Preliminary Results for the 12 months ended 31 Dec 2012

AFRICAN BARRICK GOLD LSE: ABG13 February 2013

Preliminary Results for the 12 months ended 31 December 2012 (Unaudited)

Based on IFRS and expressed in US Dollars (US$)

African Barrick Gold plc ("ABG'') reports full year 2012 results

"As we progress through 2013, we are focused on reducing our cost base fromcurrent levels to ensure the business returns to delivering appropriate levelsof free cash flow." said Greg Hawkins, Chief Executive Officer of AfricanBarrick Gold. "Cash flow generation and improving returns from our assets forma key part of our operational review and we will update on our progressthroughout the course of the year. The 2012 dividend is maintained at the 2011level and this is both an expression of our confidence in the business as wellas our commitment to shareholder returns."

Full Year 2012 Highlights

ABG reports net earnings of US$59 million (US14.5 cents per share), includingone-off adjustments of US$46 million, primarily due to impairment chargesrelated to Tulawaka which, after a long and successful run, is coming to aclose in 2013. Adjusted net earnings2 were US$105 million (US25.7 cents pershare) and operational cash flow was US$258 million.

Other significant highlights include:

Gold production1 of 626,212 ounces and Cash costs2 of US$949 per ounce sold,were within recent guidance

Revenue of US$1,087 million and EBITDA2 of US$331 million

Continued progress on the CIL Expansion and Upper East Acceleration, our keyexpansion projects at Bulyanhulu

Renewal of the North Mara Special Mining Licences on the existing terms andconditions for a 15 year period

Highly prospective exploration package of 2,800km2 acquired in Kenya for aninitial consideration of US$22 million

Operational Review initiated to drive improved returns and free cash flowgeneration from the existing asset base

Net cash position of US$401 million as at 31 December 2012

Proposed final dividend of US12.3 cents per share; total dividend for 2012 ofUS16.3 cents per share

Operational ReviewAs announced in January 2013, we have initiated an Operational Review of ourbusiness. The core focus is to drive free cash flow generation commensuratewith the quality and size of our asset base. The Review is expected to runthrough the coming six months and we expect to realise clear benefits in ourcost structure and operating metrics throughout the year as we implementspecific initiatives.The specific initiatives which form the core of the Operational Review are:Operating Cost ReductionsCapital DisciplineOrganisational Structure

Corporate Overhead Cost Reductions

Mine Planning Deliverability

Each of the initiatives outlined above are focused on driving returns for thebusiness and ultimately for shareholders. Each of the initiatives are being ledby a member of the Senior Leadership Team and will include both internal andexternal expertise in order to analyse and implement future initiatives.Further details as to the progress on the Operational Review will be providedto the market throughout the year, as a part of our periodic results releases.

Outlook

In 2013, we expect to produce between 540,000 - 600,000 ounces of gold, attotal cash costs2, including royalties, of between US$925 and US$975 per ouncesold. This incorporates a US$120 per ounce reduction resulting from theadoption of the new accounting standard for deferred stripping (IFRIC 20).

Key Statistics Year Three months ended ended 31Operating results 31 December December(Unaudited) 2012 2011 2012 2011 Tonnes mined (thousands of tonnes) 13,942 10,546

48,301 45,053

Ore tonnes mined (thousands of tonnes) 2,266 1,658

7,070 7,013

Ore tonnes processed (thousands of tonnes) 2,067 1,729

7,698 7,409

Process recovery rate (percent) 90.0% 87.3% 88.3% 87.7%Head grade (grams per tonne) 3.0 3.3 2.9 3.3 Attributable gold production (ounces)¹ 180,684 160,020

626,212 688,278

Attributable gold sold (ounces)¹ 159,585 158,869

609,252 699,539

Copper production (thousands of pounds) 4,266 2,889

12,875 14,875

Copper sold (thousands of pounds) 3,239 3,224 11,523 15,069Cash cost per tonne milled² 74 72 75 65Per ounce data Average spot gold price³ 1,722 1,688

1,669 1,572

Average realised gold price² 1,700 1,655

1,668 1,587

Total cash cost per ounce sold² 958 779 949 692 Amortisation and other costs per ounce data² 290 219 251 184 Total production costs per ounce sold² 1,248 998 1,200 876 Cash Margin² 742 876 719 895 Average realised copper price ($/lb) 3.42 3.11 3.57 3.82Financial results(Unaudited, in US$'000)Revenue 287,944 285,198 1,087,339 1,217,915Cost of sales (217,797) (177,455) (802,709) (704,114)Gross profit 70,147 107,743 284,630 513,801Corporate administration 5 (13,303) (15,763) (51,567) (49,148)Exploration and evaluation costs (11,262) (7,389)

(28,961) (30,339)

Corporate social responsibility expenses (4,732) (2,119) (14,445) (7,376)Impairment charges (44,536) - (44,536) -Other charges (12,979) (4,386) (17,671) (15,639)(Loss)/profit before net finance cost and taxation (16,665) 78,086 127,450 411,299Finance income 428 313 2,102 1,484Finance expense5 (2,565) (2,720) (10,305) (10,082)(Loss)/profit before taxation (18,802) 75,679 119,247 402,701Taxation expense (27,182) (20,595) (71,063) (117,924)Net (loss)/profit (45,984) 55,084 48,184 284,777Attributed to:- Non-controlling interests (11,290) 2,401 (11,287) 9,882

- Owners of the parent (Net (loss)/earnings) (34,694) 52,683 59,471 274,895

Other Financial information(Unaudited, in US$'000 except for per share data) Cash and cash equivalents 401,348 584,154 401,348 584,154Cash generated from operating activities 92,639 159,621 257,903 498,323Capital Expenditure4 123,606 117,061 340,295 345,235EBITDA2,5 75,565 115,225 330,869 545,448Adjusted net earnings2 11,319 52,683 105,484 274,895 Basic (loss)/earnings per share (cents) (8.5) 12.8

14.5 67.0

Adjusted earnings per share (cents)2 2.8 12.8

25.7 67.0

Operational cash flow per share2 22.6 38.9 62.9 121.5Dividend per share (cents) 12.3 13.1 16.3 16.3Equity 2,774,981 2,798,704 2,774,981 2,798,704

1 Production and sold ounces reflect equity ounces which exclude 30% ofTulawaka's production and sales base.

2 Cash cost per tonne milled, average realised gold price, total cash cost perounce sold, amortisation and other costs per ounce, total production cost perounce sold, EBITDA, cash margin, adjusted net earnings, operational cash flowper share and adjusted earnings per share are non-IFRS financial performancemeasures with no standard meaning under IFRS. Refer to "Non IFRS measures"' onpage 27 for definitions.

3 Reflects the London PM fix price.

4 Includes non-cash reclamation asset adjustments and finance lease purchasesduring the year. It excludes the acquisition of Aviva Mining (Kenya) Limited in2012.

5 Restated to reclassify bank charges from corporate administration to financeexpense.

CEO StatementOverall for ABG, 2012 was a year where we realised good progress in severalareas but where we did not meet our core production and cost targets. Wecontinued to invest in the ongoing stability of the business and our licence tooperate. This was rewarded with increasing consistency in the operationalperformance at Buzwagi as the year progressed, and improvements in the gradeprofile at North Mara where we also received confirmation of the renewal of ourmining licences, and signed the Village Benefit Implementation Agreements("VBIAs"). Overall, our mining rates for the year increased, we processed 4%more tonnes through our plants and we improved the recovery profile of ouroperations despite the expected decrease in grade. We also significantlyenhanced our early stage exploration portfolio with the acquisition of AvivaMining (Kenya) Limited ("AMKL").Our group production for the year was 9% lower than 2011, with the grade drivenincrease at North Mara offset by declines of similar levels at our other threeoperations. Bulyanhulu was impacted by paste fill and equipment availabilityissues together with the loss of skilled employees due to proposed governmentpension law changes; Buzwagi saw an expected reduction in grade to around itsreserve grade although it did benefit from improved plant performance later inthe year; and Tulawaka operated under batch processing following the exhaustionof surface stockpiles. These lower production levels, together with higherenergy and maintenance expenses, resulted in our cash costs for the yearreaching US$949 per ounce sold. As we move into 2013, we start from a strongplatform with a net cash position of US$401 million, but we nonetheless need tostrengthen our focus on reducing costs in order to ensure the business candeliver attractive levels of free cash flow generation. This will form a keypart of our ongoing Operational Review.Beyond the day-to-day operational challenges of our business, for a large partof the second half of the year we also dealt with several additional factorsresulting from the discussions between Barrick Gold Corporation ("Barrick") andChina National Gold Group Corporation ("CNG") with respect to the Barrick'smajority stake in ABG. These included a detailed due diligence process and sitevisits as well as other factors such as dealing with the uncertainty causedamong our employees and also the communities in which we operate. Weimplemented a range of measures to deal with these additional challenges andwere largely successful in limiting the disruption to our business. With thediscussions now terminated, we need to ensure everyone in the business remainsfocused on delivering the significant potential of our asset base.Our share price performance in 2012 was set against a backdrop of continuingunderperformance by gold equities relative to the underlying commodity. The keyfocus from investors has centred on the lack of free cash flow leverage in theindustry to the gold price, either through rising operational costs orincreasing investment in new projects which do not meet hurdle return rates. Inthe three years since ABG listed as an independent company we have beensuccessful in generating substantial free cash flow and have maintained theview that capital returns to shareholders are of critical importance: with theproposed final dividend for 2012, we will have returned in excess of US$150million to shareholders over that period and we have also invested in two earlystage projects which we believe have the potential to deliver significantlong-term value to the business. Nonetheless, during 2012 the increases in ouroperating expenses and in the level of capital we invested in our assets meantthat the business consumed capital which is not sustainable over the longerterm. As such, the Board of ABG has asked management to conduct a fullOperational Review of the business with the aim of recalibrating our operationsso as to drive improved returns from the asset base whilst enhancing thecertainty of delivery. The review commenced in January 2013.

Operating Performance

At an individual mine level, Bulyanhulu remained our largest producing assetand is set to remain so with the existing mine plan and the growth projectsbeing advanced. In 2012, production was 10% lower than in 2011 as weexperienced power supply issues earlier in the year which impacted on hoistingcapacity, while later in the year the delivery of ore to surface was reduced bylack of paste fill availability which led to increased reliance on lower gradestopes and a shortage of skilled personnel resulting from resignations in theface of proposed changes to pension fund legislation in Tanzania. We haveseveral initiatives in place to deal with these short-term factors in order forBulyanhulu to get back to its expected run rate as the year progresses.At North Mara, it was pleasing to see the expected increase in productionlevels on the prior year as we accessed the higher grade zones in the Gokonapit in the second half of the year. This reduced the reliance on lower gradestockpiles to provide feed to the mill and led to increased head grade and a13% increase in production compared to 2011. Operations saw some impact from anincrease in illegal mining activity during the second half of the year but thishas now subsided and returned to more normalised levels. Production during 2012was from the Gokona and Nyabigena pits, with operations at the Nyabirama pitsubject to the necessary land acquisitions and relocations which are a keyfocus for mine management in 2013.At Buzwagi, significant progress was made across both mining and processingactivities during the year. Production was 16% below the level of 2011, aresult of the expected 30% decline in grade as the mine operated at close toits reserve grade. This impact was slightly offset by the operationalimprovements, with a 33% increase in total tonnes mined, which includes a 19%increase in ore tonnes, and a throughput increase of 24%. Site management arenow firmly focused on ensuring these improvements are maintained during 2013.At Tulawaka, the processing plant operated on batch milling due to the lack ofsufficient ore to run it full time, which was a consequence of relyingexclusively on underground material during 2012. As a result, throughput wasdown substantially on 2011 with a corresponding fall in production levels. Wehave successfully extended the life of this operation consistently in the lastthree years; however as a part of the Operational Review we have taken thedecision not to further extend the mine life beyond the middle of 2013. We arecurrently starting to implement our closure plan for the operation and willengage with our employees as we move through this process. As a result of this,and in combination with the downward revision of reserves, we have incurred anon-cash impairment charge at the mine of US$44.5 million for 2012.

Growth Projects

We have continued to make very good progress on our growth projects over theyear: we are progressing the construction of the Carbon in Leach ("CIL")circuit expansion at Bulyanhulu, and the Board has approved the ordering ofcertain long lead items required for the acceleration of mining at an expandedUpper East Zone project at Bulyanhulu. These two projects will add meaningfullong-term production to our core operating asset.On our Greenfield exploration portfolio we continued to increase the size ofthe Nyanzaga resource, which now has an in-pit resource of over 4.6 millionounces ("Moz") of gold ("Au") consisting of 3.75 Moz at 1.42 g/t Au Indicatedand 0.85 Moz at 1.81 g/t Au Inferred. We are currently finalising thepre-feasibility study and expect to take a decision on whether to progress to afull feasibility study by the middle of the year.We also acquired an interest in over 2,800 square kilometres of under explored,highly prospective licence areas in Kenya for an initial consideration of US$22million including exploration funding. The licences add more than 20 existingtargets from grassroots through to the drill testing stage into the explorationand development pipeline and will be the focus for a significant proportion ofour exploration budget in 2013.Drilling at North Mara has continued to highlight the potential for undergrounddevelopment at both the Gokona and Nyabirama pits and we are undertaking thetechnical trade-off analysis in order to establish how best to sequence theunderground potential with the existing open pit operations in order tomaximise the life of mine return from the mine.

Government Relations

Notwithstanding the acquisition in 2012 of the exploration portfolio in Kenya,the majority of our assets and all of our cashflow remain in Tanzania. During2012, we continued to build on the constructive dialogue we enjoy with theTanzanian government as our operations delivered significant benefits and valueto our host communities. The decision to voluntarily move to a royalty rate of4% from 3% was one that ABG instigated but it was also recognition of theimproved level of cooperation we saw from the Tanzanian authorities as wesolved a range of taxation, permitting and licensing issues, some of whichdated from several years back.As we move into 2013 there remains much to be done and it is vital we enjoy theongoing support of the government in these areas. Across our asset base, thelack of availability of reliable power is a key issue for us and one which isreceiving attention at the highest levels within the Tanzanian government, andwe look forward to the government delivering on its initiatives to alleviatethis issue. At North Mara, we have seen good support over the last few monthsin relation to improving law and order but need to resolve a number of landaccess issues to ensure we have the appropriate footprint for our operationsand we look forward to the government's support in achieving this. Elsewhere,we are encouraging the government to help resolve the pension fund issue whichhas impacted our workforce. From a taxation perspective, we are working closelywith the appropriate authorities to ensure we minimise the level of workingcapital tied up in payments which are recoverable under the terms of our MineDevelopment Agreements ("MDAs").

Licence to Operate

From an operational perspective, ABG has a high quality and well investedportfolio of assets which positions us strongly for the long-term. However,without the accompanying licence to operate and a stable working relationshipwith all stakeholders, the quality of our assets could be significantlyimpacted. For this reason, the achievements we have made with the governmentand with our host communities on issues relating to our operating environmentare of key importance. We have benefited from a full year of operation of theABG Maendeleo Fund which has supported a range of projects across ouroperations throughout the year.In terms of the individual operations, the key challenges are centred on NorthMara and we have made significant progress in 2012 in order to secure the longterm future of the mine. In addition to the signing of VBIAs with the localcommunities, we have invested 39% of the ABG Maendeleo Fund's annual budgettowards new infrastructure around North Mara, including rehabilitating thelocal health clinic, the provision of clean water and the launch of a majorschool desk programme.We were also pleased to receive the renewal of the special mining licences("SMLs") at North Mara. The renewals are on the same terms and conditions asthe previous licences and are both for a period of 15 years. The original SML'swere issued in February 2000 and had expired in September 2011, since whichtime the mine continued to operate on the same basis due to the rolloverprovisions contained in the Tanzanian Mining Act.The life of mine footprint continues to be a challenge at North Mara as landacquisition is increasingly expensive due to the high levels of speculation.This has led to the ongoing suspension of operations in the Nyabirama pit. Weare engaging with local and central government in order to find a solution.During the year we received potentially acid forming ("PAF") waste dump permitsnecessary for the immediate operations of the site and we continue to apply forpermits to meet ongoing requirements.We continue to work with the relevant authorities to progress the lifting ofthe Environmental Protection Order ("EPO") at North Mara in order to be able todischarge water. NEMC, the environmental regulator, has recently visited theoperation for a final review and we are now awaiting their approval.

Final Dividend for 2012

The Directors are pleased to recommend the payment of a final dividend ofUS12.3 cents per Ordinary Share. This represents a total dividend of US16.3cents for 2012, in line with dividend payments for 2011 and is a sign of ourconfidence in the business. Subject to shareholders approving thisrecommendation at the AGM, the final dividend will be paid on 24 May 2013 toshareholders on the register on 3 May 2013. The ex-dividend date is 1 May 2013.ABG will declare the final dividend in US dollars. Unless a shareholder haselected or elects to receive dividends in US dollars, dividends will be paid inpounds sterling with the US dollar amount being converted into pounds sterlingat exchange rates prevailing on or around 8 May 2013. Currency elections mustbe made by return of currency election forms. The deadline for the return ofcurrency election forms is 7 May 2013.

Operational Review

Over the past three years our operating environment has seen some significantchanges which have had an impact both on the production levels at our operatingmines as well as on our overall cost of production. As a result, we haveidentified a number of areas where we can improve both the cost profile as wellas the deliverability of production. Together with a reduction in the overalllevel of capital applied to the business, we believe that the current base ofproduction can deliver attractive returns which will be enhanced by ourportfolio of organic growth projects which will start delivering incrementalproduction from next year.

The specific initiatives which will form the core of the Operational Revieware:

Operating Cost Reductions - Initial results available in 6 months

Aside from labour, our key costs drivers over the past few years have beenpower, maintenance and consumable usage. Whilst the increase in diesel usageacross the group has been necessary to ensure the production outcome it has ledto increased cost, specifically at Buzwagi. We continue to investigateopportunities to reduce our reliance on the electricity grid including shortterm opportunities such as the installation of capacitors to reduce dips andvoltage swings and longer term alternative energy solutions. Optimisation ofmanagement operating systems and supply chain practices are expected to providefurther reductions in our maintenance and consumable cost levels.

Capital Discipline - Over US$50 million reduction achieved in 2013

We have maintained a disciplined approach to capital expenditure over the pastthree years, but have still invested over US$750 million into the business inorder to optimise our asset base. This investment provides us with wellinvested, modern mines, such that we should be able to substantially lower ourcapital budget going forward. We have released our 2013 capital expenditureguidance today which indicates an initial reduction of approximately over US$50million from the 2012 sustaining capital expenditure. We are reassessing all ofour future capital expenditure to identify further opportunities to cut capitalexpenditure further into 2014 and beyond.

Organisational Structure - Initial results available in 6 months

Our production and cost profile has changed significantly and we will nowensure that we right-size the business in order to fit our anticipatedproduction levels and new operating paradigm. With this in mind, a zero basedreview is being undertaken of the entire organisation, in order to ensure thatwe have the appropriate staffing levels, mix of employees and contractors andthe optimal combination of International and Tanzanian employees in order tomeet our objectives without impacting production. Further to this we will alsosimplify the corporate structure in order to improve the responsiveness of theorganisation.Corporate Overhead Cost Reductions - Initial results available in 3 months

As a part of the review of our organisational design we are reviewingopportunities to reduce our corporate overheads as we align the corporatesupport and service model to match the business model to take forward into2014. Aside from labour efficiencies, we see key opportunities for improvedefficiencies within our Community, Health, Environment, Safety and Security("CHESS") function model and in a reduction in travel and accommodationexpenses.

Mine Planning Deliverability - Initial results available in 6 months

On a mine site level, we are in the early stages of the review process. As apart of this process we are reviewing and optimising the life of mines at eachof the assets to prioritise driving returns and cashflow and are seeking toimprove both productivity and efficiency at each of the assets through improvedorganisational structure and training.

Key focus areas for further asset optimisation are:

At our flagship asset Bulyanhulu, we are conducting a number of studies tooptimise the ore extraction schedule, plan for the right infrastructure tosupport the ore extraction and transport and, importantly, make sure we have aclear understanding of the most efficient mining method to be deployed for thelife of mine. Whilst we have some temporary issues to resolve, the minerepresents our best leverage to generate high return ounces, given the scaleand quality of its resources.At North Mara, as a part of the review we are assessing all options for futuredevelopment of the mine, including the potential for underground development.We have overcome significant legacy issues and our social licence to operatehas been regained, but as part of this exercise we will assess a range ofpotential mine plans based around the ability to access land in order tosatisfy the life of mine requirements for the existing three open pits. Inconjunction with the mine development review, we will continue to work withregional and governmental departments in order to build on the actions we haveimplemented over the course of 2011 and 2012 to strengthen further our sociallicence to operate.At Buzwagi, now that we have stabilised mining and processing rates we arecontinuing to review options to improve operating efficiencies and thereby theprofitability of this operation. Our key focus in this regard is to review waysin which we can reduce Buzwagi's reliance on diesel power, which results inhigh operating costs, and the reduction of required levels of sustainingcapital. There are clear opportunities to improve sustaining capital investmentlevels, given that we are now through the bulk of the catch up capitalinvestment required in order to stabilise production levels over the past threeyears.At Tulawaka, as a result of our renewed focus on generating returns rather thanounces, we have decided not to further extend the life of the mine beyond thesecond quarter of 2013. Engagement with our employees will be undertaken as weembark into this process and we will focus efforts on the redeployment of themine's skilled workforce to our other assets and the progression of closureplanning. Options for divestment will also be considered.

We will periodically report on the progress of the Operational Reviewthroughout the year, as a part of our results releases.

Outlook

ABG enters 2013 with a high quality portfolio of assets and significantfinancial strength as a result of our net cash position of over US$400 million.However, we did not generate acceptable returns from the business in 2012 andwith the production level forecast for this year we need to implementefficiencies in our operating cost base as well as applying capital moreselectively to the business following the heavy investment made over the pastthree years. As set out above, these will form the key pillars of ourOperational Review, together with a detailed assessment of our life of mineplans to establish the optimal mining rates as we move forward. Our operatingenvironment has evolved substantially in recent years, as have our assets, andwe need to ensure the organisation is properly set to maximise returns againstthis backdrop.At the mine level, our expectation is for broadly similar production levels to2012 at our Buzwagi and North Mara operations, with lower production atBulyanhulu as we implement our recovery plan at the mine through the first halfof the year and Tulawaka as it comes to the end of its life in the secondquarter of the year.As a result of our operational review, we are targeting reductions to our cashcost per ounce as we go through the year. While we estimate the cash cost perounce for the year, including royalties, will be between US$925-975 per ouncesold (including a reduction of US$120 per ounce sold due to a change inaccounting for waste stripping (IFRIC 20)), we anticipate the run rate will bebelow this level by the end of the year.With US$135 million of capital being allocated to expansion projects,principally at Bulyanhulu, we have set our sustaining capital budget at US$100million, including land, and we have allocated US$210 million to capitaldevelopment inclusive of deferred stripping. The adoption of IFRIC 20, whichrecognises eligible production phase deferred waste stripping costs as assetson a stage-by-stage basis as opposed to the previous single pit basis, willincrease our deferred stripping capitalisation by approximately US$70 millionover 2012.

Overall, our key objectives for 2013 are:

achieving attributable Group production of between 540,000-600,000 ounces

maintaining total cash cost including royalties of between US$925-US$975 perounce sold

total capital expenditure of US$445 million, comprising US$100 million ofsustaining capital, US$210 million of capital development inclusive of deferredstripping and US$135 million of expansion capital

completing the Operational Review and implementing outcomes from the process

substantially completing construction planned for the CIL expansion atBulyanhulu

obtaining Board approval for the Bulyanhulu Upper East Zone project

optimising Group throughput and recoveries

achieving growth in our overall resource base

improving further our safety record

continuing the development of our sustainability practices

continuing our disciplined focus on opportunities for strategic acquisitionsthroughout Africa.

Finally, I would like to thank all of my colleagues for their commitment,enthusiasm and hard work throughout what has been an important year in thedevelopment of our business. I would also like to thank our Board for theirunwavering support, their wise counsel and their commitment throughout theyear.

Greg Hawkins, Chief Executive Officer

For further information, please visit our website: www.africanbarrickgold.comor contact: +44 (0)207 129African Barrick Gold plc 7150 Greg Hawkins, Chief Executive OfficerKevin Jennings, Chief Financial OfficerAndrew Wray, Head of Corporate Development & Investor Relations +44 (0)20 7251RLM Finsbury 3801Faeth BirchCharles ChichesterAbout ABGABG is Tanzania's largest gold producer and one of the five largest goldproducers in Africa. We have four producing mines, all located in North WestTanzania, and several exploration projects at various stages of development. Wehave a high-quality asset base, solid growth opportunities and a clear strategyof:

driving operating efficiencies to optimise production from our existing assetbase;

growing through near mine expansion and development of advanced-stage projects;and

organic greenfield growth and acquisitions in Africa.

Maintaining our licence to operate through acting responsibly in relation toour people, the environment and the communities in which we operate is centralto achieving our objectives.ABG is a UK public company with its headquarters in London. We are listed onthe Main Market of the London Stock Exchange under the symbol ABG and have asecondary listing on the Dar es Salaam Stock Exchange. Historically and priorto our initial public offering (IPO), our operations comprised the Tanzaniangold mining business of Barrick Gold Corporation, our majority shareholder. ABGreports in US dollars in accordance with IFRS as adopted by the European Union,unless otherwise stated in this announcement.

Presentation and conference call

A presentation will be held for analysts and investors on 13 February 2013 at9.00am London time. A dial in facility will be available as follows:

Participant dial in: +44 (0) 203 003 2666 / +1 866 966 5335Password: ABGThere will be a replay facility available until 20 February 2013. Accessdetails are as follows:Replay number: +44 (0) 208 196 1998Replay PIN: 1465206#

There will also be a conference call for analysts and investors based in NorthAmerica on 13 February 2013 at 1.30pm GMT

+44 (0) 203 003 2666 / +1 866 966Participant Dial In: 5335Password: ABG

There will be a replay facility available for seven days thereafter, withaccess details as follows:

Dial in: +44 (0) 208 196 1998

Access PIN: 8956171#FORWARD- LOOKING STATEMENTS

This report includes "forward-looking statements" that express or implyexpectations of future events or results. Forward-looking statements arestatements that are not historical facts. These statements include, withoutlimitation, financial projections and estimates and their underlyingassumptions, statements regarding plans, objectives and expectations withrespect to future production, operations, costs, products and services, andstatements regarding future performance. Forward-looking statements aregenerally identified by the words "plans," "expects," "anticipates,""believes," "intends," "estimates" and other similar expressions.

All forward-looking statements involve a number of risks, uncertainties andother factors, many of which are beyond the control of ABG, which could causeactual results and developments to differ materially from those expressed in,or implied by, the forward-looking statements contained in this report. Factorsthat could cause or contribute to differences between the actual results,performance and achievements of ABG include, but are not limited to, changes ordevelopments in political, economic or business conditions or national or locallegislation in countries in which ABG conducts or may in the future conductbusiness, industry trends, competition, fluctuations in the spot and forwardprice of gold or certain other commodity prices, changes in regulation,currency fluctuations (including the US dollar, South African rand, Kenyanshilling and Tanzanian shilling exchange rates), ABG's ability to successfullyintegrate acquisitions, ABG's ability to recover its reserves or develop newreserves, including its ability to convert its resources into reserves and itsmineral potential into resources or reserves, and to process its mineralreserves successfully and in a timely manner, risk of trespass, theft andvandalism, changes in its business strategy, as well as risks and hazardsassociated with the business of mineral exploration, development, mining andproduction. Although ABG's management believes that the expectations reflectedin such forward-looking statements are reasonable, ABG cannot give assurancesthat such statements will prove to be correct. Accordingly, investors shouldnot place reliance on forward looking statements contained in this report. Anyforward-looking statements in this report only reflect information available atthe time of preparation. Subject to the requirements of the Disclosure andTransparency Rules and the Listing Rules or applicable law, ABG explicitlydisclaims any obligation or undertaking publicly to update or revise anyforward-looking statements in this report, whether as a result of newinformation, future events or otherwise. Nothing in this report should beconstrued as a profit forecast or estimate and no statement made should beinterpreted to mean that ABG's profits or earnings per share for any futureperiod will necessarily match or exceed the historical published profits orearnings per share of ABG.AFRICAN BARRICK GOLD LSE: ABGTABLE OF CONTENTS2012 Operating Overview 10 Exploration and Development Review 15Financial Review 19Non-IFRS measures 27Risk Review 30Directors 30

Consolidated Income Statement and Consolidated Statement of Comprehensive

31IncomeConsolidated Balance Sheet 32 Consolidated Statement of Changes in Equity

33

Consolidated Statement of Cash Flows

34

Notes to the financial information 35Reserves and Resources 472012 Operating Overview

We continued to make good progress across our assets in 2012 with Q4, asanticipated, being our strongest quarter. However, challenges in our operatingenvironment resulted in us meeting neither our cost nor initial productiontargets for the year.

Gold production at Bulyanhulu of 236,183 ounces was 10% lower than 2011,primarily due to lower head grade as a result of paste fill delays and lowerthan plan availability of high grade stopes which was further negativelyimpacted by lower equipment availabilities. In addition, in Q4 2012 potentialchanges to Tanzanian pension legislation led to significant numbers of longserving Tanzanian employees resigning which further impacted production.Production at North Mara increased by 13% over 2011 to 193,231 ounces, withhead grade and mill recovery positively impacted by an increase in ore tonnesmined and mined grade over the second half of the year leading to a reductionin mill feed from the lower grade stockpiles.At Buzwagi, all the key operating metrics showed good year-on-year improvementwith the result that the expected 30% fall in head grade was limited to a 16%decline in production. The final quarter saw a particularly strong performancehelping drive full year production to 165,770 ounces.

At Tulawaka full year production amounted to 31,028 ounces, 47% lower than in2011 as a result of the lower mined grade from underground stopes and theapplication of batch milling in order to drive plant efficiencies.

Total tonnes mined amounted to 48.3 million tonnes, an increase of 7% from 45.1million in 2011. Ore tonnes mined from open pits amounted to 6.0 million tonnescompared to 5.8 million in 2011. This was driven by increased ore tonnes fromBuzwagi due to improved equipment availability. Waste tonnes mined of 41.2million tonnes were 8% higher than 2011 as a result of the improved equipmentavailability at Buzwagi, offset by mining constraints at North Mara due todelays in issuing PAF waste dumping permits. Underground tonnes hoisted werenegatively impacted by operational issues at Bulyanhulu and amounted to 1.1million tonnes compared to 1.2 million tonnes in 2011.

Ore tonnes processed amounted to 7.7 million tonnes, an improvement of 4% from2011 driven by increased throughput at Buzwagi due to process plantimprovements.

Head grade for the year of 2.9 grams per tonne (g/t) was 12% lower than 3.3 g/tin 2011. This was due to mining at reserve grade at Buzwagi for a largeproportion of the year and lower availability of higher grade stopes atBulyanhulu and Tulawaka.

Our cash costs for the year were 37% higher than 2011, and amounted to US$949per ounce sold. The increase was primarily due to:

the lower production base and resultant lower co-product revenue (US$169/oz);

increased fuel and energy costs at Buzwagi due to the increased self generationof power and increased Tanesco rates and consumption at Bulyanhulu (US$53/oz);and

increased maintenance and G&A costs across all sites (US$58/oz).

This was partially offset by increased capitalised mining expenditure atBuzwagi due to a higher strip ratio and cost base, and at Bulyanhulu due to theincreased cost base and development ratio (US$38/oz).

Cash costs of US$75 per tonne milled for the year have increased by 15% on 2011(US$65 per tonne), primarily as a result of the above factors.

Gold sales amounted to 609,252 ounces, and trailed production by 3% due to theback-ended nature of production during Q4 2012 at Buzwagi and North Maraaffecting the timing of sales.

Our copper production for the year of 12.9 million pounds represents a 13%decrease on 2011 (14.9 million pounds), which reflects the lower productionbase at Bulyanhulu and Buzwagi.

Despite improvements made overall in the Group total reportable injuryfrequency rate ("TRIFR"), we regretfully suffered two fatalities across ouroperations in 2012. The first involved a contractor employee at Buzwagi who wasinvolved in a vehicle related incident. The second involved an ABG employee atTulawaka who was involved in a mobile equipment accident that is currentlyunder investigation.BulyanhuluKey statistics Three months ended Year endedBulyanhulu 31 December 31 December(Unaudited) 2012 2011 2012 2011 Underground ore tonnes hoisted Kt 214 254 959 1,048Ore milled Kt 230 241 1,012 1,056Head grade g/t 7.2 9.1 8.0 8.5Mill recovery % 89.8% 91.5% 90.6% 91.2%Ounces produced oz 47,684 64,433 236,183 262,034Ounces sold oz 46,306 65,132 235,410 269,981Cash cost per ounce sold US$/oz 971 671 803 610Cash cost per tonne milled US$/t 196 181 187 156Copper production Klbs 1,206 1,617 6,102 7,675Copper sold Klbs 1,293 1,786 5,895 7,716Capital expenditure US$('000) 50,406 29,765 117,569 95,432Operating performanceBulyanhulu produced 236,183 ounces in 2012, 10% lower than the prior year'stotal as a result of paste fill delays, lower than planned availability of highgrade stopesand lower equipment availabilities resulting in lower ore tonneshoisted and mined grade than in 2011. Whilst corrective actions are underway,progress has been slowed by potential changes to Tanzanian pension legislationwhich has led to significant numbers of long serving Tanzanian employeesresigning. These included a number of skilled underground mining personnel aswell as maintenance staff dealing with improving mobile equipmentavailabilities. With the end of the offer period we are now actively hiring aswell as rotating staff from elsewhere in our operations, in order to minimisefurther impacts in 2013.Head grade of 8.0 g/t was lower than the prior year (8.5 g/t) as a result ofpaste fill delays limiting access to the primary long hole stopes leading toincreased tonnes being mined from lower grade stopes. The lower mined gradetogether with lower recoveries in the CIL circuit led to a recovery rate of90.6%.

Gold ounces sold for the year were 235,410 ounces, which was broadly in linewith the production figure, but 13% lower than 2011.

Copper production for the year of 6.1 million pounds was 20% lower than that ofthe same period in 2011. This was primarily due to mining of lower copper gradeareas and lower recoveries.Cash costs for the year of US$803 per ounce sold were 32% higher than the prioryear of US$610. Cash cost was negatively impacted by lower production levelsand the resultant lower co-product revenue; increased maintenance costs drivenby an increase in unplanned mining and processing related breakdowns; increasedenergy costs due to increased Tanesco rates and consumption; and increased G&Acharges driven by higher camp costs and aviation charges. This was slightlyoffset by increased capitalised mining expenditure. Cash costs per tonne milledincreased to US$187 in 2012 (US$156 in 2011) as a result of the costs outlinedabove.Capital expenditure for the year of US$117.6 million was 23% higher than theprior year of US$95.4 million mainly driven by expansion capital and increasedunderground development. Key capital expenditure included capitalisedunderground development (US$45.6 million), CIL expansion project (US$26.1million) and mining equipment (US$10.6 million).BuzwagiKey statistics Three months ended Year endedBuzwagi 31 December 31 December(Unaudited) 2012 2011 2012 2011Tonnes mined Kt 7,907 6,205 28,563 21,534Ore tonnes mined Kt 1,325 797 4,233 3,545Ore milled Kt 1,062 642 3,715 2,993Head grade g/t 2.1 2.1 1.6 2.3Mill recovery % 90.9% 87.4% 87.3% 88.0%Ounces produced oz 64,828 37,916 165,770 196,541Ounces sold oz 51,264 38,547 155,322 200,518Cash cost per ounce sold US$/oz 881 870 1,087 691Cash cost per tonne milled US$/t 43 52 45 46Copper production Klbs 3,059 1,272 6,773 7,201Copper sold Klbs 1,945 1,438 5,628 7,353Capital expenditure US$('000) 32,232 27,774 98,054 83,203Operating performanceGold production for the year at Buzwagi was 165,770 ounces, 16% lower than theprior year period. This is as a result of the reversion to mining at reservegrade for a significant part of the year, with production further impacted byplant operational factors leading to decreased processing rates in the firsthalf of the year. With the installation of diesel back up power and improvedplant operational availability and efficiencies in the second half of the year,2012 mill throughput increased by 24% compared to 2011. There was a significantincrease in tonnes mined compared to the prior year period as a result of alarger mobile fleet and improved equipment availability. We expect theimprovement in both mining and milling rates to continue through 2013.

Gold ounces sold decreased by 23% to 155,322 ounces from 200,518 ounces,falling below production by 6% due to a delay in sales as a result of theback-ended nature of production in the fourth quarter.

Copper production for the year of 6.8 million pounds was 6% below the prioryear's production. This was primarily due to the mining of lower copper gradesin 2012.

Cash costs for the year were US$1,087 per ounce sold compared to US$691 in2011. Cash costs have been affected by lower production and resultant lowerco-product revenue and increased diesel consumption driven by a requirement toself generate electricity. Increased consumable usage and contract servicescosts, due to increased maintenance and repair contractor ("MARC") repairs wereoffset by increased capitalised stripping costs due to the waste strippingundertaken.

Cash costs per tonne milled of US$45 decreased slightly from 2011 as increasedthroughput was offset by an increase in the direct mining cost base.

Capital expenditure for the year of US$98.1 million was 18% higher than theprior year of US$83.2 million primarily due to deferred stripping. Key capitalexpenditure includes capitalised deferred stripping (US$31.1 million), minefleet investments (US$19.8 million) and investments in the process plant'sdetoxification process (US$17.2 million). Included in capital expenditure is anon-cash reclamation adjustment which amounted to US$10.5 million.North MaraKey statistics Three months ended Year endedNorth Mara 31 December 31 December(Unaudited) 2012 2011 2012 2011Tonnes mined Kt 5,788 3,591 18,391 21,808Ore tonnes mined Kt 694 549 1,711 2,254Ore milled Kt 740 773 2,786 3,070Head grade g/t 3.0 2.1 2.5 2.1Mill recovery % 88.7% 78.9% 85.4% 80.6%Ounces produced oz 63,235 41,704 193,231 170,832Ounces sold oz 56,800 40,000 186,600 170,625Cash cost per ounce sold US$/oz 921 867 965 810Cash cost per tonne milled US$/t 71 45 65 45Capital expenditure US$('000) 34,449 37,832 91,096 123,146Operating performanceGold production for the year was 193,231 ounces, an increase of 13% on 2011 asa result of improved grade and recoveries partially offset by ore milled being9% lower than in 2011, as throughput was negatively impacted by unplannedmaintenance in Q2 2012. Gold ounces sold amounted to 186,600 ounces for theyear, 9% higher than in 2011 due to the increase in production, but trailingproduction by 3% due to the back-ended nature of production in Q4 2012.Head grade of 2.5 g/t improved by 19% from 2011, as a result of increased oretonnes mined and mine grade during the second half of the year, leading to areduction in mill feed from the lower grade stockpiles. Recoveries of 85.4%increased 6% on the prior year period, primarily as a result of the positiveimpact from the completed gold plant recovery project.The focus for North Mara in 2012 was the continuation of the substantial wastestripping programme in both the Gokona and Nyabirama pits in order to open uphigher grade zones for future years. Mining in the Gokona pit was adverselyimpacted by delays in the issuing of PAF waste dumping permits during H1 2012,and delays in relocating villagers surrounding the Nyabirama pit led to thesuspension of mining in the pit from Q2 2012. As a result, total tonnes minedof 18.4 million tonnes were 16% lower than in 2011. Ore tonnes mined amountedto 1.7 million tonnes, a reduction of 24% from 2.3 million tonnes in 2011.Cash costs for the year were US$965 per ounce sold compared to US$810 in theprior year period. Direct mining costs were in line with 2011, with increasesin labour, G&A and maintenance offset by lower contracted services charges dueto the move from a MARC to an owner maintenance model. However, lower thanplanned capitalised mining and negative inventory valuation changes drove anincrease in overall cash cost compared to 2011.

Cash costs per tonne milled increased to US$65 in 2012 from US$45 in 2011,mainly as a result of the decrease in throughput.

Capital expenditure for the year of US$91.1 million was 26% lower than theprior year of US$123.1 million due to lower expansion capital. Key capitalexpenditure included capitalised deferred stripping (US$25.7 million), mineequipment (US$10.5 million), infrastructure investment (US$14.5 million) andcapitalised exploration drilling costs (US$5.2 million). Included in capitalexpenditure is a non-cash reclamation adjustment which amounted to US$7.5million.

During Q4 2012 the SMLs relating to North Mara were renewed on the existingterms for a 15 year period. This renewal supports our long term planning andwill assist in unlocking value from the asset base.

The life of mine footprint continues to be a challenge at North Mara as landacquisition is increasingly expensive due to the high levels of speculation.This has led to the ongoing suspension of operations in the Nyabirama pit. Weare engaging with local and central government in order to find a solution.During the year we received PAF waste dump permits necessary for the immediateoperations of the site and we continue to apply for permits to meet ongoingrequirements.We continue to work with the relevant authorities to progress the lifting ofthe Environmental Protection Order ("EPO") at North Mara in order to be able todischarge water. NEMC, the environmental regulator, has recently visited theoperation for a final review and we are now awaiting their approval.TulawakaKey statistics Three months ended Year ended Tulawaka (reflected as 70%) 31 December 31 December(Unaudited) 2012 2011 2012 2011Underground ore tonnes hoisted Kt 33 38 124 144Open pit ore tonnes mined Kt - 20 43 22Open pit waste tonnes mined Kt - 437 222 497Ore milled Kt 34 73 185 291Head grade g/t 4.7 7.1 5.5 6.6Mill recovery % 94.6% 95.7% 95.5% 95.1%Ounces produced Oz 4,937 15,967 31,028 58,871Ounces sold Oz 5,215 15,190 31,920 58,415Cash cost per ounce sold US$/oz 1,989 781 1,269 727 Cash cost per tonne milled US$/t 302 162 219 146Capital expenditure (100%) $('000) 7,386 14,262 24,588 31,652

Operating performance

The mine's attributable gold production for the year was 31,028 ounces comparedto the 58,871 ounces achieved in 2011. The decreased gold production levelresulted from lower mined grade from underground stopes and the application ofbatch milling in order to drive plant efficiencies. Gold ounces sold werebroadly in line with production.Cash costs for the year were US$1,269 per ounce sold compared to US$727 in theprior year. This cost increase was mainly due to the lower production base andthe impact of lower capitalised mining. These were slightly offset by lowersales related costs due to lower sales ounces.

Cash costs per tonne milled increased to US$219 in 2012 from US$146 in 2011,primarily as a result of a lower mill throughput due to the batch millingcampaign.

Capital expenditure for the year of US$24.6 million was 22% lower than theprior year of US$31.7 million. Key capital expenditure included capitalisedexploration drilling and underground development costs (US$10.2 million) as weevaluated the potential to extend the mine life and infrastructure investmentsinto the tailings storage facility, security and accommodation (US$4.2 million)which will form part of the closure plan. Included in capital expenditure is anon-cash reclamation adjustment which amounted to US$1.3 million.Following the decision not to further extend the mine life, and in combinationwith the downward revision of reserves, we have recognised a non-cashimpairment charge of US$44.5 million relating to Tulawaka given the currentmine plan and limited mine life. This is a result of the mine life net carryingvalue exceeding the recoverable amount by US$41.0 million and the impairment ofcapitalised exploration costs relating to the Moja-Moja project of US$3.5million.

Exploration and Development Review

Overall, 2012 was a successful year of execution and delivery for both theExploration and Projects teams across our greenfield and brownfield explorationand development projects. During 2012, US$29.0 million of exploration andevaluation activities were expensed, with a further US$16.6 million ofcapitalised exploration and evaluation activities taking place. Key highlightsinclude the addition of resource ounces at Nyanzaga, successful drillingresults from brownfield exploration programmes at North Mara and theacquisition of the West Kenya JV project.In early 2012 we announced an increase of over 3 Moz of Indicated and Inferredin-pit resources at Nyanzaga and in April, following further successfuldrilling of the Kilimani Zone, we added a further 500,000 ounces of gold to thein-pit resource. The project subsequently returned a positive scoping study andhas been moved into a pre-feasibility study. Exploration drilling in 2013 atNyanzaga will continue to target the extensions of high grade zones intersectedby deep drilling.At the North Mara mine, brownfield exploration drilling programmes werecompleted below the Gokona and Nyabirama open pits targeting significantresource expansions with the aim of expanding the current open pits and/ordeveloping underground resources. Both programmes achieved their aims, with atrade-off analysis being completed to determine how we proceed with schedulingand mining the expanded resources at Gokona and a scoping study now underway atNyabirama.At Bulyanhulu, approval was granted for an expansion to the current CILcircuit, initially, to retreat tailings and to give future processingflexibility to processing of ore types at the mine. The project has progressedwell with site works now underway. Project commissioning is targeted for early2014. Additionally, the project to accelerate mining at the Bulyanhulu UpperEast Zone has now been expanded in scope to include both of Reef 1 and Reef 2and has the potential to add an average of 90,000 ounces of gold per year toproduction over the life of mine.

Greenfield Exploration

Greenfield exploration is a key value driver, and when successful, it enablesthe business to generate future production ounces at competitive cost.Therefore, significant focus in 2012 has been placed on identifying newgreenfields exploration opportunities throughout Africa to strengthen ourexploration portfolio. Collectively, the greenfield exploration programmes wehave undertaken have further strengthened our portfolio of explorationprojects, with the potential to add significantly to our production profileover the medium term.We have made good progress at our Nyanzaga project throughout the year, and arecurrently completing the pre-feasibility study. Elsewhere in Tanzania, duringthe year wide zones of lower grade mineralisation have been intersected at theDett prospect west of the North Mara mine. Current drilling is targeting highergrade zones within this mineralised system in order to further explore itspotential.In addition, initial exploration programmes conducted on the West Kenya JVProject following completion of our acquisition of AMKL have already started toyield positive results at several prospects within the 2,800 square kilometreland package. In 2013, we will continue our focus on advancing grassroots andother early stage prospects on the West Kenya JV Project to drill ready status.At the same time, we will continue to advance opportunities at drill testingand advanced exploration stages of the exploration pipeline toward tangibleresource projects.

Brownfield Exploration

In 2012, near-mine brownfield exploration successfully identified extensions toknown resources. The main focus was Gokona and Nyabirama depth extensions atNorth Mara where drilling returned excellent results from infill and step-outresource drilling. At Gokona, we intersected significant high grademineralisation up to 300 metres below the current final open-pit depth.Selected results include the following:

GKD334: 3m @ 17.9g/t Au from 29m and 21m @ 15.4g/t Au from 188m

GKD336: 14m @ 11.2g/t Au from 222m

GKD337: 7m @ 31.0g/t Au from 457m and 11m @ 8.2g/t Au from 467m

GKD340: 11m @ 8.2g/t Au from 211m

GKD348A: 20m @ 22.4g/t Au from 415m and 8m @ 11.8g/t Au from 478m

GKD369: 17m @ 14.2g/t Au from 320m

GKD371: 14m @ 18.8g/t Au from 125m

From these results we can clearly see the opportunity for a significanthigh-grade underground resource.

At Bulyanhulu, we undertook a small programme of infill drilling around theplanned Reef 2 Upper East underground. The drilling was successful atdelineating extensions to known high grade shoots around the margins of theexisting resource as well as confirming grade continuity within reserve areas.Further drilling is scheduled for 2013 to expand the Reef 2 resource in deeperareas of the mine to enhance future planning and life of mine scheduling.

In 2013 there will be a significant focus on realising resource expansionsaround our Bulyanhulu and North Mara operations.

Bulyanhulu CIL Expansion

The project will expand the current CIL circuit at Bulyanhulu to 2.4 milliontonnes per annum in order to re-treat historic tailings, and increaseproduction by approximately 40,000 ounces of gold per annum for the first sixyears of operation. The project has been progressing according to plan, withcommissioning on track for early 2014. During the year we awarded theEngineering Procurement and Construction ("EPC") contract to manage the projectto MDM Engineering and obtained all approvals for the construction from theTanzanian authorities. Project financing discussions continued throughout theyear and were ultimately concluded at the beginning of 2013 for the provisionof an export credit facility for US$142 million to support the constructioncosts of the project. In conjunction with this, we have now submitted theEnvironmental and Social Impact Assessment to the Tanzanian Government, asrequired for the extension of the existing tailings storage facility atBulyanhulu.

Progress in 2012

Detailed engineering design 85% complete

EPC contract awarded to MDM Engineering to manage the project

Project financing arranged for the provision of an export credit facility forUS$142 million

Focus for 2013

Completion of engineering design

Receipt of approvals for the life of mine tailing storage facility

Completion of construction ahead of commissioning in early 2014

Bulyanhulu Upper East Project

The Bulyanhulu Upper East Expansion is a project aimed at increasingunderground production. The project was previously solely based on the 1.2 Mozof gold reserves located in Reef 1 of the Upper East Zone, and we have nowcompleted a positive scoping study to incorporate the 0.9 Moz of gold whichcurrently sit in reserves in Reef 2 of the Upper East zone. We are nowprogressing with pre-feasibility and feasibility work on Reef 2 with the aim ofcompleting a combined feasibility study for both reefs. Production from theUpper East Zone is targeted to commence in late 2014 and is expected to averagein excess of 90,000 ounces of gold per annum over the life of mine.

Progress in 2012

Expansion of the scope of the project to include Reef 2 as well as Reef 1

Development of test stopes and completion of rehabilitation of main decline

Board approval to order certain long lead items

Focus for 2013

Complete the development of test stopes and successful completion of trialmining

Receipt of Board approval to proceed with project execution

Continue exploration drilling to expand Reef 2 resource

Nyanzaga Project

In early 2012, we announced an updated in-pit resource in excess of 4 millionounces of gold, consisting of an Indicated resource of 3.48 Moz ounces of goldat 1.47 g/t Au and an Inferred resource of 0.6 Moz ounces of gold at 2.05 g/tAu. This represents a fourfold increase on the previous resource declared forthis project. Additional drilling and re-optimisation of the open pits,undertaken in 2012, saw the inclusion of the Kilimani zone and has added afurther 0.6 Moz of gold to the in-pit resource, which now stands at 3.75 Moz at1.42 g/t Au Indicated and 0.85 Moz at 1.81 g/t Au Inferred. In addition tothis, we have successfully completed the scoping study for this project andhave now moved into the pre-feasibility stage where we will examine differentoptions for developing the in-pit resource. In order to ensure an appropriatemix of upfront capital and future cash flows we will examine a range of optionsfor the size of the process plant up to 8 million metric tonnes per annum.

Progress in 2012

Expansion of in-pit resource to in excess of 4.6 Moz

Positive exploration results showing higher grade zones both at surface anddepth.

Project moved from scoping into Pre-Feasibility Study stage

Focus for 2013

Successful completion of the pre-feasibility study in H1 2013

Optimisation of the capital and operating costs if moved into a feasibilitystudy

Drilling of deep exploration holes to target underground potential

Gokona Expansion

Drilling throughout 2011 and 2012 has targeted extensions to the Gokonamineralised system at depths below the current planned open pit. The aim of thedrill programmes was to expand the potential underground resource in order tocomplete a detailed feasibility study. Drilling has been successful indemonstrating that high grade mineralisation extends to significant depthsbelow the Gokona pit and studies are currently underway to determine theoptimal way of integrating the underground and surface resources at Gokona inorder to maximise the life of mine return at North Mara.

Progress in 2012

Significant exploration intersections demonstrating good grade continuity

Gokona underground resource increased to approximately 900 thousand ounces

Focus for 2013Complete feasibility studyNyabirama ExpansionBrownfield exploration drilling around the Nyabirama open pit during 2011 and2012 has targeted opportunities for open pit expansions and undergroundextensions. Drill results during 2012 demonstrated that gold mineralisationcontinues to significant depths below current and future open pit depths andthat further drilling is warranted to assess the size potential of theNyabirama system. The results from the 2012 drilling have been incorporatedinto a scoping study that is expected to be completed in early 2013.

Progress in 2012

Exploration drilling intersected extensions to current resources indicating thesystem is robust at depth

Focus for 2013

Complete the Nyabirama resource update

Complete scoping study on pit expansion and underground potential

Golden Ridge

Golden Ridge is a satellite deposit, approximately 35km from Bulyanhulu. During2012 we completed a metallurgical drilling programme and incorporated thefindings into our existing model. We continue to examine the opportunity to useBulyanhulu as a potential processing facility and this will progress oncompletion of the technical review process currently being conducted atBulyanhulu as a part of the Operational Review.

Progress in 2012:

Completion of metallurgical drilling programme to update resource model

Initiation of study into toll milling ore at Bulyanhulu

Focus for 2013:

Completion of study into incorporating Golden Ridge into the Bulyanhulu LOM

West Kenya Joint Venture Project

In October 2012, we announced the acquisition of AMKL from Aviva Corporation.Through the acquisition of AMKL, ABG now owns a 51% interest, with thepotential to move to 75% in a joint venture ("Lonmin JV") with Lonmin plc, andAMKL's right to earn up to a 75% interest in a second joint venture ("AdvanceJV") with Advance Gold Corporation. The acquisition of the interests providesan opportunity for ABG to enter an under explored region with multiple stylesand types of gold prospects in a country with solid transport infrastructureand synergies with Tanzania.The licence areas, which have only seen limited previous exploration, containmultiple large-scale gold anomalies and cover five contiguous licences over aland package in excess of 2,800km2 of the highly prospective Ndori GreenstoneBelt in Kenya, which forms part of the Tanzanian Archaean Craton. The NdoriGreenstone Belt has all the geological characteristics of the highly productivegreenstone belts of the Abitibi region of Canada and the Eastern Goldfields ofWestern Australia. Colonial and artisanal mining and prospecting has identifiedin excess of 120 prospects and targets across the properties. Sporadic historicand current exploration activities have identified a large number of targetsthat justify extensive follow-up, and ABG intends to implement a systematic andfocused gold exploration programme. These targets represent a significantaddition to the grassroots and target delineation segments of our explorationpipeline.During 2013, we will focus on advancing our knowledge of the Ndori Greenstonebelt geology and structure through regional programmes, including drill testingof the more advanced stage targets. The initial aim for 2013 is to drill inexcess of 70,000 metres of aircore, reverse circulation and diamond drill core,and to collect more than 15,000 auger and soil samples throughout theproperties.We have divided the properties into two large-scale gold camps, the KakamegaDome Camp in the east and the Lake Zone Camp to the west in order to focus ourexploration activities and teams to ensure we are advancing the best targets.

Lake Zone Camp

The Lake Zone Camp has over 60 gold prospects from historic exploration andprospecting activities. Exploration over the past ten years has included soilsampling, ground and airborne geophysical surveys and limited shallowpercussion drilling.

Activities in the Lake Zone Camp during 2012 focused on core drilling ofseveral projects to investigate the style and controls on gold mineralisationat several prospects. At one such prospect, Ramula, we have already intersectedsignificant gold mineralisation in diamond drill core when testing a 600x400metre gold in soil anomaly with some associated artisanal mining activity.Results have been very positive with multiple gold-bearing, shallow dipping,quartz veins intersected with best results in hole ANRDD003 including, 3.15m @3.02 g/t Au from 44m, 3.3m @ 12.5 g/t Au from 53m, 8.5m @ 4.61 g/t Au from178m, 4.7m @ 7.40 g/t Au, and 4.1m @ 10.4 g/t Au from 252m. Drilling on theproject will be accelerated in early 2013 and a second rig will be brought inwhich is capable of testing greater depths.

Ongoing exploration programmes in the Lake Zone Camp will focus on developing anumber of drill ready targets, while at the same time completing extensiveregional programmes to generate new targets for prospecting activities.

Kakamega Dome Camp

The Kakamega Dome Camp has over 70 known gold prospects from historicexploration and prospecting activities.

Exploration over the past ten years has focused on soil sampling, groundgeophysics and drilling. The majority of recent exploration activity undertakenprior to ABG's acquisition of AMKL was focused on the Bumbo VMS Cu-Zn-Ag-Audeposit in the south of the camp and at the Bushiangala and Kimingini prospectson the south side of the interpreted Kakamega Dome.Reconnaissance aircore drilling in 2013 will focus on the Liranda Lineament onthe south side of the Kakamega Dome, which is a feature observed in airbornemagnetic surveys, and is co-incident with a 15-20 kilometre roughly east-westcorridor of gold-in-soil anomalies. This programme will be aimed at delineatingtargets for deeper drill testing. Additionally, deeper drilling will beundertaken at Bushiangala and Kimigini where excellent results includeASBSDD0001: 20m at 9.41 g/t Au from 29m and 1m at 12.05 g/t Au from 101 metres,ASBSDD006: 6m at 5.02 g/t Au from 38m and 16m at 5.91 g/t Au from 58m, ASRC025:9m at 12.7 g/t Au from 139m and ASBSDD012: 9m at 13.05 g/t Au from 6m. Drillingto date shows the systems remain open at depth, and strike extensions can beexpected.We expect to see the West Kenya JV Project develop over the coming year throughan expansive programme of early stage reconnaissance work and later stage drilltesting with the aim of identifying several projects to move into resourcedefinition drilling.

2012 Progress

Acquisition of West Kenya JV Project completed in late 2012

Drilling continued to intersect significant gold mineralisation on targetsaround the Kakamega Dome

Initial high-grade gold zones intersected at the Ramula Project in the LakeZone Gold Camp

2013 Priorities

Advance drill testing stage targets at Bushiangala, Rosterman and Kiminginiaround the Kakamega Dome Camp

Delineate potential for new discoveries at Ramula, Masumbi, Abimbo, Kitson andWagusu projects in the Lake Zone Camp

Advance regional understanding of geology and structure throughout the project

Identify new projects at all stages across the exploration pipeline

Financial Review

The challenging operational performance of our assets in 2012 is reflected inthe ABG Group's financial results for the year:

Revenue of US$1,087.3 million was US$130.6 million lower driven by a 9%decrease in production base and sales delays.

Cash costs increased to US$949 per ounce sold from US$692 in 2011 driven bylower production, increased energy and maintenance costs, increased salesrelated costs and lower co-product revenue. Cash margin decreased by 20% toUS$719 per ounce.

EBITDA decreased by 39% to US$330.9 million driven by lower revenue andincreased direct mining costs and corporate social responsibility expenditure.

Adjusted net earnings of US$105.5 million, 62% lower than in 2011 due to lowerEBITDA, partially offset by a lower tax expense. Adjusted earnings per share,mainly excluding a US$44.5 million non-cash impairment at Tulawaka, amounted toUS25.7 cents, down from US67.0 cents in 2011.Operational cash flow of US$257.9 million was 48% lower than 2011 mainly due tolower EBITDA and working capital outflows, including the impact of VAT reliefabolishment in Q4 2012.

Notwithstanding our financial performance we have maintained a strong financialposition with a net cash balance of US$401 million at year end, and we haveproposed maintaining the full year dividend at the same level as 2011.

In line with the Operational Review, the 2013 key finance initiatives will be:

Cost and organisational structure review to ensure it is appropriate for thescale of the business.

Continued focus on working capital optimisation.

Continued focus on capital prioritisation and optimisation.

The following review provides a detailed analysis of our consolidated 2012results and the main factors affecting financial performance. It should be readin conjunction with the financial statements and accompanying notes on pages 31to 46, which have been prepared in accordance with International FinancialReporting Standards as adopted for use in the European Union (IFRS).

Market overview

The key external drivers of our financial results are commodity prices,exchange rates and the price of oil. Their impact in 2012 and our positioninggoing into 2013 are set out below.

Commodity prices

Gold prices have a significant impact on ABG's operating earnings and itsability to generate cash flows. In 2012 the price of gold traded in a range ofUS$1,540 to US$1,790 per ounce and closed at US$1,675 per ounce. Gold pricesaveraged US$1,669 per ounce, a new record average and a US$97 per ounceimprovement on the US$1,572 per ounce average in the prior year period.The market price of gold has been positively influenced by low US dollarinterest rates, sovereign debt concerns, investment demand and the monetarypolicies put in place by the world's most prominent central banks. As a resultof the global easing of monetary policy, as well as large fiscal deficitsincurred in the US and other major developed economies, there is a possibilitythat both inflation and US dollar depreciation could emerge in the comingyears. Gold is viewed as a hedge against inflation and has historically beeninversely correlated to the US dollar. Therefore, higher inflation and/ordepreciation in the US dollar should be positive for the price of gold.Gold prices also continue to be influenced by the impact of central bank goldpurchases and investor interest in owning gold. In 2012, central bankspurchased an estimated 536 metric tonnes of gold, and investor interest ledholdings by major global exchange traded funds to increase by 10 million ouncesin the year to total 89 million ounces at the end of the period. Historically,gold has been viewed as a reliable store of value in times of financialuncertainty and inflation and as a de facto global currency. Investor interestin gold as an asset class has increased greatly as a result of this.ABG also produces copper as a co-product which is recognised as part ofrevenue. Copper prices traded in a wide range of US$3.29 to US$3.93 per poundand averaged US$3.61 per pound (compared to US$4.00 per pound in 2011).Copper's fall during the second half of 2012 occurred mainly due to uncertaintyregarding the global economic recovery, and softer demand from emergingmarkets, especially China. We expect copper to benefit as the US domesticrecovery accelerates and the effects of the European financial crisis becomeclearer. Copper prices will likely also be boosted by a resurgence of Asiandemand, and by the limited availability of scrap metal and lower productionlevels of mines and smelters.

We will continue to monitor prices and take advantage of opportunities to hedgethe copper price at acceptable price levels.

Currency exchange rates

A portion of the Company's costs are incurred in currencies other than USdollars. The exposure relating to other currencies is approximately 28% of theCompany's total expenditure of which the main contributing currencies are theTanzanian shilling and the South African rand. In 2012, the rand declinedsignificantly against the US dollar as investors shunned riskierrand-denominated assets in favour of alternative investments.

Using collar option strategies, we have put in place floor protection onapproximately 74% of our expected rand operating expenditures for 2013 ataverage floor prices of R8.31.

We have also used collar option strategies to put in place floor protection onapproximately 84% of our expected rand-denominated capital expenses relating tothe Bulyanhulu CIL expansion project, for 2013 and 2014 respectively, ataverage floor prices of R8.70 and R8.90 respectively. We participate in Randweakness up to average ceilings of R9.59 and R9.80, for 2013 and 2014respectively.

Fuel

During 2012, Brent crude oil traded between US$126 and US$89 per barrel andaveraged US$112 per barrel. We consume approximately 625 thousand barrels ofdiesel fuel annually across all our mines. Diesel fuel is refined from crudeoil and is therefore subject to the same price volatility affecting crude oilprices. Volatility in crude prices has a significant direct and indirect impacton our production costs.Using 3-way option strategies, we have put in place ceiling protection onapproximately 40% of our expected oil exposure for 2013. The hedges cap our oilexposure at US$110 per barrel should oil trade between US$110 and US$135 perbarrel. Should the price of oil fall, we will participate in the lower price toa floor of US$85 per barrel.Financial performanceRevenueRevenue for the year of US$1,087.3 million was 11% lower than the prior yearperiod of US$1,217.9 million. Year-on-year group gold sales volume decreased by14%, while gold revenue benefited from higher average realised gold prices. Thedecrease in sales ounces was primarily due to the lower production base and theback-ended nature of production in December 2012 deferring sales to 2013. Theaverage realised gold price was US$1,668 per ounce in 2012 compared to US$1,587per ounce in 2011.Co-product revenue amounted to US$48.0 million for the year and decreased by29% from the prior year (US$67.9 million) due to the lower sales volumes andprices. The decrease in the production of gold/copper concentrate at Bulyanhuluand Buzwagi resulted in the decrease in copper sales volumes. The 2012 averagerealised copper price of US$3.57 per pound compared unfavourably to the prioryear of US$3.82 per pound, and was driven by global market factors regardingsupply and demand.Cost of sales

Cost of sales was US$802.7 million for the year ended 31 December 2012,representing an increase of 14% on the prior year period (US$704.1 million).The key aspects impacting the cost of sales during the year were:

Increased direct mining costs as a result of increased mining and processingactivities, overall cost inflation and a change in energy model geared towardsself generated power at Buzwagi which led to increased energy, maintenance andgeneral administration costs; and

Increased depreciation given the increased asset base employed and depreciatedand increased capital expenditure during the year.

The table below provides a breakdown of cost of sales:

Three months ended Year ended($'000) 31 December 31 December(Unaudited) 2012 2011 2012 2011Cost of SalesDirect mining costs 152,314 125,887 581,483 510,465Third party smelting and refining fees 4,591 4,984 18,574 21,400Royalty expense 13,198 9,445 43,769 38,100Depreciation and amortisation 47,694 37,139 158,883 134,149Total 217,797 177,455 802,709 704,114A detailed breakdown of direct mining expenses is shown in the table below: Three months ended Year ended($'000) 31 December 31 December(Unaudited) 2012 2011 2012 2011Direct mining costsLabour 46,146 43,502 177,927 168,781Energy and fuel 37,855 30,674 138,199 105,201Consumables 27,312 24,395 105,779 93,646Maintenance 24,352 22,147 98,384 79,491Contracted services 23,713 25,050 89,715 99,414General administration costs 23,264 19,806 90,974 71,614Capitalised mining costs (30,328) (39,687) (119,495) (107,682)Total direct mining costs 152,314 125,887 581,483 510,465

Individual cost components comprised:

Labour costs, were 5% higher in 2012, mainly as a result of year-on-yearinflationary increases and increased national employee headcount primarily atBuzwagi and North Mara, partially offset by a reduction in internationalemployees and a reallocation of travel costs to general and administrationcosts.

Energy and fuel expenses increased by 31% over 2011, driven primarily byincreased fuel usage for self generation of power and increased mining activityat Buzwagi; and at Bulyanhulu due to increased Tanesco rates and consumption.

Consumable costs increased 13% primarily due to the increased mining andprocessing activity and changes to the processing mix at Buzwagi as a result ofthe lower head grade, resulting in increased consumable consumption.

Maintenance costs rose 24% primarily driven by North Mara due to the transitionfrom a MARC to an owner maintenance model in H2 2011 (see reduction incontracted services) and to address lower plant and equipment availability. Inaddition, cost increased at Bulyanhulu due to unplanned breakdowns ofunderground equipment as a result of increased wear and plant operationalbreakdowns.Contracted services decreased 10%, mainly as a result of the transition awayfrom a MARC model at North Mara, a decrease in open pit mining at the West Pitextension at Tulawaka and a reallocation of contracted camp services to generaland administration costs. This was partially offset by increased MARC costs atBuzwagi to address equipment availabilities and increased contractedunderground costs for Bulyanhulu.General and administrative costs increased 27%, driven by increased camp costsand additional security requirements amounting to US$5 million, reallocatedcamp costs from contracted services of US$4 million and increased travel costsof US$9 million reallocated from labour costs. Excluding reallocations, costsincreased 9% over the prior year.

Capitalised direct mining costs, were 11% higher than 2011 as Buzwagi focusedon deferred stripping in the first three quarters and higher capitaliseddevelopment costs at Bulyanhulu.

Corporate administration costs

Corporate administration expenses totalled US$51.6 million for the year ended31 December 2012. This equated to a 5% increase from the prior year period ofUS$49.1 million. The increase is predominantly due to inflationary increaseswhich drove labour costs higher, increased share based payment expenses giventhe share price performance compared to peers and a one-time adjustment in 2011relating to share based payment forfeitures that reduced costs in that year.

Exploration and evaluation costs

For 2012, US$29.0 million was incurred, 5% lower than the US$30.3 million spentin 2011. The key focus areas for the year were exploration drilling at Nyanzaga(US$5.6 million), drilling along the corridor surrounding North Mara (US$4.7million), metallurgical sampling and modelling at Golden Ridge (US$1.6million), and the Nyanzaga scoping study (US$1.3 million). Subsequent to theacquisition of AMKL, exploration expenditure amounting to US$1.1 million hasbeen incurred. Funding provided to AMKL during the transition period and beforethe effective date of the transaction of US$1.3 million has been treated aspart of the acquisition cost.

Corporate social responsibility expenses

Corporate social responsibility expenses costs incurred amounted to US$14.4million for the year compared to the prior year of US$7.4 million. The increasehas been driven by site focused projects specifically related to VBIAs at NorthMara and larger contributions to general community projects funded from the ABGMaendeleo Fund, which was set up in September 2011.

Other charges

Other charges amounted to US$17.7 million for the year, 13% higher than 2011(US$15.6 million). The main contributors to the charge were: (i) expensesincurred as a part of the CNG offer process including advisor fees andworkforce retention accruals totalling US$6.7 million; (ii) disallowed indirecttax claims of US$3.0 million (US$7.1 million in 2011) as part of the continuedreconciliation process with the TRA and retrospective legislation changes;(iii) legal costs of US$1.7 million; (iv) ABG's entry into zero cost collarcontracts as part of a programme to protect it against copper, silver, rand andfuel cost market volatility, which resulted in a combined mark-to-marketrevaluation loss of US$1.7 million (US$7.9 million gain in 2011); (v)discounting adjustments of long term indirect taxes of US$4.2 million; and (vi)foreign exchange gains of US$4.3 million (US$6.0 million loss in 2011) arisingmainly from the devaluation of the ZAR against the US dollar impacting on theZAR denominated payables and dual currency contracts. Refer to note 5 of thefinancial statements.Finance expense and incomeFinance expense of US$10.3 million remained in line with 2011. The key driverswere US$3.0 million (US$4.6 million in 2011) relating to the servicing of theUS$150 million undrawn revolving credit facility and increased accretionexpenses relating to the discounting of the environmental reclamation liability(US$4.0 million). Other costs include bank charges and interest paid on thefactoring of concentrate receivables and finance leases. At year end, ABG hadno external debt.

Finance income relates predominantly to interest charged on non-currentreceivables and interest received on time deposits. Refer to note 6 of thefinancial statements for details.

Impairment charges

During Q4 2012, impairment charges of US$44.5 million (US$ nil in 2011) wererecorded against Tulawaka. The impairment was driven by the annual impairmentreview of goodwill and other long lived-assets and compared the recoverableamount to the net carrying value of Tulawaka. A review of Tulawaka's mine planresulted in the downward revision of reserves from the high grade crown pillarsdue to geotechnical and recovery concerns. As a result the net carrying valueexceeded the recoverable amount by US$41.0 million. Also included in theimpairment charge is the writedown of capitalised exploration costs of US$3.5million relating to the unlikelihood of mining the Moja-Moja project nearTulawaka. Refer to notes 9 and 10 of the financial statements for details.

Taxation matters

The taxation expense decreased to US$71.1 million for the year, compared toUS$117.9 million in 2011. The 2012 expense consists predominantly of deferredtax. The lower tax expense was driven by lower profits before tax. Theeffective tax rate in 2012 amounted to 60% compared to 29% in 2011. Theincrease is mainly driven by tax losses of US$23.7 million for which nodeferred income tax assets were recognised primarily relating to: Tulawaka, ABGExploration Ltd and ABG Plc stand alone assessed losses; and a charge of US$8.9million relating to disallowed tax deductions from the results of a taxassessment completed by the TRA on the Bulyanhulu historical tax returns. Thiswas further adversely impacted by a goodwill impairment charge that is not taxdeductible.

Net earnings and earnings per share

As a result of the factors discussed above, net earnings for the year ended 31December 2012 was US$59.5 million. This represents a decrease of 78% from theprior year period (US$274.9 million). Decreased revenue and increased cost baseas explained above and an impairment charge of US$44.5 million relating toTulawaka contributed to the lower net earnings.

Earnings per share for the year ended 31 December 2012 amounted to US14.5cents, a decrease of 78% from the prior year period of US67.0 cents. Thedecrease was driven by a decrease in net earnings with no change in theunderlying issued shares.

Adjusted net earnings

In 2013, we have calculated adjusted net earnings by excluding one-off costs orcredits relating to non-routine transactions from net profit attributed toowners of the parent.

Adjusted net earnings and adjusted earnings per share have been calculated byexcluding the following: Three months(US$'000) ended Year ended 31 December 31 December(Unaudited) 2012 2011 2012 2011Net (loss)/earnings (34,694) 52,683 59,471 274,895Adjusted for: Impairment charges 44,536 - 44,536 -

Prior year Bulyanhulu tax positions recognised 8,855 - 8,855

- CNG related costs 6,676 - 6,676 - Discounting of indirect taxes 4,185 - 4,185

-

Tax and minority interest impact of the above (18,239) - (18,239)

-Adjusted net earnings 11,319 52,683 105,484 274,895

Adjusted net earnings per share for the full year 2012 amounted to US 25.7cents compared to US 67.0 cents in 2011.

Financial position

ABG had year-end cash and cash equivalents of US$401.3 million (US$584.2million in 2011). The Group's cash and cash equivalents are with counterpartieswhom the Group considers to have an appropriate credit rating. Location ofcredit risk is determined by physical location of the bank branch orcounterparty. Investments are held mainly in United States dollars and cash andcash equivalents in other foreign currencies are maintained for operationalrequirements.The focus in H2 2012 was on the Bulyanhulu CIL project financing. In January2013 we concluded negotiations with a group of commercial banks (Standard Bank,Standard Chartered, and ABSA) for the provision of an export credit backed termloan facility ("Facility") for the amount of US$142 million. The Facility hasbeen put in place to fund a substantial portion of the construction costs ofthe new CIL circuit at the process plant at Bulyanhulu ("Project"). TheFacility is secured upon the Project, has a term of seven years and when drawnthe spread over Libor will be 250 basis points. The Facility is repayable inequal instalments over the term of the Facility, after a two year repaymentholiday period. This compliments the existing undrawn revolving credit facilityof US$150 million which runs until 2014.

At year end, debt remained at zero.

Goodwill and intangible assets increased by US$19.7 million from 2011. Themovement predominantly relates to the intangible asset acquired and thegoodwill allocated as a result of the acquisition of AMKL during Q4, 2012. Thishas been partially offset by an impairment to goodwill at Tulawaka. Refer tonote 9 of the financial statements for details.The net book value of property, plant and equipment increased from US$1.82billion in 2011 to US$1.96 billion in 2012. The main capital expendituredrivers have been explained in the cash flow used in investing activitiessection below, and have been offset by depreciation charges of US$164.9 millionand impairment charges of US$30.7 million at Tulawaka. Refer to note 9 and 10to the financial statements for detail.Total indirect tax receivables, net of a discount provision applied to thenon-current portion, increased from US$85.3 million in 2011 to US$98.8 millionin 2012. The increase was mainly due to the impact of VAT relief abolishment inQ4 2012, offset by US$4.5 million in refunds received by ABG during the year.The net deferred tax position increased from a net deferred tax liability ofUS$94.0 million in 2011 to a net deferred tax liability of US$171.2 million.This was driven by the taxable income generated during 2012 and the prior yearadjustment relating to the Bulyanhulu corporate tax position of US$8.9 million.Tax losses carried forward have reduced from US$384.5 million to US$321.0million and US$88.9 million of deferred tax assets were not recognised as at 31December 2012.Net assets attributable to owners of the parent decreased from US$2.76 billionin 2011 to US$2.75 billion in 2012. The decrease reflects the current yearprofit attributable to owners of the parent of US$59.5 million, which wasoffset by the payment of the final 2011 and interim 2012 dividend of US$70.1million to shareholders during 2012.

Cashflow generation and capital management

Cash flow For the three months ended For the year ended(US$'000) 31 December 31 December(Unaudited) 2012 2011 2012 2011

Cash flow from operating activities 92,639 159,621 257,903

498,323

Cash used in investing activities (140,922) (96,167) (360,655)

(281,532)

Cash used in financing activities (2,611) (4,377) (79,439)

(32,682)(Decrease)/ increase in cash (50,894) 59,077 (182,191) 184,109

Foreign exchange difference on cash (205) (210) (615)

(967)Opening cash balance 452,447 525,287 584,154 401,012Closing cash balance 401,348 584,154 401,348 584,154Cash flow from operating activities was US$257.9 million for the year, adecrease of US$240.4 million. The decrease primarily related to decreasedEBITDA combined with an outflow associated with working capital of US$80.3million. The working capital movement related to: increased investment ofUS$42.5 million in critical spares for major fleet overhauls at Buzwagi andNorth Mara and consumable inventory impacted by long lead times; an increase intrade receivables of US$14.4 million mainly due to the timing of shipments atyear end; an increase in gold inventory on hand of US$16.6 million mainly dueto sales delays and increased ore valuation; and an increase in other currentassets of US$21.3 million mainly driven by high VAT receivables owed from theTanzanian government.Cash flow used in investing activities was US$360.7 million for the year. Totalcash capital expenditure for the year of US$312.7 million increased by 14% fromthe prior year figure of US$273.2 million driven by both increased sustainingand capitalised development expenditure, slightly offset by lower expansioncapital expenditure.

A breakdown of total capital and other investing capital activities for theyear ended is provided below:

For the year ended(US$'000) 31 December(Unaudited) 2012 2011Sustaining capital 153,160 125,945Expansionary capital 49,889 63,273Capitalised development 109,626 83,990Total cash capital 312,675 273,208 Non-cash rehabilitation asset adjustment 19,242

52,761

Non-cash sustaining capital3 8,378 19,266Total capital expenditure 340,295 345,235Other investing capital- AMKL acquisition1 22,039 - - Non-current asset movement2 25,941

8,325

1 The AMKL acquisition relates to the acquisition of the subsidiary, net ofcash for US$22.0 million (inclusive of exploration funding US$1.3 million).

2 Non-current asset movements relates to the investment in the landacquisitions reflected as prepaid operating leases, Tanzania governmentreceivables and the settlement of a historical exploration acquisitionliability at Buzwagi of US$6.6 million.

3 Total non-cash sustaining relates to the capital finance lease at Buzwagi fordrill rigs in 2012 and the back-up power generators in 2011 and also includescapital accruals excluded from cash sustaining capital

Sustaining capital

Sustaining capital expenditure included a focus on mine equipment renewal ofUS$50 million at the three main mine sites; investment in underground, camp andbuilding infrastructure at Bulyanhulu (US$6.1 million), North Mara (US$14.5million) and Tulawaka (US$1.2 million); process plant and tailings storagefacility expansion expenditure at Buzwagi (US$3.8 million), Bulyanhulu (US$17.2million), North Mara (US$2.5 million) and Tulawaka (US$3.0 million); and goldplant related improvements at North Mara (US$4.1 million).

Expansionary capital

Expansionary capital expenditure consisted of the CIL plant expansion (US$26.1million) and capitalised exploration and evaluation costs of US$16.6 million.Capitalised exploration and evaluation costs predominantly relate to the UpperEast resource definition drilling at Bulyanhulu of US$5.2 million, Gokona andNyabirama underground drilling projects at North Mara of US$5.3 million,Nyanzaga pre-feasibility costs of US$3.2 million and Tulawaka undergrounddrilling of US$2.9 million.

Capitalised development

Capitalised development capital includes capitalised deferred stripping forNorth Mara (US$25.7 million) and Buzwagi (US$31.1 million) and Bulyanhulu andTulawaka capitalised underground development of US$45.6 million and US$7.3million respectively.

Non-cash capital

Non-cash capital for the year totalled US$27.6 million and consisted ofreclamation asset adjustments (US$19.2 million), and the impact of sustainingcapital accruals (US$6.8 million). The reclamation adjustments were driven byincreased contractor equipment rates, additional disturbance caused by theexpansion of the mine sites and a change in discount rate.

Other investing capital

AMKL was acquired for US$22.0 million net of cash and inclusive of US$1.3million exploration funding. During the year North Mara incurred land purchasestotalling US$25.9 million which was slightly offset by cash proceeds on thesale of assets (US$4.6 million). We have also settled the historicalexploration acquisition liability of US$6.6 million at Buzwagi.

Cash used in financing activities for the year ended 31 December 2012 wasUS$79.4 million, an increase on the prior year (US$32.7 million). The outflowprimarily relates to the payment of the 2011 final and 2012 interim dividends.Finance lease liabilities amounted to US$5.7 million, an increase of US$3.5million when compared to 2011, as a result of payments required for a full yearof financing leasing. MDN Inc. contribution payments arising from Tulawakaduring the year amounted to US$3.6 million.

Dividend

An interim dividend of US4.0 cents per share was paid to shareholders on 24September 2012. The Directors recommend the payment of a final dividend ofUS12.3 cents per share, subject to the shareholders approving thisrecommendation at the AGM.

Significant judgements in applying accounting policies and key sources ofestimation uncertainty

Many of the amounts included in the consolidated financial statements requiremanagement to make judgements and/or estimates. These judgements and estimatesare continuously evaluated and are based on management's experience and bestknowledge of the relevant facts and circumstances, but actual results maydiffer from the amounts included in the consolidated financial informationincluded in this release. Information about such judgements and estimation isincluded in the accounting policies and/or notes to the consolidated financialstatements, and the key areas are summarised below.

Areas of judgement and key sources of estimation uncertainty that have the mostsignificant effect on the amounts recognised in the consolidated financialstatements include:

Estimates of the quantities of proven and probable gold reserves;

The capitalisation of production stripping costs;

The capitalisation of exploration and evaluation expenditures;

Review of goodwill, tangible and intangible assets carrying value, thedetermination of whether these assets are impaired and the measurement ofimpairment charges or reversals;

The estimated fair values of cash generating units for impairment tests,including estimates of future costs to produce proven and probable reserves,future commodity prices, foreign exchange rates and discount rates;

The estimated useful lives of tangible and long-lived assets and themeasurement of depreciation expense;

Property, plant and equipment held under finance leases;

Recognition of a provision for environmental rehabilitation and the estimationof the rehabilitation costs and timing of expenditure;

Whether to recognise a liability for loss contingencies and the amount of anysuch provision;

Whether to recognise a provision for accounts receivable and the impact ofdiscounting the non-current element;

Recognition of deferred income tax assets, amounts recorded for uncertain taxpositions, the measurement of income tax expense and indirect taxes;

Determination of the cost incurred in the productive process of ore stockpiles,gold in process, gold doré/bullion and concentrate, as well as the associatednet realisable value and the split between the long term and short termportions;

Determination of fair value of derivative instruments; and

Determination of fair value of stock options and cash-settled share basedpayments.

Going concern statement

The ABG Group's business activities, together with factors likely to affect itsfuture development, performance and position are set out in the operational andfinancial review sections of this report. The financial position of the ABGGroup, its cash flows, liquidity position and borrowing facilities aredescribed in the preceding paragraphs of this financial review.In assessing the ABG Group's going concern status the Directors have taken intoaccount the above factors, including the financial position of the ABG Groupand in particular its significant cash position, the current gold and copperprice and market expectations for the same in the medium term, and the ABGGroup's capital expenditure and financing plans. After making appropriateenquiries, the Directors consider that ABG and the ABG Group as a whole hasadequate resources to continue in operational existence for the foreseeablefuture and that it is appropriate to adopt the going concern basis in preparingthe financial statements.Non-IFRS MeasuresABG has identified certain measures in this report that are not measuresdefined under IFRS. Non-IFRS financial measures disclosed by management areprovided as additional information to investors in order to provide them withan alternative method for assessing ABG's financial condition and operatingresults. These measures are not in accordance with, or a substitute for, IFRS,and may be different from or inconsistent with non-IFRS financial measures usedby other companies. These measures are explained further below.

Average realised gold price per ounce sold is a non-IFRS financial measurewhich excludes from gold revenue:

Unrealised gains and losses on non-hedge derivative contracts;

Unrealised mark-to-market gains and losses on provisional pricing from copperand gold sales contracts; and

Export duties.

Cash costs per ounce sold is a non-IFRS financial measure. Cash costs includeall costs absorbed into inventory, as well as royalties, by-product credits,and production taxes, and exclude capitalised production stripping costs,inventory purchase accounting adjustments, unrealised gains/losses fromnon-hedge currency and commodity contracts, depreciation and amortisation andcorporate social responsibility charges. Cash cost is calculated net ofco-product revenue.The presentation of these statistics in this manner allows ABG to monitor andmanage those factors that impact production costs on a monthly basis. ABGcalculates cash costs based on its equity interest in production from itsmines. Cash costs per ounce sold are calculated by dividing the aggregate ofthese costs by gold ounces sold. Cash costs and cash costs per ounce sold arecalculated on a consistent basis for the periods presented.

The table below provides a reconciliation between cost of sales and total cashcost to calculate the cash cost per ounce sold.

African Barrick Gold plc Three months ended Year ended(US$'000) 31 December 31 December(Unaudited) 2012 2011 2012 2011Total cost of sales 217,797 177,455 802,709 704,114Deduct: Depreciation and amortisation (47,694) (37,139) (158,883) (134,149)Deduct: Co-product revenue (12,817) (11,479) (48,031) (67,890)Total cash cost 157,286 128,837 595,795 502,075Total ounces sold¹ 161,820 165,379 622,932 724,574 Consolidated cash cost per ounce 972 779 956 693Equity ounce adjustment² (14) 0 (7) (1) Attributable cash cost per ounce 958 779 949

692

1Reflects 100% of ounces sold.

2Reflects the adjustment for non-controlling interests at Tulawaka.

EBITDA is a non-IFRS financial measure. ABG calculates EBITDA as net profit orloss for the period excluding:

Income tax expense;Finance expense;Finance income;

Depreciation and amortisation; and

Impairment charges of goodwill and other long-lived assets.

EBITDA is intended to provide additional information to investors and analysts.It does not have any standardised meaning prescribed by IFRS and should not beconsidered in isolation or as a substitute for measures of performance preparedin accordance with IFRS. EBITDA excludes the impact of cash costs of financingactivities and taxes, and the effects of changes in operating working capitalbalances, and therefore is not necessarily indicative of operating profit orcash flow from operations as determined under IFRS. Other companies maycalculate EBITDA differently. Prior year EBITDA was restated by US$1.4 millionto reflect the reclassification of bank charges from corporate administrationcharges to finance expense.A reconciliation between net profit for the period and EBITDA is presentedbelow: For the three months ended For the year ended(US$'000) 31 December 31 December(Unaudited) 2012 2011 2012 2011Net profit / (loss) for the period (45,984) 55,084 48,184 284,777Plus income tax expense 27,182 20,595 71,063 117,924Plus depreciation and amortisation 47,694 37,139 158,883 134,149Plus impairment charges 44,536 - 44,536 -Plus finance expense 2,565 2,720 10,305 10,082Less finance income (428) (313) (2,102) (1,484)EBITDA 75,565 115,225 330,869 545,448

EBIT is a non-IFRS financial measure and reflects EBITDA adjusted fordepreciation and amortisation and goodwill impairment charges.

Adjusted net earnings is a non-IFRS financial measure. It is calculated byexcluding one-off costs or credits relating to non-routine transactions fromnet profit attributed to owners of the parent. It includes other credit andcharges that individually or in aggregate, if of a similar type, are of anature or size that requires explanation in order to provide additional insightinto the underlying business performance.

Adjusted net earnings per share is a non-IFRS financial measure and iscalculated by dividing adjusted net earnings by the weighted average number ofOrdinary Shares in issue.

Amortisation and other cost per ounce sold is a non-IFRS financial measure.Amortisation and other costs include amortisation and depreciation expenses andthe inventory purchase accounting adjustments at ABG's producing mines. ABGcalculates amortisation and other costs based on its equity interest inproduction from its mines. Amortisation and other costs per ounce sold iscalculated by dividing the aggregate of these costs by ounces of gold sold.Amortisation and other cost per ounce sold are calculated on a consistent basisfor the periods presented.Cash cost per tonne milled is a non-IFRS financial measure. Cash costs includeall costs absorbed into inventory, as well as royalties, by-product credits,and production taxes, and exclude capitalised production stripping costs,inventory purchase accounting adjustments, unrealised gains/losses fromnon-hedge currency and commodity contracts, depreciation and amortisation andcorporate social responsibility charges. Cash cost is calculated net ofco-product revenue. ABG calculates cash costs based on its equity interest inproduction from its mines. Cash costs per tonne milled are calculated bydividing the aggregate of these costs by total tonnes milled.

Cash margin is a non-IFRS financial measure. The cash cost margin is theaverage realised gold price per ounce less the cash cost per ounce sold.

Operating cash flow per share is a non-IFRS financial measure and is calculatedby dividing Net cash generated by operating activities by the weighted averagenumber of Ordinary Shares in issue.

Mining statistical information

The following describes certain line items used in the ABG Group's discussionof key performance indicators:

Open pit material mined - measures in tonnes the total amount of open pit oreand waste mined.

Underground ore tonnes hoisted - measures in tonnes the total amount ofunderground ore mined and hoisted.

Total tonnes mined includes open pit material plus underground ore tonneshoisted.

Strip ratio - measures the ratio waste–to–ore for open pit material mined.

Ore milled - measures in tonnes the amount of ore material processed throughthe mill.

Head grade - measures the metal content of mined ore going into a mill forprocessing.

Milled recovery - measures the proportion of valuable metal physicallyrecovered in the processing of ore. It is generally stated as a percentage ofthe metal recovered compared to the total metal originally present.

Total production costs - measures the total cost of production and is anaggregate of total cash costs as well as production specific depreciation andamortisation.

Risk ReviewWe have made a number of further developments in the identification andmanagement of our risk profile throughout 2012. While the overall makeup ofour principal risks has not significantly changed from 2011, there have beenchanges in certain risk profiles as a result of developments in our operatingenvironment and continuing uncertainties and trends within the wider globaleconomy and/or the mining industry. Where appropriate, risk ratings have beenreviewed against risk management controls and other mitigating factors. In thisregard, we have removed risks relating to health and infectious diseases fromthe 2012 principal risks table given that our controls in these areas continueto mitigate potential impacts of such risks to an acceptable level. Inaddition:Increases in operating costs and capital expenditure: due to continued industrycost pressures and increased cash costs at our operations, risks relating toincreases in capital expenditure as well as increases in operating costs,principally labour, capital equipment and energy costs, remain high. However,as a result of the ongoing implementation of cost controls and the intendedcost control plans contained within the ongoing operating review our overallrisk rating for these areas remains unchanged.Power supply: We have continued to invest in power generation capacitiesthroughout the year, to help mitigate the effects of stoppages andinterruptions. Therefore, although we have continued to experience issues inelectricity supply during the year as a result of ongoing supply issuesthroughout Tanzania, our risk rating as regards interruptions in key utilitiesremains unchanged.Recruitment and retention of qualified personnel: as a result of continuedcompetition for qualified personnel across the mining industry, we have decidedto maintain a high risk rating for the retention and recruitment of our skilledworkforce. In addition, further developments within pension practices inTanzania could produce further adverse affects on the retention of certainlong-term employees.Political, legal and regulatory developments: we achieved a number of positiveoutcomes as regards our operating framework in Tanzania, namely our adoption ofan additional voluntary 1% royalty going forward, the renewal of our specialmining licences at North Mara and the grant of certain PAF permits to supportthis operation. However, our ability to progress our government relationsstrategy over the latter half of the year was impeded, and in certain instancesnegatively impacted, by the prolonged Offer Period to which ABG was subject. Wehave now resumed efforts in this area, such that our outlook for political andregulatory development currently remains unchanged.Taxation: During the year a revised Finance Act was introduced in Tanzania thatis inconsistent with previous agreements reached between us and the Tanzanianauthorities on the treatment of VAT relief. We continue to progress discussionson these inconsistencies in order to achieve a resolution in line with what wehad previously agreed under a memorandum of settlement with the TanzanianRevenue Authority for the treatment of certain outstanding indirect tax refundsin respect of fuel levies and value added tax. ABG's financial condition may beadversely affected if we do not achieve a successful resolution to thesediscussions.Risks relating to security, trespass and vandalism: we have continued tostrengthen our security systems throughout the year and refine our securityplans. Although we experienced a spike in illegal mining activity at North Marain the latter half of the year, this has now stabilised to average levels, suchthat our outlook on security risks remains largely unchanged.We have also introduced the following as new risks to the 2012 principal riskstable, as a result of strategic and operational developments and/or continuingdevelopments in the mining industry:Land acquisitions: due to the potential ramifications of increases in the costof land acquisitions to support the expansion and continuation of our currentmining activities and the potential impacts that delays in completing suchacquisitions may have on our operations, particularly at North Mara, we havedecided to introduce land acquisitions as a standalone risk this year.Changes affecting the majority shareholding: although discussions betweenBarrick and China National Gold did not ultimately result in any transactionaffecting ABG shares, we are mindful of the impact that uncertainty created inthe context of any change in the majority ownership structure could have on ABGand its operations and the need to flag this risk to our wider stakeholderbase.

Directors

The Directors serving on the Board during the year will be listed in ABG'sannual report. A list of current Directors is maintained on ABG's website:www.africanbarrickgold.com

Financial Information

Consolidated income statement

For the year ended 31 For the year ended (Unaudited) Notes December 31 December (in thousands of United States dollars) 2012 2011Revenue 1,087,339 1,217,915Cost of sales (802,709) (704,114)Gross profit 284,630 513,801Corporate administration 2 (51,567) (49,148) Exploration and evaluation costs (28,961)

(30,339)

Corporate social responsibility expenses (14,445) (7,376)Impairment charges 9 (44,536) -Other charges 5 (17,671) (15,639) Profit before net finance expense and taxation 127,450 411,299Finance income 6 2,102 1,484Finance expense 2,6 (10,305) (10,082) (8,203) (8,598)Profit before taxation 119,247 402,701Tax expense 7 (71,063) (117,924)Net profit for the period 48,184 284,777 Net profit/(loss) attributable to: - Non-controlling interests (11,287) 9,882 - Owners of the parent 59,471 274,895Earnings per share: - Basic earnings per share (cents) 8 14.5

67.0

- Diluted earnings per share (cents) 8 14.5

67.0

Consolidated statement of comprehensive income

For the year ended For the year ended (Unaudited) 31 December 31 December (in thousands of United States dollars) 2012 2011Net profit for the period 48,184 284,777 Changes in fair value of cash flow hedges 363 -Total comprehensive income for the period 48,547 284,777Attributed to: - Non-controlling interests (11,287) 9,882 - Owners of the parent 59,834 274,895The notes on pages 35 to 46 are an integral part of this financial information.Consolidated balance sheet As at 31 As at (Unaudited) Notes December 31 December (in thousands of United States dollars) 2012 2011ASSETSNon-current assets Goodwill and intangible assets 9 278,221

258,513

Property, plant and equipment 10 1,963,924 1,823,247 Deferred tax assets 2,399 55,529 Non-current portion of inventory 118,554

78,022

Derivative financial instruments 467 213 Other assets 137,565 110,658 2,501,130 2,326,182Current assets Inventories 335,497 316,947 Trade and other receivables 44,227

29,858

Derivative financial instruments 2,207 4,050 Other current assets 44,314 33,271 Cash and cash equivalents 401,348 584,154 827,593 968,280Total assets 3,328,723 3,294,462EQUITY AND LIABILITIES Share capital and share premium 929,199 929,199 Other reserves 1,823,202 1,832,032 Total owners' equity 2,752,401 2,761,231 Non-controlling interests 22,580 37,473Total equity 2,774,981 2,798,704Non-current liabilities Deferred tax liabilities 173,574

149,544

Derivative financial instruments 294 56 Provisions 180,548 157,582 Other non-current liabilities 21,064 18,988 375,480 326,170Current liabilities Trade and other payables 169,904 161,916 Derivative financial instruments 429 58 Provisions 1,040 1,034 Other current liabilities 6,889 6,580 178,262 169,588Total liabilities 553,742 495,758Total equity and liabilities 3,328,723 3,294,462

The notes on pages 35 to 46 are an integral part of this financial information.

Consolidated statement of changes in equity

Contributed Cash surplus/ flow Stock Share Share Other hedging option (Unaudited) capital premium reserve reserve reserve (in thousands of United States dollars) Balance at 1 January 2011 62,097 867,102 1,368,774 - 640 Total comprehensive income for the period - - -

- -

Conversion to contributed surplus - - (61)

- -

Dividends to equity holders of the Company - - - - -Stock option grants - - - - 1,401 Distributions to non-controlling interests - - - - -Balance at 31 December 2011 62,097 867,102 1,368,713 - 2,041 Total comprehensive income for the period - - -

363 -

Dividends to equity holders of the Company - - - - -Stock option grants - - - - 1,461 Distributions to non-controlling interests - - - - -Balance at 31 December 2012 62,097 867,102 1,368,713 363 3,502

Consolidated statement of changes in equity

Total Total non- Retained owners' controlling (Unaudited) earnings equity interests Total equity (in thousands of United States dollars) Balance at 1 January 2011 214,711 2,513,324 29,761 2,543,085

Total comprehensive income for the period 274,895 274,895 9,882

284,777

Conversion to contributed surplus - (61) -

(61)

Dividends to equity holders of the Company (28,328) (28,328) - (28,328)Stock option grants - 1,401 - 1,401

Distributions to non-controlling interests - - (2,170)

(2,170)Balance at 31 December 2011 461,278 2,761,231 37,473 2,798,704

Total comprehensive income for the period 59,471 59,834 (11,287)

48,547

Dividends to equity holders of the Company (70,125) (70,125) - (70,125)Stock option grants - 1,461 - 1,461

Distributions to non-controlling interests - - (3,606)

(3,606)Balance at 31 December 2012 450,624 2,752,401 22,580 2,774,981

The notes on pages 35 to 46 are an integral part of this financial information.

Consolidated cash flow statement

For the For the year ended year ended 31 (Unaudited) Notes 31 December December (in thousands of United States dollars)

2012 2011

Cash flows from operating activitiesNet profit for the period 48,184 284,777Adjustments for: Tax expense 7 71,063 117,924 Depreciation and amortisation 168,514 135,683 Finance items 2,6 8,203 8,598 Impairment charges 9 44,536 - (Profit)/loss on disposal of property, plant and equipment 5 (616) 179Working capital adjustments (80,336) (42,880)Other non-cash items 3,088 (704) Cash generated from operations before interest and tax 262,636 503,577Finance income 6 2,102 1,484Finance expenses 2,6 (6,284) (6,738)Income tax paid (551) - Net cash generated by operating activities 257,903 498,323 Cash flows used in investing activitiesPurchase of property, plant and equipment (312,675) (273,207)Investments in other assets (24,473) (8,645) Acquisition of subsidiary, net of cash acquired 11 (22,039) -Other investing activities (1,468) 320 Net cash used in investing activities (360,655) (281,532) Free cashflow (102,752) Cash flows used in financing activities Dividends paid (70,125) (28,328) Distributions to non-controlling interest holders (3,606) (2,170)Finance lease instalments (5,708) (2,184) Net cash used in financing activities (79,439) (32,682) Net (decrease)/increase in cash and cash equivalents

(182,191) 184,109

Net foreign exchange difference

(615) (967)

Cash and cash equivalents at 1 January

584,154 401,012

Cash and cash equivalents at 31 December

401,348 584,154

The notes on pages 35 to 46 are an integral part of this financial information.

Notes to the Financial Information

1. GENERAL INFORMATION

African Barrick Gold plc (the "Company", "ABG" or collectively with itssubsidiaries: the "Group") was incorporated on 12 January 2010 andre-registered as a public limited company on 12 March 2010 under the CompaniesAct 2006. It is registered in England and Wales with registered number7123187.

On 24 March 2010 the Company's shares were admitted to the Official List of theUnited Kingdom Listing Authority ("UKLA") and to trading on the main market ofthe London Stock Exchange, hereafter referred to as the Initial Public Offering("IPO"). The address of its registered office is 6 St James's Place, LondonSW1A 1NP, United Kingdom.Barrick Gold Corporation ('Barrick) currently owns approximately 73.9% of theshares of the Company and is the ultimate parent and controlling party of theGroup.The condensed consolidated financial information for the year ended 31 December2012 was approved for issue by the Board of Directors of the Company on 10February 2013. The condensed consolidated financial information does notcomprise statutory accounts within the meaning of section 434 of the CompaniesAct 2006. The condensed consolidated financial information is unaudited.

The Group's primary business is the mining, processing and sale of gold. TheGroup has four operating mines located in Tanzania. The Group also has aportfolio of exploration projects located across Africa.

2. BASIS OF PREPARATION OF the condensed annual financial statements

The financial information set out above does not constitute the Group'sstatutory accounts for the year ended 31 December 2012, but is derived from theGroup's full financial accounts, which are in the process of being audited. TheGroup's full financial accounts will be prepared under International FinancialReporting Standards as adopted by the European Union. The financial statementsare prepared on a going concern basis.The condensed consolidated financial information has been prepared under thehistorical cost convention basis, as modified by the revaluation of financialassets and financial liabilities (including derivative instruments) at fairvalue through profit and loss. The financial statements are presented in USdollars (US$) and all monetary results are rounded to the nearest US$'000except when otherwise indicated.

Where a change in the presentational format between the prior year and currentyear condensed consolidated financial information has been made during theperiod, comparative figures have been restated accordingly. The followingpresentational changes were made during the current year:

Bank charges previously included in Corporate Administration expenses have beenreclassified to Finance expense (2012: US$1.2 million; 2011: US$1.4 million).

3. ACCOUNTING POLICIES

This preliminary results announcement is derived from the statutory accountsfor the year ended 31 December 2012 which are in the process of being audited,and which have been prepared on the basis of accounting policies consistentwith those applied in the financial statements for the year ended 31 December2011, except as set out below.

a) New and amended standards adopted by the Group

There are no IFRSs or IFRIC interpretations that are effective for the firsttime for the financial year beginning on or after 1 January 2012 that would beexpected to have a material impact on the Group.

New and amended standards, and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations areeffective for annual periods beginning after 1 January 2012, and have not beenapplied in preparing these consolidated financial statements. None of these areexpected to have a significant effect on the consolidated financial statementsof the Group, except the following set out below:IFRIC 20, "Stripping costs in the production phase of a surface mine". Thisinterpretation addresses the following issues: recognition of productionstripping costs as an asset; initial measurement of the stripping activityasset; and subsequent measurement of the stripping activity asset. Thisinterpretation considers when and how to account for the benefit arising fromthe stripping activity, as well as how to measure these benefits both initiallyand subsequently. The interpretation is effective from 1 January 2013. Whenpublished in the Group's 2013 Annual Report, the Group's restated 2012financial statements are expected to show an increase in mineral properties andmine development costs of US$11 million, a decrease in inventory of US$6million and an increase in net income of US$5 million and a decrease of US$9per ounce in total cash costs. There will be no transitional adjustment as aresult of applying IFRIC 20. The Group expects the impact to be moresignificant in 2013.Amendments to IAS 1,"Financial statement presentation" regarding othercomprehensive income. The main change resulting from these amendments is arequirement for entities to group items presented in 'other comprehensiveincome' (OCI) on the basis of whether they are potentially reclassifiable toprofit or loss subsequently (reclassification adjustments). The amendments donot address which items are presented in OCI.Amendments to IFRS 7, "Financial instruments: Disclosures" on derecognition.This amendment will promote transparency in the reporting of transfertransactions and improve users' understanding of the risk exposures relating totransfers of financial assets and the effect of those risks on an entity'sfinancial position, particularly those involving securitisation of financialassets.IFRS 9, "Financial instruments", addresses the classification, measurement andrecognition of financial assets and financial liabilities. IFRS 9 was issued inNovember 2009 and October 2010. It replaces the parts of IAS 39 that relate tothe classification and measurement of financial instruments. IFRS 9 requiresfinancial assets to be classified into two measurement categories: thosemeasured at fair value and those measured at amortised cost. The determinationis made at initial recognition. The classification depends on the entity'sbusiness model for managing its financial instruments and the contractual cashflow characteristics of the instrument. For financial liabilities, the standardretains most of the IAS 39 requirements. The main change is that, in caseswhere the fair value option is taken for financial liabilities, the part of afair value change due to an entity's own credit risk is recorded in othercomprehensive income rather than the income statement, unless this creates anaccounting mismatch. The group is yet to assess IFRS 9's full impact andintends to adopt IFRS 9 no later than the accounting period beginning on orafter 1 January 2015, subject to endorsement by the EU. The group will alsoconsider the impact of the remaining phases of IFRS 9 when completed by theInternational Accounting Standards Board.IFRS 10, "Consolidated financial statements', builds on existing principles byidentifying the concept of control as the determining factor in whether anentity should be included within the consolidated financial statements of theparent company. The standard provides additional guidance to assist in thedetermination of control where this is difficult to assess. The Group is yet toassess IFRS 10's full impact and intends to adopt IFRS 10 no later than theaccounting period beginning on or after 1 January 2013, subject to endorsementby the EU.IFRS 11, "Joint arrangements", is a reflection of joint arrangements whichfocuses on the rights and obligations of the parties to the arrangement ratherthan its legal form. There are two types of joint arrangements: jointoperations and joint ventures. Joint operations arise where a joint operatorhas rights to the assets and obligations relating to the arrangement andtherefore accounts for its share of assets, liabilities, revenue and expenses.Joint ventures arise where the joint venture has rights to the net assets ofthe arrangement and therefore equity accounts for its interest. Proportionalconsolidation of joint ventures is no longer allowed. The Group is yet toassess IFRS 11's full impact and intends to adopt IFRS 11 no later than theaccounting period beginning on or after 1 January 2013, subject to endorsementby the EU.IFRS 12, "Disclosures of interests in other entities", includes the disclosurerequirements for all forms of interests in other entities, including jointarrangements, associates, special purpose vehicles and other off balance sheetvehicles. The Group is yet to assess IFRS 12's full impact and intends to adoptIFRS 12 no later than the accounting period beginning on or after 1 January2013, subject to endorsement by the EU.IFRS 13, "Fair value measurement", aims to improve consistency and reducecomplexity by providing a precise definition of fair value and a single sourceof fair value measurement and disclosure requirements for use across IFRSs. Therequirements, which are largely aligned between IFRSs and US GAAP, do notextend the use of fair value accounting but provide guidance on how it shouldbe applied where its use is already required or permitted by other standardswithin IFRSs or US GAAP.Amendment to IAS 32,"Financial Instruments: Presentation", clarifies some ofthe requirements for offsetting financial assets and financial liabilities onthe balance sheet.

There are no other IFRSs or IFRIC interpretations that are not yet effectivethat would be expected to have a material impact on the Group.

4. Segment Reporting

The Group has only one primary product produced in a single geographiclocation, being gold produced in Tanzania. In addition the Group producescopper and silver as a co-product. Reportable operating segments are based onthe internal reports provided to the Chief Operating Decision Maker ("CODM") toevaluate segment performance, decide how to allocate resources and make otheroperating decisions. After applying the aggregation criteria and quantitativethresholds contained in IFRS 8, the Group's reportable operating segments weredetermined to be: North Mara gold mine; Tulawaka gold mine; Bulyanhulu goldmine; Buzwagi gold mine; and a separate Corporate and Exploration segment,which primarily consists of costs related to corporate administration andexploration and evaluation activities ("Other").Segment results and assets include items directly attributable to the segmentas well as those that can be allocated on a reasonable basis. Segment assetsconsist primarily of property, plant and equipment, inventories andreceivables. Capital expenditures comprise additions to property, plant andequipment. Segment liabilities are not reported since they are not consideredby the CODM as material to segment performance. The Group has also includedsegment cash costs.

Segment information for the reportable operating segments of the Group for theyears ended, 31 December 2012 and 31 December 2011 is set out below.

For the year ended 31 December 2012(in thousands of United States dollars) North Mara Tulawaka Bulyanhulu Buzwagi Other TotalGold revenue 310,549 75,458 393,347 259,954 - 1,039,308Co-product revenue 549 143 24,311 23,028 - 48,031Total segment revenue 311,098 75,601 417,658 282,982 - 1,087,339

Segment cash operating cost1,5 (180,601) (57,992) (213,350) (191,883) (80,528) (724,354)

Other charges and corporate socialresponsibility expenses (12,921) (1,995) 40 (4,944) (12,296) (32,116)EBITDA2 117,576 15,614 204,348 86,155 (92,824) 330,869Impairment charges - 44,536) - - - (44,536)Depreciation and amortisation (54,958) (19,831) (33,064) (47,387) (3,643) (158,883)EBIT2 62,618 (48,753) 171,284 38,768 (96,467) 127,450 Total segment finance income 2,102Total segment finance expense5 (10,305)Profit before taxation 119,247Tax expense (71,063)Net profit for the period 48,184Capital expenditure:Sustaining 47,759 13,157 35,193 56,441 8,988 161,538Expansionary 10,091 2,922 36,814 62 - 49,889Capitalised development 25,706 7,258 45,605 31,057 - 109,626Reclamation asset addition/(reduction) 7,540 1,251 (43) 10,494 - 19,242Total capital expenditure 91,096 24,588 117,569 98,054 8,988 340,295Cash costs:Segmental cash operating cost1 180,601 57,992 213,350

191,883 - 643,826

Deduct: Co-product revenue (549) (143) (24,311)

(23,028) - (48,031)

Total cash costs 180,052 57,849 189,039 168,855 - 595,795Sold ounces3 186,600 45,600 235,410 155,322 - 622,932Cash cost per ounce sold2 965 1,269 803

1,087 - 956

Equity ounce adjustment4 (7) Attributable cash cost per ounce sold2 949 For the year ended 31 December 2011(in thousands of United States dollars) North Mara Tulawaka Bulyanhulu Buzwagi Other TotalGold revenue 272,026 131,435 429,528 317,036 - 1,150,025Co-product revenue 917 316 35,509 31,148 - 67,890Total segment revenue 272,943 131,751 465,037 348,184 - 1,217,915Segment cash operating cost1,5 (139,204)

(60,952) (200,072) (169,737) (79,487) (649,452)

Other charges and corporate social responsibility expenses (5,112) (2,826) (8,461) (12,334) 5,718 (23,015)EBITDA2 128,627 67,973 256,504 166,113 (73,769) 545,448Depreciation and amortisation (34,724) (17,251) (32,320) (46,029) (3,825) (134,149)EBIT2 93,903 50,722 224,184 120,084 (77,594) 411,299Total segment finance income 1,484 Total segment finance expense5 (10,082)Profit before taxation 402,701Tax expense (117,924)Net profit for the period 284,777Capital expenditure:Sustaining 30,567 3,101 42,749 56,992 11,802 145,211Expansionary 47,381 8,346 6,626 920 - 63,273Capitalised development 26,407 9,252 32,748 15,583 - 83,990Rehabilitation asset addition 18,791 10,953 13,309 9,708 - 52,761Total capital expenditure 123,146 31,652 95,432 83,203 11,802 345,235Cash costs:Segmental cash operating cost1 139,204 60,952 200,072 169,737 - 569,965Deduct: Co-product revenue (917) (316) (35,509) (31,148) - (67,890)Total cash costs 138,287 60,636 164,563 138,589 - 502,075Sold ounces3 170,625 83,450 269,981 200,518 - 724,574Cash cost per ounce sold2 810 727 610 691 - 693Equity ounce adjustment4 (1) Attributable cash cost per ounce sold2 6921 The Chief Operating Decision Maker reviews cash operating costs for thefour operating mine sites separately from corporate administration costs andexploration costs. Consequently, the Group has reported these costs in thismanner.

2 These are non-IFRS financial performance measures with no standardmeaning under IFRS. Refer to "Non IFRS measures" on page 27 for definitions.

3 Reflects 100% of ounces sold.4 Reflects the adjustment for non-controlling interests at Tulawaka.

5 Restated due to reclassification of bank charges from corporateadministration to finance expense.

As at As at 31 31 December December(in thousands of United Statesdollars) 2012 2011Segment assetsNorth Mara 772,819 727,552Tulawaka 58,060 131,193Bulyanhulu 1,130,728 1,128,992Buzwagi 931,607 830,790Other6 435,509 475,935Total segment assets 3,328,723 3,294,462

6 In the current year, assets to the value of US$33.6 million were acquiredin the purchase of AMKL. Refer to note 11 for further details.

OTHER CHARGES

For the year ended For the year ended 31 December 31 December (in thousands of United States dollars) 2012 2011Other expenses Loss on disposal of property, plant and equipment - 179 Discounting of indirect tax receivables 4,185 - Severance payments 400 1,646 Foreign exchange losses (net) - 6,001 Non-hedge derivative losses (net) 1,719 - Construction and consumable inventory write-down 1,461 4,684 Bad debt expense 740 1,098 Disallowed indirect taxes 2,952 7,123 Legal costs for litigation 1,655 - Asset write-downs 897 1,252 CNG related costs1 6,676 - Other 1,945 1,696 Total 22,630 23,679Other income Profit on disposal of property, plant and equipment (616) - Foreign exchange gains (net) (4,343) - Non-hedge derivative gains (net) - (7,901) Other - (139) Total (4,959) (8,040)Total other charges 17,671 15,639

1 Costs incurred as a direct result of the CNG interest in ABG wereincluded in other charges. These costs include advisory fees, travel andaccommodation costs and retention scheme accruals.

FINANCE INCOME AND FINANCE EXPENSE

Finance income For the year For the year ended 31 ended December 31 December (in thousands of United States dollars) 2012 2011Interest on time deposits 1,231 1,030Other 871 454Total 2,102 1,484Finance expense For the year For the year ended 31 ended December 31 December (in thousands of United States dollars) 2012 2011Unwinding of discount1 4,021 3,344Interest on bank overdraft 12 199Revolving credit facility charges2 3,014 4,570Interest on finance leases 841 210Bank charges3 1,216 1,357Other 1,201 402Total4 10,305 10,082

1 The unwinding of discount is calculated on the environmentalrehabilitation provision.

2 Included in revolving credit facility charges is the amortisation of thefees related to the revolving credit facility as well as the monthly interestand facility fees.

3 Bank charges have been reclassified from corporate administration chargesin the prior year to finance expense.

4 For cash flow purposes the unwinding of discount is excluded from thefinance expense movement.TAX EXPENSE For the year ended For the year ended 31 December 31 December (in thousands of United States dollars) 2012 2011Current tax: Current tax on profits for the year - 10,162Adjustments in respect of prior years1 120 28,663Total current tax 120 38,825Deferred tax: Origination and reversal of temporary differences 70,943 79,099Total deferred tax 70,943 79,099Income tax expense 71,063 117,924

In 2011, a binding Memorandum of Settlement ("MOS") with the Tanzanian Revenue

Authority ("TRA") was executed to address the treatment of certain outstanding

indirect tax refunds in respect of fuel levies and value added taxation. The

terms of the MOS allow the Group to offset income tax payable against

outstanding refunds for VAT and fuel levies. As a result of these changes, PML,

which is the taxpaying entity holding Tulawaka and Buzwagi, has agreed to treat

both mines as separate tax entities. There was no offset of indirect taxreceivables in 2012 due to assessed losses carried forward and taxable lossesincurred at Tulawaka.

The tax on the Group's profit before tax differs from the theoretical amount

that would arise using the weighted average tax rate applicable to the profits

of the consolidated entities as follows: For the year ended For the year ended 31 December 31 December (in thousands of United States dollars) 2012 2011Profit before taxation 119,247 402,701Tax calculated at domestic tax rates applicable to profits inthe respective countries 36,849 114,199Tax effects of: Expenses not deductible for tax purposes/(Non-taxable income) 5,483 (1,219)Tax losses for which no deferred income tax asset was recognised 23,660 7,302Prior year adjustments 8,258 (2,391)Effect of tax rates in foreign jurisdictions (3,187) 33Tax charge 71,063 117,924 The tax rate in Tanzania is 30% and in South Africa 28% for both years presented.Tax periods remain open to review by the Tanzanian Revenue Authority ("TRA") inrespect of income taxes for five years following the date of the filing of thecorporate tax return, during which time the authorities have the right to raiseadditional tax assessments including penalties and interest. Under certaincircumstances the reviews may cover longer periods. Because a number of taxperiods remain open to review by tax authorities, there is a risk thattransactions that have not been challenged in the past by the authorities maybe challenged by them in the future, and this may result in the raising ofadditional tax assessments plus penalties and interest.8. Earnings per shareBasic earnings per share ("EPS") is calculated by dividing the net profit forthe period attributable to owners of the Company by the weighted average numberof Ordinary Shares in issue during the period.Diluted earnings per share is calculated by adjusting the weighted averagenumber of Ordinary Shares outstanding to assume conversion of all dilutivepotential Ordinary Shares. The Company has dilutive potential Ordinary Sharesin the form of stock options. The weighted average number of shares is adjustedfor the number of shares granted assuming the exercise of stock options.At 31 December 2012 and 31 December 2011, earnings per share have beencalculated as follows: For the year ended For the year ended 31 December 31 December (in thousands of United States dollars) 2012 2011Earnings Net profit from continuing operations attributable to owners of the parent 59,471 274,895 Weighted average number of Ordinary Shares in issue 410,085,499

410,085,499

Adjusted for dilutive effect of: - Stock options - 10,606 Weighted average number of Ordinary Shares for diluted earnings per share 410,085,499 410,096,105Earnings per share Basic earnings per share from continuing operations (cents) 14.5

67.0

Dilutive earnings per share from continuing operations (cents) 14.5

67.09. GOODWILL AND INTANGIBLE ASSETS Acquired exploration and For the year ended 31 December 2012 evaluation

(in thousands of United States dollars) Goodwill properties Total

At 1 January, net of accumulated impairment1 178,420 80,093 258,513Additions2 6,216 27,297 33,513Impairment3 (13,805) - (13,805)At 31 December 2012 170,831 107,390 278,221At 31 December 2012Cost 401,114 107,390 508,504Accumulated impairment (230,283) - (230,283)Net carrying amount 170,831 107,390 278,221 Acquired exploration and For the year ended 31 December 2011 evaluation

(in thousands of United States dollars) Goodwill properties Total

At 1 January, net of accumulated impairment 178,420 80,093 258,513Additions - - -At 31 December 2011 178,420 80,093 258,513At 31 December 2011Cost 394,898 80,093 474,991Accumulated impairment (216,478) - (216,478)Net carrying amount 178,420 80,093 258,513

1 The Group's opening goodwill and acquired exploration and evaluationproperties arose from Pre-IPO acquisitions by Barrick Gold Corporation andAfrican Barrick Gold's acquisition of Tusker Gold Ltd on 27 April 2010. Thegoodwill allocated to the Group has been presented as if the Group acquiredthis business as from the acquisition date.

2 Additions to acquired exploration and evaluation properties and goodwillrelate to the acquisition of AMKL and are provisional pending receipt of thefinal valuation. Refer to note 11 for further details.

3 The annual impairment review resulted in an impairment of US$13.8 million togoodwill in Tulawaka (2011: no impairment charge).

Goodwill and accumulated impairment losses by operating segments:

(in thousands of United States dollars) North Mara Bulyanhulu Tulawaka Other TotalAt 1 January 2011 21,046 121,546 13,805 22,023 178,420At 1 January 2012 21,046 121,546 13,805 22,023 178,420Additions - - - 6,216 6,216Impairments - - (13,805) - (13,805)At 31 December 2012 21,046 121,546 - 28,239 170,831Cost 237,524 121,546 13,805 28,239 401,114Accumulated impairments (216,478) - (13,805) - (230,283)Annual impairment review

In accordance with IAS 38 "Intangible Assets" a review for impairment ofgoodwill was undertaken. The review compared the recoverable amount forgoodwill for each cash generating unit (CGU) to the carrying value of the CGUincluding goodwill. The key economic assumptions used in this review were:

For the year ended For the year ended 31 December 31 December 2012 2011Gold price per ounce $1,700 $1,600South African Rand (US$:ZAR) 8.00 7.00Tanzanian Shilling (US$:TZS) 1,600 1,600Long-term oil price per barrel $90 $90Discount rates 4.16%-5.66% 5.02%-5.96%NPV multiples 0.90-1.30 1.00-1.40The annual goodwill impairment review resulted in an impairment of US$13.8million to the goodwill of Tulawaka using the methodology and assumptionsdescribed above due to a review of Tulawaka's mine plan which resulted in thedownward revision of reserves. Non-current assets are tested for impairmentwhen events or changes in circumstances suggest that the carrying amount maynot be recoverable. For the year ended 31 December 2012, impairment charges ofUS$30.7 million were recorded for non-current assets at Tulawaka as a result ofthe short remaining life of the mine resulting in a total impairment charge ofUS$44.5 million. Refer to note 10 for further details.For purposes of testing for impairment of non-current assets of the Group'soperating mines, a reasonably possible change in the key assumptions used toestimate the recoverable amount could result in an impairment charge. Thecarrying value of the net assets of Buzwagi are most sensitive to changes inkey assumptions in respect of gold price, cash costs and discount rate. Basedon the assessment of fair value less costs to sell, the recoverable amountexceeds the carrying value by approximately US$165 million (23 percent). Thecalculation is highly sensitive to changes in the key assumptions, and a fivepercent decrease in the long term gold price or a nine percent increase in cashcosts or a three percent increase in discount rate, in isolation would lead tothe recoverable amount of Buzwagi being equal to its carrying amount.

10. Property plant and equipment

Mineral properties Assets Plant and mine under For the year ended 31 December 2012 and development construction(in thousands of United States dollars) equipment costs ¹

Total

At 1 January 2012, net of accumulated depreciation 894,869 765,519 162,859 1,823,247Additions - - 340,295 340,295Disposals (4,028) - - (4,028)Impairments2 (16,714) (14,016) - (30,730)Depreciation (99,359) (65,501) - (164,860)Transfers between categories 170,350 121,945 (292,295) -At 31 December 2012 945,118 807,947 210,859 1,963,924At 1 January 2012Cost 1,316,602 1,117,311 162,859 2,596,772Accumulated depreciation (421,733) (351,792) - (773,525)Net carrying amount 894,869 765,519 162,859 1,823,247At 31 December 2012Cost 1,475,374 1,239,256 210,859 2,925,489 Accumulated depreciation and impairment (530,256) (431,309) -(961,565)Net carrying amount 945,118 807,947 210,859 1,963,924For the year ended 31December 2011 Mineral properties(in thousands of United Plant and and mine development Assets underStates dollars) equipment costs construction¹ TotalAt 1 January 2011, net ofaccumulated depreciation 796,999 693,834 124,285 1,615,118Additions - - 345,235 345,235Disposals (1,423) - - (1,423)Depreciation (95,336) (40,347) - (135,683)Transfers between categories 194,629 112,032 (306,661) -At 31 December 2011 894,869 765,519 162,859 1,823,247At 1 January 2011Cost 1,125,072 1,005,279 124,285 2,254,636Accumulated depreciation (328,073) (311,445) - (639,518)Net carrying amount 796,999 693,834 124,285 1,615,118At 31 December 2011Cost 1,316,602 1,117,311 162,859 2,596,772Accumulated depreciation (421,733) (351,792) - (773,525)Net carrying amount 894,869 765,519 162,859 1,823,2471 Assets under construction represents (a) sustaining capital expendituresincurred constructing property, plant and equipment related to operating minesand advance deposits made towards the purchase of tangible fixed assets; and(b) expansionary expenditure allocated to a project on a business combinationor asset acquisition, and the subsequent costs incurred to develop the mine.Once these assets are ready for their intended use, the balance is transferredto plant and equipment, and/ or mineral properties and mine development costs.

2 Impairment relates to non-current assets at Tulawaka. Refer to note 9 forfurther detail.

Leases

Property, plant and equipment includes assets relating to the design andconstruction costs of power transmission lines and related infrastructure. Atcompletion, ownership was transferred to TANESCO in exchange for amortisedrepayment in the form of reduced electricity supply charges. No future leasepayment obligations are payable under these finance leases.Property, plant and equipment also includes emergency back-up generators leasedat Buzwagi mine under a three year lease agreement, with an option to purchasethe equipment at the end of the lease term. The lease has been classified as afinance lease.Property, plant and equipment further includes spinning power generators leasedat Buzwagi mine under a one year lease agreement, with an option to extend thelease for 36 months and an option to purchase the equipment at the end of thelease term. The lease has been classified as a finance lease.

Property, plant and equipment includes two drill rigs purchased under ashort-term finance lease. The drill rigs have been paid in full.

The following amounts were included in property, plant and equipment where theGroup is a lessee under a finance lease:

As at As at 31 December 31 December (in thousands of United States dollars) 2012

2011

Cost - capitalised finance leases 68,846 67,223 Accumulated depreciation (14,603) (7,582) Net carrying amount 54,243 59,64111. BUSINESS COMBINATIONOn 26 October 2012, the Company, through BUK Holdco Ltd and BUK East AfricaLtd, immediate subsidiaries, purchased 100% of the issued share capital of AMKLby way of a takeover offer for an initial consideration of US$22 million. AMKLis a Kenyan based exploration company with a focus on gold. All of AMKL'sassets are located in Kenya and consist of exploration ground and interests intwo joint venture agreements.

Details of the purchase consideration, the net assets acquired and goodwill areas follows:

(in thousands of United States dollars) 2012- Contractual purchase price 20,700

- Exploration funding advanced prior to acquisition date 1,340

- Contingent consideration 5,312Total purchase consideration 27,352The assets and liabilities as of 26 October 2012 recognised as a result of theacquisition are as follows: Acquiree's carrying

(in thousands of United States dollars) Fair value amount

Cash and cash equivalents 1 1Current Assets 36 36Property, plant and equipment 32 32Exploration intangible asset 27,297 6,576Liabilities (14) (14)Deferred Tax (6,216) -Fair value of net assets 21,136 6,631Goodwill 6,216Total purchase consideration 27,352Total purchase consideration 27,352Contingent consideration not yet payable (5,312)Cash and cash equivalent in subsidiary acquired (1)Net cash outflow on acquisition 22,039The goodwill arose after the application of IAS 12 "Income taxes" and isattributable principally to expanding growth opportunities in Africa. None ofthe goodwill is expected to be deductible for tax purposes. The fair value ofthe acquired identifiable intangible assets, goodwill and deferred taxliability is provisional pending receipt of the final valuations for thoseassets.Included in total purchase consideration is the fair value of a contingentconsideration payable of US$5.3 million. This relates to a US$10.4 millionpayment required to be made to Aviva Corporation upon declaration of a N143-101compliant indicated resource of at least three million ounces of gold from themining areas.

Included in exploration and evaluation costs in the consolidated incomestatement is acquisition costs incurred relating to the AMKL acquisitionamounting to US$0.5 million.

Expenses

The acquired business contributed expenses of US$1.1 million to the Group forthe period from 27 October 2012 to 31 December 2012. If the acquisition hadoccurred on 1 January 2012, the proforma consolidated net profit for the yearended 31 December 2012 would have been US$47.7 million. These amounts have beencalculated using the Group's accounting policies.

12. Commitments and Contingencies

The Group is subject to various laws and regulations which, if not observed,could give rise to penalties. As at 31 December 2012, the Group has thefollowing commitments and/or contingencies:

a) Legal contingenciesAs at 31 December 2012, the Group was a defendant in approximately 235lawsuits. The plaintiffs are claiming damages and interest thereon for the losscaused by the Group due to one or more of the following: unlawful eviction,termination of services, wrongful termination of contracts of service,non-payment for services, defamation, negligence by act or omission in failingto provide a safe working environment, unpaid overtime and public holidaycompensation.The total amounts claimed from lawsuits in which specific monetary damages aresought amounted to US$51.6 million. The Group's Legal Counsel is defending theGroup's current position, and the outcome of the lawsuits cannot presently bedetermined. However, in the opinion of the Directors and Group's Legal Counsel,no material liabilities are expected to materialise from these lawsuits.Consequently no provision has been set aside against the claims in the books ofaccount.Included in the total amounts claimed of US$51.6 million is an appeal by theTRA intended for a tax assessment of US$21.3 million in respect of theacquisition of Tusker. The case was awarded in favour of ABG however the TRAhave served a notice of appeal. The calculated tax assessment is based on thesales price of the Nyanzaga property of US$71 million multiplied by the taxrate of 30%. Management is of the opinion that the assessment is invalid due tothe fact that the acquisition was for Tusker Gold Limited, a companyincorporated in Australia. The share holding of the Tanzanian related entitiesdid not change and the Tusker Gold Limited group structure remains the same asprior to the acquisition.Also included in the total amounts claimed of US$51.6 million is a claim ofUS$2.8 million against North Mara Gold Mine being compensation for uncausedimprovements, disturbance and accommodation allowance, rich gold land currentvalue, interest and costs. Management are of the opinion that the defence islikely to succeed.b) Other tax-related contingenciesi. On 26 October 2009, the TRA issued a demand notice against the Group foran amount relating to withholding tax on technical services provided toBulyanhulu Gold Mine Ltd. The claim amounts to US$5.4 million. Management is ofthe opinion that the Group complied with all of the withholding taxrequirements, and that there will be no amount payable. Therefore no provisionhas been raised.ii. The TRA has issued a number of tax assessments to the Group relating topast taxation years from 2002 onwards. The Group believes that theseassessments are incorrect and has filed objections to each of them. The Groupis attempting to resolve these matters by means of discussions with the TRA orthrough the Tanzanian Appeals process. Management is of the opinion that thesewill not result in any material liabilities to the Group.c) Exploration and development agreementPursuant to agreements with the Government of the United Republic of Tanzania,the Group was issued Special Mining Licences for Bulyanhulu, Buzwagi, NorthMara and Tulawaka mines and Mining Licenses for Building Materials atBulyanhulu and Buzwagi Mines. The agreement requires the Group to pay to theGovernment of Tanzania annual rents of US$5,000 per annum per square kilometrefor as long as the Group holds the Special Mining Licences and US$2,000 perannum per square kilometre for so long as the Group holds the Mining Licensesfor Building Materials. The total commitment for 2013 based on mineral licencesheld as at 31 December 2012 is US$0.8 million (2011: US$0.8 million).d) Purchase commitments

At 31 December 2012, the Group had purchase obligations for supplies andconsumables of approximately US$65 million (2011: US$31 million).

e) Capital commitments

In addition to entering into various operational commitments in the normalcourse of business, the Group entered into contracts for capital expenditurefor approximately US$51 million (2011: US$32 million).

13. POST BALANCE SHEET EVENTS

A final dividend of US12.3 cents per share has been proposed, which will resultin a total dividend of US16.3 cents per share for 2012. The final dividend isto be proposed at the Annual General Meeting on 18 April 2013. These financialstatements do not reflect this dividend payable.ABG announced on 22 January 2013 that it concluded negotiations with a group ofcommercial banks for the provision of an export credit backed term loanfacility ("Facility") for the amount of US$142 million. The Facility has beenput in place to fund the bulk of the costs of the construction of one of ourkey growth projects, a new Carbon in Leach circuit at the process plant atBulyanhulu ("Project"). The Facility is secured upon the Project, has a term ofseven years and when drawn the spread over Libor will be 250 basis points. TheFacility is repayable in equal instalments over the term of the Facility, aftera two year repayment holiday period.Subsequent to year end, a legal claim was instituted against ABG in relation tothe termination of a lease agreement in Dar es Salaam. The plaintiffs claimpayment of US$11.4 million purportedly being rent for the remainder of thelease period, rent that they would have received from other prospectivetenants, costs incurred for alterations made on ABG's instructions and generaldamages. Management are of the opinion that the defence is likely to succeed.ABG announced on the 8 January 2013 that Barrick had ended discussions with CNGover the potential sale of its 73.9% stake in ABG. As a result, ABG is nolonger in an offer period under the Takeover Code. Management has initiated afull Operational Review with the aim of recalibrating operations so as to driveimproved returns from the asset base whilst enhancing the certainty of deliveryand initial detail on specific initiatives has been provided within theseresults.

Reserves and Resources

Mineral reserves and mineral resources estimates contained in this report havebeen calculated as at 31 December 2012 in accordance with National Instrument43-101 as required by Canadian securities regulatory authorities, unlessotherwise stated. Canadian Institute of Mining, Metallurgy and Petroleum (CIM)definitions were followed for mineral reserves and resources. Calculations havebeen reviewed, verified (including estimation methodology, sampling, analyticaland test data) and compiled by ABG personnel under the supervision of ABGQualified Persons: Nic Schoeman, Director Operations Support, Eric Acheampong,Corporate Manager, Geology and Samuel Eshun, Corporate Manager, Mine Planning.However, the figures stated are estimates and no assurances can be given thatthe indicated quantities of metal will be produced. In addition, totals statedmay not add up due to rounding.Mineral reserves have been calculated using an assumed long-term average goldprice of US$1,500.00 per ounce, a silver price of US$28.00 per ounce and acopper price of US$3.00 per pound. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property.Mineral resources at our mines have been calculated using an assumed long-termaverage gold price of US$1,650.00 per ounce, a silver price of US$30.00 perounce and a copper price of US$3.50 per pound while mineral resources for ourexploration properties have been calculated using an assumed long-term averagegold price of US$1,400.00 per ounce. Resources have been estimated usingvarying cut-off grades, depending on the type of mine or project, its maturityand ore types at each property. Reserve estimates are dynamic and areinfluenced by changing economic conditions, technical issues, environmentalregulations and any other relevant new information and therefore these can varyfrom year to year. Resource estimates can also change and tend to be influencedmostly by new information pertaining to the understanding of the deposit andsecondly the conversion to ore reserves. In addition, estimates of inferredmineral resources may not form the basis of an economic analysis and it cannotbe assumed that all or any part of an inferred mineral resource will ever beupgraded to a higher category. Therefore, investors are cautioned not to assumethat all or any part of an inferred mineral resource exists, that it can beeconomically or legally mined, or that it will ever be upgraded to a highercategory. Likewise, investors are cautioned not to assume that all or any partof measured or indicated mineral resources will ever be upgraded to mineralreserves.

Tulawaka mineral reserves and resources are stated as ABG's 70% attributableportion.

[For Mine Gold Reserves & Resources table see www.africanbarrickgold.com]

[For Contained Copper Reported within Gold Reserves & Resources table seewww.africanbarrickgold.com]

[For Mine Gold Reserves table see www.africanbarrickgold.com]

[For Mine Resource (Measured & Indicated, exclusive of Reserves table seewww.africanbarrickgold.com]