Barrick Gold Corporation (NYSE: ABX) (TSX: ABX) announced record income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compared to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Reported net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share)(1) and included $29 million of post-tax special items that reduced income by $0.03 per share. Adjusting for these special items, earnings of $0.62 per share are a Company record. The realized gold price of $925 per ounce matched the average spot price for the quarter.

The Company reported first quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compared to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Reported net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share)(1) and included $29 million of post-tax special items that reduced income by $0.03 per share. Adjusting for these special items, earnings of $0.62 per share are a Company record. The realized gold price of $925 per ounce matched the average spot price for the quarter.

First quarter gold production was 1.74 million ounces at total cash costs of $393 per ounce(2), and copper production was 87 million pounds at total cash costs of $0.94 per pound(2). The Company maintains full year production guidance of 7.6 - 8.1 million ounces of gold at total cash costs of $390 - $415 per ounce and 380 - 400 million pounds of copper at total cash costs of $1.15 - $1.25 per pound.

Significant progress continued to be made on Barrick's extensive project pipeline, including: advanced construction of Buzwagi, which is on schedule and within budget for start-up in mid-2009, and the submission of a feasibility study and project notice to the Government of the Dominican Republic in February in order to proceed with the Pueblo Viejo project. At Cortez Hills in Nevada, detailed engineering is essentially complete and the project remains on schedule and within the $480 - $500 million pre-production capital budget. A final feasibility study has been completed on the Sedibelo platinum project in South Africa, entitling the Company to a 10% interest and the right to earn an additional 40% on a decision to mine.

During the quarter, the Company consolidated 100% ownership in the Cortez property with the purchase of the remaining 40% interest. The Cortez operation is expected to become a million-ounce, low cost producer once Cortez Hills is commissioned, and is a key, long life asset in Barrick's portfolio.

Barrick Gold Corporation reported Q1 production of 1.74 million ounces of gold at total cash costs of $393 per ounce compared to 2.03 million ounces produced at total cash costs of $309 per ounce for the prior year period.

First quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compare to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share) on higher cash margins for both gold and copper. Operating cash flow of $728 million ($0.83 per share) compares to adjusted cash flow of $727 million ($0.84 per share) reported for the prior year period. Current period cash flow was adversely impacted by a build up of inventory during the quarter. EBITDA of $984 million ($1.14 per share) was 30% higher than prior year adjusted EBITDA of $757 million ($0.87 per share).

Reported net income included $29 million of post-tax special items that reduced earnings by $0.03 per share.

"Our 25th anniversary this year comes at an exciting time to be in the mining business," said Peter Munk, Chairman and Acting CEO of Barrick. "We have positioned ourselves to benefit from today's strong metal prices and our efforts are now being realized in expanding margins and strong earnings and cash flow."

In Q1 2008, Barrick produced 1.74 million ounces of gold at total cash costs of $393 per ounce and a realized gold price of $925 per ounce. Q1 was a lower production quarter as lower grades and throughput were experienced at some larger operations due to a combination of planned mine sequencing and operational disruptions. Improved performance is anticipated at a number of mines that experienced disruptions and as higher grades are accessed at Goldstrike starting in the second quarter.

The Company maintains its full year production guidance of 7.6 - 8.1 million ounces of gold at total cash costs of $390 - $415 per ounce. Assuming continuing cost pressures associated with higher than assumed gold and energy prices, cash costs for gold are expected to be in line with the higher end of the guidance range.

The South American business unit produced 0.54 million ounces of gold in Q1 at total cash costs of $193 per ounce. The Lagunas Norte mine continues to deliver excellent results, producing 0.23 million ounces of gold at cash costs of $116 per ounce. Veladero production of 0.19 million ounces at cash costs of $293 per ounce benefited from access to higher grade areas of the Filo Federico and Amable pits following extensive waste stripping in 2007.

The North American business unit contributed 0.61 million ounces in Q1 at total cash costs of $497 per ounce, including 0.30 million ounces from the Goldstrike complex at cash costs of $521 per ounce. Planned waste stripping and processing of lower grade stockpiled ore continues at the Betze-Post pit, where grades were 36% below prior year levels. Goldstrike was also impacted by a SAG mill gear failure and a fire associated with the north roaster bucket elevator, which significantly reduced capacity in February. Production and costs at Goldstrike are expected to improve starting in the second quarter of the year as equipment issues have been resolved and the roaster and autoclave are running at full capacity, and as higher grade ore from the pit becomes accessible in the latter part of the quarter. The Cortez mine produced 83,000 ounces (reflects one month of 100% ownership) at total cash costs of $503 per ounce. Once Cortez Hills enters production, annual production at Cortez is expected to increase to about 1.0 million ounces annually in the first full five years at estimated cash costs of $280 - $290 per ounce. A 15-month construction period is anticipated to begin when the Record of Decision, which is expected in the second half of 2008, becomes effective.

The Australia Pacific business unit produced 0.44 million ounces in Q1 at total cash costs of $438 per ounce. The Porgera operation, the region's biggest contributor to production, had a strong quarter, producing 0.14 million ounces. Results benefited from increased ownership as well as higher grades and throughput. Access to higher grade ore at Cowal was restricted due to a slip on the east wall, which is expected to limit production to lower grade stockpiles until the fourth quarter. Lower than expected grades were also experienced at the Plutonic, Kalgoorlie and Kanowna mines.

Production from the African business unit was 0.14 million ounces in Q1 at total cash costs of $508 per ounce. The Bulyanhulu mine continued to experience effects of the illegal strike as reduced staffing levels impacted mine development and delayed access to higher grade ore, resulting in lower grades and reduced mill throughput. The mine has nearly completed the re-staffing process and expects to return to normal operations starting in the second quarter. The North Mara mine also processed lower grade ore due to the loss of an excavator in January. A new excavator has been commissioned and was fully operational at the end of April.

Copper production of 87 million pounds was lower than in the prior year period, primarily due to temporary lower leach recovery rates at Zaldivar and grade sequencing at Osborne. Copper sales were 98 million pounds at total cash costs of $0.94 per pound and a realized price of $3.54 per pound. The Company maintains its 2008 operating guidance for copper of 380 - 400 million pounds at total cash costs of $1.15 - $1.25 per pound.

The Buzwagi project in Tanzania is on schedule and within its $400 million pre-production capital budget, with about 75% of funds committed or spent. All major foundations, including the crusher and mill foundations, are well advanced and the leach tanks have been installed. All equipment has been purchased and all significant construction contracts have been awarded. First gold is expected to be poured in mid-2009. Buzwagi is expected to produce 250,000 - 260,000 ounces per year at estimated total cash costs of $270 - $280 per ounce in its first full five years of operation.

A feasibility study and project notice were delivered to the government of the Dominican Republic in late February in order to proceed with the Pueblo Viejo project. Pre-production capital of about $2.7 billion (100% basis) represents the largest foreign investment in the country. Barrick's share of gold production in the first full five years of production is expected to be about 600,000 ounces per year at total cash costs of about $250 per ounce.

In Nevada, detailed engineering is essentially complete at Cortez Hills, which remains on schedule and within the $480 - $500 million pre-production capital budget. About 50% of funds have been committed or spent on the purchase of the bulk of mobile equipment and on significant underground development. During the quarter, $17 million was spent on procurement of crusher and conveyor equipment and engineering for the project infrastructure. The exploration decline advanced an additional 544 meters and is about 95% complete. Pre-production waste stripping is expected to commence in late 2008 once a Record of Decision is issued and becomes effective.

A feasibility study has been completed on the Sedibelo platinum project in South Africa, entitling the Company to a 10% interest and the right to earn an additional 40% on a decision to mine. The Company will determine a course of action on Sedibelo in due course. The feasibility study shows attractive economics based on an assumed life-of-mine production of 4.76 million ounces of four elements or 4E (platinum, palladium, rhodium and gold) and pre-production capital of about $700 million. Annual production in the first full five years of a minimum 16 year mine life is estimated to be about 240,000 4E ounces (100% basis) at cash costs of about $700 per 4E ounce. The feasibility contemplates initial production from open pit sources, followed by a ramp up of underground operations which is expected to increase average annual production to over 290,000 4E ounces (100% basis) at cash costs of about $600 per 4E ounce over the first full 10 years. The current weighted average market price for the basket of metals at Sedibelo is about $2,100 per 4E ounce.

Feasibility studies are on track for completion at the Fedorova PGM project in Russia in the second half of 2008 and at the large Reko Diq gold-copper project on the highly prospective Tethyan Belt in Pakistan in early 2009.

At the Kabanga JV in Tanzania, operator Xstrata Plc expects to conclude a pre-feasibility study in the third quarter of 2008.