african barrick gold

African Barrick Gold Bulyanhulu – Site Presentation

March 2014

1. Introduction 1

2. Asset Overview 7

3. Mining Overview 11

4. Processing Overview 25

5. Business Improvement 29

6. Social Licence to Operate 33

7. Cultural Transformation 36

8. Summary 38

1

Contents

Biography

2

Peter Burger joined ABG in 2011 and having been General Manager of Tulawaka and Buzwagi ahead of joining Bulyanhulu in October 2013. Prior to ABG, Peter has worked for a number of mining companies such as Anglo American and Acquarius Platinum in numerous managerial roles. Peter has over 20 years of operational experience and has worked at a range of underground operations. Peter is a mining engineer with a degree from the University of Johannesburg.

Location

3

History

Asset Overview

Mine History

2011 2001 1999 1994 1992 1985 1980 1976

1976: Gold First discovered at Bulyanhulu

1980 to 1982: First Exploration by State Mining Corporation

1989 to 1992: Placer Dome JV to manage the property and conduct exploratory work

1999: Acquisition of Sutton Resources by Barrick

1983 to 1985: JV with Outo Kumpu and Kone Corp to conduct further drilling

1994: Prospecting License granted to Sutton Resources

2001: Commencement of Production

2011: Bulyanhulu celebrates 10 years of operations and 3 million ounces of production

High Grade, narrow vein, steeply dipping ore body

Underground gold mine owned and operated by Bulyanhulu Gold Mine Limited

Located in Kahama District, in the Shinyanga Region, North West Tanzania, 55km South of Lake Victoria

Access to Bulyanhulu is by road from Mwanza (155km) or Kahama (55km) and by air through own-operated airstrip within the property

Well established mine site with administration office, a mill, laboratory, warehouse, clinic, security installations, housing and other support structures

Majority of Tanzanian workforce is drawn from surrounding communities

4

People

Who we are

BGML draws its human capital from various corners of the world, with the majority sourced locally or within Tanzania

Total current Bulyanhulu workforce:

− Tanzanians: 2,237

− International Staff: 159

− Contractors: 1,007

Facilities such as the health centre, underground clinic, employee transportation and the Housing Scheme are part of what is intended to make BGML “an Employer of Choice”

5

Safety incident frequency rates 2006 - 2013

Management Commitment – Visible Felt Leadership

Employee Involvement – “Stop and Fix”

Personal Accountability – Safety Standards 6

TRIFR

LTIFR

1. Introduction 1

2. Asset Overview 7






8. Summary 38

7

Contents

Geology

8

Geological cross-section

X Y

Pillow Basalts

Facing

Gabbro

Argillite

Mineralized Qtz vn

9

Reef 1 long section: grade distribution

10

BGMDD0055W11.5m @ 2.27/t Au

BGMDD0054W11.29m @ 11.7g/t Au

BGMDD0054W24.5m @ 8.07g/t Auincl. 1.5m @ 16.6g/t Au

UX4700-071.04m @ 76.7g/t Au

1. Introduction 1

2. Asset Overview 7






8. Summary 38

11

Contents

Reserves and Resources

Mineral Reserve and Resources at 31st December 2013

Historical Operating Metrics

Capacity

Ore Production is currently ±3,300 tpd (~1.0 Mtpa)

Shaft capacity is ~1.7 Mtpa (waste and ore)

Mill capacity is currently ~1.1 Mtpa

LOM is currently 34 years

2010 2011 2012 2013 Production (koz) 260 262 236 198 Cash Cost ($/oz) 539 610 803 875 All in Sustaining Cost ($/oz) n/a n/a 1245 1323 Head Gold Grades (g/t) 9.19 8.47 8.02 7.85

2012 YE 2012 YE 2013YE 2013 YE contained Mozs Grade contained Mozs Grade

Proven 0.266 10.01 0.149 11.40 Probable 10.613 11.38 9.238 9.50 Total Reserve 10.879 11.34 9.387 9.53 Measured - - Indicated 3.320 9.68 3.502 8.44 Inferred 3.252 11.95 2.745 12.88 Total Resource 6.572 10.68 6.274 11.53

12

Reasons for reserve grade drop

Reserve Gold Price: • Reserve 2012: US$ 1,500/Oz • Reserve 2013: US$ 1,300/Oz

Mining Method Changes

Increase in Dilution (Internal Dilution + Overbreak)

Cost Changes

Other contributions: Additional Drilling in 2013 reduced grade in some areas Mine Depletion

Gold Price

(-13%)

Reserve Dilution Increase (+28%)

1

2

3 (Gold Price – Cost)

13

4

PINK: UPPER WEST TONNES: 1,639,361@ 10.80g/t Contained Ounces: 569,380

BLUE: DEEP WEST TONNES: 6,834,932@ 14.53g/t Contained Ounces: 3,193,857

GREEN: DEEP CENTRAL TONNES: 2,632,798@ 11.56g/t Contained Ounces: 978,176

RED: DEEP EAST TONNES: 1,171,418@ 13.85g/t Contained Ounces: 521,431

LIGHT BLUE: UPPER CENTRAL TONNES: 635,127@ 10.20g/t Contained Ounces: 208,222

ORANGE : REEF 2 CENTRAL TONNES: 2,189,037@ 11.36g/t Contained Ounces: 799,727

CCF

CCF

LH

CCF

2012 Reserve

14

2013 Reserve

1.24g/t (-11%)

1.07g/t (-10%)

3.03g/t (-21%)

4.13g/t (-36%)

6.09g/t (-44%) LH

DnF

CCF

PINK: UPPER WEST TONNES: 2,276,199@ 9.39g/t Contained Ounces: 687,633

BLUE: DEEP WEST TONNES: 9,278,161@ 11.50g/t Contained Ounces: 3,431,269

GREEN: DEEP CENTRAL TONNES: 5,777,343@ 7.43g/t Contained Ounces: 1,380,004

RED: DEEP EAST TONNES: 2,338,100@ 7.76g/t Contained Ounces: 583,708

LIGHT BLUE: UPPER CENTRAL TONNES: 579,188@ 9.131g/t Contained Ounces: 170,030

ORANGE : REEF 2 CENTRAL TONNES: 3,014,406@ 10.12g/t Contained Ounces: 980,670

1.41g/t (-13%)

15

Mining operations

Mining Overview

Kt 2008 2009 2010 2011 2012 2013

Ore Hoisted (Kt) 756

967

960

1,048

959 872

Waste Hoisted (Kt) 372 524 559 556 507 475

Underground mine with shaft and ramp access

Life of Mine plan average mining rate of 1 million tonnes of ore mined per annum from two reefs

Mobile equipment fleet includes drill jumbos, scoops, dump trucks, utility vehicles and handheld equipment

Owner Maintenance

Introducing contractors to undertake critical development

16

Split of Mining Methods

(Actual for 2013)

0%

20%

40%

60%

80%

100%

2013 2014 LOM

Ore Dev't

Drift & Fill

CCF

Alimak

Long hole

LOM changes to achieve reserve grade

2013 LOM Plan

2013 LOM Plan had CCF Mining in Deep West, Deep Central and Deep East per previous LOM Plans

CCF targeted the Footwall and Hangingwall Veins with inefficient, labour intensive handheld, stoping with minimal dilution

CCF = Higher Mined Grade but, higher labour requirements, low daily tonnage, requiring +/- 200 stopes monthly to sustain LOM production in later years

2014 LOM Plan

2014 LOM Plan – No CCF Mining in the Deep areas

CCF converted to either Underhand Longhole Stoping in the Deep West or Mechanised Drift & Fill in the Deep Central and Deep East Zones

Accelerated Development focused on the Deep West to open up more productive mechanised stopes

Mechanised Underhand Longhole Stoping employed in Deep West to bring in stopes earlier, and bring ounces forward

Monthly stoping: Alimak – 4, Long Hole – 10, CCF - 12

17

2015 LOM – in progress

Contract miners engaged to accelerate waste development specifically on the main decline and ore drives

Underhand long hole mining will be used to ensure earlier production from stoping areas

Areas non-economical for long hole is being reviewed for drift and fill

Trial mine will be done in Upper East in 2014 for 1.5m wide long hole stopes

Re-focusing next 5 years to areas with high grade (West Deeps)

Grade control in place to reduce overbreak

Exploration plan to add ounces in Reef 1 and 2 (starting in 2014 in both reefs)

2014 - 2030 2030 - 2046

18

Underhand Long Hole

19

KPI review – reducing long hole overbreak

20

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Jan-

12

Mar

-12

May

-12

Jul-1

2

Sep

-12

Nov

-12

Jan-

13

Mar

-13

May

-13

Jul-1

3

Sep

-13

Nov

-13

Jan-

14

OVERBREAK TARGET Geology and Survey assessment every 2 weeks

Weekly discussion between BI, TS and Ops

Drill hole surveys to improve drilling accuracy

Long hole machines were brought back to standard

Use right explosives – emulsion vs ANFO

Training of Long hole drillers

Reducing Alimak tonnes in the LOM

What is being done? Improving trend in reducing overbreak

Upper East Zone

21

The Bulyanhulu Upper East Zone is approximately 2.5 km east of the main Bulyanhulu shaft

The Zone contains approximately 6.5 million ore tonnes at an average 9.05g/t containing approximately 1.8 million gold ounces within Reef 1 and Reef 2 from surface to 1km depth

The mineralisation in the “Zone” is included in current reserves, but it was not scheduled for mining until later in the mine life

However, following model and study reviews we may accelerate mining within the overall life of mine

This would make use of an existing 1.8 km decline to this zone, which has been dewatered and rehabilitated, and would look at developing a second access decline from a box-cut at surface between Reefs 1 & 2 to allow flexibility in mining

The material mined from the Upper East Zone would initially use excess milling capacity in the process plant, followed by debottlenecking of plant to increase capacity

We are conducting an updated feasibility study on this area to incorporate both Reef 1 and Reef 2 and are planning “early works” development of test stopes on Reef 1

Mining Methods proposed are:

− Reef 1 - Mechanised Drift & Fill

− Reef 2 - Underhand Longhole Stoping

Upper East Zone Reefs 1 and 2

Shaft Potential Box Cut Paste Fill Hole Existing Box Cut

Upper East Reef 1&2

22

Upper East

23

Feasibility and Board approval expected

in Q2 2014

Development expected to commence in

H2 2014

First gold in early 2015

2-3 year ramp up to full production

Next Steps

Route to 350koz

24

Sources of Production Growth

198

198

250

250 290

350

52

40

60

100

150

200

250

300

350

400

2013A Grade & Productivity

Improvements

Existing U/G Mine (2015 exit rate)

CIL Expansion Upper East 2015E exit rate

Koz

1. Introduction 1

2. Asset Overview 7






8. Summary 38

25

Contents

Processing Operations

Processing Key Points

The following processes are utilised; Crushing, Grinding, Gravity, Flotation, Carbon-In-Leach, Thickening, Cyanide destruction, Filtration and Paste Backfill

ICMI Cyanide code compliant

Bulyanhulu produces two saleable products: dore and copper concentrate

Dore bars are produced from Gravity and CIL plants

Copper Concentrate is produced from the flotation plant and sold to copper smelters mainly in China and Japan

The concentrate requires processing in a copper smelter with a gold refinery

26

CIL Expansion Project

New Carbon In Leach (CIL) Plant 2.4 Mtpa

‒ 1.0 Mtpa ROM + 1.4 Mtpa Hydraulic Reclamation

‒ Including SMBS Detoxification

‒ New Tailings Storage Facility (TSF 4) and Return Water Dam (RWD)

Total cost of the project of $167 million (majority funded by debt facility)

Will add over 40koz per annum over the next 6 years and 10Koz per annum from rougher tailings for the remaining LOM

‒ AISC for reclaimed tailings will be below $800 per ounce

‒ Will increase overall recoveries from 91% to 94%

27

Site activity progress

Description Actual

Overall Completion 96.6%

Construction Progress 92.9%

Commissioning Progress 12%

Completion of Commissioning Q2 2014

28

1. Introduction 1

2. Asset Overview 7






8. Summary 38

29

Contents

Cost Savings

Key 2014 cost savings initiatives:

Labour cost reduction – expat reduction focus & improvement of controls regarding T&A

Maintenance – improved condition based monitoring & root cause analysis processes

Mining Consumables – focused on tyre life management program and underground support supplier management

Processing Consumables – trialing of more cost efficient grinding media in progress and optimisation of gravity control processing

External services – focus has been centered around contract management (rates and fixed cost reduction)

G&A – reduced travel and accommodation costs together with improved camp service contact management

Grade control – focused on Alimak and Long Hole grade control improvement programs

30

-50,000

-

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

Cost Savings: Workforce requirements

31

Plan* Overall Workforce Split between Underground vs Support Staff

* Excluding Upper East

Business Improvement projects planned for 2014 and 2015

32

Integrated planning – improve co-ordination of planning between departments

Overall equipment effectiveness

Maintenance management system

Improved “live” dispatch system

Cultural and behavioural intervention

People / Organisation – installation of an Accountable Management System (AMS)

Safety culture – revamp of the mine safety culture “We care programme” in Q2 14

1. Introduction 1

2. Asset Overview 7






8. Summary 38

33

Contents

Community Relations

Involvement of communities in project appraisals

Health: Investment in a clinic in Bugarama, Kakola VCT and support health programs at district level

Education: Schools and supporting facilities, support of IMTT

Utilities: Support road maintenance, electrification and provision of water at various points

Pipeline to supply sufficient water to the community from Lake Victoria

Employee Assistance: Support of the employees living in the community through the housing scheme, the counseling services and loans through BUIKA SACCOS

Enterprise development: Supporting commercialisation of small ventures to supply Bulyanhulu

Sports and Culture: Support community in sports events

CSR Highlights

34

Government Relations and Stakeholder Engagement

Conducted at Regional (Shinyanga), District (Msalala) and at Village (14 villages of immediate impact) levels

Conducted with government, political, commercial, civil society and community sectors , amongst others

Offers mine site’s social license to operate while addressing top priority risks

Addresses key CR and BGML areas of interest - fulfillment of Social Obligations, Grievance Management, Influx Management, Trespassing and Illegal Mining Management, Community Safety, Local Procurement (Alternative Livelihood programs) and Local Employment

Work with various departments to attain goals – Security, HR, Supply Chain, OH, Safety, Environment , among others

Informed by Stakeholder Perception Monitoring (last major one undertaken in 2012, however, perception is gathered periodically through various engagements)

35

1. Introduction 1

2. Asset Overview 7






8. Summary 38

36

Contents

Cultural Transformation Program

37

Liberating the capability of our people

Increasing leadership and membership skills

Driving key behaviours throughout the business to deliver our strategy

Our key people including all our leaders, influencers, and key operational personal both from ABG and our major contractors

Social process literacy and role clarity

Managing Culture: Cultural Change Curve

The Revolution Model, getting it right

1. Introduction 1

2. Asset Overview 7






8. Summary 38

38

Contents

Key priorities going forward

Improve on our excellent safety record

Re-engineer and right size the mine to deliver potential

Drive leadership transformation and accountability

Which will drive production of 350Koz at AISC of around $900 per ounce

by the end of 2015

39

Disclaimer

Important Notice

This presentation has been provided to you for information purposes only. It does not constitute an offer, solicitation, invitation or inducement to purchase, subscribe or otherwise acquire or to sell or otherwise dispose of any securities of African Barrick Gold plc ("ABG") or engage in any investment activity in connection with the capital of ABG in any jurisdiction. The information or opinions contained in this presentation shall not form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment or investment decision whatsoever in connection with ABG.

The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. ABG explicitly disclaims any responsibility, obligation or undertaking to update or revise any information contained in this presentation after its date, whether as a result of new information, future events or otherwise. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents.

Certain information, statements, beliefs and opinions in this presentation are forward looking. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors. Although ABG’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, forward-looking information and statements contained in this presentation. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG’s ability to successfully integrate future acquisitions, to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves and to timely and successfully process its mineral reserves, trespass, theft and vandalism, changes in its business strategy, as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any forward-looking statements in this presentation speak only as of the date of this presentation and only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise.

No statements made in this presentation regarding expectations of future profits are profit forecasts or estimates, and no statements made in this presentation should be interpreted to mean that ABG’s profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG or any other level.

You are reminded that you have received this presentation subject to the disclaimer and important notices contained herein and on the basis that you are a person to whom this presentation may be lawfully made and delivered in accordance with the laws of the jurisdiction in which you are located. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, whether electronically or otherwise. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TO COMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION OF APPLICABLE SECURITIES LAWS.

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