September 7, 2011

Dear friend,

We will publish a more detailed analysis with reserve, resource, production, earnings, cash flow and balance models over several days. We want to send out our "first thoughts," particularly concerning likely price target raise to $65-$80 range and 20-25 mm oz magnitude of this morning's Nevada gold discoveries likely using pre-existing autoclaves and roasters. Pls refer to pre-existing risk factors and legal disclaimers on prior ABX full reports

We reiterate our Overweight investment rating for Barrick Gold, and were waiting for ABX Investor Day to revise our estimates for $1,700 2011, $2,300 2012, $2,000 2013 and $1,500 post-2014 gold price scenario.

Our revisions will also incorporate benefits of "Red Hill + GoldRush" discoveries estimated at 22.5 mm oz at 0.125 oz per ton refractory ore grades at 1.5 mm oz annual output from 2018

While we have not run numbers, we expect to raise our price target for ABX to $65 to $80 range from $53

We were patient, and did not withdraw our Overweight rating or tell clients to sell ABX after Equinox acq, even though we thought ABX paid two times too much, because ABX sold off by 2 or 3 times as much as was warranted, gold prices were rising and there was potential for multiple development successes.

Red Hill, GoldRush and extending towards ET MAJOR GOLD DISCOVERY IN NEVADA

Appears towards 20-25 mm oz based on continuity between the several zones 2-4 miles long with grades 0.1 to 0.2 oz per ton

Super high economics since they will fill up the autoclaves/roasters "winding down" as the Betze-Post mineralization depletes or winds down by 2020

Best guess of timing = full year 2018 production

Should have half of the depn of company today since zero acq cost and ability to use existing autoclaves, roasters and some infrastructure

Production time horizon prior to 2015 unlikely due to definitive feasibility study completion probably after Dec 2012, pemits unlikely prior to Dec 2014 and mine construction likely needs 2 yrs at least to Dec 2016

Other Development Successes

The Lagunas Norte sulphide gold ores in Peru, expansion of Zaldivar copper in Chile, expansion of Lumwana copper in Zambia, 50% Donlin Creek in Alaska, 50%-owned Kabanga nickel in Tanzania and 37.5% Reko Diq copper-gold in Baluchistan each are developments not reflected in our production and earnings forecasts as of yet.

Exploration for copper-gold and gold in Saudi Arabia, the El Indio district copper-gold and gold in Chile and various other exploration efforts are not reflected in our models just yet.

John C. Tumazos, CFA