African Barrick Gold Buzwagi - Site Presentation March 2014

Contents

1. Introduction 1

2. Life of Mine 7

3. Processing Operations 17

4. Cost Improvements 20

5. Summary 27

1

Biography

2

Philbert Rweyemamu was appointed Buzwagi General Manager in October 2014 having been General Manager of Tulawaka since September 2012. Prior to this Philbert has worked in a variety of roles within ABG including Mining Manager at North Mara and as Government Relations Manager. Philbert is one of the most experienced Tanzanian mining executives, has more than 30 years professional mining experience and has previously worked for DeBeers, Shanta Mining and Namaqualand Mines. Philbert holds a Masters of Science degree in Mining Engineering, Geomechanics, from the University of Exeter, Camborne School of Mines in England. He also holds a Bachelor of Engineering in Mining Engineering from Camborne School of Mines and a Mining Technology Diploma from Hailey School of Mines, Ontario in Canada.

Location

3

Overview and history

Gold mineralisation first recognised on this property in the 1950s

− Exploration began in 1996-1999 under the direction of Anmercosa (Exploration Arm of Anglo American Corporation)

− Pangea Minerals Ltd (PML) continued exploration from 2000-2005

− Pre-Feasibility study in December 2005

− Feasibility study in 2006

Mineral Development Agreement and EIA approved in February 2007

− Special Mining Licence approved, 25th July 2007

− Site Access, 20th August 2007

Commenced ore mining and stockpiling, October 2008

− Plant commissioning: Q1 2009

First gold pour: Q2 2009

Project cost: $402M

4

Safety and environment

Impressive safety performance in 2013 with TRIFR 0.27 and one LTI

Obtained first stage of ICMI Certification in 2014

Designed as a zero discharge mine

Low rainfall environment (c. 900mm per annum)

Constructed 73 hectare rain water catchment area to minimise environmental impact

5

8.59

3.79

1.46

0.57 0.27 0

2

4

6

8

10

2009 2010 2011 2012 2013

TRIFR

TRIFR

Mine site

Buzwagi Pit

Waste rock storage

Tailings Dam

Water Harvest

Water Storage

ROM pad

Village

6

1. Mine Operations Overview 1

2. Life of Mine 7

3. Processing Operations 17

4. Cost Improvements 20

5. Summary 27

7

Contents

Life of Mine: options review

In June 2013 work began to assess mine planning options to reverse Buzwagi's negative cashflow:

Survival mode in the short to medium term, generate maximum possible free cashflow in the next 5 years

Possibility of future re-capitalisation to continue the mine to its designed end life

Such re-capitalisation will be dependant on prevailing future gold price and the extent of funds required for ramping up back to full production

Key strategies adopted in June 2013 were:

Minimising capital expenditure, including capitalised waste stripping

Deferring any rebuild or major component replacements not required for meeting the 5-year objective

Maximising the mill feed grade

Major labour and associated cost reduction across the board

Minimising the hauling distances

8

Life Of Mine

9

Life of Mine: 2012 vs 2013 year end ore reserves

Tonnes (000's)

Grade Au (g/t)

Ounce (000's)

Tonnes (000's)

Grade Au (g/t)

Ounce (000's)

Tonnes (000's)

Grade Au (g/t)

Ounce (000's)

Proven and Probable 24,105 1.445 1,120 63,333 1.325 2,697 -39,228 1.251 -1,577

Mineral Resource 49,109 1.291 2,038 14,875 1.019 487 34,234 1.409 1,551

2013 YE 2012 YE Variance

2,697

1,120

100 -

754

- 330

106

1,033

-

708

-

38 -

- -

-

500

1,000

1,500

2,000

2,500

3,000

3,500

End 2012 Depletion - H1 Mining Cost Gold Price Process Cost Others (cost) Depletion - H2 Scope Change End 2013

Oun

ces

(koz

)

10

Buzwagi resource / reserve model

Resource Model below Stage 3

Stage 2

Stage 3

Stage 4

Reserve Mode

11

Plans of stage 2 and 3 pits with location of orebody

Stage 2

Stage 3

12

Section of stage 2 and 3 pits with orebody

Stage 2 Stage 3

13

Life of Mine: options comparison

1.49 1.62

-

0.40

0.80

1.20

1.60

2.00

2013 LOM 2014 LOM

Grad

e (g

/t)

Mined Grade

212.5

54.5

-

50.0

100.0

150.0

200.0

250.0

2013 LOM 2014 LOM

Mt

Waste Mined

2013: LOM of over 10 years with a 2.7 Moz Reserve

2014: LOM of 5 years with a 1.1 Moz Reserve

14

0

100

200

300

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Koz

Annual Gold Produced (Koz)

2014 LOM (Exc Cut 4) 2013 LOM (Inc Cut 4)

Gold production profile

Accelerated Stage 2 and 3 mining

Treating of low grade stockpiles

Re-worked plan in 2014 to achieve budgeted ounces post isolated SE western wall instability

15

0

5

10

15

20

25

30

35

40

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Mill

ion

Tonn

es

Annual Total Tonnes Mined

2014 LOM (Exc Cut 4) 2013 LOM (Inc Cut 4)

Ore mined

Reduced tonnes mined – Standing down equipment

16

0

2

4

6

8

10

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Ore

Ton

nes

(Mill

ion)

Annual Ore Tonnes Mined

2014 LOM (Exc Cut 4) 2013 LOM (Inc Cut 4)

1. Mine Operations Overview 1

2. Life of Mine 7

3. Processing Operations 17

4. Cost Improvements 20

5. Summary 27

17

Contents

Processing overview

Capacity of 4.4 million tonnes milled per annum (c.12,000tpd)

Gravity, flotation & CIL to produce dore and copper concentrate

Concentrate trucked to port and sold to smelter

107 km power line, 400 person village

73 ha water harvest area

Full back-up power capacity

Infrastructure

Process

18

Capacity

Processing improvements and future strategies

Achieved the plant designed capacity of 4.4 Mt in 2013 due to:

− Higher mill throughput rates

− Reduced unplanned shutdowns

− Implementation of short interval controls (SICs)

Future strategies to maintain and exceed the nameplate capacity for LOM:

− Improved mill throughputs

− Mining to Mill ore blend strategy

− Reduced planned & un-planned shutdown times

− Maintain high crushed ore stockpile

− Better plant control strategies by SICs

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1. Mine Operations Overview 1

2. Life of Mine 7

3. Processing Operations 17

4. Cost Improvements 20

5. Summary 27

20

Contents

Cost savings

Key 2014 cost saving initiatives are:

Labour - FY impact of expat labour reduction

Power – Grid power mix

Maintenance – improved condition-based monitoring and root cause analysis processes

Mining consumables – focused on tyre life management program and improved control around fuel and lubrication issuing

Processing consumables – trialling of more cost efficient grinding media in progress/ short interval control system on CIL

External services – improved contract management (rates and fixed cost reduction)

Working capital management - centered on supplies on hand and initiatives include category management

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2012A 2013A 2014E

Progression of Total Site Costs

Labour Energy/Diesel

Consumables Maintenance

Contracted services G&A costs

Sales related costs Sustaining Capital

Activity/One-off cost adjustment Total Direct Costs - Absolute

Total Direct Costs - Activity adj

21

Cost saving: labour head count reductions

-

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Life-of- Mine Human Resources - Internationals Head Count 2013 versus 2014

2013 LOM 2014 LOM

-

200

400

600

800

1,000

1,200

1,400

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Life-of- Mine Human Resources - Total Head Count 2013 versus 2014

2013 LOM 2014 LOM

22

Impact of LOM change on capital requirements

Current LOM (excluding Stage 4) compared to previous LOM(including stage 4)

23

2013 LOM Total 2014 LOM Total

Sustaining Capex

Mining based 62.8 12.2

Plant based 65.4 19.4

General Site 15.6 1.3

Continuous Improvements 7.2 -

Other 8.4 0.6

Total 159.4 33.4

Capitalised Stripping

LOM 337.4 19.4

Improvements in power supply mix

24

Leading to power cost savings

11 11

11.8 11.5

10.5 10

9.6

11.4

6.8 7 6.8 6.5

7.3 6.9

0.02 0.48

0.7

1.5 0.28

5.1

4.8

3.1

4.2

5.4

4.1

0

2

4

6

8

10

12

14

Jan-13 Feb-13 Mar-13 Apr-13 May-13 June-13 July-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

MW

h

Increasing Grid Power as a Proportion of Power Mix

Site Generation MWh

Tanesco Grid MWh

25

2014 Business Improvement priorities

26

Mine to mill productivity improvements Improve grade control and block model Mining process improvements (fragmentation, services) Mining fleet optimisation (dispatch upgrade, payloads, reduced idling time) Improve overall equipment effectiveness

Maintenance Increase mean time between failure (MTBF) and spares management Reduced maintenance cost per hour, reduce downtime and mean time to repair (MTTR)

Process plant Improve stockpile management and blending to drive improved mill throughput and plant

recoveries Appropriate maintenance strategies in place

Other costs Supply chain optimisation (warehouse and inventory improvements) Labour optimisation (right people, right structure and motivation) Integrate asset protection into business processes

1. Mine Operations Overview 1

2. Life of Mine 7

3. Processing Operations 17

4. Cost Improvements 20

5. Summary 27

27

Contents

Summary

Life of Mine has been rescheduled, in order to deliver:

a significant reduction in material moved

an improved grade profile

reduced capital spend

Together, these mean that the mine is expected to be cash flow positive in each year of the LOM

28