##### 



BARRICK GOLD CORPORATION BCE Place
Canada Trust Tower, Suite 3700
P.O. Box 212
Toronto, Ontario
M5J 2S1 ANNUAL INFORMATION FORM For the year ended December 31, 2003 Dated as of May 19, 2004




---



##### 



BARRICK GOLD CORPORATION
ANNUAL INFORMATION FORM TABLE OF CONTENTS GLOSSARY OF TERMS
    
    
    3REPORTING CURRENCY AND FINANCIAL INFORMATION
    
    
    8DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION
    
    
    8SCIENTIFIC AND TECHNICAL INFORMATION
    
    
    9GENERAL INFORMATION
    
    
    9Incorporation
    
    
    9Market for Securities
    
    
    9Subsidiaries
    
    
    9Areas of Interest
    
    
    10General Development of the Business
    
    
    10NARRATIVE DESCRIPTION OF THE BUSINESS
    
    
    15Gold Mineral Reserves and Mineral Resources
    
    
    15Reconciliation of Mineral Reserves
    
    
    19Uses of Gold
    
    
    21Sales and Refining
    
    
    21Financial Risk Management
    
    
    22Employees - Labor Relations
    
    
    25Competition
    
    
    25PRINCIPAL REGIONS
    
    
    26North America
    
    
    26Goldstrike Property
    
    
    27Round Mountain Mine
    
    
    33Eskay Creek Mine
    
    
    37Hemlo Property
    
    
    40Australia/Africa
    
    
    41Kalgoorlie Mine
    
    
    42Yilgarn District
    
    
    46Plutonic Mine
    
    
    46Darlot Mine
    
    
    47Lawlers Mine
    
    
    48Cowal Project
    
    
    48Bulyanhulu Mine
    
    
    50Tulawaka Project
    
    
    54South America
    
    
    55Pierina Mine
    
    
    55
 i




---



##### 



Lagunas Norte Project
    
    
    58Veladero Project
    
    
    61Pascua-Lama Project
    
    
    64EXPLORATION, DEVELOPMENT AND BUSINESS DEVELOPMENT
    
    
    66ENVIRONMENT AND CLOSURE
    
    
    66LEGAL MATTERS
    
    
    68Government Controls and Regulations
    
    
    68Litigation
    
    
    69RISK FACTORS
    
    
    71SELECTED CONSOLIDATED FINANCIAL INFORMATION
    
    
    77MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    78CONSOLIDATED FINANCIAL STATEMENTS
    
    
    78DIVIDEND POLICY
    
    
    78DIRECTORS AND OFFICERS OF THE COMPANY
    
    
    78NON-GAAP PERFORMANCE MEASURES
    
    
    83ADDITIONAL INFORMATION
    
    
    85
 - ii -




---



##### 



GLOSSARY OF TERMS Assay The chemical test of rock samples to determine the metal content. Autoclave system Oxidation process in which high temperatures and pressures are applied to
convert refractory sulphide mineralization into amenable oxide ore. Ball mill A large steel cylinder containing steel balls into which crushed ore is
fed. The ball mill is rotated, causing the balls to cascade and grind the ore. Bench Successive steps/horizontal increments mined as an open pit progresses
deeper. By-product A secondary metal or mineral product recovered in the milling process such
as copper and silver. Carbonaceous Containing carbon or coal, especially shale or other rock containing small
particles of carbon distributed throughout the mass. Carbon-in-leach (C-I-L) A process step wherein granular activated carbon particles much larger
than the ground ore particles are introduced into the ore pulp. Cyanide
leaching and precious metals adsorption onto the activated carbon occurs
simultaneously. The loaded activated carbon is mechanically screened to
separate it from the barren pulp, processed to remove the precious metals and
finally prepared for reuse. Carbon-in-pulp (C-I-P) A precious metals leaching technique in which granular activated carbon
particles much larger than the ground ore particles are added to the
cyanidation pulp after the precious metals have been solubilized. The activated
carbon and pulp are agitated together to enable the solubilized precious metals
to become adsorbed onto the activated carbon. The loaded activated carbon is
mechanically screened to separate it from the barren pulp, processed to remove
the precious metals and finally prepared for reuse. 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. Crushing and grinding The process by which ore is broken into small pieces to prepare it for
further processing. -3-




---



##### 



Cyanidation A method of extracting gold or silver by dissolving it in a weak solution
of sodium cyanide. Deferred stripping costs Mining costs associated with waste rock removal that are deferred and
amortized to operating costs over the life of an open pit mine. 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. Drift A horizontal tunnel generally driven alongside an ore deposit, from a
shaft, to gain access to the deposit. 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. Reverse circulation:drilling that produces rock chips rather than core.
The chips are forced by air to surface through a double-walled drill pipe and
are collected for examination. Conventional rotary:drilling that produces rock chips similar to reverse
circulation except that the sample is collected through a single-walled drill
pipe. In-fill:any method of drilling intervals between existing holes, used to
provide greater geological detail and to help establish reserve estimates. Geotechnical:diamond drilling targeted and utilized specifically for the
collection of information used for mine stability purposes. Exploration Prospecting, sampling, mapping, diamond-drilling and other work involved
in searching for ore. Flotation A process by which some mineral particles are induced to become attached
to bubbles and float, and other particles to sink, so that the valuable
minerals are concentrated and separated from the uneconomic or valueless gangue
or waste. 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. -4-




---



##### 



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. Layback A single cut, in an open pit, consisting of a number of benches, mined to
expose the underlying orebody. LIBOR The London Inter-Bank Offered Rate for deposits. Lode A mineral deposit, consisting of a zone of veins, veinlets or
disseminations, in consolidated rock as opposed to a placer deposit. Long-hole open stoping A method of underground mining involving the drilling of holes up to 30
meters or longer into an ore bearing zone and then blasting a slice of rock
which falls into an open space. The broken rock is extracted and the resulting
open chamber is not immediately filled with supporting material. Metric conversion Troy ounces
    
    
    ×
    
    
    
    31.10348
    
    
    
    =
    
    
    GramsTroy ounces per
short ton
    
    
    ×
    
    
    
    34.28600
    
    
    
    =
    
    
    Grams per tonneTons
    
    
    ×
    
    
    
    0.90718
    
    
    
    =
    
    
    TonnesFeet
    
    
    ×
    
    
    
    0.30480
    
    
    
    =
    
    
    MetersMiles
    
    
    ×
    
    
    
    1.60930
    
    
    
    =
    
    
    KilometersAcres
    
    
    ×
    
    
    
    0.40468
    
    
    
    =
    
    
    HectaresFahrenheit
    
    
    
    
    
    
    (°F-32) × 5 ÷ 9
    
    
    
    =
    
    
    Celsius
 Mill A processing facility where ore is finely ground and thereafter undergoes
physical or chemical treatment to extract the valuable metals. Mineral reserve See Narrative Description of the Business  Gold Mineral Reserves and
Mineral Resources. Mineral resource See Narrative Description of the Business  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. Net profits interest royalty A royalty based on the profit remaining after recapture of certain
operating, capital and other costs. Net smelter return royalty A royalty based on a percentage of valuable minerals produced with
settlement made either in kind or in currency based on the spot sale proceeds
received less all of the offsite smelting, refining and transportation costs
associated with the purification of the economic metals. -5-




---



##### 



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. Orebody 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. Oxide ore Mineralized rock in which some of the original minerals have been
oxidized. Oxidation tends to make the ore more amenable to cyanide solutions
so that minute particles of gold will be readily dissolved. Qualified Person See Scientific and Technical Information. Ramp An inclined underground tunnel that provides access to and throughout an
orebody for exploration, ventilation or exploitation purposes in an underground
mine. 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. Reclamation and Closure Costs The cost of reclamation plus other costs, including without limitation
certain personnel costs, insurance, property holding costs such as taxes,
rental and claim fees, and community programs associated with closing an
operating mine. 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. Reef A South African term for a continuous mineral deposit, especially
gold-bearing quartz. Refining The final stage of metal production in which impurities are removed from
the molten metal. Refractory material Gold mineralized material in which the gold is not amenable to recovery by
conventional cyanide methods without any pre-treatment. The refractory nature
can be either silica or sulphide encapsulation of the gold or the presence of
naturally occurring carbons which reduce gold recovery. Roasting The treatment of ore by heat and air, or oxygen enriched air, in order to
remove sulphur, carbon, antimony or arsenic. -6-




---



##### 



Semi-autogenous grinding (SAG) A method of grinding rock into fine sand, in which the grinding media
consist of larger chunks of rock and steel balls. Shaft A vertical passageway to an underground mine for ventilation, moving
personnel, equipment, supplies and material including ore and waste rock. Stope An area in an underground mine where ore is mined. Strike length The longest horizontal dimension of an orebody or zone of mineralization. Tailings The material that remains after all economically and technically
recoverable precious metals have been removed from the ore during processing. Tailings storage facility A natural or man-made confined area suitable for depositing the material
that remains after the treatment of ore. Tons Short tons (2,000 pounds). Total cash costs Total cash costs are calculated in accordance with The Gold Institute
Production Cost Standard and include site costs for all mining (excluding
deferred stripping costs), processing and administration, royalties and
production taxes, but are exclusive of amortization, reclamation, financing
costs, capital costs and exploration costs. See Non-GAAP Performance
Measures. -7-




---



##### 



REPORTING CURRENCY AND FINANCIAL INFORMATION All currency amounts in this Annual Information Form are expressed in
United States dollars, unless otherwise indicated. References to C$ are to
Canadian dollars. References to A$ are to Australian dollars. For Canadian
dollars to U.S. dollars, the average exchange rate for 2003 and the exchange
rate at December 31, 2003 were one Canadian dollar per 0.7138 and 0.7738 U.S.
dollars, respectively. For Australian dollars to U.S. dollars, the average
exchange rate for 2003 and the exchange rate at December 31, 2003 were one
Australian dollar per 0.6529 and 0.7520 U.S. dollars, respectively. Total cash costs in this Annual Information Form are calculated in
accordance with The Gold Institute Production Cost Standard and are net of
by-product credits. See Non-GAAP Performance Measures. Barrick prepares its primary financial statements in accordance with the
United States generally accepted accounting principles (US GAAP).
Accordingly, unless otherwise indicated, financial information in this Annual
Information Form is presented in accordance with US GAAP. Ontario corporate law
requires that Barrick also prepare financial statements in accordance with
Canadian generally accepted accounting principles (Canadian GAAP). The
Consolidated Financial Statements of the Company for the year ended December
31, 2003 were prepared in accordance with US GAAP and are incorporated by
reference in this Annual Information Form. DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION Certain information contained or incorporated by reference in this Annual
Information Form, including the information set forth as to the future
financial or operating performance of the Company, constitutes forward-looking
statements. All statements, other than statements of historical fact, are
forward-looking statements. The words believe, expect, anticipate,
contemplate, target, plan, intends, 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 the Company, 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 market (such as the Canadian and Australian dollars versus the US
dollar); fluctuations in the spot and forward price of gold or certain other
commodities (such as silver, copper, 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, Australia, Chile, Peru,
Argentina, Tanzania or Barbados or other countries in which the Company does or
may carry on business in the future; business opportunities that may be
presented to, or pursued by, the Company; ability to successfully integrate
acquisitions; operating or technical difficulties in connection with mining or
development activities; the speculative nature of gold exploration and
development, including the risks of obtaining necessary licenses and permits;
diminishing quantities or grades of reserves; adverse changes in the Companys
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 gold exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect the Companys actual
results and could cause its actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or on behalf
of, the Company. Readers are cautioned that forward-looking statements are not
guarantees of future performance. All of the forward-looking statements made in
this Annual Information Form are qualified by these cautionary statements.
Specific reference is made to Narrative Description of the Business  Gold
Mineral Reserves and Mineral Resources and Risk Factors and to the
Managements Discussion and Analysis of Financial and Operating Results for
the year ended December 31, 2003 (US GAAP) incorporated by reference herein
for a discussion of some of the factors underlying forward-looking statements. -8-




---



##### 



The Company may, from time to time, make oral forward-looking statements.
The Company strongly advises that the above paragraph and the risk factors
described in this Annual Information Form and in the Companys other documents
filed with the Canadian securities commissions and the United States Securities
and Exchange Commission should be read for a description of certain factors
that could cause the actual results of the Company to materially differ from
those in the oral forward-looking statements. The Company disclaims any
intention or obligation to update or revise any oral or written forward-looking
statements whether as a result of new information, future events or otherwise. SCIENTIFIC AND TECHNICAL INFORMATION Scientific or technical information in this Annual Information Form
relating to mineral reserves or mineral resources, or describing the geology of
particular properties, is based on information prepared under the supervision
of, or has been reviewed by, René L. Marion, P.Eng., Vice-President, Technical
Services of Barrick and/or Alexander J. Davidson, P. Geo., Executive Vice
President, Exploration of Barrick. Unless otherwise noted, exploration programs described in this Annual
Information Form are designed and carried out under the supervision of
Alexander J. Davidson, P. Geo., Executive Vice President, Exploration of
Barrick. Each of Messrs. Marion and Davidson is a Qualified Person as defined in
National Instrument 43-101. A Qualified Person means an individual who is an
engineer or geoscientist with at least five years of experience in mineral
exploration, mine development or operation or mineral project assessment, or
any combination of these, has experience relevant to the subject matter of the
mineral project, and is a member in good standing of a professional
association. GENERAL INFORMATION Incorporation Barrick Gold Corporation (Barrick or the Company) is a corporation
governed by the Business Corporations Act(Ontario) resulting from the
amalgamation, effective July 14, 1984 under the laws of the Province of
Ontario, of Camflo Mines Limited, Bob-Clare Investments Limited and the former
Barrick Resources Corporation. By articles of amendment effective December 9,
1985, the Company changed its name to American Barrick Resources Corporation.
Effective January 1, 1995, as a result of an amalgamation with a wholly-owned
subsidiary, the Company changed its name from American Barrick Resources
Corporation to Barrick Gold Corporation. On December 7, 2001, in connection
with its acquisition of Homestake Mining Company (Homestake), the Company
amended its articles to create a special voting share, which has special voting
rights designed to permit holders of Barrick Gold Inc. (formerly Homestake
Canada Inc.) (BGI) exchangeable shares to vote as a single class with the
holders of Barrick common shares. For a description of Barricks acquisition
of Homestake, see General Information  General Development of the Business. Market for Securities Barricks common shares are listed on the New York Stock Exchange, the
Toronto Stock Exchange, the London Stock Exchange, the Swiss Exchange and the
Paris Bourse. Subsidiaries A significant portion of Barricks business is carried on through
subsidiaries. A chart showing the names of the significant subsidiaries of
Barrick as at March 31, 2004 and their respective jurisdictions of
incorporation is set out at the end of this General Information section. All
subsidiaries referred to in the chart are 100% owned unless otherwise noted.
Unless otherwise indicated or the context otherwise requires, references to
Barrick or the Company -9-




---



##### 



in this Annual Information Form include Barrick and, where appropriate,
its predecessor corporations and its subsidiaries. Areas of Interest For a map showing Barricks principal mining operations and projects, see
the end of this General Information section. General Development of the Business Barrick entered the gold mining business in 1983 and is now one of the
largest gold mining companies in the world in terms of production and reserves.
The Company has operating mines or development projects in Canada, the United
States, Australia, Peru, Chile, Argentina and Tanzania. During its first ten years, Barrick focused on acquiring and developing
properties in North America, notably the Companys flagship Goldstrike property
on the Carlin Trend in Nevada. Barrick has transformed Goldstrike from a small
heap-leach operation to a property with 19.1 million ounces of gold reserves
and two producing mines  the Betze-Post (Goldstrike Open Pit) and Meikle
(Goldstrike Underground) mines. Goldstrike produced 2.11 million ounces of
gold in 2003. Since 1994, Barrick has strategically expanded beyond its North
American base to ensure growth in reserves and production and now operates in
South America, Africa and Australia. Barrick has employed a growth strategy that involves acquisitions, a
district development program and exploration. The acquisition strategy is
illustrated by the acquisitions noted below. The district development program
involves focusing exploration on and around existing properties. Through this
program, the Company discovered and brought into production the Goldstrike
Underground mine and related mineral deposits on the Goldstrike property.
Although this trend changed in 2003, exploration spending across the industry,
particularly among junior companies, has decreased significantly in recent
years. During the same period, Barrick has increased its exploration activities and is engaged in
early stage exploration in four major areas: Peru, Tanzania, Australia and
Chile/Argentina. This program resulted in the grassroots discovery of the
Lagunas Norte deposit in the Alto Chicama District in Peru in 2002. In 1994, Barrick acquired Lac Minerals Ltd., an international gold mining
company with operating mines in Canada, the United States and Chile. The
acquisition gave Barrick control of what is now known as the Pascua-Lama
property, which now hosts proven and probable reserves of 16.9 million ounces
of gold and 584 million ounces of contained silver within reported gold
reserves. In 1996, Barrick acquired Arequipa Resources Ltd., an exploration company
with mineral properties in Peru, including the Pierina early stage exploration
property. The property commenced production in November 1998 and, since
production began, has produced, in aggregate, over 4.4 million ounces of gold
to December 31, 2003. In 1999, Barrick acquired Sutton Resources Ltd., an exploration company
with mineral properties in Tanzania, including the Bulyanhulu gold project. At
the time of acquisition, proven and probable gold reserves at Bulyanhulu were
3.6 million ounces. At year-end 2003, proven and probable gold reserves were
10.9 million ounces. Mine construction began in the third quarter of 1999 and
production commenced in April 2001. For the year-ended December 31, 2003, the
mine produced 314,000 ounces of gold at an average total cash cost of $246 per
ounce. In February 2004, Barrick entered into a letter of intent with
Falconbridge Limited in respect of exploration and development of the Kabanga
nickel deposit, which Barrick acquired in connection with its acquisition of
Sutton Resources Ltd. In December 2001, Barrick acquired Homestake Mining Company whose
operations included mining operations in the United States, Canada, Australia
and Chile, development projects in Argentina and Australia, and exploration
projects in the United States, Canada, Australia, Argentina and Chile. The
assets acquired included the Eskay Creek mine, the interests in the Kalgoorlie,
Round Mountain and Hemlo operations, the Plutonic, Lawlers and Darlot mines,
the Cowal project, and the remaining 60 percent interest in the Veladero
project. -10-




---



##### 



At December 31, 2003, proven and probable mineral reserves for Canadian
reporting purposes stood at 86 million ounces of gold and mineral resources
stood at 24.7 million ounces of measured and indicated gold and 17.4 million
ounces of inferred gold. For a breakdown of reserves and resources by category,
see  Summary of Mineral Reserves and Resources. For the year-ended December
31, 2003, Barrick produced 5.51 million ounces. Gold production is targeted at
between 4.9 and 5.0 million ounces in 2004. The following table summarizes Barricks interest in its principal
producing mines and its share of gold production from these mines: 2003
    
    2002
    
    2001Mines
    
    Ownership(1)
    
    (ounces)
    
    (ounces)
    
    (ounces)North AmericaGoldstrike Property, NevadaGoldstrike Open Pit
    
    
    100
    %
    
    
    1,559,461
    
    
    
    1,409,985
    
    
    
    1,549,975Goldstrike Underground
    
    
    100
    %
    
    
    551,664
    
    
    
    640,336
    
    
    
    712,688Goldstrike Property total
    
    
    
    
    
    
    2,111,125
    
    
    
    2,050,321
    
    
    
    2,262,663Eskay Creek Mine, British Columbia(2)
    
    
    100
    %
    
    
    352,070
    
    
    
    358,718
    
    
    
    320,784Round Mountain Mine, Nevada(2),(3)
    
    
    50
    %
    
    
    392,649
    
    
    
    377,747
    
    
    
    373,475Hemlo Property, Ontario (2),(3)
    
    
    50
    %
    
    
    267,888
    
    
    
    269,057
    
    
    
    307,514Holt-McDermott Mine, Ontario
    
    
    100
    %
    
    
    89,515
    
    
    
    83,577
    
    
    
    83,577Marigold Mine, Nevada(2),(3)
    
    
    33
    %
    
    
    47,396
    
    
    
    27,422
    
    
    
    28,2613,260,643
    
    
    
    3,166,842
    
    
    
    3,376,274South AmericaPierina Mine, Peru
    
    
    100
    %
    
    
    911,723
    
    
    
    898,228
    
    
    
    911,076Australia/AfricaPlutonic Mine, Western Australia (2)
    
    
    100
    %
    
    
    333,947
    
    
    
    307,377
    
    
    
    288,360Darlot Mine, Western Australia (2)
    
    
    100
    %
    
    
    154,977
    
    
    
    145,443
    
    
    
    125,024Lawlers Mine, Western Australia (2)
    
    
    100
    %
    
    
    99,223
    
    
    
    113,291
    
    
    
    103,915Kalgoorlie Mine, Western Australia(2),(3)
    
    
    50
    %
    
    
    436,098
    
    
    
    360,025
    
    
    
    384,3621,024,245
    
    
    
    926,136
    
    
    
    901,661Bulyanhulu Mine, Tanzania (4)
    
    
    100
    %
    
    
    313,551
    
    
    
    356,319
    
    
    
    241,5751,337,796
    
    
    
    1,282,455
    
    
    
    1,143,236Other Mines Closed in 2002(2),(3)
    
    
    
    
    
    
    
    
    
    
    347,352
    
    
    
    693,510Company total
    
    
    
    
    
    
    5,510,162
    
    
    
    5,694,877
    
    
    
    6,124,096
  (1)
    
    Barricks interest is subject to royalty obligations at certain mines. -11-




---



##### 



(2)
    
    Acquired through the acquisition of Homestake in December 2001 (except
for the following properties included in Other Mines Closed in 2002 
Bousquet mine, El Indio and Tambo mines). Production reflects
Homestakes interest prior to the acquisition ((except for the following
properties included in Other Mines Closed in 2002  Holt-McDermott
mine, Bousquet mine and El Indio mine).(3)
    
    Barricks proportional share.(4)
    
    The Bulyanhulu mine commenced production in April 2001. See the Notes to the Consolidated Financial Statements for further
information on the Companys operating and geographic segments. -12-




---



##### 



(FLOW CHART) -13-




---



##### 



(MAP) -14-




---



##### 



NARRATIVE DESCRIPTION OF THE BUSINESS Gold Mineral Reserves and Mineral Resources At December 31, 2003, Barricks total proven and probable gold mineral
reserves for Canadian reporting purposes were 86 million ounces. During 2003,
Barrick produced 5.51 million ounces of gold (6.5 million contained ounces) and
added approximately 5.5 million contained ounces to reserves for a net decrease
of approximately 0.9 million contained ounces (see - Reconciliation of Mineral
Reserves). The addition to reserves of 5.5 million contained ounces is
primarily attributable to the Veladero project and the Lagunas Norte project,
in the Alto Chicama District, the Goldstrike property and the Kalgoorlie and
Plutonic mines. 2003 reserves have been calculated using an assumed gold price
of $325 per ounce and a silver price of $4.75 per ounce. Reserves and resources have been calculated as at December 31, 2003 in
accordance with definitions adopted by the Canadian Institute of Mining,
Metallurgy and Petroleum and incorporated into National Instrument 43-101 (see
Definitions below). Calculations have been prepared by employees of Barrick
under the supervision of René L. Marion, P.Eng., Vice President, Technical
Services of Barrick, and/or Alexander J. Davidson, P. Geo., Executive Vice
President, Exploration of Barrick. Such calculations incorporate then current
and/or expected mine plans and cost levels at each property. Varying cut-off
grades have been used depending on the mine, methods of extraction and type of
ore contained in the reserves. Mineral resource metal grades and material
densities have been estimated using industry-standard methods appropriate for
each mineral project with support of various commercially available mining
software packages. For the cut-off grades used in the calculation of reserves,
see   Notes to the Reserves, Resources and Reconciliation Tables. Barricks
normal data verification procedures have been employed in connection with the
calculations. Sampling, analytical and test data underlying the stated mineral
resources and reserves have been verified by Mr. Marion or Mr. Davidson,
employees under their supervision, and/or independent Qualified Persons.
Verification procedures include industry-standard quality control practices.
For details of data verification and quality control practices at each material
property, see Principal Regions. Barrick reports its reserves 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 U.S. Securities and Exchange
Commission) applies different standards in order to classify mineralization as
a reserve. Accordingly, for U.S. reporting purposes, as at December 31, 2003,
the mineralization at the Lagunas Norte project is classified as mineralized
material. As at May 1, 2004, for U.S. reporting purposes, the mineralization
at the Lagunas Norte project is classified as reserves. Although the Company has carefully prepared and verified the mineral
reserve figures presented below and elsewhere in this Annual Information Form,
such figures are estimates, which are, in part, based on forward-looking
information, and no assurance can be given that the indicated level of gold
will be produced. See Risk Factors and Disclosure Regarding Forward-Looking
Information. Definitions A mineral resourceis a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the Earths crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. Mineral resources
are sub-divided, in order of increasing geological confidence, into inferred,
indicated and measured categories. An inferred mineral resourceis that part of a mineral resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence, limited sampling and reasonably assumed but not verified geological
and grade continuity. The estimate is based on limited information and sampling
gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. -15-




---



##### 



An indicated mineral resourceis that part of a mineral resource for which
quantity, grade or quality, densities, shape and physical characteristics can
be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological and
grade continuity to be reasonably assumed. A measured mineral resourceis that part of a mineral resource for which
quantity, grade or quality, densities, shape, physical characteristics are so
well established that they can be estimated with confidence sufficient to allow
the appropriate application of technical and economic parameters, to support
production planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill holes that are spaced closely
enough to confirm both geological and grade continuity. A mineral reserveis the economically mineable part of a measured or
indicated mineral resource demonstrated by at least a preliminary feasibility
study. This study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate, at the
time of reporting that economic extraction can be justified. A mineral reserve
includes diluting materials and allowances for losses that may occur when the
material is mined. Mineral reserves are sub-divided in order of increasing
confidence into probable mineral reserves and proven mineral reserves. A probable mineral reserveis the economically mineable part of an
indicated and, in some circumstances, a measured mineral resource demonstrated
by at least a preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic extraction
can be justified. A proven mineral reserveis the economically mineable part of a measured
mineral resource demonstrated by at least a preliminary feasibility study. This
study must include adequate information on mining, processing, metallurgical,
economic and other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified. -16-




---



##### 



Gold Mineral
Reserves (1), (3), (4), (7), (10), (11)
(as at December 31, 2003, in accordance with National Instrument 43-101) PROVEN
    
    PROBABLE
    
    TOTALTons
    
    Grade(8)
    
    Ounces(9)
    
    Tons
    
    Grade(8)
    
    Ounces(9)
    
    Tons
    
    Grade(8)
    
    Ounces(9)Based on attributable ounces
    
    (000s)
    
    (oz/ton)
    
    (000s)
    
    (000s)
    
    (oz/ton)
    
    (000s)
    
    (000s)
    
    (oz/ton)
    
    (000s)North AmericaOperating MinesGoldstrike Open Pit(14)
    
    
    61,551
    
    
    
    0.128
    
    
    
    7,856
    
    
    
    48,191
    
    
    
    0.162
    
    
    
    7,829
    
    
    
    109,742
    
    
    
    0.143
    
    
    
    15,685Goldstrike Underground(14)
    
    
    3,316
    
    
    
    0.467
    
    
    
    1,547
    
    
    
    5,862
    
    
    
    0.326
    
    
    
    1,913
    
    
    
    9,177
    
    
    
    0.377
    
    
    
    3,460Goldstrike Property Total
    
    
    64,867
    
    
    
    0.145
    
    
    
    9,403
    
    
    
    54,053
    
    
    
    0.180
    
    
    
    9,742
    
    
    
    118,919
    
    
    
    0.161
    
    
    
    19,145Round Mountain (50%)
    
    
    64,933
    
    
    
    0.017
    
    
    
    1,081
    
    
    
    24,919
    
    
    
    0.020
    
    
    
    502
    
    
    
    89,852
    
    
    
    0.018
    
    
    
    1,583Marigold (33%)
    
    
    3,122
    
    
    
    0.031
    
    
    
    98
    
    
    
    27,967
    
    
    
    0.023
    
    
    
    638
    
    
    
    31,089
    
    
    
    0.024
    
    
    
    737Eskay Creek
    
    
    387
    
    
    
    1.398
    
    
    
    541
    
    
    
    540
    
    
    
    0.741
    
    
    
    400
    
    
    
    927
    
    
    
    1.015
    
    
    
    941Hemlo (50%)
    
    
    10,766
    
    
    
    0.113
    
    
    
    1,213
    
    
    
    6,791
    
    
    
    0.078
    
    
    
    531
    
    
    
    17,557
    
    
    
    0.099
    
    
    
    1,744Holt-McDermott
    
    
    31
    
    
    
    0.161
    
    
    
    5
    
    
    
    309
    
    
    
    0.162
    
    
    
    50
    
    
    
    340
    
    
    
    0.162
    
    
    
    55South AmericaOperating MinesPierina
    
    
    26,112
    
    
    
    0.060
    
    
    
    1,560
    
    
    
    35,281
    
    
    
    0.034
    
    
    
    1,208
    
    
    
    61,393
    
    
    
    0.045
    
    
    
    2,768ProjectsLagunas Norte(7), (14)
    
    
    4,443
    
    
    
    0.051
    
    
    
    225
    
    
    
    154,807
    
    
    
    0.045
    
    
    
    6,930
    
    
    
    159,250
    
    
    
    0.045
    
    
    
    7,155Veladero
    
    
    19,037
    
    
    
    0.042
    
    
    
    801
    
    
    
    298,150
    
    
    
    0.035
    
    
    
    10,314
    
    
    
    317,187
    
    
    
    0.035
    
    
    
    11,115Pascua-Lama(12)
    
    
    37,738
    
    
    
    0.062
    
    
    
    2,355
    
    
    
    258,673
    
    
    
    0.056
    
    
    
    14,507
    
    
    
    296,411
    
    
    
    0.057
    
    
    
    16,862Australia/AfricaOperating MinesPlutonic
    
    
    403
    
    
    
    0.057
    
    
    
    23
    
    
    
    20,232
    
    
    
    0.130
    
    
    
    2,623
    
    
    
    20,635
    
    
    
    0.128
    
    
    
    2,646Lawlers
    
    
    790
    
    
    
    0.133
    
    
    
    105
    
    
    
    2,444
    
    
    
    0.122
    
    
    
    297
    
    
    
    3,234
    
    
    
    0.124
    
    
    
    402Darlot
    
    
    3,181
    
    
    
    0.119
    
    
    
    379
    
    
    
    4,446
    
    
    
    0.170
    
    
    
    756
    
    
    
    7,627
    
    
    
    0.149
    
    
    
    1,135Kalgoorlie (50%)
    
    
    37,799
    
    
    
    0.054
    
    
    
    2,042
    
    
    
    59,248
    
    
    
    0.065
    
    
    
    3,852
    
    
    
    97,047
    
    
    
    0.061
    
    
    
    5,894Bulyanhulu
    
    
    1,784
    
    
    
    0.407
    
    
    
    726
    
    
    
    26,098
    
    
    
    0.390
    
    
    
    10,181
    
    
    
    27,882
    
    
    
    0.391
    
    
    
    10,907ProjectsCowal
    
    
    5,191
    
    
    
    0.046
    
    
    
    238
    
    
    
    58,409
    
    
    
    0.039
    
    
    
    2,257
    
    
    
    63,600
    
    
    
    0.039
    
    
    
    2,495Tulawaka (70%)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,093
    
    
    
    0.337
    
    
    
    368
    
    
    
    1,093
    
    
    
    0.337
    
    
    
    368TOTAL
    
    
    280,584
    
    
    
    0.074
    
    
    
    20,795
    
    
    
    1,033,460
    
    
    
    0.063
    
    
    
    65,156
    
    
    
    1,314,043
    
    
    
    0.065
    
    
    
    85,952
 See  - Notes to the Mineral Reserves, Resources and Reconciliation Tables. - 17 -




---



##### 



Gold Mineral Resources(1), (2), (3), (5)
(as at December 31, 2003, in accordance with National Instrument 43-101) MEASURED (M)
    
    INDICATED (I)
    
    (M) + (I)
    
    INFERREDTons
    
    Grade(8)
    
    Ounces(9)
    
    Tons
    
    Grade(8)
    
    Ounces(9)
    
    Ounces
    
    Tons
    
    Grade(8)
    
    Ounces(9)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 AmericaOperating MinesGoldstrike Open Pit(14)
    
    
    14,077
    
    
    
    0.059
    
    
    
    831
    
    
    
    23,326
    
    
    
    0.061
    
    
    
    1,433
    
    
    
    2,264
    
    
    
    323
    
    
    
    0.065
    
    
    
    21Goldstrike Underground(14)
    
    
    1,580
    
    
    
    0.435
    
    
    
    687
    
    
    
    4,261
    
    
    
    0.423
    
    
    
    1,802
    
    
    
    2,489
    
    
    
    7,725
    
    
    
    0.366
    
    
    
    2,827Goldstrike Property Total
    
    
    15,657
    
    
    
    0.097
    
    
    
    1,518
    
    
    
    27,587
    
    
    
    0.117
    
    
    
    3,235
    
    
    
    4,753
    
    
    
    8,048
    
    
    
    0.354
    
    
    
    2,848Round Mountain (50%)
    
    
    10,050
    
    
    
    0.013
    
    
    
    133
    
    
    
    27,720
    
    
    
    0.018
    
    
    
    512
    
    
    
    645
    
    
    
    9,790
    
    
    
    0.018
    
    
    
    180Marigold (33%)
    
    
    6,645
    
    
    
    0.020
    
    
    
    134
    
    
    
    6,689
    
    
    
    0.020
    
    
    
    134
    
    
    
    268
    
    
    
    59,144
    
    
    
    0.014
    
    
    
    826Eskay Creek
    
    
    93
    
    
    
    0.290
    
    
    
    27
    
    
    
    329
    
    
    
    0.286
    
    
    
    94
    
    
    
    121
    
    
    
    277
    
    
    
    0.513
    
    
    
    142Hemlo (50%)
    
    
    1,171
    
    
    
    0.112
    
    
    
    131
    
    
    
    1,846
    
    
    
    0.076
    
    
    
    140
    
    
    
    271
    
    
    
    3,952
    
    
    
    0.142
    
    
    
    562Holt-McDermott
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    452
    
    
    
    0.195
    
    
    
    88
    
    
    
    88
    
    
    
    133
    
    
    
    0.271
    
    
    
    36South AmericaOperating MinesPierina
    
    
    6,017
    
    
    
    0.017
    
    
    
    103
    
    
    
    19,404
    
    
    
    0.016
    
    
    
    316
    
    
    
    419
    
    
    
    154
    
    
    
    0.013
    
    
    
    2ProjectsLagunas Norte(7), (14)
    
    
    1,624
    
    
    
    0.063
    
    
    
    103
    
    
    
    24,127
    
    
    
    0.068
    
    
    
    1,632
    
    
    
    1,735
    
    
    
    10,233
    
    
    
    0.060
    
    
    
    617Veladero
    
    
    3,423
    
    
    
    0.021
    
    
    
    72
    
    
    
    64,292
    
    
    
    0.023
    
    
    
    1,468
    
    
    
    1,540
    
    
    
    73,462
    
    
    
    0.023
    
    
    
    1,704Pascua-Lama(12)
    
    
    3,962
    
    
    
    0.055
    
    
    
    216
    
    
    
    111,883
    
    
    
    0.029
    
    
    
    3,271
    
    
    
    3,487
    
    
    
    126,841
    
    
    
    0.027
    
    
    
    3,475Australia/AfricaOperating MinesPlutonic
    
    
    190
    
    
    
    0.216
    
    
    
    41
    
    
    
    13,205
    
    
    
    0.146
    
    
    
    1,926
    
    
    
    1,967
    
    
    
    8,624
    
    
    
    0.175
    
    
    
    1,508Lawlers
    
    
    2,009
    
    
    
    0.153
    
    
    
    307
    
    
    
    6,768
    
    
    
    0.122
    
    
    
    829
    
    
    
    1,136
    
    
    
    1,745
    
    
    
    0.122
    
    
    
    213Darlot
    
    
    1,098
    
    
    
    0.142
    
    
    
    156
    
    
    
    3,096
    
    
    
    0.126
    
    
    
    390
    
    
    
    546
    
    
    
    144
    
    
    
    0.194
    
    
    
    28Kalgoorlie (50%)
    
    
    14,447
    
    
    
    0.055
    
    
    
    794
    
    
    
    30,137
    
    
    
    0.059
    
    
    
    1,786
    
    
    
    2,580
    
    
    
    4,621
    
    
    
    0.043
    
    
    
    197Bulyanhulu
    
    
    54
    
    
    
    0.222
    
    
    
    12
    
    
    
    4,246
    
    
    
    0.443
    
    
    
    1,882
    
    
    
    1,894
    
    
    
    5,268
    
    
    
    0.512
    
    
    
    2,697ProjectsCowal
    
    
    2,594
    
    
    
    0.038
    
    
    
    98
    
    
    
    44,940
    
    
    
    0.033
    
    
    
    1,498
    
    
    
    1,596
    
    
    
    31,053
    
    
    
    0.033
    
    
    
    1,011Tulawaka (70%)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    680
    
    
    
    0.066
    
    
    
    45
    
    
    
    45
    
    
    
    161
    
    
    
    0.075
    
    
    
    12Other Properties
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,404
    
    
    
    0.078
    
    
    
    1,598
    
    
    
    1,598
    
    
    
    11,768
    
    
    
    0.118
    
    
    
    1,387TOTAL
    
    
    69,034
    
    
    
    0.056
    
    
    
    3,845
    
    
    
    407,805
    
    
    
    0.051
    
    
    
    20,844
    
    
    
    24,689
    
    
    
    355,418
    
    
    
    0.049
    
    
    
    17,445
 See  - Notes to the Mineral Reserves, Resources and Reconciliation Tables. - 18 -




---



##### 



Reconciliation of Mineral Reserves Mineral ReservesMineral Reserves
    
    
    
    
    
    Increase
    
    December 31,Property (000s of ounces)
    
    December 31, 2002(6)
    
    Processed in 2003
    
    (decrease)
    
    2003(3)North AmericaOperating MinesGoldstrike Open Pit(14)
    
    
    16,051
    
    
    
    (1.895
    )
    
    
    1,529
    
    
    
    15,685Goldstrike Underground(14)
    
    
    3,888
    
    
    
    (625
    )
    
    
    197
    
    
    
    3,460Round Mountain (50%)
    
    
    1,875
    
    
    
    (458
    )
    
    
    166
    
    
    
    1,583Marigold (33%)
    
    
    678
    
    
    
    (65
    )
    
    
    124
    
    
    
    737Eskay Creek
    
    
    1,430
    
    
    
    (383
    )
    
    
    (106
    )
    
    
    941Hemlo (50%)
    
    
    2,118
    
    
    
    (282
    )
    
    
    (92
    )
    
    
    1,744Holt-McDermott
    
    
    154
    
    
    
    (95
    )
    
    
    (4
    )
    
    
    55South AmericaOperating MinesPierina
    
    
    3,602
    
    
    
    (1,172
    )
    
    
    338
    
    
    
    2,768ProjectsLagunas Norte(14)
    
    
    6,535
    (7)
    
    
    
    
    
    
    620
    
    
    
    7,155
    (7)Veladero
    
    
    9,384
    (7)
    
    
    
    
    
    
    1,731
    
    
    
    11,115Pascua-Lama
    
    
    16,862
    (12)
    
    
    
    
    
    
    
    
    
    
    16,862
    (12)Australia/AfricaOperating MinesPlutonic
    
    
    2,533
    
    
    
    (371
    )
    
    
    484
    
    
    
    2,646Lawlers
    
    
    509
    
    
    
    (103
    )
    
    
    (4
    )
    
    
    402Darlot
    
    
    1,269
    
    
    
    (160
    )
    
    
    26
    
    
    
    1,135Kalgoorlie (50%)
    
    
    5,551
    
    
    
    (508
    )
    
    
    851
    
    
    
    5,894Bulyanhulu
    
    
    11,653
    
    
    
    (356
    )
    
    
    (390
    )
    
    
    10,907ProjectsCowal
    
    
    2,835
    
    
    
    
    
    
    
    (340
    )
    
    
    2,495Tulawaka
    
    
    
    
    
    
    
    
    
    
    368
    
    
    
    368Total
    
    
    86,927
    
    
    
    (6,473
    )
    
    
    5,498
    (13)
    
    
    85,952
 Notes to the Mineral Reserves, Resources and Reconciliation Tables  (1)
    
    Reflects Barricks ownership share where ownership interest is less than
100%.(2)
    
    These mineral resources are in addition to mineral reserves. Mineral
resources that are not mineral reserves do not have demonstrated economic
viability.(3)
    
    Mineral reserves and resources have been calculated as at December 31,
2003.(4)
    
    Mineral reserves have been calculated as at December 31, 2003 using an
assumed gold price of $325 per ounce and a silver price of $4.75 per ounce
and exchange rates of $1.50 C$/US$ and $0.57 US$/A$. Reserves at the
Kalgoorlie property assumed an exchange rate of $0.59 US$/A$. Reserves at
the Hemlo property assumed an exchange rate of $1.53 C$/US$.(5)
    
    Resources have been estimated using varying cut-off grades, depending on
both the type of mine, its maturity and ore type at each property.
Assumed gold prices ranging from $300 to $400 have generally been used in
estimating resources. - 19 -




---



##### 



(6)
    
    Mineral reserves have been calculated as at December 31, 2002 using an
assumed gold price of $300 per ounce and a silver price of $4.75 per ounce
and exchange rates of $1.58 C$/US$ and $0.54 US$/A$. Reserves at the
Kalgoorlie property assumed a gold price of $297 per ounce (A$550 and an
exchange rate of $0.54 US$/A$).(7)
    
    Mineral reserves have been 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 Staff of
the U.S. Securities and Exchange Commission, applies different standards
in order to classify mineralization as a reserve. The mineralization at
the Veladero project was classified as reserves for U.S. reporting
purposes in the beginning of the fourth quarter of 2003. For U.S.
reporting purposes, as at December 31, 2003, the mineralization at the
Lagunas Norte project, located in the Alto Chicama District, is classified
as mineralized material. As at May 1, 2004, the mineralization at the
Lagunas Norte project is classified as reserves for U.S. reporting
purposes.(8)
    
    Grade represents an average, weighted by reference to tons of ore type
where several recovery processes apply.(9)
    
    Ounces estimated to be present in the tons of ore which would be mined
and processed. Mill recovery rates have not been applied in calculating
the contained ounces.(10)
    
    Reserves include stockpile material totalling approximately 95.8 million
tons, containing approximately 5.1 million ounces. Properties at which
stockpile material represents more than 5% of the reported reserves are as
follows: ContainedTons
    
    Grade
    
    OuncesProperty
    
    (000s)
    
    (oz/ton)
    
    (000s)Kalgoorlie
    
    
    11,112
    
    
    
    0.036
    
    
    
    399Goldstrike
    
    
    41,051
    
    
    
    0.100
    
    
    
    4,105Round Mountain
    
    
    42,362
    
    
    
    0.013
    
    
    
    562
  (11)
    
    The metallurgical recovery applicable at each property and the cut-off
grades used to determine reserves are as follows: MetallurgicalRecovery
    
    Cutoff Grade(%)
    
    (oz/t)OPERATING MINESGoldstrike PropertyOpen Pit
    
    
    83.9
    
    
    0.060-0.080Underground
    
    
    89.8
    
    
    0.110-0.260Marigold
    
    
    72.0
    
    
    0.005-0.010Round Mountain
    
    
    66.9
    
    
    0.006-0.018Eskay Creek
    
    
    92.3
    
    
    0.739-0.997Holt-McDermott
    
    
    94.2
    
    
    0.099-0.137Hemlo PropertyDavid Bell
    
    
    93.0
    
    
    0.236Williams
    
    
    92.3
    
    
    0.032-0.133Pierina
    
    
    77.3
    
    
    0.011-0.016Lagunas Norte(14)
    
    
    84.7
    
    
    0.012
 - 20 -




---



##### 



MetallurgicalRecovery
    
    Cutoff Grade(%)
    
    (oz/t)Veladero
    
    
    72.3
    
    
    0.019-0.024Pascua-Lama
    
    
    82.7
    
    
    0.032-0.055Darlot
    
    
    97.0
    
    
    0.112-0.127Lawlers
    
    
    95.4
    
    
    0.119Plutonic
    
    
    88.1
    
    
    0.029-0.096Kalgoorlie
    
    
    86.1
    
    
    0.032Cowal
    
    
    84.9
    
    
    0.013-0.019Bulyanhulu
    
    
    89.0
    
    
    0.241-0.267Tulawaka
    
    
    90.0
    
    
    0.051
  (12)
    
    Reserves for the Pascua-Lama project have been calculated using a gold
price of $325 per ounce, a silver price of $4.75 per ounce and cost
estimates as at December 31, 2003. Using such assumptions, the project
generates a marginal rate of return. Work on updating the previous
feasibility study is ongoing and cost estimates are under continuing
review. See Principal Regions - South America - Pascua-Lama Project.(13)
    
    Represents a 3.9 million ounce increase resulting from the increase in
the assumed gold price for the calculation of reserves from $300 to $325
per ounce and other increases (decreases) resulting from reclassification
between mineral resources and mineral reserves and changes due to
geological remodelling and mine planning.(14)
    
    The Goldstrike Open Pit mine has been previously referred to as the
Betze-Post mine; the Goldstrike Underground mine has been previously
referred to as the Meikle mine; and the Lagunas Norte project, in the Alto
Chicama District, has previously been referred to as the Alto Chicama
project. Uses of Gold Product fabrication and bullion investment are two principal uses of gold.
Within the fabrication category there are a wide variety of end uses, the
largest of which is the manufacture of jewelry. Other fabrication purposes
include official coins, electronics, miscellaneous industrial and decorative
uses, dentistry, medals and medallions. Sales and Refining Gold can be readily sold on numerous markets throughout the world and it
is not difficult to ascertain its market price at any particular time. Since
there are a large number of available gold purchasers, the Company is not
dependent upon the sale of gold to any one customer. Barricks gold is
currently being refined to market delivery standards by MKS Finance S.A. in
Castel San Pietro, Switzerland and Argor-Heraeus S.A. in Mendrisio, Switzerland
(Goldstrike production), by Johnson Matthey Limited in Brampton, Ontario,
Canada (a portion of the Hemlo production), by the Royal Canadian Mint in
Ottawa, Ontario, Canada (a portion of the Hemlo production), by Johnson Matthey
PLC in London (Pierina production and Bulyanhulu gold doré production), by
Johnson Matthey Refining Inc. in Salt Lake City, Utah, United States (Round
Mountain production)` and by Australian Gold Refinery in Perth, Australia
(Plutonic production, Kalgoorlie production, Darlot production and Lawlers
production). The gold is then delivered to meet commitments under gold sale
contracts or sold to various gold bullion dealers or smelters on a competitive
basis at spot prices. The Company believes that, because of the availability of
alternative refiners, no material adverse effect would result if the Company
lost the services of any of its current refiners. - 21 -




---



##### 



The Bulyanhulu mine produces gold-copper concentrates. At
Bulyanhulu, sales contracts have been established with Pan Pacific Copper Co.,
Ltd., an affiliate of Nippon Mining & Metals Co., Ltd., and with Sumitomo Metal
Mining Co., Ltd. for up to 70% of the mines concentrate production through
2008. A sales contract has been established with Marc Rich + Co. Investment AG
in conjunction with Yunnan Copper in China for up to 30 % of the mines
concentrate production through 2006. The Eskay Creek mine sells direct shipping ore under long-term sales
contracts with Dowa Mining Company Limited, Akita-Ken, Japan, and Noranda Inc.,
Rouyn-Noranda, for combined ore sales of 135,000 dry tonnes annually. These
contracts expire in 2006 and 2007. The Eskay Creek mine also produces
flotation concentrates, up to 70% of which is committed under a sales agreement
with Noranda Inc. in Rouyn-Noranda, Quebec, Canada and 30% to Teck Cominco
Metals Ltd. in Trail, British Columbia, Canada. These contracts expire at
various dates between 2004 and 2008. Financial Risk Management Forward Sales Program The Company has operations in five principal countries which produce its
primary product, gold, as well as by-products such as silver and copper. The
Companys activities expose it to a variety of market risks, including risks
related to the effects of changes in gold prices. This financial exposure is
monitored and managed by the Company as an integral part of its overall
risk-management program. The Companys risk-management program has
historically focused on the unpredictability of commodity and financial markets
and used financial instruments to mitigate significant, unanticipated earnings
and cash flow fluctuations that may arise from volatility in commodity prices.
Price fluctuations in gold could cause actual cash inflows from the sale of
gold to differ from anticipated cash inflows. For most of Barricks history, gold forward sales were a significant
element in providing the Company the relatively stable revenue that helped fuel
its growth. In 2002, Barrick took steps to simplify and reduce the size of its
gold forward sales program. With the Companys positive outlook for the gold
price, interest rates at 40-year lows (leading to lower forward sales price
premiums) and Barricks strong financial position, the Company has been
managing the program down to a lower percentage of overall reserves. In late
2003, Barrick adopted a no-hedge gold policy such that it will not add any new
ounces to its gold forward sales program and will pursue opportunities to
reduce its gold forward sales position. Barrick continues to enter into
derivative instruments to mitigate the effect of other risks that are inherent
in its business, and also to take advantage of opportunities to secure
attractive pricing for currencies, interest rates and other commodities. Barricks forward gold and silver sales contracts represent agreements to
sell gold and silver on a delivery date in the future. Barrick has the
flexibility to choose the delivery date at any time in advance of the
contracts termination date (2013 in most cases). Barrick may, in its
discretion, choose to settle any gold sales contract at any time in advance of
the contracts termination date. Barrick spreads out the interim pricing dates
of its contracts such that, for gold and silver sales contracts Barrick is able
to physically deliver gold and silver against the contracts on these dates, if
desired, and for other contracts the relevant markets for currencies and
interest rates will be able to absorb the contracts. The rights and obligations under Barricks gold forward sales contracts
are defined by master trading agreements executed with various counterparties.
The selling price under a contract is based on the forward price of gold at the
future delivery date, which is essentially a function of the spot gold price on
the date the contract is entered into plus a premium (commonly referred to as
contango) through the future delivery date. The amount of contango is often
quoted as a percentage return that reflects the spread between market LIBOR
interest rates (i.e., US dollar interest rates) and gold borrowing rates - 22 -




---



##### 



(commonly referred to as gold lease rates). Generally, US dollar
interest rates are higher than the gold lease rate, which means that the future
price for the sale of gold under the contract is higher than the gold price at
the time the contract is entered into. In general, the longer the period of
time from the start of the contract until delivery, the greater the amount of
the forward premium or contango and, provided US dollar interest rates remain
higher than gold lease rates, the greater the contract price compared to the
spot price at the start of the contract. In the event gold lease rates are
higher than US dollar interest rates, the premium becomes negative (known as
backwardation). However, because of the large amount of Central Bank gold
available for lending relative to demand, gold lease rates have historically
tended to be low and any spikes short-lived. Barrick has arrangements in place with approximately 19 high-quality
counterparties whose credit ratings are generally AA or higher. To reduce
exposure to defaults by counterparties, Barrick diversifies its forward sales
contracts across a number of counterparties, limits exposure to individual
counterparties, uses master netting arrangements (which means that Barricks
exposure is limited to the net positive exposure of contracts of a similar type
with individual counterparties) and regularly monitors its counterparties
credit ratings. To date, all counterparties have fully performed their
obligations under such arrangements. Barricks trading agreements provide for early close out of certain
transactions in the event of a material adverse change in the ability of
Barrick or its principal hedging subsidiary to perform its obligations under
the trading agreements and related parent guarantees or a lack of a gold
market, and for customary events of default such as covenant breaches,
insolvency or bankruptcy. The principal financial covenants contained in the
trading agreements are the requirement that Barrick maintain a consolidated net
worth of at least $2 billion  at December 31, 2003, it was $3.5 billion  and
a long-term debt to consolidated net worth ratio of 1.5:1 or lower  at
December 31, 2003, it was 0.25:1. For the purpose of these covenants,
unrealized mark-to-market gains or losses on derivative transactions are
excluded. If an event of default occurred, counterparties could require
Barrick to immediately settle outstanding contracts. Under its trading
agreements, Barrick is not required to post any collateral or subject to any
margin calls. In previous years, as a result of the Companys forward sales program and
the level of spot prices for gold, substantially all of the gold produced by
the Company (excluding Homestake production) was delivered against existing
forward sale contracts rather than on the spot market. During 2003, however,
the Company delivered a large portion of gold production into the spot market,
combined with the delivery of our remaining production into our forward sales
program. In 2003, the Company realized an average price of $366 per ounce
compared with an average gold price on the Commodity Exchange Inc. (COMEX) in
New York for the year of $363 per ounce. In comparison, for 2002, the Company
realized an average gold price of $339 per ounce compared with an average gold
price on the COMEX in New York for the year of $310 per ounce. As a result of
changes in the market price of gold, contango rates and other factors, there
can be no assurance that the Companys forward sales program will be as
successful in the future as it has been in the past. During 2003, the Company reduced its gold forward sales position by 2.6
million ounces and, at year end, had outstanding commitments to deliver 15.5
million ounces of its future gold production under its gold forward sales
program. This represents approximately 18% of reserves (for Canadian reporting
purposes). This means that more than four out of every five ounces of gold
reserves are unhedged, giving Barrick significant leverage to the gold price. Barrick plans to explore and evaluate various strategies to reduce the
size of its gold hedge position. Barrick has targeted a reduction in the size
of the program of at least 1.5 million ounces in 2004. The actual reduction in
2004 may be higher than the target. Barrick expects to deliver a
portion of its - 23 -




---



##### 



2004 gold production into its gold forward sales program in order to
accomplish this goal. In general, the Company will also endeavor to exploit
gold market volatility or other opportunities in reducing its gold hedge
position. Depending on market conditions and other factors, Barrick may choose
to deliver a portion of its gold production into its gold forward sales program
at prices that are below the spot price, or Barrick may choose to pursue any of
a number of alternative methods of reducing or eliminating its gold hedge position, including,
but not restricted to, restructuring, transferring, converting or otherwise settling contracts. For a summary of the Companys future gold sale and delivery commitments,
derivative financial instruments used in the forward sales program and
associated risks, see Note 11 of the Notes to the Consolidated Financial
Statements for the year ended December 31, 2003, pages 23 to 25, 30 to 31 and
51 to 55 of the Companys Annual Report to Shareholders for the year ended
December 31, 2003 and Risk Factors. Currency and Interest Rate Hedge Programs The Company also monitors and manages exposures related to currencies and
interest rates. Currency risk mainly arises on cash expenditures at the
Companys Australian and Canadian mines that are denominated in local
currencies. Interest rate risk mainly relates to interest income receipts on
cash balances and interest payments on variable-rate debt obligations. The
Company mainly uses forward exchange contracts and interest rate swaps to
mitigate the impact of volatility in currency exchange rates and interest rates
on its business. For a summary of the derivative instruments used in the
Companys currency and interest rate hedge programs see Note 11 of the Notes to
the Consolidated Financial Statements for the year ended December 31, 2003. Oversight and Control Over Risk Management Activities The Companys financial risk management activities are subject to the
management, direction, and control of its Finance Committee as part of that
Committees oversight of the Companys investment activities and treasury
function. The Finance Committee, which is comprised of four members of the
Companys Board of Directors, including the Companys Chief Executive Officer,
reports to the Board of Directors on the scope of the Companys risk-management
strategy (including the gold sales program) and other activities. The Finance
Committee approves corporate policy that defines the Companys risk-management
objectives and philosophy relating to financial risk management activities and
provides guidance for financial instrument usage. The Finance Committee also
approves hedging strategies that are developed by management through its
analysis of risk exposures to which the Company is subject, and commodity,
foreign exchange and interest rate market analysis from internal and industry
sources. The resulting hedging strategies are then incorporated into the
Companys overall risk-management strategies. Responsibility for the implementation of hedging and risk-management
strategies is delegated to the Companys treasury function. A report on
Barricks hedge position, detailing the size of the hedge position by contract
type, diversification of the position among counterparties and each
counterpartys recent credit rating and the latest fair value of each group of
contracts, is prepared each week and distributed to the Chief Executive
Officer, the Chief Financial Officer and the Chairman of the Finance Committee.
The Finance Committee and the Board of Directors also receive a report on
Barricks hedging position at each of their regularly scheduled meetings. Barrick maintains a separate compliance function to independently monitor
and verify hedging activities and achieve segregation of duties of personnel
responsible for entering into hedging transactions from personnel responsible
for recording and reporting transactions. In addition, the treasurer regularly
monitors all hedging transactions entered into by the treasury group. All
confirmations and settlements of - 24 -




---



##### 



transactions are processed and checked independently of the treasury
group. Responsibility for entering into hedging transactions is limited to a
small group of experienced treasury personnel. Summaries of each individual
transaction, setting out the terms of the transactions and the identity of the
individual executing each transaction, are generated by the treasury group and
delivered to the compliance function on a daily basis. Confirmations from
counterparties are received directly by the compliance function and checked
against the documentation generated by the treasury group. Barrick has not
entered into gold delivery commitments that are not covered by scheduled
production. Employees - Labor Relations As at December 31, 2003, Barrick had approximately 5,200 full-time
employees worldwide, as well as approximately 1,900 employees at operations
jointly owned by Barrick, substantially all of who are employed in the United
States, Canada, Australia, Chile, Peru, Argentina and Tanzania. Unions
represent approximately 300 persons at the Companys operations. Although the
Company experienced an unauthorized work stoppage of one week at its Bulyanhulu
mine in late 2002, labor relations at all locations are believed to be good. Hourly employees are provided with a variety of retirement, insurance and
other benefits generally corresponding to prevailing customs in the relevant
area and industry. Certain of the Companys mining operations participate in
retirement pension plans that are defined contribution plans. The Company also
has pension plans covering certain United States employees. Certain of these
pension plans, covering U.S. salaried and other non-union employees, provide
benefits based on the employees years of service and highest compensation for
a period prior to retirement. Certain of these pension plans, covering U.S.
union employees, provide defined benefits based on each year of service. The
Company also has other post-retirement plans that provide medical and life
insurance benefits for certain retired employees. The excess of accumulated
benefit obligations over plan assets for pension plans with accumulated benefit
obligations in excess of plan assets was $51 million at December 31, 2003, and
$61 million at December 31, 2002. Plans where the projected benefit obligation
and accumulated benefit obligation exceeded plan assets included a qualified
pension plan covering salaried and non-union employees, a nonqualified
supplemental pension plan covering certain employees and a nonqualified pension
plan covering a director of the Company. In addition, an irrevocable trust
(Rabbi Trust) was set up to fund the nonqualified plans and certain other
deferred compensation plans. The diversified assets held in the Rabbi Trust
included short-term investments of approximately $32 million as of December 31,
2003. The Company has put in place a retirement plan for certain officers of
Barrick. Pursuant to the unfunded plan, 15% of the officers salary and bonus
for the year is accrued and accumulated with interest until retirement. There
are no other benefits programs in place that could result in any unfunded
post-retirement benefits. In addition, the Company has implemented incentive
programs for certain employees. Competition The Company competes with other mining and exploration companies in
connection with the acquisition of mining claims and leases on gold and other
precious metals prospects and in connection with the recruitment and retention
of qualified employees. There is significant competition for the limited number of gold
acquisition opportunities and, as a result, the Company may be unable to
continue to acquire attractive gold mining properties on terms it considers
acceptable. - 25 -




---



##### 



PRINCIPAL REGIONS For the year-ended December 31, 2003, Barrick produced 5.51 million ounces
at total cash costs of $189 per ounce. Gold production is targeted at between
4.9 and 5.0 million ounces in 2004 at total cash costs of $205 to $215 per
ounce of gold. Cost Of Sales And Other Operating Expenses For the years ended December 31,
    
    2003
    
    2002Total cash production costs  per US GAAP
    
    $
    1,065
    
    
    $
    1,065Accretion expense and reclamation costs at operating mines
    
    
    (14
    )
    
    
    (37
    )Total cash production costs  per Gold Institute Production Cost Standard1
    
    $
    1,051
    
    
    $
    1,028Ounces sold (thousands)
    
    
    5,554
    
    
    
    5,805Total cash
costs per ounce sold - per US GAAP (dollars)
    
    $
    192
    
    
    $
    183Total cash costs per ounce sold  per Gold Institute Production Cost Standard1(dollars)
    
    $
    189
    
    
    $
    177
 Total cash costs  per Gold Institute Production Cost Standard1 ($/oz) For the years ended December 31,
    
    2003
    
    2002Cost of sales at market foreign exchange rates
    
    $
    210
    
    
    $
    191Gains realized on currency hedge contracts
    
    
    (12
    )
    
    
    (1
    )By-product credits
    
    
    (21
    )
    
    
    (20
    )Cash operating costs
    
    
    177
    
    
    
    170Royalties
    
    
    9
    
    
    
    6Production taxes
    
    
    3
    
    
    
    1Total cash costs
    
    $
    189
    
    
    $
    177
 1.        Reported total cash costs per ounce data are calculated in accordance with
The Gold Institute Production Cost Standard (the Standard). Adoption of the
Standard is voluntary, but Barrick understands that most senior gold producers
follow the Standard when reporting cash cost per ounce data. The data does not
have a meaning prescribed by US GAAP and therefore amounts presented may not be
comparable to data presented by gold producers who do not follow the Standard.
Total cash costs per ounce are derived from amounts included in the Statements
of Income and include mine site operating costs such as mining, processing,
administration, royalties and production taxes, but exclude amortization,
reclamation costs, financing costs, and capital, development and exploration
costs. Barrick has also presented a GAAP measure of cost per ounce as required
by securities regulations that govern non-GAAP performance measures. Within
this disclosure document, Barricks discussion and analysis is focused on the
total cash cost measure as defined by the Standard, but the most directly
comparable financial measure calculated and presented in accordance with GAAP
is also provided throughout. See Non-GAAP Performance Measures for further
information on non-GAAP performance measures. In 2003, Barrick was reorganized, dividing its global operations into
three regions: North America, Australia/Africa and South America. Each region
is supported with financial and technical resources from the Companys
corporate center. Under this new structure, each region has responsibility
from development to closure in respect of each property. The following is a
summary of Barricks principal operations and development projects by region. North America Operating Properties Barricks principal North American operations consist of its Goldstrike
property, its 50% interest in the Round Mountain mine, its Eskay Creek mine and
the 50% owned Hemlo property. The following table summarizes the production
and total cash costs per ounce of the North American mines. - 26 -




---



##### 



Total Cash Costs  perGold Institute
    
    Total Cash Costs - perProduction
    
    Production Cost
    
    US GAAP(attributable ounces)
    
    Standard1($/oz)
    
    ($/oz)For the years ended
    
    For the years ended
    
    For the years ended12/31
    
    12/31
    
    12/312003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002GoldstrikeOpen Pit
    
    
    1,559,461
    
    
    
    1,409,985
    
    
    $
    233
    
    
    $
    228
    
    
    $
    234
    
    
    $
    232Underground
    
    
    551,664
    
    
    
    640,336
    
    
    
    253
    
    
    
    198
    
    
    
    253
    
    
    
    199Goldstrike property total
    
    
    2,111,125
    
    
    
    2,050,321
    
    
    
    238
    
    
    
    218
    
    
    
    237
    
    
    
    222Round Mountain (50% owned)
    
    
    392,649
    
    
    
    377,747
    
    
    
    173
    
    
    
    187
    
    
    
    177
    
    
    
    202Eskay Creek
    
    
    352,070
    
    
    
    358,718
    
    
    
    52
    
    
    
    40
    
    
    
    53
    
    
    
    41Hemlo (50% owned)
    
    
    267,888
    
    
    
    269,057
    
    
    
    226
    
    
    
    224
    
    
    
    227
    
    
    
    227Holt-McDermott
    
    
    89,515
    
    
    
    83,577
    
    
    
    239
    
    
    
    173
    
    
    
    240
    
    
    
    176Marigold (33% owned)
    
    
    47,396
    
    
    
    27,422
    
    
    
    171
    
    
    
    187
    
    
    
    172
    
    
    
    1943,260,643
    
    
    
    3,166,842
    
    
    $
    209
    
    
    $
    193
    
    
    $
    211
    
    
    $
    198
 1. For an explanation of the use of non-GAAP performance measures, refer to
Non-GAAP Performance Measures. Goldstrike Property General Information A wholly-owned subsidiary of Barrick owns and operates the Goldstrike Open
Pit mine and the Goldstrike Underground mine and related deposits on the
Goldstrike property. The property is located in north central Nevada,
approximately 25 miles (40 kilometers) north of the town of Carlin, at an
elevation of 5,600 feet (1,700 meters) in the hilly terrain of the Tuscarora
Mountains. Access to the property is provided by certain access agreements with
Newmont Mining Corporation, that allow for the use of various roads in the
area, and a right-of-way issued by the Bureau of Land Management. Such roads
are accessed from Elko, Nevada by traveling west on U.S. Interstate 80 to
Carlin, Nevada and then by approximately 23 miles (37 kilometers) of local
roads north of Carlin. Generally, the climate of the area does not materially
impact on the mines operations. PanCana Minerals Ltd. (PanCana) first mined the property for gold in
1976. In 1978, Western States Minerals Corporation (WSMC) became the operator
in a 50/50 joint venture with PanCana. Barrick acquired a 50% interest and
assumed management of the Goldstrike property on December 31, 1986 with the
acquisition of WSMCs 50% interest in the property. It completed the
acquisition of 100% ownership of the property pursuant to a plan of arrangement
entered into with PanCana in January 1987. At the time of acquisition, mining
operations on the property were concentrated on various shallow oxide deposits.
The principal known deposit was the Post surface oxide deposit, which then
contained approximately half a million ounces of gold. The property was
operated as an open pit, heap leach operation. Reserves for the Post deposit
were delineated during 1986 and mining of the Post deposit commenced in 1987.
Following acquisition, two sulphide ore zones were identified (the Betze and
Deep Post deposits). During the first two years after acquisition, a
carbon-in-leach mill and ancillary facilities, as well as a crushing and
agglomeration plant designed to improve recoveries from low grade oxide ore,
were constructed. In January 1989, Barrick announced the four-year Betze
Development Plan to develop the Post oxide and Betze sulphide reserves. The
plan, which called for the development of a large open pit and the expansion of
the milling facilities, was completed in 1993 with the commissioning of the
final three of the total of six autoclaves. The Goldstrike Underground mine,
which was discovered in 1989, commenced production in 1996. During 2000, the
Company completed construction of a roaster facility for the treatment of
carbonaceous ore on the property. The roaster increased the propertys
processing - 27 -




---



##### 



capacity by approximately 16,000 tons per day. In 2001, an intensive
development program to bring the Rodeo deposit, part of the Goldstrike
Underground mine, into production was completed and a new ball mill was added
to increase autoclave recovery. At December 31, 2003, the Goldstrike property comprised approximately
9,921 acres (4,000 hectares) of land. This includes 1,762 acres (713 hectares)
of patented lode mining and millsite claims and 1,870 acres (757 hectares) of
unpatented lode mining and millsite claims held directly or by lease, 2,531
acres (1,024 hectares) of land acquired through land exchanges with the United
States government, and 3,848 acres (1,557 hectares) purchased from other mining
companies and a private individual. Patenting is the process that transfers fee
simple title from the federal government to the applicant. The Goldstrike Open
Pit and Goldstrike Underground mines and the majority of the beneficiation and
processing facilities at the Goldstrike property are situated on land owned by
Barrick. Geology The property is located on the Carlin trend, one of North Americas most
prolific gold producing areas. The area of the Goldstrike property consists of
folded and faulted Paleozoic sedimentary rocks, which were intruded by the
diorite to granodiorite Goldstrike stock of the Jurassic Age. Mesozoic folding
and thrust faults form important structural traps for the mineralization in the
Betze-Post pit. Tertiary faulting developed ranges and basins, which were
subsequently filled with volcanics and sediments during Tertiary time. The gold
mineralization occurred at the onset of Tertiary volcanism, approximately 39
million years ago. The major gold deposits  Post Oxide, Betze, Meikle and Deep Post  are
all hosted in sedimentary rocks of Silurian to Devonian ages. The Post Oxide
orebody occurs in the siliceous siltstones, mudstones, argillites and minor
limestones of the Rodeo Creek Formation. Betze, Meikle and Deep Post are found
in the silty limestones and debris flows of the Popovich Formation. The gold at
Goldstrike was carried into the various orebodies by hot hydrothermal fluids,
and deposited with very fine pyrite and silica. Over time, the pyrite oxidized,
freeing the gold and making its extraction relatively easy, as in the Post
Oxide deposit. In the deeper deposits  Betze, Deep Post and Meikle  the gold
is still locked up with the iron sulphide and an additional processing step
(autoclaving or roasting) is required to free the gold. Processing The property has two processing facilities: an autoclave installation,
which is used to treat the propertys non-carbonaceous sulphide (refractory)
ore; and the roaster, which is used to treat the propertys carbonaceous ore
(whose active carbon content responds poorly to autoclaving). The combined
design capacity of these two facilities is approximately 33,000 to 35,000 tons
per day. These process facilities treat the ore from both the Goldstrike Open
Pit and Goldstrike Underground mines. Gold contained in recovered ore is
processed into doré on-site and shipped to an outside refinery for processing
into gold bullion. Power is purchased from Sierra Pacific Power Company
pursuant to a contract and applicable tariffs. In 2003, Goldstrike processed an average grade of 0.22 ounces per ton,
consisting of 0.19 ounces per ton ore from the Goldstrike Open Pit mine and
0.39 ounces per ton ore from the Goldstrike Underground mine. The average
process grade is expected to decline to 0.21 ounces per ton in 2004, as the
grades processed from both Goldstrike Open Pit and Goldstrike Underground mines
move toward the reserve grades. - 28 -




---



##### 



Environment At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $41 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. Exploration In 2003, the exploration program on the property had an initial focus on
targets identified from 2002 geophysical survey interpretive work. The program
was revised mid-year to focus on refining targets around the pit area through a
re-logging and geology re-modeling program. A total of 108,849 feet (33,178
meters) of drilling was completed for the year. The following table summarizes
the drilling on the property for the year: Area
    
    Drilling Completed
    
    PurposeEast of Post (Meikle)
    
    4,497 feet (1,371 meters)
    
    Deep explorationBanshee
    
    3,485 feet (1,062 meters)
    
    Expand Banshee depositWest Griffin
    
    1,200 feet (366 meters)
    
    Expand West GriffinNorth Betze
    
    2,660 feet (811 meters)
    
    Expand North BetzeNorth Post
    
    1,500 feet (457 meters)
    
    Expand North PostSouth Pit Wall
    
    2,260 feet (689 meters)
    
    Pit wall targetsSkarn Hill
    
    3,188 feet (972 meters)
    
    Deep explorationGriffin - underground
    
    1,503 feet (458 meters)
    
    Deep explorationWest Barrel
    
    39,740 feet (12,113 meters)
    
    Pit expansionNorth Screamer
    
    48,816 feet (14,879 meters)
    
    Pit expansion
 The 2004 exploration program is expected to consist of an initial phase of
83,525 feet (25,459 meters) of drilling to further expand the pit, and to
explore for new deposits to the south of the pit, to the west of Banshee and to
the East of the Post fault. An additional 52,000 feet (15,850 meters) of
drilling may be completed for resource and reserve definition depending on
results of the initial phase of drilling. Capital Expenditures In 2003, capital expenditures for the Goldstrike property were $51
million, including expenditures for mobile equipment, ongoing underground mine
development, major installation upgrades and improvements as well as dewatering
and other general site expenditures. For 2004, capital expenditures at
Goldstrike are expected to be $71 million, including costs for development
work, mobile equipment, a pastefill plant, systems improvements and tailings
storage facility expansion. Goldstrike Open Pit Mine The Goldstrike Open Pit mine is an open pit truck-and-shovel operation,
using standard proven equipment. It produced 1,559,461 ounces of gold in 2003
at an average total cash cost of $233 per ounce, and is expected to produce
between 1,340,000 and 1,360,000 ounces in 2004 at an average total cash cost of
between $250 and $260 per ounce. Based on existing reserves and production
capacity, the expected remaining mine life is 13 years. - 29 -




---



##### 



Geology The gold mineralization at Goldstrike Open Pit is controlled by favorable
stratigraphy, structural complexities in the form of faults and folds, and the
contact of the Goldstrike intrusive. The deposit represents many styles of
mineralization occurring within numerous rock types and alteration assemblages.
The favored host for gold mineralization is the Popovich limestone followed by
the Rodeo Creek unit, Goldstrike sill complex and Roberts Mountains Formation.
Some ore occurs below sills, which act as dams to the ascending hydrothermal
fluids. Alteration is characterized by decalcification of limestone,
silicification of all rock types and clay development in structurally disturbed
areas. Overall, the Betze-Post ore zones extend for 6,000 feet (1,829 meters)
in a northwest direction and averages 600 to 800 feet (183 to 244 meters) in
width and 400 to 600 feet (122 to 183 meters) in thickness. Drilling and Analysis More than 6,300 drill holes have been completed within and around the
Betze-Post deposit. Approximately 69 percent of the total drill holes are
reverse circulation and rotary drill holes and the remaining are diamond core
holes. Drill spacing through the Betze, West Betze and Screamer deposits is
approximately 175 feet (53 meters) and at Post is 150 feet (46 meters). Drill
spacing in the North Screamer and West Barrel mineralized zones to the north of
the pit varies between 100 and 300 feet (30 and 91 meters). Almost all of the
total drill hole footage has been sampled on five-foot intervals and assayed
for gold by the fire assay method with cyanide AA finish. All assaying is
checked and verified under a comprehensive, multi-level quality assurance and
quality control program that includes external laboratory check assays. All drill hole collar, survey and assay information used in modeling and
resource estimation are manually verified and approved by geologic staff prior
to entry into the mine-wide database. The quality assurance procedures and assay protocols followed by Barrick
in connection with drilling and sampling on the Goldstrike property conform to
industry accepted quality control methods. Royalties Most of the property comprising the Goldstrike Open Pit mine is subject to
a net smelter return and net profits interest royalties payable on the valuable
minerals produced from the property. The maximum third party royalties payable
on the Betze deposit are a 4% net smelter return and a 6% net profits interest. Production Information The following table summarizes certain production and financial
information for the Goldstrike Open Pit mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    141,693
    
    
    
    142,898Tons of ore processed (000s)
    
    
    10,041
    
    
    
    10,322Average grade processed (ounces per ton)
    
    
    0.19
    
    
    
    0.16Recovery rate (%)
    
    
    82.0
    
    
    
    83.3Ounces of gold produced (000s)
    
    
    1,559
    
    
    
    1,410Average total cash costs per ounce
    
    $
    233
    
    
    $
    228
 - 30 -




---



##### 



Goldstrike Underground Mine The Meikle orebody, located one mile (1.6 kilometers) north of the
Goldstrike Open Pit mine on Barricks Goldstrike property, is a high grade
orebody which was discovered in 1989. Two different underground mining methods
are used at Goldstrike Underground, long-hole open stoping and drift-and-fill
(used for flat-lying mineralization or where ground conditions are less
competent). Goldstrike Underground is a trackless operation which commenced
production in September 1996. The Meikle orebody now incorporates Main Meikle,
Meikle Extension, South Meikle, Griffin and Rodeo underground zones. An
intensive development program to bring the Rodeo deposit into production was
completed in late 2001. While exploration drilling will continue at depth
below Main Meikle and in the Rodeo area, the best potential for reserve
additions is likely north of Main Meikle, in an area known as Banshee. Based
on existing reserves and production capacity, the expected remaining mine life
is 6 years. The underground mine, which originally produced at a rate of approximately
2,000 tons of ore per day, averaged 4,523 tons per day in 2003 and 4,504 tons
per day in 2002. Goldstrike Underground produced 551,664 ounces of gold in 2003
and is expected to produce between 590,000 and 610,000 ounces in 2004 at an
average total cash cost of between $245 and $255 per ounce. In 2003, mining
activity took place in five main areas  Main Meikle, Meikle Extension, South
Meikle, Griffin and Rodeo. In 2004, mining activity will continue in these
five areas. Geology Carbonate breccias and limestones of the Devonian Popovich Formation and
various intrusive rocks host the Meikle orebody, which is compact in size and
very high grade. In contrast to the Goldstrike Open Pit area, the overlying
mudstones and argillites of the Devonian Rodeo Creek Member are generally
unmineralized. Gold-bearing fluids have ascended faults and fractures and have
deposited gold and other minerals, such as pyrite and barite, in permeable
horizons in the breccias and limestones. These breccias were formed by a
combination of collapse, tectonic and hydrothermal processes, and display
excellent continuity of grade both down deep and along strike. The fluids have
been focused below a steep dipping monzonite porphyry dyke and the overlying
relatively impermeable Rodeo Creek Member. Since silicification is the dominant
alteration at Meikle, the bulk of the ore is quite hard and competent. Drilling and Analysis Underground drilling at the Meikle deposit (Meikle, South Meikle,
Griffin, and West Griffin) commenced in 1995 and a total of 1,007,989 feet
(307,235 meters) in 4,058 underground holes had been completed in and around
the deposit as of December 31, 2003. A total of 338 surface holes, for 517,086
feet (157,608 meters), have been drilled in and around the Meikle Deposit. Underground drilling commenced at the Rodeo deposit (Rodeo, West Rodeo,
and Barrel) in 1998 and, as of December 2003, a total of 1,098 underground
holes totaling 375,895 feet (114,573 meters) had been drilled in and around the
deposit. A total of 230 surface holes, for 344,300 feet (104,943 meters), have
been drilled in and around the Rodeo Deposit. Although the majority of drilling is core, approximately 35% of Meikle and
30% of Rodeo definition drilling are by underground reverse-circulation
methods. Drill spacing through the Meikle deposit is 25 to 85 feet (8 to 26
meters). Some of the wider-spaced core holes are sampled on 20-foot intervals
(chip samples) and 5-foot whole or split core in mineralized intervals. All
samples are fire-assayed with an atomic absorption spectrometer finish followed
by a gravimetric finish for samples with AuFA greater than 0.436 oz of gold per
ton. Most sampling and assaying is done on-site by Barrick with both internal
check assays and external check assays performed by independent laboratories. - 31 -




---



##### 



Royalties The maximum royalties payable on the Meikle deposit are a 4% net smelter
return and a 5% net profits interest. Production Information The following table summarizes certain production and financial
information for the Goldstrike Underground mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    1,631
    
    
    
    1,635Tons of ore processed (000s)
    
    
    1,622
    
    
    
    1,638Average grade processed (ounces per ton)
    
    
    0.39
    
    
    
    0.43Recovery rate (%)
    
    
    88.3
    
    
    
    91.3Ounces of gold produced (000s)
    
    
    552
    
    
    
    640Average total cash costs per ounce
    
    $
    253
    
    
    $
    198
 (GOLDSTRIKE PROPERTY, NEVADA MAP) - 32 -




---



##### 



Round Mountain Mine General Information Wholly-owned subsidiaries of Barrick own a 50% interest in the Round
Mountain gold mine, which is located approximately 60 miles (96 kilometers)
north of Tonopah in Nye County, Nevada, at an elevation of approximately 6,200
feet (1,890 meters). Kinross Gold Corp. (a successor to Echo Bay Mines
Limited) owns the remaining 50% interest and is the operator. Access to the
property is by paved road. Generally, the climate of the area does not
materially impact on the mines operations. Barrick acquired its interest upon
its merger with Homestake. Homestake had acquired its initial 25% interest in
Round Mountain in 1984, and bought an additional 25% in July 2000. Barrick and
Kinross Gold Corp. have first refusal rights over each others interest in the
property. The mine has been in operation since 1977. Based on existing reserves
and production capacity, the expected remaining mine life is 5 years. Effective
January 31, 2003, Kinross Gold Corp. succeeded to the interest of Echo Bay
Mines Limited by merger. The Round Mountain property position consists of contiguous patented and
unpatented mining claims covering approximately 36,920 acres (14,930 hectares).
Patented claims cover all of the current reserves in the ultimate pit. Geology The Round Mountain orebody is a large, epithermal, low-sulphidation,
volcanic-hosted, hot-springs type, precious metal deposit located along the
margin of a buried volcanic caldera. The deposit genesis is associated with the
Tertiary volcanism and caldera formation. Intra-caldera collapse features and
sympathetic faulting in the metasedimentary rocks provided the major structural
conduits for gold-bearing hydrothermal fluids. Ascending fluids deposited gold
within the metasediments and overlying volcanic tuff units along a broad
northwest trend. Gold mineralization at Round Mountain occurs as electrum in association
with quartz, adularia, pyrite and iron oxides. Economic gold mineralization is
found in both the volcanic and surrounding metasedimentary rocks as well as
overlaying alluvial placers. The mineralization occurs within shear zone
fractures and veins or as disseminations within the more permeable units.
Narrow fractures in shear zones host higher-grade mineralization while porous
volcanic rocks host the lower-grade disseminated mineralization. Primary
sulphide mineralization consists of electrum associated with or internal to
pyrite grains. In oxidized zones, gold occurs as electrum associated with iron
oxides, or as finely divided blebs along fractures. Alteration of the volcanic units at Round Mountain can be characterized as
a continuum from fresh rock progressing through chlorite; clay; sericitic and
quartz; adularia, quartz and sericite; and quartz and adularia alteration
assemblages. The alteration is zoned outward from potassic at the center to
propylitic on the margin. There is a reasonable correlation between increasing
gold grades and increasing degrees of alteration. The central ore zone is
characterized by pervasive K-feldspar found replacing the rock groundmass and
primary sanidine, or as crystal growths in open-space. Alteration within the metasedimentary rocks are more subtle, largely
defined by secondary quartz overgrowths, pyrite, and adularia associated with
narrow northwest trending structures. The open-pit mine is over a mile (1.6 kilometers) at its longest dimension
and currently more than 1,295 feet (395 meters) from the top bench to the
bottom of the pit. - 33 -




---



##### 



Mining and Processing The operation uses open-pit mining methods and recovers gold using four
independent processing operations. These include crushed ore leaching (reusable
pad), run-of-mine ore leaching (dedicated pad), milling of higher-grade ore,
and the gravity concentration circuit. Recovered gold is smelted on site into
doré and shipped to outside refineries for processing into bullion. Water is
supplied from joint venture-owned wells on the property. Power is purchased
from Sierra Pacific Power Company under a standard industry tariff. In 2003, Round Mountain produced 785,298 ounces of gold, of which the
Companys share was 392,649 ounces, at an average total cash cost of $173 per
ounce. In 2004, the mine is expected to produce between 710,000 and 730,000
ounces of gold, of which between approximately 355,000 and 365,000 ounces would
be the Companys share, at an average total cash cost of between $205 and $215
per ounce, with lower gold production from the dedicated pad the primary reason
for the decrease in production. Environment At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $26 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. Exploration, Drilling and Analysis In 2003, the mine exploration program focused on the Gold Hill area,
consisting of 50 holes totaling 86,843 feet (26,470 meters). An external
commercial laboratory was used to assay all the exploration drill hole samples.
Blanks, duplicates, and standards are all included with each set of samples for
quality control and quality assurance purposes. In addition, check assays were
completed at an external commercial lab. Approximately 4,291 drill holes have been completed within and around the
Round Mountain deposit of which 7% are core holes, with the remainder drilled
by reverse-circulation methods. A total of 238 reverse-circulation holes
totaling 104,711 feet (31,916 meters) were added to the database in 2003.
Optimum spacing within the Round Mountain deposit ranges between 100 and 140
feet (30 and 42 meters). All of the drill holes have footage that has been
sampled on five-foot intervals and assayed for gold by the fire assay method
with a gravimetric finish. For the Round Mountain deposit, all sampling and
assaying is done on-site by the in-house lab. Internal check assays and
external check assays are performed by independent laboratories. Capital Expenditures In 2003, Barricks share of capital expenditures were $6 million, which
included rebuilds for four trucks, a new carbon column, construction of phase 4
of the west dedicated pad and mine dewatering. In 2004, capital expenditures
are expected to be $12.4 million (of which $6.2 million is the Companys share)
and will include the continued construction of phase 4 of the west dedicated
pad, mine dewatering and the rebuilding of five haul trucks. - 34 -




---



##### 



Royalties All Round Mountain mine production is subject to a royalty determined by a
formula based on the price of gold. The royalties range from approximately 3.5%
of gold revenues at prices of $320 per ounce of gold or less to approximately
6.4% of gold revenues at prices of $440 per ounce of gold or more. During 2003,
the royalties averaged 4.6% of revenues. Production Information The following table summarizes certain production and financial
information for the Round Mountain mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    49,126
    
    
    
    63,146Tons of ore processed (000s)
    
    
    62,940
    
    
    
    62,222Average grade processed (ounces per ton)
    
    
    0.02
    
    
    
    0.02Ounces of gold produced (000s)
    
    
    785
    
    
    
    755Ounces of gold produced (000s) -
Barricks share(1)
    
    
    393
    
    
    
    378Average total cash costs per ounce
    
    $
    173
    
    
    $
    187
  (1)Represents Barricks 50% ownership interest. - 35 -




---



##### 



(ROUND MOUNTAIN MINE, NEVADA MAP) - 36 -




---



##### 



Eskay Creek Mine General Information A wholly-owned subsidiary of Barrick owns the Eskay Creek gold/silver
mine, which is located in northwestern British Columbia approximately 80
kilometers by air north of Stewart, British Columbia. Access is by 60
kilometers of privately owned single-lane gravel road. The mine is located at
an elevation of 800 meters. Generally, the climate of the area does not
materially impact on the mines operations. The Eskay Creek mine was acquired
by Barrick as a result of its merger with Homestake. Homestake acquired an
interest in Eskay Creek in June 1992 when it merged with Corona Corporation,
which owned 50.6% of Prime Resources Group Inc., which in turn owned 100% of
the property. Homestake acquired the remaining 49.4% of Prime Resources Group
Inc. in December 1998. Eskay Creek began commercial production in 1995. In
1997, the gravity and flotation mill was constructed to treat lower grade ore.
Based on existing reserves and production capacity, the expected remaining mine
life is 4 years. The Eskay Creek property consists of five mining leases, two mineral
claims and various other mineral and surface rights comprising approximately
2,060 hectares. The leases have remaining terms of 18-22 years, subject to
renewal rights. There are aboriginal claims relating to areas of British
Columbia, including a claim by the Tahltan Nation to the area which includes
the Eskay Creek mine. The nature and extent and validity of such claims have
not been determined. Barrick believes that its relations with the Tahltan
Nation are good. Barrick does not believe that aboriginal claims at Eskay Creek
will have any material adverse effect on the operations. Geology The Eskay Creek orebody is a precious metal-enriched volcanogenic massive
sulphide deposit that occurs in association with volcanics of the Jurassic-aged
(141 to 195 million years) Hazelton Group. Eskay Creek mineralization generally
is stratabound and occurs in a contact mudstone and breccia bounded below by a
rhyolite flow-dome complex and overlain by volcanic and sedimentary rocks in
the west limb of a north-plunging fold. Recent mineralization has also been
outlined in discordant feeder type relationships in the underlying rhyolite and
dacite. Sphalerite, pyrite, galena and tetrahedrite are the most abundant ore
minerals. Native gold occurs as mostly microscopic particles located between
sulphide grains, in fractures with sulphide grains, or locked in pyrite. Gold
also occurs in volcanic rocks beneath the contact mudstone, along with
coarse-grained sphalerite, pyrite and galena in quartz veins or stockworks. Mining and Processing The mine is an underground, trackless operation accessible through three
surface portals. Mining is conducted by a contractor using equipment owned by a
subsidiary of Barrick. The mine utilizes a drift-and-fill mining method with
cemented rock backfill. Higher-grade ore is crushed and blended at the mine
site then sold to third-party smelters without any further processing.
Additional higher-grade and lower-grade ore is sent to a 360 tons per day
on-site gravity and flotation mill for further processing and concentration
prior to transport to third party smelters. Mine waste rock and tailings from
the mill are disposed of underwater in two nearby barren lakes. Water is
supplied to the operation from the Eskay and Argillite Creeks and power is
produced by on-site diesel generators. In 2003, Eskay Creek produced 352,070 ounces of gold and 17 million ounces
of silver at an average total cash cost of $52 per ounce of gold, net of the
silver by-product. In 2004, Eskay Creek is expected to produce between 300,000
and 310,000 ounces of gold and between 14 to 15 million ounces of silver at an
average total cash cost of between $100 and $105 per ounce of gold. The
decrease in production reflects the lower grade of ore anticipated to be
processed in 2004. Actual total cash costs in 2004 will be - 37 -




---



##### 



affected by both the quantity of silver produced as a by-product and
realized silver selling prices, which in turn will be affected by silver spot
market prices. Environment At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $5 million. In connection with the reclamation of the
mine area, Barrick has provided the security as required by governmental
authorities. See Environment and Closure. Exploration, Drilling and Analysis In 2003, the Company continued its development drilling program and
in-fill drilling program. During 2003, 1,212 meters of surface and 36,316
meters of underground diamond drilling were completed. The 2004 exploration
program will continue to follow up on mineralization that was outlined in
previous years as well as new mineralization that was outlined in 2003. In
2004, the exploration program will also test for parallel or feeder potential
below the known mineralization. The plan for 2004 is to complete 5,000 meters
of surface and 41,000 meters of underground diamond drilling. More than 5,800 diamond drill holes or about 568,197 meters have been
drilled within and around the Eskay Creek Mine. Of this, 1600 holes or about
345,990 meters of core has been drilled from surface and 4200 holes or about
222,207 meters of core drilled from underground. Surface drilling is generally planned at 100 to 200 meter spacing in
prospective areas and is reduced to 25 meter spacing for follow-up used to
outline resources. Core is split and prospective areas sampled on 1.5 meter
lengths and mineralized sections sampled at 1.0 meter lengths. Known barren
areas are only randomly sampled and all of the core is saved and stored. Dependent on grade and target geometry, definition programs are nominally
10 meter centers and as tight as 5 meter centers in very high grade target
areas. Diamond drill core in new areas is commonly split, but when in a known
horizon it is usually whole sampled. In unmineralized areas, sample lengths
may be up to 5 meters, but in known ore, sample lengths are generally a maximum
of 1 meter. Most surface core is assayed off-site. Surface assays are done by
inductively coupled plasma atomic emission spectrometer and any values greater
than 1 gram per ton (g/t) Au are redone by fire assay. All underground core
and the closer-spaced resource driven surface programs are assayed by the
on-site Eskay lab using fire assay for gold and silver and atomic absorption
for base metals. All assays are systematically checked with both internal
standards and systematic check assays performed by independent laboratories. All drill hole collar, survey and assay information used in modeling and
resource estimation are manually verified and approved by geologic staff prior
to entry into the mine-wide database. The quality assurance procedures and assay protocols followed in
connection with drilling and sampling on the Eskay property have been reviewed
by independent consultants and smelter representatives and found to conform to
industry accepted quality control methods. - 38 -




---



##### 



Capital Expenditures During 2003, $5 million was spent on capital expenditures at Eskay Creek,
including development ramping, ventilation, hydraulic backfill and mobile
equipment. Capital expenditures for 2004 are expected to be $10 million,
including ventilation, mine drainage, power upgrades, bulk shotcrete systems, a
new road and ramp developments. Royalties The mine is subject to a 1% net smelter royalty, with the exception of a
small portion of the orebody, which is subject to a 2% net smelter royalty. Production Information The following table summarizes certain production and financial
information for the Eskay Creek mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    272
    
    
    
    254Tons of ore shipped (000s)
    
    
    135
    
    
    
    128Direct shipped ore grade (ounces per ton)
    
    
    1.97
    
    
    
    2.17Direct shipped ore recovery (%)
    
    
    95.4
    
    
    
    95.4Tons of ore milled (000s)
    
    
    115
    
    
    
    128Mill grade (ounces per ton)
    
    
    0.80
    
    
    
    0.83Mill recovery (%)
    
    
    93.4
    
    
    
    92.5Ounces of gold produced (000s)
    
    
    352
    
    
    
    359Average total cash costs per ounce
    
    $
    52
    
    
    $
    40
 - 39 -




---



##### 



(ESKAY CREEK MINE, BRITISH COLUMBIA MAP) Hemlo Property Barrick has a 50% interest in the Hemlo operations, which are comprised of
two underground mines (the Williams (which includes an open-pit mine) and David
Bell mines), located in the Hemlo Gold Camp, approximately 350 kilometers east
of Thunder Bay. A company owned equally by a subsidiary of Barrick and a
subsidiary of Teck Cominco Limited operates each of the mines. Barrick and Teck
Cominco Limited provide funds equally for all costs incurred to operate the
mines and have rights of first refusal over each others interests in the mines
and operating companies. Based on existing reserves and production capacity,
the expected remaining mine lives of the David Bell mine and the Williams mine,
respectively, are 5 years and 9 years. - 40 -




---



##### 



The Williams and David Bell mines share milling, processing and tailings
facilities. Ore from the two mines is commingled and fed to the processing
plant that has two grinding lines, each with a semi-autogenous mill and a ball
mill. Gravity and C-I-P processes are used to recover gold. Recovered gold is
smelted into doré on-site and shipped to an outside refinery for processing
into bullion. Tailings water is reclaimed for use in the mill and excess water
is treated through a seasonally operated effluent treatment plant prior to
discharge into the environment. Ground stability continues to be a significant area of focus for the Hemlo
operations. Changes to the mine plan, mining sequence, increased ground support
and increased monitoring instrumentation are ongoing to minimize this risk. In 2003, the Companys share of Hemlo gold production was 267,888 ounces
at an average total cash cost of $226 per ounce. In 2004, the Companys share
of Hemlo gold output is expected to be between 270,000 and 280,000 ounces,
produced at an expected average total cash cost of between $210 and $215 per
ounce. In 2003, the average grade milled was 0.14 ounces per ton and it is
expected to remain at 0.14 ounces per ton for 2004. At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $3 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. The mining claims at the Williams mine are subject to three net smelter
royalties totaling a net effective rate of 2.06%. The mining claims at the
David Bell mine are subject to a 3% net smelter royalty. The following table summarizes certain production and financial
information for the Hemlo operations for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    8,356
    
    
    
    8,228Tons of ore processed (000s)
    
    
    3,942
    
    
    
    3,812Average grade processed (ounces per ton)
    
    
    0.14
    
    
    
    0.15Recovery rate (%)
    
    
    95.0
    
    
    
    94.7Ounces of gold produced (000s)
    
    
    536
    
    
    
    538Ounces of gold produced (000s) -
Barricks share (1)
    
    
    268
    
    
    
    269Average total cash costs per ounce
    
    $
    226
    
    
    $
    224
  (1)Represents Barricks 50% ownership interest. Australia/Africa Barricks principal Australian operations consist of its Kalgoorlie
operations, and its operating mines located in the Yilgarn District in Western
Australia. Barricks Australian project is its Cowal project located in
central New South Wales. Barricks principal African operation is its
Bulyanhulu mine in - 41 -




---



##### 



Tanzania. Barricks African project is its Tulawaka project located in
Tanzania. The following table summarizes the production and total cash costs
per ounce of the Australian and African mines. Total Cash Costs  perGold InstituteProduction CostProduction
    
    Standard1
    
    Total Cash Costs  per(attributable ounces)
    
    ($/oz)
    
    US GAAP ($/oz)For the years ended
    
    For the years ended
    
    For the years ended12/31
    
    12/31
    
    12/312003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Kalgoorlie (50% owned)
    
    
    436,098
    
    
    
    360,025
    
    
    $
    209
    
    
    $
    222
    
    
    $
    212
    
    
    $
    228Plutonic
    
    
    333,947
    
    
    
    307,377
    
    
    
    193
    
    
    
    184
    
    
    
    193
    
    
    
    186Darlot
    
    
    154,977
    
    
    
    145,443
    
    
    
    164
    
    
    
    168
    
    
    
    165
    
    
    
    170Lawlers
    
    
    99,223
    
    
    
    113,291
    
    
    
    249
    
    
    
    179
    
    
    
    250
    
    
    
    1841,024,245
    
    
    
    926,136
    
    
    
    200
    
    
    
    196
    
    
    
    203
    
    
    
    200Bulyanhulu
    
    
    313,551
    
    
    
    356,319
    
    
    
    246
    
    
    
    198
    
    
    
    260
    
    
    
    1991,337,796
    
    
    
    1,282,455
    
    
    $
    210
    
    
    $
    196
    
    
    $
    216
    
    
    $
    199
  1. For an explanation of the use of non-GAAP performance measures refer to
Non-GAAP Performance Measures. Australia Operating Properties Kalgoorlie Mine General Information The Kalgoorlie operations are located adjacent to the town of Kalgoorlie
approximately 550 kilometers east of Perth, Western Australia. Access is by
paved road. The mine is located at an elevation of 420 meters above sea level.
Except with respect to the roaster as noted below, generally, the climate of
the area does not impact on the mines operations. Mining operations in the
Kalgoorlie region date back to 1893. Barrick acquired a 50% interest in the Kalgoorlie operations as a result
of its merger with Homestake in 2001. Subsidiaries of Newmont Mining Company
(Newmont) own the other 50% interest. Barrick, through a wholly-owned
subsidiary, and Newmont jointly own and control Kalgoorlie Consolidated Gold
Mines Pty Ltd. (KCGM), which manages the operations under the direction of a
joint management committee. Homestake acquired its interest in the original
joint venture in 1975. In 1989, KCGM was formed to assume management of the Mt.
Charlotte underground mine and to develop and operate the Super Pit open pit
mine for the joint venture. Mt. Charlotte was scheduled to cease production in
2003, but mining of residual ore may prolong its life beyond 2004. The Super
Pit mine commenced operations in 1989 and since then approximately 10 million
ounces of gold have been recovered. Based on existing reserves and production
capacity, the expected remaining mine life of the Super Pit mine is 14 years. The Kalgoorlie properties consist of 58 mining leases and 104 prospecting
licenses covering approximately 23,000 hectares. The mining leases were granted
for a term of 21 years on conditions covering rental, royalties, expenditures,
mining practices and rehabilitation. They are renewable in the final year.
There are a number of native title claims relating to the area of the
Kalgoorlie operations, but the validity of those claims has not been
determined. - 42 -




---



##### 



Geology The ore deposits mined in the Kalgoorlie goldfields occur within an
intensely mineralized shear zone system in dolerite host rocks, within the
Norseman-Wiluna greenstone belt, which is part of the Yilgarn Block of Western
Australia. The rocks are of Archean age. The favorable structural, metamorphic
and lithologic setting in conjunction with hydrothermal activity controlled
gold mineralization. Since 1893, in excess of 50 million ounces of gold have
been produced from the Kalgoorlie properties at depths of up to 1,220 meters
from high-grade lodes and adjacent disseminated mineralization in the Golden
Mile Dolerite, and from the large stockwork zones, which characterize Mt.
Charlotte and Reward (underground) orebodies. Mining and Processing The Kalgoorlie operations consist of the Super Pit open-pit mine and the
Mt. Charlotte underground mine. Ore is treated at the Fimiston mill. Sulphide
concentrates produced at the Fimiston mill are roasted and leached at the Gidji
roaster, located approximately 20 kilometers north of the main Kalgoorlie
operations. Gold-laden carbon from the Gidji roaster is sent to the Fimiston
mill for processing. As a result of increasingly stringent sulfur dioxide
emissions constraints and occasional unfavorable weather conditions, from time
to time the roaster is unable to treat all of the sulphide concentrates
produced by the mill. Processing is supplemented by two ultra fine grinding
mills which treat concentrate that cannot be processed by the roaster. Doré is
produced on-site and shipped to offsite refiners for refinement into gold
bullion. The Super Pit mine is located along the Golden Mile orebodies
previously mined from underground. Mining at the Super Pit is by open-pit,
truck-and-loader mining methods, with most of the ore and waste being mined on
10-meter benches. Until the first quarter of 2000, contractors had been
employed to conduct the open-pit mining operations, ore and concentrate
haulage, and some specialized services. During the first quarter of 2000, the
transition of mining operations from the open-pit mining contractor to owner
mining was completed. In 2003, the mine produced 872,196 ounces of gold, of which the Companys
share was 436,098 ounces, at an average total cash cost of $209 per ounce. In
2004, the mine is expected to produce between 790,000 and 800,000 ounces of
gold, of which between 395,000 and 400,000 ounces would be the Companys share,
at an expected average total cash cost of between $230 and $240 per ounce. The
average grade processed in 2003 was 0.071 ounces per ton, which is expected to
decline to 0.068 ounces per ton in 2004. Fresh water is supplied under allocation from the state water system and
is piped approximately 550 kilometers from Perth. Remaining process water
requirements are satisfied using salt water taken from wells and the
underground mine. Power is provided under a power supply agreement with Newmont
Power Pty Ltd., a wholly-owned subsidiary of Newmont Mining Company. Environment At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $16 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. - 43 -




---



##### 



Exploration, Drilling and Analysis During the 2003, 84 exploration holes, totalling 14,690 meters, were
drilled within close proximity to the Fimiston open pit and the Mount Charlotte
underground mine. The 2003 drilling program comprised 17 diamond holes for
12,120 meters, 1 reverse circulation hole for 190 meters and 66 rotary air
blast holes for 2,380 meters. The main surface drilling targets included testing for possible repetition
of Fimiston style lodes in a lower dolerite horizon at depth below the Fimiston
Pit (5,900 meters) and testing for underground potential at the
Sunrise-Fairplay prospect (3,420 meters) near Williamstown. Underground
drilling at Mount Charlotte targeted the conceptual Hannans North Lode between
the Charlotte and Mystery faults (990 meters) and Mystery stockwork (320
meters) in the footwall of the Mystery fault. Exploration drilling planned for the 2004 calendar year will continue to
target the Hannans North Lode offset, the Mystery stockwork as well as the
Hidden Secret Lode and the mineralized porphyries at Mount Percy. It is
envisaged that a total of 6,000 meters of underground diamond drilling will be
conducted at Mt Charlotte and a further 8,000 meters of surface diamond
drilling, within close proximity to the previously mined Mount Percy open pit.
A reverse circulation sterilization drilling program consisting of 5,000 meters
is also planned to enable the extension of the Fimiston Pit environmental bund. More than 89,100 drill holes have been completed within and around the
Fimiston Super Pit. Including 24,425 diamond core holes, 15,005 rotary air
blast holes and 48,035 reverse circulation holes. Drill spacing is 10 by 8
meters in the upper reserve levels (3 benches down) and 20 by 16 meters (down 6
benches) with 60 by 60 meter spaced deeper infill drilling in the Super pit. Drill holes have been sampled mainly on two-meter intervals (65 percent)
or one-meter intervals (30 percent). Samples are assayed for gold by fire
assay method. Assaying is performed by external contract laboratory with both
internal check assays and external check assays performed by independent umpire
laboratory. All drill hole collar, survey and assay information used in modeling and
resource estimation is manually verified and approved by geologic staff prior
to entry into the mine-wide database. The quality assurance procedures and assay protocols followed by KCGM in
connection with drilling and sampling on the Fimiston property conform to
industry accepted quality control methods. Capital Expenditures Barricks share of capital expenditures at Kalgoorlie in 2003 was $14
million, primarily for mining equipment, treatment optimization projects,
infrastructure, miscellaneous mining projects and sustaining capital projects.
Capital expenditures for 2004 are expected to be $15 million (Barricks share),
primarily for mine equipment, treatment, optimization projects and sustaining
capital. Royalties On July 1, 1998 a gold royalty became payable to the State of Western
Australia at a rate of 1.25% on the realized value of gold produced, increasing
to 2.5% on July 1, 2000 in respect of all of the Companys State of Western
Australia properties. The realized value is based on the spot price of gold.
From July 1, 2000 through June 30, 2005, the royalty rate has been reduced to
1.25% during calendar quarters when the spot gold price is less than A$450 per
ounce. At December 31, 2003 the spot gold price was A$555 per ounce. There are
no other royalties currently payable on production from the Kalgoorlie
operations. - 44 -




---



##### 



Production Information The following table summarizes certain production and financial
information for the Kalgoorlie operations for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    97,354
    
    
    
    92,648Tons of ore processed (000s)
    
    
    14,342
    
    
    
    14,101Average grade processed (ounces per ton)
    
    
    0.07
    
    
    
    0.06Recovery rate (%)
    
    
    85.8
    
    
    
    82.6Ounces of gold produced (000s)
    
    
    872
    
    
    
    720Ounces of gold produced (000s) -
Barricks share (1)
    
    
    436
    
    
    
    360Average total cash costs per ounce
    
    $
    209
    
    
    $
    222
  (1)Represents Barricks 50% ownership interest. (KALGOORLIE CONSOLIDATED GOLD MINES, WESTERN AUSTRALIA MAP) - 45 -




---



##### 



Yilgarn District The Yilgarn district consists of the Plutonic, Darlot and the Lawlers
mines. Barrick acquired the mines through its merger with Homestake in 2001.
Homestake acquired each of these mines as an operating mine in its 1998 merger
with Plutonic Resources Limited. Plutonic itself was incorporated as Noranda
Limited in Victoria in 1984 and listed on the Australian Associated Stock
Exchange in August 1985. In 1989, it acquired the Plutonic property in Western
Australia following discovery of a gold deposit in 1988. It subsequently
explored, developed and constructed the Plutonic mine, which commenced
production in August 1990. The Darlot mine covers an extensive goldfield
discovered more than 100 years ago. The Lawlers mine has operated since 1986. Plutonic Mine A wholly-owned subsidiary of Barrick owns the Plutonic gold mine, which is
located approximately 180 kilometers northeast of Meekatharra, Western
Australia, and approximately 13 kilometers from the Great Northern Highway.
Staff employees and contract personnel work on two-weeks-on and one-week-off
rotations on a fly-in-fly-out-basis. Based on existing reserves and production
capacity, the expected remaining mine life is 10 years. The Plutonic mine consists of both open-pit and underground operations.
Underground operations are the primary source of ore, although open-pit mining
of several smaller pits continues. Ore mined from the underground and the open
pits is being supplemented with ore from stockpiles. Ore is treated at the
on-site mill, which operates both sulphide and oxide circuits. Doré is
produced on-site and shipped to offsite refiners for refinement into gold
bullion. The mine produced 333,947 ounces of gold during 2003 at a total cash cost
of $193 per ounce. In 2004, the mine is expected to produce between 315,000
and 320,000 ounces at a total cash cost of between $185 and $195 per ounce. The
average grade processed in 2003 was 0.12 ounces per ton and the average grade
processed in 2004 is expected to be 0.164 ounces per ton (reflecting a higher
proportion of underground ore in the mill feed for 2004.) At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $2 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. With the exception of the royalty payable to the State of Western
Australia described under Kalgoorlie Operations, the underground operations
are not subject to any royalties. However, 16 mining leases which contain a
relatively small proportion of the mines overall reserves and resources are
subject to a sliding-scale royalty based on tonnage and grade. The following table summarizes certain production and financial
information for the Plutonic mine for the periods indicated: - 46 -




---



##### 



Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    14,180
    
    
    
    14,289Tons of ore processed (000s)
    
    
    3,010
    
    
    
    3,532Average grade processed (ounces per ton)
    
    
    0.12
    
    
    
    0.10Recovery rate (%)
    
    
    89.9
    
    
    
    89.5Ounces of gold produced (000s)
    
    
    334
    
    
    
    307Average total cash costs per ounce
    
    $
    193
    
    
    $
    184
 Darlot Mine A wholly-owned subsidiary of Barrick owns the Darlot gold mine, which is
an underground mine located approximately 113 kilometers north of Leonora,
Western Australia. The Darlot mine is a fly-in-fly-out operation with staff
employees and contractor personnel working on two-weeks-on and one-week-off
rotations. Based on existing reserves and production capacity, the expected
remaining mine life is 9 years. Ore is treated at the on-site mill. Doré is produced on-site and shipped
to offsite refiners for refinement into gold bullion. In 2003, the mine produced 154,977 ounces of gold at an average total cash
cost of $164 per ounce. In 2004, the mine is expected to produce between
140,000 and 145,000 ounces of gold at an average total cash cost of between
$190 and $205 per ounce. At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $1 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. With the exception of the royalty payable to the State of Western
Australia described under Kalgoorlie Operations, the Darlot mine is not
subject to any royalties. The following table summarizes certain production and financial
information for the Darlot mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    876
    
    
    
    840Tons of ore processed (000s)
    
    
    879
    
    
    
    849Average grade processed (ounces per ton)
    
    
    0.18
    
    
    
    0.18Recovery rate (%)
    
    
    96.9
    
    
    
    97.2Ounces of gold produced (000s)
    
    
    155
    
    
    
    145Average total cash costs per ounce
    
    $
    164
    
    
    $
    168
 - 47 -




---



##### 



Lawlers Mine A wholly-owned subsidiary of Barrick owns the Lawlers gold mine, which is
located approximately 120 kilometers northwest of Leonora, Western Australia.
The mine is a fly-in-fly-out operation with staff employees and contractor
personnel working on a two-weeks-on and one-week-off rotation. Based on
existing reserves and production capacity, the expected remaining mine life is
5 years. The Lawlers mine consists of both underground and open pit operations.
The primary sources of ore at present are from underground operations situated
approximately 15 kilometers from the mill and are supplemented by open pit
mining. Ore from stockpiles supplements the underground and open pit feed.
Prior to 2003, contractors performed the mining. The mine moved to owner mining
in the first quarter of 2003. Ore is treated at the on-site mill, which
processes both sulphide and oxide ores. Doré is produced on-site and shipped
for refinement into gold bullion. The mine produced 99,223 ounces of gold during 2003 at an average total
cash cost of $249 per ounce. In 2004, the mine is expected to produce between
100,000 and 105,000 ounces of gold at an average total cash cost of between
$250 and $265 per ounce. The average grade processed in 2003 was 0.13 ounces
per ton and the average grade processed in 2004 is expected to be 0.13 ounces
per ton. At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20(a) to the Consolidated Financial Statements),
for the property was $2 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. With the exception of the royalty payable to the State of Western
Australia described under Kalgoorlie Operations, the Lawlers mine is not
subject to any royalties. The following table summarizes certain production and financial
information for the Lawlers mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    1,152
    
    
    
    4,746Tons of ore processed (000s)
    
    
    806
    
    
    
    718Average grade processed (ounces per ton)
    
    
    0.13
    
    
    
    0.16Recovery rate (%)
    
    
    95.8
    
    
    
    97.3Ounces of gold produced (000s)
    
    
    99
    
    
    
    113Average total cash costs per ounce
    
    $
    249
    
    
    $
    179
 Projects Cowal Project General The Cowal project is located in Central New South Wales, Australia,
approximately 32 kilometers north of West Wyalong and approximately 350
kilometers west of Sydney. Cowal was acquired in 2001 by Homestake from Rio
Tinto following Rio Tintos acquisition of North Limited. The general
landscape - 48 -




---



##### 



is flat to undulating hills. The property can be accessed by road. The
Cowal region is located on the boundaries of the south eastern semi-arid and
the south eastern temperate regions of Australia. Based on a feasibility study and environmental impact statement completed
in 1998, the project was awarded Development Consent by the New South Wales
Government in February 1999. The approved project envisages the development of
an open pit to a depth of approximately 335 meters, and process facilities
designed to treat approximately 6.5 million tons of ore per year by a
combination of conventional carbon in leach and sulphide flotation
technologies. Geology The Cowal project is located in the Lachlan Fold Belt of central New South
Wales. This Ordovician volcanic belt contains high K calc-alkaline to
shoshonitic volcanics and intrusives which host porphyry, epithermal and
mesothermal style gold deposits. The E42 deposit is the largest of several
drill-identified deposits that are located on the western edge of the Lake
Cowal complex. The deposits occur in favourable lithologies and structural
settings within a north south corridor adjacent to a large body of
diorite-gabbro. Low grade porphyry copper mineralization occurs in parts of the
diorite-gabbro intrusive to the south of the gold deposits. The rocks in the E42 project area do not outcrop as they are obscured
under a cover of Quaternary sediment comprised of lacustrine clay with some
sand and gravels. The E42 deposit is hosted by a suite of Ordovician age
northeast striking and northwest dipping (50°) volcanic sediments and lavas
(informally known as the Lake Cowal Volcanics) set in an embayment of the major
regional north-south trending diorite. The diorite is also mineralized. At the
E42 deposit the Lake Cowal Volcanics have been informally subdivided into three
conformable stratigraphic units. The basal unit (Cowal Conglomerate Unit)
consists of massive to graded beds of coarse polymictic volcanic debris
interbedded with laminated siltstone and mudstone the central unit (Golden Lava
Unit) consists of porphyritic trachyandesite lava and autobreccias. The
youngest and upper unit (Great Flood Unit) consists of predominantly massive to
graded pyroclastic debris and laminated sediments. The units and diorite are
intruded by diorite/gabbro stocks and porphyritic mafic to intermediate dykes.
The host sequence is offset by two major fault sets  a 340° steeply dipping
strikeslip set and a 290° - 300° moderately north dipping normal fault set. Gold mineralization occurs predominantly in shallow south dipping
dilational tensional auriferous quartz-carbonate-sulphide vein sets striking
westnorthwest and dipping southwest. Individual mineralized veins are not
laterally continuous, although vein sets are continuous, being controlled by
fault proximity, rheology and chemistry of host rocks. All rocks in the deposit
area except possibly some of the dykes are mineralized. The central Lava, the
basal Cowal Conglomerate and diorite are the most strongly mineralized. Vein
density is extremely variable, ranging from two to five per meter to one per
several meters. The individual vein thickness varies from millimeters to
centimeters. The surface of the deposit has been weathered to an average depth
of about 40 meters but weathering depth ranges up to 100 meters on the eastern
side of the deposit. The upper part of the weathered zone includes commonly
ferruginous mottled and pallid clays referred to as soft oxide. Below the
soft oxide the weathered bedrock is referred to as the hard oxide. Development Construction of road diversion works and production water bores commenced
in January 2004 and the Companys Board of Directors approved full project
construction in February 2004. There is continuing opposition to the project from several local
individuals and organizations that has the potential to affect the timing of
the mine construction schedule. - 49 -




---



##### 



The construction costs for the project are estimated at $270 million.
Cowals mine plan and process facilities have been designed to produce
approximately 220,000 to 235,000 ounces of gold per year at an expected average
total cash cost of $235 to $245 per ounce (based on prevailing exchange rates
in effect in early 2004) with production expected to commence in early 2006.
Estimated total cash costs are sensitive to exchange rate fluctuations; a
stronger Australian dollar would result in higher total cash costs. Exploration, Drilling and Analysis At December 31, 2003, the project had proven and probable gold reserves of
63.6 million tons at an average grade of 0.039 ounces per ton, for 2.5 million
contained ounces. Since the acquisition of Cowal in July 2001, Barrick has
completed a technical program, including drilling and engineering studies, to
optimize the feasibility study. To the end of 2003, Barrick had completed 325
new drill holes (108,000 meters) designed to infill previous drilling,
particularly in the deeper parts of the orebody. More than 1,000 drill holes have been completed in the Cowal project
resource area. About 37 percent of these holes are diamond core holes with the
remainder being reverse circulation percussion holes. Drill hole spacing is 25
meters. Samples are collected on one-meter intervals. All samples taken since
the acquisition of the property by Barrick are prepared and analyzed by
external laboratories. All drill hole collar, survey and assay information
used in modeling and resource estimation are manually verified and approved by
geologic staff prior to entry into the mine-wide database. The quality
assurance procedures and assay protocols followed by Barrick in connection with
drilling and sampling on the Cowal property conform to industry accepted
quality control methods. Royalties The Cowal property is subject to a royalty payable to the state of New
South Wales, Australia of 4% of mine revenue less certain costs including
portions of operating, administration, refining and depreciation. Africa Operating Properties Bulyanhulu Mine General Information The Bulyanhulu gold mine is located in northwestern Tanzania, East Africa,
approximately 55 kilometers south of Lake Victoria and approximately 150
kilometers from the city of Mwanza. Barrick operates the Bulyanhulu property through its wholly-owned
subsidiary Kahama Mining Corporation Limited (Kahama). Bulyanhulu, which is
an underground gold mine, was purchased through Barricks acquisition of Sutton
Resources Ltd. in March 1999. The property is located in essentially flat topography on the Victoria
Greenstone Belt. Generally, the climate of the area does not impact on the
mines operations. The property can be accessed by road or by air. An airstrip
has been located on the property. The property can be accessed by road from
Mwanza or from the south via an approximately 72 kilometer road, which connects
to the main paved highway to Dar es Salaam, and to a railway line. - 50 -




---



##### 



Gold was first discovered at Bulyanhulu in 1976. In 1994, after several
exploration efforts, the Government of Tanzania entered into a development
agreement and granted a prospecting license to Kahama (then a subsidiary of
Sutton Resources Ltd.). Kahama began conducting on-site work, including
geochemical and geophysical surveys, in September 1994 and commenced drilling
in January 1995. From June 1998 through to March 1999, various work was
completed (including construction of camp facilities, certain infrastructure,
earthworks, development of an underground ramp for test mining and commencement
of level development). At the time of acquisition in 1999, proven and probable mineral resources
were approximately 3.6 million ounces of gold. At the end of 2003, Bulyanhulu
had 10.9 million ounces of proven and probable gold reserves. Drill results to
date indicate that grades improve at depth. The current reserves are
concentrated on one reef but significant exploration potential has been
identified on two other reefs on the property. Based on existing reserves and
production capacity, the expected remaining mine life is 21 years. Geology At Bulyanhulu, the geology consists of mafic volcanic flows overlain by a
series of pyroclastics and ash tuffs. Argillite is present at the contact
between the mafic and felsic rocks. The gold, silver and copper mineralization
on the property occurs in mineralized reefs or quartz veins localized along
steeply dipping northwest striking structures, generally localized in the
argillite units. The zone strikes 310 degrees and dips steeply to the
northeast. The mineralization has been defined over a strike length of 5
kilometers and averages 2 to 3 meters wide. The most significant structure
discovered on the property to date is Reef 1 and it contains the bulk of the
mineral reserves defined to date. Mining and Processing Bulyanhulu is an underground trackless mining operation using long hole
and drift-and-fill as its principal stoping methods. Ore reserves are accessed
via a surface shaft and an internal ramp system. The 3,250 tonnes per day
(3,575 tons per day) plant consists of a crushing and grinding circuit, a
copper/gold/silver flotation circuit, a tailings thickening/filtration circuit
and a tailings storage facility. Power to the property is supplied through a
220-kilovolt overhead line connecting the property to the Shinyanga Station and
is purchased pursuant to a contract with the Tanzanian Electric Supply Company,
Ltd. that expires in 2005. Water is supplied through a 48 kilometer pipeline
from Lake Victoria to the property. In 2003, the mine produced 313,551 ounces of gold at a total cash cost of
$246 per ounce. In 2004, production is expected to be between 360,000 and
365,000 ounces of gold at an average total cash cost of between $240 and $260
per ounce. In the first quarter of 2003, the mine began experiencing
production difficulties in connection with equipment availability and higher
mining dilution. During 2003, Barrick replaced certain senior management at
the mine and reduced the mines mining rate in order to address the production
difficulties. Efforts to improve productivity at the mine continue. Gold recoveries during 2003 averaged 88%, reflecting improvements made to
the flotation circuit of the plant. The average grade processed in 2003 was
0.36 ounces per ton and in 2004, the expected grade for processing is 0.38
ounces per ton. Gold copper concentrate is shipped to an outside smelter. Environment At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20 (a) to the - 51 -




---



##### 



Consolidated
Financial Statements), for the property was $7 million. In connection with the
reclamation of the mine area, Barrick has provided the financial security as
required by governmental authorities. See Environment and Closure. Exploration, Drilling and Analysis Diamond drilling is the primary method of exploring the Bulyanhulu
deposit. As of December 31, 2003, with no new surface exploration holes being
drilled during 2003, a total of 993 diamond drill holes had been completed for
a total of over 430,000 meters. Holes have been drilled on a regular grid with
a spacing of 25 meters above the 4,850 meter elevation (with the adjusted mine
grid surface elevation being 5,000 meters), spacing of 50 to 100 meters down to
the 4,450 meter elevation, and 100 to 150 meters below the 4,450 meter
elevation. Drilling is done from the hanging wall to the footwall at inclined
angles between 45-87 degrees. Exceptions are reverse circulation and
geotechnical holes, which are drilled vertically. Maximum vertical depth
drilled to date is 2,225 meters. The drilling program to date has turned Bulyanhulu into at least five
distinct deposits: the Main, West and East Zones, Reef 2 and Reef 0. The Main
Zone hosts the majority of the existing mineral reserves and is open at depth.
The East Zone was discovered in 2000, is estimated to contain 1.2 million
ounces of gold and is open to the east, west and at depth. The West Zone is
estimated to host almost 2 million ounces and is open at depth and to the west.
Reef 0, is located about 10 meters from the current Main Zone between Reef 1
and Reef 2. Reef 2 consists of a series of mineralized structures located
approximately 500 meters from Reef 1. The 2003 underground ore definition drilling program included over 17,600
meters of drilling, targeting the Central and East Zones. The exploration
program for 2004 will consist of infill drilling around existing reserves to
facilitate mine planning and scheduling of operations. Sampling intervals are
based on geological units and mineralized zones; otherwise minimum and maximum
widths for sampling are 0.5 meters and 1 meter respectively. All samples are
prepared and assayed for gold at independent laboratories in Canada and
Tanzania. A standard fire assay method is used, and high-grade samples are
checked with Metallic Screen Fire Assay. Every twentieth sample submitted to
the lab is either a blank or a standard, and results are reviewed by an
independent auditor, who requests assay repeats where required. Samples are
routinely sent to other labs for testing. Quality assurance procedures used at Bulyanhulu have been set up by an
independent consultant and have been found to meet or exceed standard mining
industry practices. Bulyanhulu is the hub of Barricks district development program in
Tanzania. The Companys objective is to discover, develop and produce gold
from this new gold district. Construction of various mine facilities at the
Tulawaka project, which is approximately 100 kilometers from Bulyanhulu, began
in the first quarter of 2004. Capital Expenditures Capital expenditures in 2003, primarily for completing and equipping the
shaft, for mine development and process plant modifications totalled $36
million. 2004 capital expenditures are expected to total $33 million, mainly
for underground mining equipment and infrastructure. Royalties The Bulyanhulu property, under Article 86 of the 1998 Mining Act of
Tanzania, is obligated to pay to the government a royalty of 3% on the net
back value of minerals produced from the property. Net -52-




---



##### 



back value means the market value of minerals freight-on-board at the
point of export from Tanzania, less: (a) the cost of transport, including
insurance and handling charges, from the mining area to the point of export or
delivery; and (b) the cost of smelting and refining or other processing costs
unless such other processing costs relate to processing normally carried out in
Tanzania in the mining area. Pledge of Assets Drawdown on the mines limited recourse $200 million facility was
completed in the second quarter of 2001. Repayment consists of fourteen
consecutive semi-annual installments falling due on June 15 and December 15 of
each year, with the first installment of $6 million made on December 15, 2002.
This facility is insured for political risks equally by branches of the
Canadian government and World Bank. Substantially all the assets of Kahama,
including the Bulyanhulu property, have been pledged as security under the
loan. The average interest rate, inclusive of political risk insurance
premiums, was LIBOR plus 2.60% pre-completion and increased following
completion, rising in a number of steps to average approximately LIBOR plus
3.40%. The effective interest rate for 2003 was 7.7%. The effective interest
rate includes payments made under an interest-rate swap that matches the loan
principal over the term to repayment, which fixes the rate for the term of the
debt at 7%. Production Information The following table summarizes certain production and financial
information for the Bulyanhulu mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    945
    
    
    
    944Tons of ore processed (000s)
    
    
    980
    
    
    
    1,075Average grade processed (ounces per ton)
    
    
    0.36
    
    
    
    0.39Recovery rate (%)
    
    
    88.1
    
    
    
    86.1Ounces of gold produced (000s)
    
    
    314
    
    
    
    356Average total cash costs per ounce
    
    $
    246
    
    
    $
    198
 -53-




---



##### 



(BULYANHULU MINE MAP) Projects Tulawaka Project The Tulawaka exploration property was obtained by Barrick through the
acquisition of Pangea Goldfields Inc. in June 2000. Barricks wholly owned
subsidiary, Pangea Minerals Ltd., a wholly owned subsidiary of Pangea
Goldfields Inc., received approval of an Environmental Impact Assessment in
September 2003 and was granted a Mining License in November 2003 from the
United Republic of Tanzania. The Development Agreement was signed on December
29, 2003, by the Tanzanian Minister of Energy and Minerals and provides for
fiscal stability under the current regulations for the duration of the project. -54-




---



##### 



Tulawaka is a 70/30 joint venture between Pangea Goldfields Inc., a
wholly-owned subsidiary of Barrick, and Northern Mining Explorations Ltd. The
site is located approximately 1,000 kilometers from Dar es Salaam and 100
kilometers from Barricks Bulyanhulu mine. The Tulawaka project will employ
about 300 people for five years including the construction period. Ausenco
Limited, based in Perth, Australia, has been appointed as the Engineering,
Procurement, Construction and Management (EPCM) contractor. The Tulawaka mine
will be an open pit operation with approximately half of the gold being
recovered using gravity separation technology and the balance from conventional
carbon in leach technology. Construction of various mine facilities began in
the first quarter of 2004. Tulawaka contains approximately 368,000 ounces (70% share) of gold in
proven and probable reserves with 1.1 million tons of ore at a grade of 0.337
ounces per ton. The capital cost estimate is $34 million (70% share) and total
cash costs are expected to be between $170 and $180 per ounce. The mine life is
currently expected to be four years with production expected to commence in the
first quarter of 2005. Gold production is expected to average 70,000-75,000
ounces of gold (70% share) annually. South America Barricks principal South American operation consists of its Pierina mine.
Barrick principal South American developments projects consist of the Lagunas
Norte project, located in the Alto Chicama District, the Veladero project and
the Pascua-Lama project. The following table summarizes the production and
total cash costs per ounce of the Pierina mine. Total Cash Costs  per
    
    Total Cash Costs  perProduction
    
    Gold Institute Production
    
    US GAAP(attributable ounces)
    
    Cost Standard1 ($/oz)
    
    ($/oz)For the years ended
    
    For the years ended
    
    For the years ended12/31
    
    12/31
    
    12/312003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Pierina
    
    
    911,723
    
    
    
    898,228
    
    
    $
    83
    
    
    $
    80
    
    
    $
    87
    
    
    $
    101
  1.
    
    For an explanation of the use of non-GAAP performance measures refer to
Non-GAAP Performance Measures. Pierina Mine General Information A wholly-owned subsidiary of Barrick owns the Pierina mine, which is
located in the Andean Cordillera in the Department of Ancash, in north central
Peru, approximately 10 kilometers northwest of the city of Huaraz, at an
altitude of approximately 4,100 meters. The property is characterized by
sloping to moderately steep, undulating topography. Generally, the climate of
the area does not impact on the mines operations. The mine is accessed by an
approximately 16 kilometer gravel road from Huaraz. The Mine comprises a total
area of approximately 3,530 hectares. The property was acquired by Barrick
through the acquisition of Arequipa Resources Ltd. in August 1996. The mine
commenced production in November 1998. Based on existing reserves and
production capacity, the remaining mine life is 4 years. The Company owns
surface rights and mining concessions covering 5,400 hectares in respect of the
Pierina mine. In Peru, mining concessions grant the holder the right to explore
for and exploit mineral deposits. -55-




---



##### 



Geology The Pierina mine is located in an approximately 70 kilometer long,
northwest-trending extensional zone coincident with the Rio Santa valley. Known
deposits within this mineral belt include gold, silver, copper, lead and zinc.
Gold and silver mineralization at Pierina is found in the Tertiary-aged Calipuy
volcanics. The base of the Tertiary rocks are andesite lavas. These are
overlain by rhyodacite pumice and lithic tuffs. Faults that control
mineralization in the deposit trend north-northwest, west-northwest and
northeast. The gold and silver is predominantly found in the rhyodacite pumice tuff
with lesser amounts in the overlying lithic tuff and the underlying andesite.
The high-grade areas of the deposit are associated with vuggy silica
alteration. This alteration type is surrounded by quartz-alunite and argillic
alteration. Ore-grade mineralization in the pumice tuff occurs over intervals
of more than 260 meters. The area of currently known mineralization at Pierina
measures approximately 450 meters wide by 1,200 meters long and is presently
open to the southeast. Over 95% of the known mineralization at Pierina is
oxide. However, sulfide feeder zones have been intersected at the bottom of the
deposit. Mining and Processing The orebody is being mined as an open pit, truck-and-loader operation, at
an average mining rate of 108,223 tons per day in 2003. Ore is crushed and then
transported via an overland conveyor to the leach pad area. Run-of-mine ore is
trucked directly to the leach pad. The leach pad is a classic valley-fill type
pad. Recovered gold is smelted into doré on-site and shipped to an outside
refinery for processing into bullion. Power is provided by a utility company
through a 138-kilowatt line connected to the Canyon del Pato 150-megawatt
hydroelectric generating plant, located approximately 90 kilometers from the
mine. The waste rock disposal area and leach pad facilities are contained
within one valley, limiting potential environmental impacts. The operations
management and protection of surface water and ground water resources ensure
that residents downstream of the site are not adversely affected. Mining activity is focused on three laybacks: the initial layback, mining
of which was completed in the third quarter of 2001; layback 2, which contains
high grade ore and is scheduled to be mined through 2003; and layback 3, which
is expected to provide ore continuously through 2007. In 2003, the average
grade placed on the heap leach pad was 0.075 ounces per ton and it is expected
to be 0.047 ounces per ton in 2004. The Pierina mine produced 911,723 ounces of gold at a total cash cost of
$83 per ounce in 2003. With 2003 being the mines last year of production in
the 900,000 ounce range, 2004 production is expected to be between 640,000 and
645,000 ounces of gold at an expected average total cash cost of between $95
and $100 per ounce. The increase in expected total cash costs from 2003 is
primarily due to the lower grades to be mined. Environment At December 31, 2003, the recorded amount of estimated future reclamation
and closure costs that were also asset retirement obligations, as defined in
FAS 143 (as described in note 20 (a) to the Consolidated Financial Statements),
for the property was $56 million. In connection with the reclamation of the
mine area, Barrick has provided the financial security as required by
governmental authorities. See Environment and Closure. -56-




---



##### 



Exploration, Drilling and Analysis In 2003, Barrick continued its development drilling program, focusing in
the connection between the main Pierina ore body and the southeast extension.
In 2004, Barrick will continue development drilling of certain targets
identified in 2002. Exploration on the Pierina property has been conducted using surface
mapping and sampling, geophysical methods and drilling. Exploration during
2004 will be focused on areas to the north, west and south of the known Pierina
deposit. As at December 31, 2003, over 870 drill holes have been completed in
the Pierina area. About 14 percent of these are diamond core drill holes and
the remainder are reverse circulation rotary holes. Reverse circulation holes
have been drilled on approximately 45-meter centers. Diamond core holes have
been used to reduce that spacing to 25 meters locally. While some early
drilling was sampled on 2-meter intervals, the majority has been sampled on
1-meter intervals. Samples have been prepared and fire assayed for gold by an
independent Peruvian laboratory at its facilities in Huaraz and Lima. The
quality assurance procedure followed at the Pierina property has been reviewed
by an independent contractor and found to conform to industry accepted quality
control methods. Capital Expenditures In 2003, capital expenditures for the Pierina property were $17 million,
including sustaining capital expenditures and expenditures for construction of
phase IV of the leach pad and other projects. For 2004, capital expenditures
are expected to be $17 million for sustaining capital, leach pad expansions and
upgrading certain processing facilities. Royalties The Pierina mine is not subject to royalties. Production Information The following table summarizes certain production and financial
information for the Pierina mine for the periods indicated: Year ended
    
    Year endedDecember 31, 2003
    
    December 31, 2002Tons mined (000s)
    
    
    39,501
    
    
    
    32,311Tons of ore processed (000s)
    
    
    15,786
    
    
    
    13,414Average grade processed (ounces per ton)
    
    
    0.07
    
    
    
    0.08Ounces of gold produced (000s)
    
    
    912
    
    
    
    898Average total cash costs per ounce
    
    $
    83
    
    
    $
    80
 -57-




---



##### 



(PIERINA MINE MAP) Projects Lagunas Norte Project General Information The Lagunas Norte project, on the Alto Chicama property, is located 140
kilometers east of the coastal city of Trujillo, Peru, and 175 kilometers north
of Barricks Pierina mine. The property occurs on the western flank of the
Peruvian Andes and is at an elevation of 4,000 to 4,260 meters above sea level.
The area is considered to have a mountain climate. Vegetation consists of
small shrubs and grasses. The property is accessible year round by road from
both Trujillo and Huamachuco, Peru, and consists of approximately 18,550
hectares. -58-




---



##### 



The Alto Chicama region has been actively mined for coal since the 19th
century, principally for domestic consumption. In 1990, Minero Peru S.A.
(CENTROMIN Peru S.A. (Centromin)) constructed a camp to re-evaluate the
previous carbon operations. The Alto Chicama region hosts a low grade
anthracite coal deposit, but it was not developed due to the availability of
cheaper sources of energy elsewhere. Centromin, the State mining company,
conducted field surveys in 1999 and concluded there was potential for other
mineralization on the property, including gold. Barrick began exploring the Alto Chicama property, located in
north-central Peru, in the first quarter of 2001. Barricks wholly-owned
subsidiary signed the Public Deed of the Mining Option Contract with Centromin
on March 28, 2001 and exercised its option to acquire the property in December
2002, with the result that the Company now holds the mining rights to the
property. The rights have no expiry date as long as the annual land payments
(currently $3.00 per hectare) are made. Barrick submitted an Environmental
Impact Study (EIS) for the project in September 2003. Approval of the EIS
by the Ministry of Energy and Mines was received in April 2004. Geology The regional geology of the Alto Chicama area is dominated by a thick
sequence of Mesozoic marine clastic and carbonate sedimentary rocks and
andesitic and dacitic volcanic rocks of the Tertiary Calipuy Group. The
Mesozoic sequence is unconformably overlain by the Tertiary Calipuy volcanic
rocks and cut by numerous small intrusive bodies. The Mesozoic sequence has
been affected by at least one and probably two stages of compressive
deformation during Andean orogenesis. The Las Lagunas Norte mineralization occurs on the 185 square kilometer
Alto Chicama property. The mineralization is of the high sulphidation type. It
is disseminated and hosted in volcanic and sedimentary breccias and tuffs. The
mineralization outcrops and has been defined over an area of 1,600 meters long
by 750 meters wide and up to 300 meters deep. It is open to the south and
southeast. Development Barrick commenced a field program at the Alto Chicama property in March
2001, which included geologic mapping, geochemical sampling, and ground
geophysics and resulted in the identification of areas for drill testing. A
diamond drill program commenced in mid-2001 and identified the Las Lagunas
Norte deposit. During 2002, Barrick initiated development planning for the Lagunas Norte
project, including commencement of the environmental impact analysis process.
The engineering studies performed to date, which include extensive
metallurgical test work, have demonstrated the technical and economic
feasibility of recovering gold from the Lagunas Norte project by open pit
mining and heap leaching methods, similar to those used at Barricks Pierina
mine. Barrick has obtained property rights for the majority of the surface land
which will be affected by the project. However, legal title and certain
possessory interests remain outstanding and are the subject of on-going
applications, negotiations or discussions, which Barrick expects will be
successfully concluded in the ordinary course. Although Barrick has obtained
all of the permits required for exploration, approval of its EIS and, in April
2004, the principal construction permit, additional permits and approvals will
be required for construction and operation. Through its experience in
constructing and operating the Pierina mine, however, Barrick is familiar with
the statutory, regulatory and procedural framework governing the environmental
approval and permitting process for new mining projects in Peru. Based on
Barricks experience to date, the Company expects that any remaining surface
access and other rights -59-




---



##### 



required for development, and all remaining permits and approvals required
for construction and operation, will be obtained in a timely fashion and in the
ordinary course of business. The Lagunas Norte project is being planned as an open pit mine and heap
leaching operation, using equipment, facilities and processes which have been
proven in similar commercial applications throughout the world, including at
Barricks Pierina mine. Permanent electric power is planned to be supplied
from the Peruvian grid, by means of a new power line extended from Trujillo to
the camp facilities. The fresh water requirements of the project are planned
to be supplied by wells, supplemented by surface run-off if required. In September 2003, Barricks Board of Directors approved a construction
budget of $340 million for the project. With the approval of the EIS and the
receipt of the projects principal construction permit, construction is
targeted to begin in the second quarter of 2004, with production expected for
the second half of 2005. The Lagunas Norte project is anticipated to produce
on average 535,000 to 560,000 ounces of gold annually at an expected average
total cash cost of $135 to $145 per ounce over the first decade of the
projects life. As mining is planned to begin on higher grade near surface
deposits, much higher production and lower costs are expected in the in the
earlier years of production. Exploration, Drilling and Analysis As of the end of 2003, 694 exploration holes had been drilled, totaling
156,903 meters of drilling. Initial drill hole spacing of 200 meter centers
has been reduced to 100 meter centers, and completed to 62 meter centers.
Drill hole collars have been surveyed, and down-hole Sperry Sun surveys
conducted on the holes, with data collected approximately every 50 meters.
Core is placed in metal trays at the drill site and transported to the field
camp. Geological logs of all core are then compiled on handheld computers,
using standardized rock codes and descriptive information developed by Barrick
geologists. Changes to the standardized rock codes and other descriptions can
be made only if approved by senior members of the geological staff. Data
recorded on the handheld computers are downloaded to the main server at the end
of every shift, reviewed, field checked if necessary, and then incorporated
into the main database. Sample lengths vary from 0.2 meters to 3.05 meters. A
total of 107,650 samples have been taken for the entire diamond drill program.
The average sample length is 1.3 meters. Samples are prepared on site and fire
assayed at an independent laboratory in Lima, Peru. Industry standard quality
assurance and quality control procedures, including standards, duplicates and
check assays, are employed. An independent consulting firm has reviewed and
approved sampling, sample preparation and quality control procedures at site
and at the independent laboratory. Royalties Under the terms of the agreement with Centromin, Barrick has paid
Centromin an advance contractual royalty of $2 million, which will be a credit
against Centromins retained net smelter royalty of 2.51%. The following diagram sets out the planned design and layout of the
Lagunas Norte project. -60-




---



##### 



(LAGUNAS NORTE PROJECT MAP) Veladero Project General The Veladero property is located in San Juan Province, Argentina,
immediately to the south of the Pascua-Lama property, approximately 320
kilometers northwest of the city of San Juan. Barrick evaluated unified
development opportunities following its merger with Homestake. Based on this
effort, Barrick redesigned the Veladero project, as previously designed by
Homestake, and incorporated exploitation of the Filo Norte deposit (which was
situated within the boundaries of the Pascua-Lama property before the merger)
as part of the Veladero project. The Veladero project is a combination of two
properties: (i) the Veladero mining claims, controlled by an indirect,
wholly-owned, subsidiary of Barrick under the terms of an Exploitation Contract
signed with the Instituto Provincial de Exploraciones y Explotaciones Mineras
de la Provincia de San Juan (IPEEM), the Provincial entity owner of these
mining claims, and ii) Mina Ursulina Sur Mine claim, owned and controlled by
the subsidiary of Barrick. Barrick exercised its option to enter into an
exploitation contract with IPEEM in July 2003, in accordance with the terms of
the previous exploration contract. The project site is located at elevations
of between -61-




---



##### 



4,000 and 4,850 meters above sea level. The area is considered to have a
sub-arid, sub-polar, mountain climate. Access to the property is via a
combination of public highways and an upgraded gravel road. The Veladero project received environmental impact study approval on
November 2003 from the Mining Authority of the San Juan Province. Barricks
plan for the Veladero property provides for an open pit mine using heap
leaching. The Veladero project includes the mining of gold and silver from two
open pits: the Filo Federico pit and the Amable pit. Full construction
commenced in the fourth quarter of 2003, with production expected to commence
in late 2005. Geology The Veladero orebody is an oxide, high sulphidation gold-silver deposit
hosted by a Miocene diatreme-dome complex. Precious metals mineralization
occurs in silicified volcanic breccias at the core of the high sulphidation
alteration and is controlled by stratigraphy, structural trends and elevation. The mineralization in the deposit forms a broad, disseminated, 3 kilometer
long blanket along a N15°W-striking structural trend. The diatreme-dome complex
has intruded along this trend and includes a massive, brecciated core of
heterolithic Vent Facies tuffisite that transitions outward through a Contact
Zone of clast-supported breccias into the Volcanic Sequence country rocks. A
Bedded Tuff unit that represents fragments ejected from the central vent forms
a ring that overlies portions of the Vent Facies and Contact Zone at the
southern end of the deposit. Much of the deposit is covered by up to 150 meters
of colluvium. Development Similar to the Pierina mine in design, the Veladero project is being built
as an open pit mine with a valley-fill heap leach operation and two-stage
crushing process. Full construction commenced in the fourth quarter of 2003,
with production expected to commence in late 2005. Veladeros 2004 field
program will focus on finalizing the improvement of the access road, which was
started in 2003, construction of the camp, the leach pad and other project
facilities. The capital cost for the project is estimated at $460 million,
based on prevailing exchange rates in effect in late 2003. Production at the
Veladero project is anticipated to average between 525,000 and 550,000 ounces
of gold annually at an expected average total cash cost of $155 to $165 per
ounce (based on prevailing exchange rates in effect in late 2003 and excluding
any applicable export duties) over the first decade of the projects life.
Higher production at lower costs are expected during the projects early years
of production. Exploration, Drilling and Analysis At year-end, the drill hole database for the Veladero property contained
747 reverse circulation holes, 110 diamond drill core holes and 539 samples
taken from two underground tunnels. Of these, samples totaling 198,693 meters
from reverse circulation holes, 23,818 meters from diamond drill core holes and
5,153 meters from underground channel cuts were used to estimate the gold and
silver resources. The reverse circulation holes were drilled at an average
spacing of about 60-80 meters within the mineralized zones. All Veladero
samples are prepared and analyzed by external laboratories. The quality
assurance procedures and assay protocols followed by Barrick in connection with
drilling and sampling on the Veladero property have been reviewed by
independent consultants and found to conform to industry accepted quality
control methods. Royalties -62-




---



##### 



Pursuant to legislation passed by the government of the Province of San
Juan, all gold and silver, among other ores, extracted from the property within
the Province of San Juan are subject to a royalty, payable to the government of
the Province of San Juan, of 3% of the value of the ore at the mine mouth.
Under the terms of an agreement between Barricks subsidiaries and IPEEM, a
0.75% mine mouth royalty on the minerals produced from the Veladero property
is payable to IPEEM. This agreement also provides for the payment of a 0.75%
mine mouth royalty on the minerals produced from the Mina Ursulina Sur, on
which the Filo Norte deposit is situated. The following diagram sets out the planned design and layout of the
Veladero project. (VELADERO PROJECT MAP) -63-




---



##### 



Pascua-Lama Project General The Pascua-Lama property is located at the northern end of the El Indio
Belt in Chiles Region III and Argentinas San Juan Province. It straddles the
Chile-Argentina border and is approximately 150 kilometers southeast of the
city of Vallenar, Chile and 300 kilometers northwest of the city of San Juan,
Argentina. The Chilean part of the deposit, which is at an elevation of
approximately 4300 to 5250 meters above sea level, was acquired by Barrick in
1994 and is held through an indirect, wholly-owned, subsidiary of Barrick,
Compañía Minera Nevada Limitada. The Argentinean part of the property was
acquired subsequently and is held through indirect, wholly-owned, subsidiaries
of Barrick, Barrick Exploraciones Argentina S.A. and Exploraciones Mineras
Argentina S.A. The legislatures of Chile and Argentina completed ratification
of a Mining Treaty between the two countries during 2000. The Pascua-Lama
Project is within the area subject to the Mining Treaty and the Project is
entitled to enjoy the benefits to cross-border mining operations that are
granted by the Mining Treaty. High sierras and deep valleys with natural slopes of 20 to 40 degrees
characterize the area of the Pascua-Lama property. Surface material consists
of rock outcrops, scree, and colluvial materials, which are primarily gravel,
sand, silt and clay. Vegetation is sparse. The area is considered to have a
sub-arid, sub-polar, mountain climate. Access to the property will be pursuant
to a combination of public highways and upgraded gravel roads from both Chile
and Argentina. Geology The Pascua-Lama district is located in the high cordillera of Region III,
Chile, in what has been designated as the Eastern Belt of Hydrothermal
Alteration. The gold, silver and copper mineralization at Pascua-Lama is part
of a mineralized acid sulfate system that was structurally controlled within
intrusive and volcanic rock sequences of Upper Paleozoic and Middle Tertiary
age. Basement rocks in the Pascua-Lama area are dominated by a multiphase
granite pluton that may be a slightly younger upper Permian or lower Triassic
phase of the Permian Guanaco Sonso sequence of intrusives and volcanics. In the
deposit area the granite intrudes older diorites and volcanic pyroclastic units
and is, in turn, intruded by diorite stocks and dykes of mid-Tertiary Bocatoma
age. During Tertiary time, all of the previously described rocks were cut by
sub-vertical fault zones and hydrothermal breccias located at complex fault
intersections. Numerous breccia bodies occur in the Esperanza, Quebrada de Pascua and
Lama areas. At the surface, these breccias vary in size from outcrops measured
in centimeters up to hundreds of meters. Typically the breccias show a strong
correlation to zones of intersection of two or more major structural zones.
Breccia Central, the large inter mineral breccia pipe, occurs in the Quebrada
de Pascua area. On the surface this breccia is about 650 meters long and up to
250 meters in width while underground between 200 and 400 meters below the
surface the composite body measures about 550 meters in length and up to 130
meters in width. It extends to at least 700 meters below surface. This well
mineralized breccia pipe is evidence of an explosive hydrothermal event related
to the formation of the Quebrada de Pascua ore deposit. Breccia Oeste and
Breccia Sur are the two large post mineralization breccia pipe complexes
located in the mine area. Oriented north/south along the Breccia Oeste fault
zone in the Esperanza area, the Breccia Oeste pipe measures up to 500 meters
long, up to 150 meters wide, and extends up to 300 meters below surface. -64-




---



##### 



Development The Pascua-Lama mine is being designed as an open pit, centered at an
elevation of 4,600 meters. The project will produce both oxide and sulfide
ores. Both ore types would be put through a processing circuit expected to
consist of crushing, dry grinding and a washing circuit to remove soluble
salts. The oxide ore will then be processed through a straight cyanide
leaching circuit. The sulfide ore will then undergo a flotation process to
produce a smelter saleable concentrate, with the sulfide ore floating tails
being routed to the cyanide leach circuit. Recovered gold and silver from the
leach circuit will be smelted into doré on-site and shipped to an outside
refinery for processing into bullion. Recent work on the Pascua-Lama project has focused on updating its 2001
feasibility study. Pascua-Lama is targeted to commence production in 2009,
subject to completing the update of the feasibility study, Board approval,
final permitting and arranging any project financing. Barrick expects to
complete the updating of the feasibility study in the second half of 2004.
Based on work done to date to update the feasibility study, life-of-mine
average total cash costs are expected to be higher than the $130 per ounce
previously estimated and start-up capital is expected to be higher than the
previously estimated $1.2 billion. The Pascua-Lama project received Environmental Impact Study (EIS)
approval from appropriate authorities in Chile in May 2001. The EIS prepared
for the portion of the mine, mill and tailings storage facility for the project
located in Argentina is being updated to incorporate the cumulative impacts of
the construction and development of the nearby Veladero project. This updated
EIS is planned to be submitted in late 2004. Following the completion of EIS
processes in Chile and Argentina, Barrick will also need to obtain various
sectoral permits for the construction and operation of the project. Based on
Barricks experience with permitting in Chile and in the San Juan Province of
Argentina, Barrick expects such permits to be obtained in the ordinary course. Exploration, Drilling and Analysis At December 31, 2003, Pascua-Lama had proven and probable reserves of 16.9
million ounces of gold and 584 million ounces of contained silver within gold
reserves. The drill hole database for the Pascua-Lama property contains 1,173
reverse circulation holes, 562 diamond drill core holes, 22,302 meters of
underground tunnel samples and 12,774 meters of surface trench samples. Samples
totaling 322,288 meters from reverse circulation holes, 151,265 meters from
diamond drill core holes, 22,302 meters from underground tunnels, and 12,774
meters from surface trenches were used to estimate the gold and silver
resources. The drill hole spacing is variable, approximately 40 meters in the
Esperanza area and 40 to 60 meters in the Quebrada de Pascua area. Pascua-Lama
samples were analyzed for gold, silver and copper by independent laboratories
in Santiago, Chile. The quality assurance procedures and assay protocols
followed by Barrick in connection with drilling and sampling on the Pascua-Lama
property have been reviewed by independent consultants and found to conform to
industry accepted quality control methods. Consistent with Barricks decision
in December 2000 to postpone construction at the Pascua Lama project, no
significant reserve development activity took place during the year. Royalties Pursuant to legislation passed by the government of the Province of San
Juan, all gold and silver, among other ores, extracted from the property within
the Province of San Juan are subject to a royalty, payable to the government of
the Province of San Juan, of 3% of the value of the ore at the mine mouth.
In addition, Barrick is obligated to pay a gross proceeds sliding scale royalty
on gold produced from the Pascua-Lama properties located in Chile ranging from
1.5% to 10% and a 2% net smelter royalty on copper produced from the
properties. In addition, a step-scale 5% or 7.5% gross proceeds royalty on gold -65-




---



##### 



produced and a sliding scale net smelter royalty of 0.5% to 6% on all
product other than gold and silver is payable in respect of certain portions of
the property located in Argentina. The sliding scale and step-scale royalties
on gold increase with rising spot gold prices. EXPLORATION, DEVELOPMENT AND BUSINESS DEVELOPMENT Barrick has traditionally grown its reserve base through a combination of
acquisitions and focused exploration on and around its operating properties.
Barrick believes there is a higher probability of finding new mineral reserves
around existing mines. Once found, these new reserves can be developed more
quickly and profitably due to existing infrastructure. The Companys strategy
is to maintain a geographic mix of projects at different stages in the
exploration sequence. The low gold price environment that existed in recent
years required that major mining companies undertake more early stage
exploration than in the past because junior exploration companies had been less
active, and there are fewer new discoveries to buy or joint ventures to fund.
Accordingly, Barrick is engaged in early stage exploration in four major areas
where it possesses significant infrastructure: Peru, Tanzania, Australia and
Chile/Argentina. This program resulted in the grassroots discovery at the
Lagunas Norte project, in the Alto Chicama District, in Peru. Barrick utilizes state-of-the-art technology to explore deeper and more
effectively. At Goldstrike, Barrick uses new deep-penetrating geophysical
techniques and geological modelling to locate and define new targets. These new
techniques are equally applicable in Tanzania and Australia. Exploration is directed from Barricks head office in Toronto and is
conducted through a number of exploration offices around the world. The Company spent $137 million on its exploration, development and
business development activities in 2003 (2002  $104 million) and is expected
to spend approximately $110 million in 2004. Of the $62 million spent on
exploration in 2003, approximately $19 million was spent in North America,
approximately $19 million was spent in South America and approximately $24 million was
spent in the Australia/Africa region. Development expenditures totaled approximately $54 million, of which $18
million was spent at the Veladero project and $29 million was spent at the
Lagunas Norte project in the Alto Chicama District. Business development costs
totaled approximately $21 million. In connection with its exploration strategy
in Russia, Barrick acquired a 10% equity interest in Highland Gold Mining Ltd.
in October 2003. In January 2004, Barrick acquired an additional equity interest,
bringing its total interest to approximately 17%, in Highland Gold Mining Ltd.
and certain rights with respect to properties in Russia. ENVIRONMENT AND CLOSURE The Companys mining, exploration and development activities are subject
to various levels of federal, provincial and state laws and regulations
relating to protection of the environment, including requirements for closure
and reclamation of mining properties (see Legal Matters - Government Controls
and Regulations). Barrick has a policy of conducting environmental audits of its operations
to assess the effectiveness of the existing organization, its resources, and
supporting management systems to adhere to policies, guidelines, and procedures
and adopted codes of practice, maintain compliance, reduce risk, and manage
liabilities. The Companys policy is to perform environmental audits on a
regular and scheduled basis. In practice this typically results in
environmental audits at each operating mine every second year and at -66-




---



##### 



least once every five years for other properties. A committee of Barricks
Board of Directors reviews the Companys environmental policies and programs
and oversees Barricks environmental performance. During 2003, all of the Companys operations were in compliance in all
material respects with applicable corporate standards and environmental
regulations and there were no material notices of violations, fines or
convictions relating to environmental matters at any of the Companys
operations. The Company has estimated future site reclamation and closure
obligations, which it believes will meet current regulatory requirements, which
has been accrued to December 31, 2003. As of January 1, 2003, Barrick adopted
FAS 143 Accounting for Asset Retirement Obligations, which addresses financial
accounting and reporting for obligations associated with the retirement of
tangible long-lived assets and the associated asset retirement costs. For a
summary of the impact of FAS 143, please see Notes 2 and 20 of the Notes to the
Consolidated Financial Statements for the year ended December 31, 2003. The Companys operating facilities have been designed to mitigate
environmental impacts. The operations have processes, procedures or facilities
in place to manage substances that have the potential to be harmful to the
environment. For instance, certain of the Companys operating properties
handle ore or rock which has the potential to be acid generating (Goldstrike,
Pierina, Bulyanhulu, Eskay Creek and Hemlo), use cyanide in the processing of
gold operations (Goldstrike, Pierina, Round Mountain, Marigold, Hemlo,
Holt-McDermott, Kalgoorlie and Yilgarn), or produce mercury as a co-product of
the production process (Goldstrike, Pierina, Round Mountain, and Hemlo). The
Company has implemented programs to manage the handling of ore and rock to
reduce the potential for acid rock drainage. Such procedures include
segregation of potentially acid generating material, containment systems for
the collection and treatment of drainage, and reclamation and closure steps
designed to minimize water infiltration and oxygen flux. Facilities that use
cyanide are designed and constructed to prevent process solutions from being
released to surface water or groundwater. Typically, these facilities include
leak detection systems and have the ability to collect and treat seepage that
may occur. The tailings storage facilities are typically fenced and process
ponds are typically netted or other procedures implemented to deter access.
Site specific management procedures for mercury handling, monitoring and
transportation exist at each of the operations that produce mercury as a
co-product. Further, employees receive training in the safe use and proper
management of cyanide, mercury and other hazardous materials. Grants Tailings The Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA) imposes heavy liabilities on persons who own or operate facilities
from which hazardous substances have been released. Pursuant to CERCLA, the
United States Environmental Protection Agency publishes a National Priorities
List (NPL) of such facilities. A closed uranium mill site acquired by Barrick in the Homestake merger,
near Grants, New Mexico, is listed on the NPL. The EPA asserted that leachate
from the tailings storage facilities contaminated a shallow aquifer used by
some of the residents in adjacent residential subdivisions. Homestake paid the
cost of extending the municipal water supply to the subdivisions. Homestake
also has operated a water injection and collection system since 1976 that has
significantly improved the quality of the aquifer and since 1999 has operated a
water treatment facility for treating the groundwater adjacent to the tailings
storage facility. The estimated costs of continued remediation are included in
the asset retirement obligation recorded by the Company. Homestake has settled
with the EPA concerning its oversight costs for this site. Under Nuclear Regulatory Commission (NRC) regulations, the
decommissioning of the tailings storage facilities is in accordance with the
provisions of the facilitys license. The uranium mill facility license sets
the closure of the two tailings impoundments as 2004 and 2013, subject to
extension under -67-




---



##### 



certain circumstances. The NRC and EPA signed a Memorandum of
Understanding in 1993 which has established the NRC as the oversight and
enforcement agency for decommissioning and reclamation of the site. Mill
decommissioning was completed in 1994 and final closure of the large tailings
storage facility is scheduled for completion in 2013. During 2003, Barricks
expenditures at the Grants facility were $1.4 million. For 2004, Barricks
expenditures are planned at $2.5 million. Title X of the Energy Policy Act of 1992 (the Energy Policy Act) and
subsequent amendments to the Energy Policy Act authorized appropriations of
$335 million to cover the federal governments share of certain costs of
reclamation, decommissioning and remedial action for by-product material
(primarily tailings) generated by certain licensees as an incident of uranium
sales to the federal government. Reimbursement is subject to compliance with
regulations of the Department of Energy (DOE), which were issued in 1994.
Pursuant to the Energy Policy Act, the DOE is responsible for 51.2% of the past
and future costs of reclaiming the Grants site in accordance with NRC license
requirements. In 1983, the State of New Mexico notified the Company that it intends to
pursue claims against Homestake for natural resource damages resulting from the
Grants site. The State has taken no action to pursue the claims. LEGAL MATTERS Government Controls and Regulations The Companys business is subject to various levels of government controls
and regulations, which are supplemented and revised from time to time. In
October 2003, Peru enacted legislation governing mine closure, which, among
other things, requires that closure plans for existing operations be submitted
to the Ministry of Energy and Mining. The enabling regulations for this
legislation have not yet been promulgated. Barrick expects to comply with such
regulations, when promulgated, in respect of its operations in Peru. In the
first quarter of 2004, a report (the Cooke Report) regarding the effects of
mining on the Kalgoorlie, Western Australia, area was presented in the
Parliament of Western Australia. The Cooke Report makes several
recommendations, some of which, if implemented by the government of Western
Australia, could have an impact on Barricks Kalgoorlie operations. Barrick is unable to predict what additional legislation or revisions may
be proposed that might affect its business or when any such proposals, if
enacted, might become effective. Such changes, however, could require increased
capital and operating expenditures and could prevent or delay certain
operations by the Company. The various levels of government controls and regulations address, among
other things, the environmental impact of mining and mineral processing
operations. With respect to the regulation of mining and processing,
legislation and regulations in various jurisdictions establish performance
standards, air and water quality emission standards and other design or
operational requirements for various components of operations, including health
and safety standards. Legislation and regulations also establish requirements
for decommissioning, reclamation and rehabilitation of mining properties
following the cessation of operations, and may require that some former mining
properties be managed for long periods of time. In addition, in certain
jurisdictions, the Company is subject to foreign investment controls and
regulations governing its ability to remit earnings abroad. The Company believes that it is in substantial compliance with all
material current government controls and regulations at each of its properties. -68-




---



##### 



Litigation On April 30, 1998, Barrick was added as a defendant in a class action
lawsuit initiated against Bre-X Minerals Ltd., certain of its directors and
officers or former directors and officers and others in the United States
District Court for the Eastern District of Texas, Texarkana Division. The class
action alleges, among other things, that statements made by Barrick in
connection with its efforts to secure the right to develop and operate the
Busang gold deposit in East Kalimantan, Indonesia were materially false and
misleading and omitted to state material facts relating to the preliminary due
diligence investigation undertaken by Barrick in late 1996. On July 13, 1999,
the Court dismissed the claims against Barrick and several other defendants on
the grounds that the plaintiffs had failed to state a claim under United States
securities laws. On August 19, 1999, the plaintiffs filed an amended complaint
restating their claims against Barrick and certain other defendants and on June
14, 2000 filed a further amended complaint, the Fourth Amended Complaint. On
March 31, 2001, the Court granted in part and denied in part Barricks Motion
to Dismiss the Fourth Amended Complaint. As a result, Barrick remains a
defendant in the case. Barrick believes that the remaining claims against it
are without merit. Barrick filed its formal answer to the Fourth Amended
Complaint on April 27, 2001 denying all relevant allegations of the plaintiffs
against Barrick. Discovery in the case has been stayed by the court pending
its decision on whether or not to certify the case as a class action. On March
31, 2003, the U.S. District Court for the Eastern District Court of Texas,
Texarkana Division denied all pending motions of the plaintiffs seeking to
certify a class action in the lawsuit against several defendants, including
Barrick, related to Bre-X Minerals Ltd. Under U.S. rules, the plaintiffs have
the right to appeal the Courts decision declining to certify their lawsuit as
a class action, but plaintiffs have not filed such an appeal. On June 2, 2003,
the plaintiffs submitted a proposed trial and case management plan, suggesting
that such plan would cure the defects in the plaintiffs motions to certify the
class. The Court has taken no action with respect to the proposed plan. The
plaintiffs case against the defendants may now proceed in due course with
respect to the specific claims of the plaintiffs named in the lawsuit, but not
on behalf of a class of plaintiffs. Having failed to certify the case as a
class action, we believe that the likelihood of any of the named plaintiffs
succeeding against Barrick with respect to their claims for securities fraud is
remote. On January 7, 2003, Barrick was served with a Complaint for Injunctive
Relief by Blanchard and Company, Inc. (Blanchard), and Herbert Davies
(Davies). The complaint, which is pending in the U. S. District Court for
the Eastern District of Louisiana, also names J. P. Morgan Chase & Company
(J.P. Morgan) as a defendant, along with an unspecified number of additional
defendants to be named later. The complaint alleges that Barrick and bullion
banks with which Barrick entered into spot deferred contracts have manipulated
the price of gold, in violation of U.S. antitrust laws and the Louisiana Unfair
Trade Practices and Consumer Protection Law. Blanchard alleges that it has
been injured as a seller of gold due to reduced interest in gold as an
investment. Davies, a customer of Blanchard, alleges injury due to the reduced
value of his gold investments. The complaint seeks damages and an injunction
terminating certain of Barricks trading agreements with J. P. Morgan and other
bullion banks. In September 2003 the Court issued an order granting in part,
and denying in part, Barricks motions to dismiss this action. Discovery has
commenced in the case. A trial date has been tentatively set for February
2005, but it is likely that the date will be deferred. Barrick intends to
defend the action vigorously. On March 5, 2003, Barrick commenced legal proceedings against Blanchard
and certain other defendants in the Ontario Superior Court of Justice. The
proceedings pertain to a series of false and defamatory statements that
Blanchard and its CEO, Donald W. Doyle, Jr., have published since mid-December
2002 concerning Barrick. In the action, Barrick seeks damages in the amount of
C$100 million, aggravated, exemplary and punitive damages in the amount of
C$100 million, a permanent injunction restraining the defendants from
repeating, disseminating, publishing or causing to be re-published the
defamatory statements complained of, and a mandatory injunction requiring the
defendants to remove or cause to be removed all of their defamatory statements
from websites or other locations on -69-




---



##### 



the Internet. The defendants filed a Statement of Defence on February 17,
2004 denying any liability. Discoveries are required to be completed by
October 22, 2004. A trial date has not yet been set. 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 on behalf of the same proposed class of Barrick
shareholders 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 Consolidated and/or Amended Complaint on November 5, 2003. On January
14, 2004 Barrick filed a motion to dismiss the Wagner complaint. The
plaintiffs filed an opposition to Barricks motion to dismiss on March 12,
2004. On April 2, 2004, Barrick filed its reply to the plaintiffs opposition.
Barrick intends to defend the action vigorously. On December 27, 2002, one of Barricks Peruvian subsidiaries received an
income tax assessment of $32 million, excluding interest and penalties, from
the Peruvian tax authority SUNAT. The tax assessment relates to a recently
completed tax audit of Barricks Pierina mine for the 1999-2000 fiscal years.
The assessment mainly relates to the revaluation of the Pierina mining
concession and associated tax basis. Under the valuation proposed by SUNAT,
the tax basis of Pierina assets would change from what Barrick had previously
assumed with a resulting increase in current and deferred income taxes. While
Barrick believes the tax assessment is incorrect and will appeal the decision,
the full life of mine effect on the Companys current and deferred income tax
liabilities of $141 million is recorded at December 31, 2002, as well as other
payments of about $21 million due for periods through 2003. The case is pending before Perus Tax Court. If the case is not resolved
in our favour, Barrick will consider all available remedies, including judicial
appeals. If Barrick is successful on appeal and its original asset valuation
is confirmed as the appropriate tax basis of assets, the Company would benefit
from a $141 million reduction in tax liabilities recorded at December 31, 2002.
The effect of this contingent gain, if any, will be recorded in the period the
contingency is resolved. In the event of an unfavorable Tax Court ruling, Peruvian law is unclear
with respect to whether it is necessary to make payment of the disputed current
taxes for the years covered by the tax assessment, pending the outcome of an
appeal process, a process which can take several years. Currently, the amount
of income taxes potentially payable is $80 million. In the event of an
unfavorable Tax Court ruling, Barrick will consider taking all available action
to prevent payment of the amount in dispute until the appeal process is
complete. Barrick has not provided for $57 million of potential interest and
penalties assessed in the audit. Even if the tax assessment is upheld, Barrick
believes that it will prevail on the interest and penalties part, because the
assessment runs counter to applicable law and previous Peruvian tax audits. The
potential amount of interest and penalties, will increase over time while
Barrick contests the tax assessment. A liability for interest and penalties
will only be recorded should it become probable that SUNATs position on
interest and penalties will be upheld, or if the Company exhausts its appeals. Opponents of Barricks Cowal project continue to pursue various claims,
legal proceedings and complaints against the project and the Companys
compliance with its permits and licenses. Such actions have the potential to
affect the timing of the mine construction schedule. Barrick has and will
continue to vigorously defend such actions. -70-




---



##### 



In 2001, an action was filed in Chile by Rudolfo Francisco Villar against
Barricks Chilean subsidiary, Compania Minera Nevada Limitada (CMN), claiming
that it had failed to fully honor an agreement to purchase certain mining
claims of Villar located near the Pascua Lama project. Villars suit seeks to
rescind the purchase agreement with CMN or, alternatively, damages of
approximately US$ 1 million. At the outset of the litigation, Villar obtained
an ex parte injunction barring CMN from selling or encumbering the claims while
the suit is pending before the Chilean courts. Barrick intends to vigorously
defend the action, which it believes is without merit. Barrick and its subsidiaries are, from time to time, involved in various
claims, legal proceedings and complaints arising in the ordinary course of
business. Barrick is also subject to reassessment for income and mining taxes
for certain years. Barrick does not believe that adverse decisions in any
pending or threatened proceedings related to any potential tax assessments or
other matters, or any amount which it may be required to pay by reason thereof,
will have a material adverse effect on the financial condition or future
results of operations of Barrick. RISK FACTORS The risks described below are not the only ones facing Barrick.
Additional risks not currently known to Barrick or that Barrick currently deems
immaterial may also impair Barricks operations. Gold price volatility Barricks business is strongly affected by the world market price of gold.
Gold prices can be subject to volatile price movements, which can be material
and can occur over short periods of time and are affected by numerous factors,
all of which are beyond Barricks control. These include industry factors such
as: industrial and jewelry demand; the level of demand for gold as an
investment; central bank lending, sales and purchases of gold; speculative
trading; and costs of and levels of global gold production by producers of
gold. Gold prices may also be affected by macroeconomic factors, including:
expectations of the future rate of inflation; the strength of, and confidence
in, the US dollar, the currency in which the price of gold is generally quoted,
and other currencies; interest rates; and global or regional, political or
economic uncertainties. If the world market price of gold were to drop and the prices realized by
Barrick on gold sales were to decrease significantly and remain at such a level
for any substantial period, Barricks profitability and cash flow would be
negatively affected. In such circumstances, Barrick may determine that it is
not economically feasible to continue commercial production at some or all of
its operations or the development of some or all of its current projects, which
could have an adverse impact on Barricks financial performance and results of
operations. Barrick may curtail or suspend some or all of its exploration
activities, with the result that depleted reserves are not replaced. In
addition, the market value of Barricks gold inventory may be reduced and
existing reserves may be reduced to the extent that ore cannot be mined and
processed economically at the prevailing prices. Price volatility of other commodities The profitability of Barricks business is also affected by the market
prices of other commodities produced as by-products at Barricks mines, such as
silver and copper, as well as commodities which are consumed or otherwise used
in connection with Barricks operations, such as diesel fuel and electricity.
Prices of such commodities also can be subject to volatile price movements,
which can be material and can occur over short periods of time, and are
affected by factors that are beyond Barricks control. If Barricks proceeds
from the sale of these by-products were to decrease significantly, or the costs
of certain commodities consumed or otherwise used in connection with Barricks
operations were to -71-




---



##### 



increase significantly, and remain at such levels for a substantial
period, Barrick may determine that it is not economically feasible to continue
commercial production at some or all of Barricks operations or the development
of some or all of Barricks current projects, which could have an adverse
impact on Barrick as described under   Gold price volatility above. Mining risks and insurance risks The mining industry is subject to significant risks and hazards, including
environmental hazards, industrial accidents, unusual or unexpected geological
conditions, labour force disruptions, unavailability of materials and
equipment, weather conditions, pit wall failures, rock bursts, cave-ins,
flooding, seismic activity, water conditions and gold bullion losses, most of
which are beyond Barricks control. These risks and hazards could result in:
damage to, or destruction of, mineral properties or producing facilities;
personal injury or death; environmental damage; delays in mining; and monetary
losses and possible legal liability. As a result, production may fall below
historic or estimated levels and Barrick may incur significant costs or
experience significant delays that could have a material adverse effect on
Barricks financial performance, liquidity and results of operation. Barrick maintains insurance to cover some of these risks and hazards. The
insurance is maintained in amounts that are believed to be reasonable depending
on the circumstances surrounding each identified risk. No assurance can be
given that such insurance will continue to be available, or that it will be
available at economically feasible premiums, or that Barrick will maintain such
insurance. Barricks property, business interruption, liability and other
insurance may not provide sufficient coverage for losses related to these or
other risks or hazards. In addition, Barrick does not have coverage for certain
environmental losses and other risks, as such coverage cannot be purchased at a
commercially reasonable cost. The lack of, or insufficiency of, insurance
coverage could adversely affect Barricks cash flow and overall profitability. Mineral reserves and resources The mineral reserves and mineral resources are estimates, and no assurance
can be given that the estimated reserves and resources are accurate or that the
indicated level of gold will be produced. Such estimates are, in large part,
based on interpretations of geological data obtained from drill holes and other
sampling techniques. Actual mineralization or formations may be different from
those predicted. Further, it may take many years from the initial phase of
drilling before production is possible, and during that time the economic
feasibility of exploiting a discovery may change. Fluctuations in the price of gold or by-product minerals, such as silver
and copper, may render mineral reserves containing relatively lower grades of
gold mineralization uneconomic. Moreover, short-term operating factors relating
to the mineral reserves, such as the need for orderly development of orebodies
or the processing of new or different ore grades, may cause mineral reserves to
be reduced or Barrick to be unprofitable in any particular accounting period. Estimated reserves may have to be recalculated based on actual production
experience. Market price fluctuations of gold and silver, as well as increased
production costs or reduced recovery rates, may render the present proven and
probable reserves unprofitable to develop at a particular site or sites for
periods of time. Any of these factors may require Barrick to reduce its mineral reserves
and resources, which could have a negative impact on Barricks financial
results. Failure to obtain necessary permits or government approvals could also
cause Barrick to reduce its reserves. -72-




---



##### 



There is no assurance that Barrick will obtain indicated levels of
recovery of gold or the prices assumed in determining gold reserves. Production and cost estimates Barrick prepares estimates of future production and cash costs of
production for particular operations. No assurance can be given that such
estimates will be achieved. Failure to achieve production or cost estimates or
material increases in costs could have an adverse impact on Barricks future
cash flows, forward sales program, profitability, results of operations and
financial condition. Barricks actual production and cash costs may vary from estimates for a
variety of reasons, including: actual ore mined varying from estimates of
grade, tonnage, dilution and metallurgical and other characteristics;
short-term operating factors relating to the ore reserves, such as the need for
sequential development of orebodies and the processing of new or different ore
grades; revisions to mine plans; risks and hazards associated with mining;
natural phenomena, such as inclement weather conditions, floods, and
earthquakes; and unexpected labour shortages or strikes. Cash costs of
production may also be affected by a variety of factors, including: changing
waste-to-ore ratios, ore grade metallurgy, labour costs, the cost of supplies
and services (for example, power and fuel) and currency exchange rates. Accounting Policies The accounting policies and methods utilized by Barrick determine how it
reports its financial condition and results of operations, and they may require
management of the Company to make estimates or rely on assumptions about
matters that are inherently uncertain. Barricks financial condition and
results of operations are reported using accounting policies and methods
prescribed by U.S. GAAP. In certain cases, U.S. GAAP allows accounting
policies and methods to be selected from two or more alternatives, any of which
might be reasonable, yet result in Barrick reporting materially different
amounts. Management of Barrick exercises judgment in selecting and applying
accounting policies and methods to ensure that, while U.S. GAAP compliant, they
reflect managements best judgment of the most appropriate manner in which to
record and report the Companys financial condition and results of operations.
Significant accounting policies to the Consolidated Financial Statements are
described in Note 2 to such statements. Internal Controls Internal controls over financial reporting are procedures designed to
provide reasonable assurance that transactions are properly authorized, assets
are safeguarded against unauthorized or improper use, and transactions are
properly recorded and reported. A control system, no matter how well designed
and operated, can provide only reasonable, not absolute, assurance with respect
to the reliability of financial reporting and financial statement preparation. Exploration Barrick must continually replace gold reserves depleted by production to
maintain production levels over the long term. Reserves can be replaced by
expanding known orebodies or by locating new deposits. Gold exploration is
highly speculative in nature. Barricks exploration projects involve many risks
and are frequently unsuccessful. Once a site with gold mineralization is
discovered, it may take 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 construct mining and processing facilities.
As a result of these uncertainties, there is no assurance that current or
future exploration programs will be successful. There is a risk that depletion
of -73-




---



##### 



reserves will not be offset by discoveries. As a result, the mineral base
of Barrick may decline if reserves are mined without adequate replacement and
Barrick may not be able to sustain production beyond the current mine lives,
based on current production rates. Development Barricks ability to sustain or increase its present levels of gold
production is dependent in part on the successful development of new orebodies
and/or expansion of existing mining operations. The economic feasibility of
development projects is based upon many factors, including: the accuracy of
reserve estimates; metallurgical recoveries; capital and operating costs of
such projects; and future gold prices. Development projects are also subject to
the successful completion of feasibility studies, issuance of necessary
governmental permits, acquisition of satisfactory surface or other land rights
and availability of adequate financing. Development projects have no operating history upon which to base
estimates of future cash flow. Substantial expenditures are required to
develop mineral projects. It is possible that actual costs and economic
returns may differ materially from Barricks estimates or that Barrick could
fail to obtain the governmental approvals necessary for the operation of a
project. It is not unusual in the mining industry for new mining operations to
experience unexpected problems during the start-up phase, resulting in delays
and requiring more capital than anticipated. Environmental, health and safety regulations; Permits Barricks domestic and foreign mining and processing operations and
exploration activities are subject to extensive laws and regulations governing
the protection of the environment, waste disposal, worker safety, mine
development and protection of endangered and protected species. Delays in
obtaining or failure to obtain government permits and approvals may adversely
affect Barricks operations, including its ability to explore or develop
properties, commence production or continue operations. Barrick has made, and
expects to make in the future, significant expenditures to comply with such
laws and regulations. Future changes in applicable laws, regulations and
permits or changes in their enforcement or regulatory interpretation could have
an adverse impact on Barricks financial condition or results of operations. Failure to comply with applicable environmental and health and safety laws
and regulations may result in injunctions, fines, suspension or revocation of
permits and other penalties. There can be no assurance that Barrick has been
or will at all times be in full compliance with all such laws and regulations
and with its environmental and health and safety permits or that Barrick has
all required permits. The costs and delays associated with compliance with
these laws, regulations and permits could stop Barrick from proceeding with the
development of a project or the operation or further development of a mine or
increase the costs of development or production and may materially adversely
affect Barricks business, results of operations or financial condition.
Barrick may also be held responsible for the costs of addressing contamination
at the site of current or former activities or at third party sites. Barrick
could also be held liable for exposure to such hazardous substances. The costs
associated with such responsibilities and liabilities may be significant. In the United States and Canada, for example, Barrick is required to
submit, for government approval, a reclamation plan for each of its mining
sites that establishes Barricks obligation to reclaim property after minerals
have been mined from the site. In some jurisdictions, bonds or other forms of
financial assurances are required for security for these reclamation
activities. Barrick may incur significant costs in connection with these
reclamation activities, which may materially exceed the provisions Barrick has
made for such reclamation. In addition, the unknown nature of possible future
additional regulatory -74-




---



##### 



requirements and the potential for additional reclamation activities
create further uncertainties related to future reclamation costs, which may
have a material adverse effect on Barricks financial condition, liquidity or
results of operations. Barrick is involved in various investigative and
remedial actions. There can be no assurance that the costs of such actions
would not be material. When a previously unrecognized reclamation liability
becomes known or a previously estimated cost is increased, the amount of that
liability or additional cost is expensed, which may materially reduce net
income in that period. Foreign investments and operations Barrick conducts mining, development and exploration activities in many
countries, including the United States, Canada, Australia, Argentina, Chile,
Peru, Russia and Tanzania. Mining investments are subject to the risks normally
associated with any conduct of business in foreign countries including:
uncertain political and economic environments; war and civil disturbances;
changes in laws or policies of particular countries, including those relating
to taxation, royalties, imports, exports, duties and currency, some of which have been recently discussed in Chile, Peru and Argentina; risk of loss due to
disease and other potential endemic health issues; delays in
obtaining or the inability to obtain necessary governmental permits; currency
fluctuations; restrictions on the ability of local operating companies to sell
gold offshore for U.S. dollars, and on the ability of such companies to hold
U.S. dollars or other foreign currencies in offshore bank accounts; import and
export regulations, including restrictions on the export of gold; limitations
on the repatriation of earnings; and increased financing costs. These risks may limit or disrupt projects, restrict the movement of funds
or result in the deprivation of contract rights or the taking of property by
nationalization or expropriation without fair compensation, and may materially
adversely affect Barricks financial position or results of operations.
Furthermore, in the event of a dispute arising from Barricks activities in
Argentina, Chile, Peru or Tanzania, Barrick may be subject to the exclusive
jurisdiction of courts outside North America and Australia, which could
adversely affect the outcome of the dispute. Currency fluctuations Currency fluctuations may affect the costs Barrick incurs at its
operations and may affect Barricks operating results and cash flows. Gold is
sold throughout the world based principally on the US dollar price, but a
portion of Barricks operating expenses are incurred in local currencies. The
appreciation of non-US dollar currencies against the US dollar can increase the
costs of gold production at Barricks mines located outside the United States,
making such mines less profitable. Barrick enters into currency hedging
contracts to mitigate the impact on operating costs of the appreciation of
non-US dollar currencies against the US dollar. This could result in Barrick
failing to benefit to some degree if the US dollar appreciates in value
relative to non-US dollar currencies. Also, there can be no assurance that
Barrick will continue these hedging activities. See   Use of derivatives. Use of derivatives Barrick uses certain derivative products to manage the risks associated
with gold price volatility, changes in commodity prices, interest rates,
foreign currency exchange rates and energy prices. The use of derivative
instruments involves certain inherent risks including: (a) credit risk - the
risk of default on amounts owing to Barrick by the counterparties with which
Barrick has entered into such transaction; (b) market liquidity
risk  risk
that Barrick has entered into a derivative position that cannot be closed out
quickly, by either liquidating such derivative instrument or by establishing an
offsetting position; (c) mark to market risk  the risk that, in respect of
certain derivative products, an adverse change in market prices for
commodities, currencies or interest rates will result in Barrick recognizing a
loss in respect of such derivative products. -75-




---



##### 



For a description of the steps Barrick has taken to mitigate these risks,
see Financial Risk Management  Forward Sales Program. If the gold price
rises above the price at which future production has been committed under
Barricks gold forward sales program, Barrick may have an opportunity loss.
However, if the gold price falls below that committed price, revenues will be
protected to the extent of such committed production. There can be no
assurance that Barrick will be able to achieve in the future realized prices
for gold that exceed the spot price as a result of its forward sales program.
Barrick has announced a no-hedge gold policy such that it will not add any
new ounces to its gold forward sales program and it will pursue opportunities
to reduce its gold forward sales position. No assurance can be given as to
when such goal will be achieved or the costs of achieving such goal. Interest rates and gold lease rates A significant, prolonged decrease in interest rates could have a material
adverse impact on the interest earned on Barricks cash balances. A
significant, prolonged decrease in interest rates and/or increase in gold lease
rates could have a material adverse impact on the difference between the
forward gold price over the current spot price (contango), and, ultimately,
the realized price under forward gold sales contracts entered into by Barrick.
The Companys interest rate exposure mainly relates to the mark to market value
of derivative instruments, the fair value and ongoing payments under gold lease
rate and US dollar interest-rate swaps, floating-rate debt and interest
receipts on the Companys cash balances. Title to properties The validity of mining claims, which constitute most of Barricks property
holdings, can be uncertain and may be contested. Although Barrick has attempted
to acquire satisfactory title to its properties, some risk exists that some
titles, particularly title to undeveloped properties, may be defective. Competition Barrick competes with other mining companies and individuals for mining
claims and leases on exploration properties and the acquisition of gold mining
assets. Barrick also competes with other mining companies to attract and retain
key executives and employees. Barrick cannot assure that it will continue to
be able to compete successfully with Barricks competitors in acquiring such
properties and assets or in attracting and retaining skilled and experienced
employees. Acquisitions and Integration From time to time Barrick examines opportunities to acquire additional
mining assets and businesses. Any acquisition that Barrick may choose to
complete may be of a significant size, may change the scale of Barricks
business and operations, and may expose Barrick to new geographic, political,
operating, financial and geological risks. Barricks success in its
acquisition activities depends on its ability to identify suitable acquisition
candidates, negotiate acceptable terms for any such acquisition, and integrate
the acquired operations successfully with those of Barrick. Any acquisitions
would be accompanied by risks. For example, there may be a significant change
in commodity prices after Barrick has committed to complete the transaction and
established the purchase price or exchange ratio; a material orebody may prove
to be below expectations; Barrick may have difficulty integrating and
assimilating the operations and personnel of any acquired companies, realizing
anticipated synergies and maximizing the financial and strategic position of
the combined enterprise, and maintaining uniform standards, policies and
controls across the organization; the integration of the acquired business or
assets may disrupt Barricks ongoing business and its relationships with
employees, customers, suppliers and contractors; and the acquired business or
assets may have unknown liabilities which may be significant. In the event
that Barrick chooses to raise debt capital to finance any such acquisition,
Barricks leverage will be increased. -76-




---



##### 



If Barrick chooses to use equity as consideration for such acquisition,
existing shareholders may suffer dilution. Alternatively, Barrick may choose
to finance any such acquisition with its existing resources. There can be no
assurance that Barrick would be successful in overcoming these risks or any
other problems encountered in connection with such acquisitions. Employee Relations Barricks ability to achieve its future goals and objectives is dependent,
in part, on maintaining good relations with its employees. A prolonged labor
disruption at any of its material properties could have a material adverse
impact on its operations as a whole. Litigation Barrick is currently subject to litigation and may be involved in disputes
with other parties in the future which may result in litigation. If Barrick is
unable to resolve these disputes favourably, it may have a material adverse
impact on Barricks financial performance, cash flow and results of operations. SELECTED CONSOLIDATED FINANCIAL INFORMATION Reference is made to page 114 of the 2003 Annual Report to shareholders,
which is incorporated by reference into this Annual Information Form, which
should be read together with the Companys Consolidated Financial Statements
(US GAAP) for the year ended December 31, 2003 and the Companys Consolidated
Financial Statements (Canadian GAAP) for the year ended December 31, 2003. US GAAP For the years ended December 31, 2003, 2002 and 2001
(in millions of US dollars, except per share data) 2003
    
    2002
    
    2001Sales
    
    $
    2,035
    
    
    $
    1,967
    
    
    $
    1,989Net income (loss)
    
    $
    200
    
    
    $
    193
    
    
    $
    96Net income (loss) per shareBasic
    
    $
    0.37
    
    
    $
    0.36
    
    
    $
    0.18Diluted
    
    $
    0.37
    
    
    $
    0.36
    
    
    $
    0.18Total assets
    
    $
    5,362
    
    
    $
    5,261
    
    
    $
    5,202Total
long-term debt (1)
    
    $
    760
    
    
    $
    781
    
    
    $
    802Cash dividends per common share
    
    $
    0.22
    
    
    $
    0.22
    
    
    $
    0.22Operating statisticsGold production (thousands of ounces)
    
    
    5,510
    
    
    
    5,695
    
    
    
    6,124Total cash operating costs per ounce
    
    $
    189
    
    
    $
    177
    
    
    $
    162Average price realized per ounce of gold sold
    
    $
    366
    
    
    $
    339
    
    
    $
    317Average spot price of gold per ounce
    
    $
    363
    
    
    $
    310
    
    
    $
    271
 -77-




---



##### 



(1)
    
    Includes current portion of long-term debt.  MANAGEMENTS DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS Reference is made to the Managements Discussion and Analysis of Financial
and Operating Results of the Company (US GAAP) for the year ended December 31,
2003 which is incorporated by reference into this Annual Information Form. CONSOLIDATED FINANCIAL STATEMENTS Reference is made to the Companys Consolidated Financial Statements for
the year ended December 31, 2003 (US GAAP) which is incorporated by reference
into this Annual Information Form. DIVIDEND POLICY In each of 2002 and 2003, Barrick paid a total cash dividend of $0.22 per
share  $0.11 in mid-June and $0.11 in mid-December. The amount and timing of
any dividends is within the discretion of Barricks Board of Directors. The
Board of Directors reviews the dividend policy semi-annually based on the cash
requirements of Barricks operating assets, exploration and development
activities, as well as potential acquisitions, combined with the current and
projected financial position of Barrick. DIRECTORS AND OFFICERS OF THE COMPANY Reference is made to the sections Election of Directors and Statement
of Corporate Governance Practices on pages 5-11 of the Management Information
Circular and Proxy Statement of the Company dated March 8, 2004 for information
regarding directors of the Company and the Committees of the Board which pages
are incorporated herein by reference. As of April 30, 2004, directors and
executive officers of Barrick as a group beneficially own, directly or
indirectly, or exercise control or direction over, approximately 0.3 % of the
outstanding common shares of Barrick. One director of the Company, Mr. J.L. Rotman, has been a director of other
companies, which during the past ten years have been the subject of a cease
trade or similar order while Mr. Rotman was acting as a director of such
companies. Livent Inc. was the subject of a cease trade order issued by the
Ontario Securities Commission on August 7, 1998 following the discovery of
accounting irregularities. In November 1998 Livent Inc. filed a voluntary
petition under Chapter 11 of the U.S. Bankruptcy Code and filed for protection
under the Companies Creditors Arrangement Act in Canada. The cease trade order
was revoked effective November 20, 1998 and Mr. Rotman resigned as a director
of Livent Inc. on September 29, 1999. Paragon Entertainment Corporation made a
filing under the Companies Creditors Arrangement Act in April 1998; Mr. Rotman
resigned as a director of Paragon in June 1998. Officers of the Company The following are the officers of the Company as at May 15,2004: -78-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsPeter Munk (76)
Toronto, Ontario
    
    Chairman and Director
(1984)
    
    Chairman of the Company; Chairman of
Trizec Properties, Inc. (real estate)
and Chairman and Chief Executive
Officer, Trizec Canada Inc. (real
estate); prior to May 2002, Chairman,
TrizecHahn Corporation (real estate).Gregory C. Wilkins (48)
Toronto, Ontario
    
    President and Chief
Executive Officer
(2003)and Director
(1991)
    
    President and Chief Executive Officer of
the Company; prior to February 2003,
Corporate Director; prior to May 2002,
Vice-Chairman, TrizecHahn Corporation
(real estate); prior to March 2001,
President and Chief Operating Officer,
TrizecHahn Corporation.Jack E. Thompson (54)
Alamo, California
    
    Vice Chairman and
Director (2001)
    
    Vice Chairman of the Company; prior to
December 2001, Chairman and Chief
Executive Officer of Homestake Mining
Company (gold mining).John K. Carrington (60)
Thornhill, Ontario
    
    Vice Chairman (1995)
    
    Vice Chairman of the Company; prior to
February 2004, Vice Chairman and Chief
Operating Officer of the Company; prior
to March 1999, Chief Operating Officer
of the Company.Tye W. Burt (47)
Toronto, Ontario
    
    Vice Chairman and
Executive Director,
Corporate Development
(2002)
    
    Vice Chairman and Executive Director,
Corporate Development of the Company;
prior to February 2004, Executive
Director, Corporate Development of the
Company; prior to December 2002,
Principal, Harris Partners Limited
(investment banking) and President,
Cartesian Capital Corp. (investment
banking); prior to May 2000, Chairman,
Deutsche Bank Canada (investment
banking) and Managing Director, Global
Metals and Mining Group, Deutsche Bank.
 -79-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsAlexander J. Davidson (52)
Toronto, Ontario
    
    Executive Vice
President, Exploration(1993)
    
    Executive Vice President, Exploration of
the Company; prior to May 2003, Senior
Vice President, Exploration of the
Company.Patrick J. Garver (52)
Toronto, Ontario
    
    Executive Vice President and General
Counsel (1993)
    
    Executive Vice President and General
Counsel of the Company.Peter J. Kinver (48)
Toronto, Ontario
    
    Executive Vice
President and Chief
Operating Officer
(2003)
    
    Executive Vice President and Chief
Operating Officer of the Company; prior
to February 2004, Executive Vice
President, Operations of the Company;
prior to August 2003, Divisional
Director, Western Division, Anglo
American Platinum plc (platinum mining).Jamie C. Sokalsky (46)
Toronto, Ontario
    
    Executive Vice
President and Chief
Financial Officer
(1993)
    
    Executive Vice President and Chief
Financial Officer of the Company; prior
to April 2004, Senior Vice President and
Chief Financial Officer of the Company.Gordon F. Fife (45)
Stouffville, Ontario
    
    Senior Vice President,
Organizational
Effectiveness (2002)
    
    Senior Vice President, Organizational
Effectiveness of the Company; prior to
February 2004, Vice President,
Organizational Effectiveness of the
Company; prior to January 2002,
Principal, PricewaterhouseCoopers LLP
(consulting).Ammar Al-Joundi (39)
Toronto, Ontario
    
    Vice President,
Finance, and Treasurer
(1999)
    
    Vice President, Finance and Treasurer of
the Company; prior to April 2004, Vice
President and Treasurer of the Company;
prior to May 1999, Vice President,
Structured Finance, Citibank Canada.Richard D. Ball (36)
Toronto, Ontario
    
    Vice President,
Financial Reporting and
Risk Analysis (2004)
    
    Vice President, Financial Reporting and
Risk Analysis of the Company; prior to
April 2004, Director, Financial
Reporting and Risk Analysis of the
Company; prior to March 2002, Senior
Manager, PricewaterhouseCoopers LLP
(accounting).
 -80-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsDarren J. Blasutti (35)
Toronto, Ontario
    
    Vice President,
Investor Relations
(2004)
    
    Vice President, Investor Relations of
the Company; prior to February 2004,
Director, Corporate Development of the
Company; prior to July 2002, Senior
Manager, Corporate Development of the
Company; prior to January 2000, Manager,
Corporate Development of the Company.M. Vincent Borg (47)
Toronto, Ontario
    
    Vice President,
Corporate
Communications (1992)
    
    Vice President, Corporate Communications
of the Company.Michael J. Brown (46)
Alexandria, Virginia
    
    Vice President, United
States Public Affairs(1995)
    
    Vice President, United States Public
Affairs of the Company.Brad L. Doores (53)
Cedar Valley, Ontario
    
    Vice President and
Assistant General
Counsel (2004)
    
    Vice President and Assistant General
Counsel of the Company; prior to April
2004, Assistant General Counsel of the
Company.Kelvin Dushnisky (40)
Oakville, Ontario
    
    Vice President,Regulatory Affairs
(2003)
    
    Vice President, Regulatory Affairs of
the Company; prior to May 2003,
Director, Regulatory Affairs of the
Company; prior to April 2002, Managing
Director, Altara Securities Inc.
(financial services); prior to August
2001, Vice-Chair and General Counsel,
EuroZinc Mining Corporation (metals
mining).André R. Falzon (49)
Toronto, Ontario
    
    Vice President and
Controller (1988)
    
    Vice President and Controller of the
Company.Igor Gonzales (49)
La Molina, Lima, Peru
    
    Vice President, Peru(2004)
    
    Vice President, Peru of the Company;
prior to February 2004, Vice President
and General Manager, Pierina mine, of
the Company.Gregory A. Lang (49)
Sandy, Utah
    
    Vice President, North
American Operations(2001)
    
    Vice President, North American
Operations of the Company; prior to
February 2004, Vice President,
Australian Operations of the Company;
prior to December 2001, Vice President,
Australia, Homestake Mining Company
(gold mining).
 -81-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsRené L. Marion (41)
Toronto, Ontario
    
    Vice President,
Technical Services(2004)
    
    Vice President, Technical Services of
the Company; prior to February 2004,
Vice President & General Manager, Kahama
Mining of the Company; prior to July
2003, Corporate Head, Evaluations and
Development of the Company; prior to
April 2002, Senior Manager, Development
of the Company; prior to January 2001,
Staff Mining Engineer of the Company.John T. McDonough (57)
Salt Lake City, Utah
    
    Vice President,
Environment (1994)
    
    Vice President, Environment of the
Company.Stephen A. Orr (49)
Perth, Western Australia
    
    Vice President,
Australia/Africa Operations (2001)
    
    Vice President, Australia/Africa
Operations of the Company; prior to
February 2004, Vice President, North
American Operations of the Company;
prior to December 2001, Vice President,
North American Operations, Homestake
Mining Company (gold mining).Calvin F. Pon (47)
Toronto, Ontario
    
    Vice President, Tax(2004)
    
    Vice President, Tax of the Company;
prior to February 2004, Director, Tax of
the Company.Raymond W. Threlkeld (57)
Santiago, Chile
    
    Vice President,
Chile/Argentina (2002)
    
    Vice President, Chile/Argentina of the
Company; prior to February 2004, Vice
President, Project Development of the
Company; prior to July 2002, Vice
President and General Manager,
Pascua-Lama property of the Company;
prior to December 2000, Vice President
and General Manager, Bulyanhulu property
of the Company.John R. Turney (53)
Toronto, Ontario
    
    Vice President, Capital
Projects (2004)
    
    Vice President, Capital Projects; prior
to December 2002, General Manager,
Engineering and Operations, Barrick Gold
of Australia; prior to December 2001,
General Manager, Development and
Engineering, Homestake Gold of Australia
(gold mining).
 -82-




---



##### 



Name (age) and
    
    Officemunicipality of residence
    
    (date became an Officer)
    
    Principal occupations during past 5 yearsSybil E. Veenman (40)
Toronto, Ontario
    
    Vice President,
Assistant General
Counsel and Secretary
(1995)
    
    Vice President, Assistant General
Counsel and Secretary of the Company;
prior to April 2004, Associate General
Counsel and Secretary of the Company.David D. Young (53)
Toronto, Ontario
    
    Vice President, Supply
Chain Management (2004)
    
    Vice President, Supply Chain Management
of the Company; prior to February 2004,
Vice President, Material & Supply,
Rockwell Collins (aviation technology).James W. Mavor (38)
Toronto, Ontario
    
    Assistant Treasurer 
Risk Management (2004)
    
    Assistant Treasurer  Risk Management of
the Company; prior to February 2004,
Director, Treasury Operations of the
Company.Jeffrey A. Swinoga (36)
Toronto, Ontario
    
    Assistant Treasurer 
Finance (2004)
    
    Assistant Treasurer  Finance of the
Company; prior to February 2004,
Director, Treasury Finance of the
Company.
 NON-GAAP PERFORMANCE MEASURES Total cash costs per ounce data has been provided because Barrick
understands that certain investors use this information to assess the Companys
performance. The inclusion of total cash costs per ounce statistics enables
investors to better understand year-on-year changes in production costs, which
in turn affect Barricks profitability and ability to generate operating cash
flow for use in investing and other activities. A measure of operating cash
flow excluding the settlement amount of litigation has also been provided.
Litigation settlements are infrequent in occurrence, and therefore including
this non-GAAP measure of performance provides a more comparable basis for
assessing the Companys cash flow performance in 2003 compared with 2002.
Non-GAAP measures do not have any standardized meaning prescribed by US GAAP,
and therefore they may not be comparable to similar measures prescribed by
other companies. The data are intended to provide additional information and
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not necessarily
indicative of operating profit or cash flow from operations as determined under
GAAP. Reconciliation Of Total Cash Costs Per Ounce To Financial Statements -83-




---



##### 



Goldstrike 
    
    Goldstrike Open pit
    
    Underground
    
    Eskay Creek
    
    Round MountainFor the years endedDecember 31,
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Total cash production
costs  per US GAAP1
    
    $
    380.6
    
    
    $
    320.2
    
    
    $
    152.1
    
    
    $
    123.0
    
    
    $
    18.6
    
    
    $
    14.7
    
    
    $
    67.2
    
    
    $
    78.7Accretion expense and
reclamation costs at
operating mines
    
    
    (2.5
    )
    
    
    (5.5
    )
    
    
    
    
    
    
    (1.2
    )
    
    
    (0.3
    )
    
    
    (0.5
    )
    
    
    (1.6
    )
    
    
    6.0Total cash production
costs per Gold
Institute Production
Cost Standard
    
    $
    378.1
    
    
    $
    314.7
    
    
    $
    152.1
    
    
    $
    121.8
    
    
    $
    18.3
    
    
    $
    14.2
    
    
    $
    65.6
    
    
    $
    72.7Ounces sold (thousands)
    
    
    1,625
    
    
    
    1,383
    
    
    
    600
    
    
    
    617
    
    
    
    354
    
    
    
    358
    
    
    
    379
    
    
    
    389Total cash costs per
ounce sold per US GAAP
(dollars)
    
    $
    234
    
    
    $
    232
    
    
    $
    253
    
    
    $
    199
    
    
    $
    53
    
    
    $
    41
    
    
    $
    177
    
    
    $
    202Total cash costs per
ounce sold  per Gold
Institute Production
Cost Standard
(dollars)
    
    $
    233
    
    
    $
    228
    
    
    $
    253
    
    
    $
    198
    
    
    $
    52
    
    
    $
    40
    
    
    $
    173
    
    
    $
    187
  1.
    
    Represents cost of sales and other operating costs (excluding
amortization). Hemlo
    
    Holt-McDermott
    
    Marigold
    
    Total North AmericaFor the years endedDecember 31,
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Total cash production
costs  per US GAAP1
    
    $
    60.4
    
    
    $
    65.0
    
    
    $
    20.9
    
    
    $
    16.6
    
    
    $
    8.1
    
    
    $
    5.4
    
    
    $
    707.9
    
    
    $
    623.6Accretion expense and
reclamation costs at
operating mines
    
    
    (0.2
    )
    
    
    (1.0
    )
    
    
    (0.1
    )
    
    
    (0.3
    )
    
    
    (0.1
    )
    
    
    (0.2
    )
    
    
    (4.8
    )
    
    
    (14.7
    )Total cash production
costs per Gold
Institute Production
Cost Standard
    
    $
    60.2
    
    
    $
    64.0
    
    
    $
    20.8
    
    
    $
    16.3
    
    
    $
    8.0
    
    
    $
    5.2
    
    
    $
    703.1
    
    
    $
    608.9Ounces sold (thousands)
    
    
    266
    
    
    
    286
    
    
    
    87
    
    
    
    94
    
    
    
    47
    
    
    
    28
    
    
    
    3,358
    
    
    
    3,155Total cash costs per
ounce sold per US GAAP
(dollars)
    
    $
    227
    
    
    $
    227
    
    
    $
    240
    
    
    $
    176
    
    
    $
    172
    
    
    $
    194
    
    
    $
    211
    
    
    $
    198Total cash costs per
ounce sold  per Gold
Institute Production
Cost Standard
(dollars)
    
    $
    226
    
    
    $
    224
    
    
    $
    239
    
    
    $
    173
    
    
    $
    171
    
    
    $
    187
    
    
    $
    209
    
    
    $
    193
 Pierina
    
    Total South America
    
    Plutonic
    
    DarlotFor the years endedDecember 31,
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Total cash production
costs  per US GAAP1
    
    $
    78.9
    
    
    $
    90.2
    
    
    $
    78.9
    
    
    $
    90.2
    
    
    $
    62.6
    
    
    $
    58.0
    
    
    $
    25.4
    
    
    $
    24.8Accretion expense and
reclamation costs at
operating mines
    
    
    (3.2
    )
    
    
    (18.4
    )
    
    
    (3.2
    )
    
    
    (18.4
    )
    
    
    (0.2
    )
    
    
    (0.8
    )
    
    
    (0.1
    )
    
    
    (0.3
    )
 -84-




---



##### 



Pierina
    
    Total South America
    
    Plutonic
    
    DarlotFor the years endedDecember 31,
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Total cash production
costs per Gold
Institute Production
Cost Standard
    
    $
    75.7
    
    
    $
    71.8
    
    
    $
    75.7
    
    
    $
    71.8
    
    
    $
    62.4
    
    
    $
    57.2
    
    
    $
    25.3
    
    
    $
    24.5Ounces sold (thousands)
    
    
    911
    
    
    
    895
    
    
    
    911
    
    
    
    895
    
    
    
    324
    
    
    
    311
    
    
    
    154
    
    
    
    146Total cash costs per
ounce sold per US GAAP
(dollars)
    
    $
    87
    
    
    $
    101
    
    
    $
    87
    
    
    $
    101
    
    
    $
    193
    
    
    $
    186
    
    
    $
    165
    
    
    $
    170Total cash costs per
ounce sold  per Gold
Institute Production
Cost Standard
(dollars)
    
    $
    83
    
    
    $
    80
    
    
    $
    83
    
    
    $
    80
    
    
    $
    193
    
    
    $
    184
    
    
    $
    164
    
    
    $
    168
 Lawlers
    
    Kalgoorlie
    
    Bulyanhulu
    
    Total Australia/AfricaFor the years endedDecember 31,
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002
    
    2003
    
    2002Total cash production
costs  per US GAAP1
    
    $
    23.8
    
    
    $
    21.3
    
    
    $
    88.1
    
    
    $
    83.6
    
    
    $
    77.1
    
    
    $
    78.4
    
    
    $
    277.0
    
    
    $
    266.1Accretion expense and
reclamation costs at
operating mines
    
    
    (0.1
    )
    
    
    (0.5
    )
    
    
    (1.5
    )
    
    
    (2.0
    )
    
    
    (4.1
    )
    
    
    (0.4
    )
    
    
    (6.0
    )
    
    
    (4.0
    )Total cash production
costs per Gold
Institute Production
Cost Standard
    
    $
    23.7
    
    
    $
    20.8
    
    
    $
    86.6
    
    
    $
    81.6
    
    
    $
    73.0
    
    
    $
    78.0
    
    
    $
    271.0
    
    
    $
    262.1Ounces sold (thousands)
    
    
    95
    
    
    
    116
    
    
    
    415
    
    
    
    367
    
    
    
    297
    
    
    
    395
    
    
    
    1,285
    
    
    
    1,335Total cash costs per
ounce sold per US GAAP
(dollars)
    
    $
    250
    
    
    $
    184
    
    
    $
    212
    
    
    $
    228
    
    
    $
    260
    
    
    $
    199
    
    
    $
    216
    
    
    $
    199Total cash costs per
ounce sold  per Gold
Institute Production
Cost Standard
(dollars)
    
    $
    249
    
    
    $
    179
    
    
    $
    209
    
    
    $
    222
    
    
    $
    246
    
    
    $
    198
    
    
    $
    210
    
    
    $
    196
  1.
    
    Represents cost of sales and other operating costs (excluding
amortization). ADDITIONAL INFORMATION The Company will provide to any person, upon a request to the Secretary of
the Company, the following information:  (a)
    
    when the securities of the Company are in the course of a
distribution pursuant to a short form prospectus or a preliminary
short form prospectus which has been filed in respect of a proposed
distribution of its securities:  (i)
    
    one copy of the latest Annual Information
Form, together with one copy of any document, or the
pertinent pages of any document, incorporated therein by
reference;(ii)
    
    one copy of the comparative financial
statements of the Company for its most recently completed
financial year for which financial statements have been
filed together with the accompanying report of the auditor
and one copy of any interim -85-




---



##### 



financial statements of the Company subsequent to the
financial statements for its most recently completed
financial year;(iii)
    
    one copy of the information circular of
the Company in respect of its most recent annual meeting of
shareholders which involved the election of directors; and(iv)
    
    one copy of any other documents that are
incorporated by reference into the preliminary short form
prospectus or the short form prospectus and are not
required to be provided under (i) to (iii) above; or (b) at any other time, one copy of any other documents referred to in
(a)(i), (ii) and (iii) above, provided that the Company may require the payment
of a reasonable charge if the request is made by a person or company that is
not a security holder of the Company. Additional information, including directors and officers remuneration
and indebtedness, principal holders of the Companys securities and options to
purchase securities is contained in the Companys Management Information
Circular and Proxy Statement dated March 8, 2004. As well, additional financial
information is provided in the Companys 2003 Annual Report, in the Companys
Consolidated Financial Statements (as prepared under US GAAP) and Managements
Discussion and Analysis of Financial and Operating Results for the year ended
December 31, 2003 (as prepared under US GAAP), each of which is available
electronically from the Canadian System for Electronic Document Analysis and
Retrieval (SEDAR) (http://www.sedar.com) and from the U.S. Securities and
Exchange Commissions Electronic Document Gathering and Retrieval System
(EDGAR) (http://www.sec.gov). -86-