The Launch of Twiga Minerals Heralds Partnership Between Tanzanian Government and Barrick
NEWS RELEASE
All amounts expressed in US dollars
The Launch of Twiga Minerals Heralds Partnership Between
Tanzanian Government and Barrick
Dar es Salaam, Tanzania – October 20, 2019 – The government of Tanzania (“GoT”) and Barrick Gold Corporation
(NYSE:GOLD)(TSX:ABX) (“Barrick” or the “Company”) have reached an agreement to settle all disputes between the
GoT and the mining companies formerly operated by Acacia but now managed by Barri ck. The final agreements have
been submitted to the Tanzanian Attorney General for review and legalization.
The terms of the agreement include the payment of $300 million to settle all outstanding tax and other disputes; the
lifting of the concentrate export ban; the sharing of future economic benefits from the mines on a 50/50 basis; and the
establishment of a unique, Africa-focused international dispute resolution framework.
In conjunction with the finalization of the agreement, a new operating company called Twiga Minerals Corporation
(“Twiga”) has been formed to manage the Bulyanhulu, North Mara and Buzwag i mines. (Twiga is the Swahili word for
giraffe, Tanzania’s national symbol.) The GoT will acquire a free carried shareholding of 16% in each of the mines and
will receive its half of the economic benefits from taxes, royalties, clearing fees and participation in all cash distributions
made by the mines and Twiga. An annual true-up mechanism will ensure the maintenance of the 50/50 split.
Speaking after a meeting with the c hairman of the Negotiating Committee of the Government of Tanzania, Prof
Palamagamba Kabudi, Barrick president and chief executive Mark Bristow said the agreements introduced a new era
of productive partnership with the GoT and would ensure that Tanzania and its people would share fully in the value
created by the mines they hosted. It also marked the end of the long impasse between the GoT and Acacia which had
led, among other things, to the closure of North Mara and the freezing of export concentrate from the two other
operations.
Barrick took over the management of the mines after its buy -out of the Acacia minorities last month. Since then it has
negotiated the re-opening of North Mara and is engaging with the mines’ host communities to restore their social license.
“Rebuilding these operations after three years of value destruction will require a lot of work, but the progress we’ve
already made will be greatly accelerated by this agreement. Twiga, which will give the government full visibility of and
participation in operating decisions made for and by the mines, represents our new partnership not only in spirit but also
in practice,” Bristow said.
He noted that Tanzanian nationals were already being employed and trained to replace expatriate staff as had been
done very successfully at Barrick’s other African operations.
Barrick Enquiries
President and chief executive
Mark Bristow
+1 647 205 7694
+44 788 071 1386
COO, Africa and Middle East
Willem Jacobs
+44 779 557 5271
+243 820 678 040
Investor and media relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]
Website: www.barrick.com
BARRICK GOLD CORPORATION
NEWS RELEASE
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to Barrick’s strategy,
projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than
statements of historical fact, are forward -looking statements. The words “herald”, “will”, “establish”, “ensure”, “engag e”, “restore”,
“rebuild”, “progress”, “would” and similar expressions identify forward-looking statements. In particular, this press release contains
forward-looking statements including, without limitation, with respect to the new partnership between Barri ck and the GoT and the
agreement to resolve all outstanding disputes between Acacia Mining plc (“Acacia”) and the GoT , including with respect to the
settlement of outstanding tax and other disputes; the lifting of the concentrate export ban; the timing and amount of payments made
to the GoT; the acquisition of the GoT’s free carried shareholding of 16% in the Bulyanhulu, North Mara and Buzwagi mines ; the
sharing of future economic benefits with the GoT on a 50/50 basis and the establishment of an African- focused dispute resolution
framework.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and
assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press
release in light of management’s experience and perception of current conditions and expected developments, 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, and undue reliance should not be placed on such
statements and information. Such factors include, but are not limited to: whether the agreement to settle all disputes between Acacia
and the GoT will be legalized and executed by the GoT; the Company’s ability to successfully re-integrate Acacia’s operations; timing
of receipt of, or failure to comply with, necessary permits and approvals ; non-renewal of key licenses by governmental
authorities; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration
of laws, policies and practices, expropriation or nationalization of pro perty and political or economic developments in Tanzania and
other jurisdictions in which the Company or its affiliates do or may carry on business in the future; lack of certainty with respect to
foreign legal systems, corruption and other factors that ar e inconsistent with the rule of law; litigation and legal and administrative
proceedings; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural
gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance,
exploitation, and exploration successes; diminishing quantities or grades of reserves; increased costs, delays, suspensions and
technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining
or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure
and information technology systems; failure to comply with environmental and health and safety laws and regulations; the impact of
global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash
flows; fluctuations in the currency markets; damage to the Company’s reputation due to the actual or perceived occurrence of any
number of events, including negative publicity with respect to the Company’s handling of environmental or human rights matters or
dealings with community groups, whether true or not; risk of loss due to acts of war, terrorism, sabotage and civil disturbances;
contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other requir ed
infrastructure; employee relations including loss of key employees; increased costs and physical risks, including extreme weather
events and resource shortages, related to climate change; and availability and increased costs associated with mining input s and
labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper
cathode or gold or copper concentrate 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 act ual 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 stat ements made in this press release are
qualified by these cautionary statements. Specific reference is made to the most recent Form 40- F/Annual Information Form on file
with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying
forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking
statements contained in this press release.
Barrick Gold Corporation 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.