms. Canadian standards differ significantly from the requirements of the U.S. Securities and Exchange Commission, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange Commission. U.S. investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, U.S. investors are cautioned not to assume that any part or all of Barrick’s mineral resources constitute or will be converted into reserves. Calculations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Jacques McMullen, Senior Vice President, Technical Services of Barrick, Rick Allan, Senior Director, Mining of Barrick, and Rick Sims, Senior Director, Resources and Reserves of Barrick. Reserves have been calculated using an assumed long-term average gold price of $US 575 ($Aus. 750) per ounce, a silver price of $US 10.75 per ounce, a copper price of $US 2.00 per pound and exchange rates of $1.15 $Can/$US and $0.77 $US/$Aus. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. Varying cut-off grades have been used depending on the mine and type of ore contained in the reserves. Barrick’s normal data verification procedures have been employed in connection with the calculations. Resources as at December 31, 2007 have been estimated using varying cut-off grades, depending on both the type of mine or project, its maturity and ore types at each property. For a breakdown of reserves and resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Barrick’s reserves and resources, see Barrick’s most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.

2. In December 2007, Barrick increased its interest in the Donlin Creek project from 30% to 50%. 2007 resources for the Donlin Creek project reflect Barrick’s 50% interest. 2006 resources for the Donlin Creek project reflect Barrick’s then 30% interest.

3. In August 2007, Barrick increased its interest in the Porgera mine from 75% to 95%. 2007 reserves and resources for the Porgera mine reflect Barrick’s 95% interest. 2006 reserves and resources for the Porgera mine reflect Barrick’s then 75% interest.

105


CORPORATE OFFICE Barrick Gold Corporation		TRANSFER AGENTS AND REGISTRARS CIBC Mellon Trust Company
Brookfield Place, TD Canada Trust Tower		P.O. Box 7010, Adelaide Street Postal Station
Suite 3700		Toronto, Ontario M5C 2W9
161 Bay Street, P.O. Box 212		Tel: (416) 643-5500
Toronto, Canada M5J 2S1		Toll-free throughout North America: 1-800-387-0825
Tel: (416) 861-9911 Fax: (416) 861-0727		Fax: (416) 643-5501
Toll-free within Canada and United States: 1-800-720-7415		Email: inquiries@cibcmellon.com
Email: investor@barrick.com		Website: www.cibcmellon.com
Website: www.barrick.com

		BNY MELLON SHAREOWNER SERVICES
SHARES LISTED		480 Washington Blvd. — 27th Floor
ABX — The Toronto Stock Exchange		Jersey City, NJ 07310
The New York Stock Exchange		Tel: 1-800-589-9836 Fax: (201) 680-4665
		Email: shrrelations@mellon.com
		Website: www.mellon-investor.com


INVESTOR CONTACT		MEDIA CONTACT
Deni Nicoski		Vincent Borg
Vice President, Investor Relations		Senior Vice President, Corporate Communications
Tel: (416) 307-7410		Tel: (416) 307-7477
Email: dnicoski@barrick.com		Email: vborg@barrick.com

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Four Quarter and Year-End Report 2007, including any information as to our future financial or operating performance and other statements that express management’s expectations or estimates of future performance, constitute “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “will”, “anticipate”, “contemplate”, “target”, “plan”, “continue’, “budget”, “may”, “intend”, “estimate” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company’s estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; adverse changes in our credit rating, contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company’s most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.


	BARRICK GOLD CORPORATION
Date: February 22, 2008	By:	/s/ Sybil E. Veenman
		Name:	Sybil E. Veenman
		Title:	Vice President, Assistant General Counsel and Secretary


For the month of: February 2008		Commission File Number: 1-9059


Exhibit		Description of Exhibit
99.1		Barrick Gold Corporation Year-End Report for 2007, including the Comparative Unaudited Financial Statements prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and the notes thereto for the year ended December 31, 2007 and Management’s Discussion and Analysis (US GAAP) for the same period.


Yes o		No þ