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AFRICAN BARRICK GOLD PLC: 1st Quarter Results


AFRICAN BARRICK GOLD

18 April 2013

Results for the 3 months ended 31 March 2013 (Unaudited)

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

African Barrick Gold plc ("ABG'') reports first quarter 2013 results

"We have made a good start to 2013, and remain on track to achieve full year guidance, as we continue to deliver on our mine plan while progressing the Operational Review" said Greg Hawkins, Chief Executive Officer of African Barrick Gold. "North Mara and Buzwagi both delivered strong performance with the higher grade profile at North Mara and improved throughput at Buzwagi driving production levels. As anticipated, Bulyanhulu experienced a slow start to the year and we continue to expect improved performance as we move through the year and corrective measures are implemented. During the quarter we ceased mining operations at Tulawaka and are working with the Government to finalise the closure plans."

Quarterly Highlights

* Gold production1 of 146,105 ounces and gold sales of 148,232 ounces

* Cash costs2 of US$931 per ounce sold, with cash costs excluding Tulawaka of

US$893 per ounce sold

* EBITDA2 of US$81.9 million; excluding Tulawaka this amounted to US$88.8 million

* Net earnings of US$20.7 million; excluding Tulawaka this amounted to US$31.2

million

* Operational cash flow of US$57.3 million, with a cash balance of US$402 million

* Completion of US$142 million financing for the Bulyanhulu CIL expansion project

* Operational Review progressed with key initiatives identified and project plans

formulated

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 2012 % change 2012

Attributable Gold Production (ounces)1 146,105 144,643 1% 626,212

Attributable Gold Sold (ounces)1 148,232 145,417 2% 609,252

Attributable Cash cost (US$/ounce)2 931 873 7% 941

Average realised gold price (US$/ounce)2 1,611 1,697 -5% 1,668

(in US$'000)

Revenue 254,649 267,537 -5% 1,087,339

EBITDA2,3 81,943 97,369 -16% 336,282

Cash generated from operating activities 57,326 64,757 -11% 268,734

Net earnings 20,716 40,348 -49% 62,780

Earnings per share (EPS) (cents) 5.1 9.8 -49% 15.3

Operating cash flow per share (cents)2 14.0 15.3 -9% 64.1

In order to accurately reflect the underlying performance of our continuing core operations following the cessation of mining at Tulawaka, presented below are our key financial metrics excluding Tulawaka:

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 20124 % change 20124

Gold Production (ounces) 142,759 133,469 7% 595,184

Cash cost from operating mines (US$/ounce)2 893 870 3% 922

EBITDA (US$'000)2,3 88,816 85,812 4% 326,804

Net earnings (US$'000) 31,229 37,602 -17% 100,473

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

2 Attributable cash cost, cash cost from operating mines, average realised gold price, EBITDA and operating cash flow per share are non-IFRS financial performance measures with no standard meaning under IFRS. Refer to "Non IFRS measures"' on page 13 for definitions.

3 Three months ended 31 March 2012 restated for the reclassification of bank charges from corporate administration to finance expense.

4 Restated for the impact of capitalised stripping due to the adoption of IFRIC20.

Operational Review

The Operational Review which was initiated earlier this year and which is focused on driving returns and cash flow generation is progressing in line with our expectations and we remain on schedule to provide a fuller update with our Interim results. The review is comprehensive and is focused onfive key areas: Operating Costs, Capital Costs, Organisational Structure, Corporate Overheads and Mine Planning; in order to realise clear benefits in our cost structure and operating metrics.

Operating Costs

As the largest area of spend this has been the priority focus for the review team. An initial review of our operating costs has been completed and we have formulated project plans in order to address the six key areas where we believe significant cost reductions are achievable:

* Maintenance

* Aviation, Camp Services, Travel, Vehicles and Administration

* Consumables

* Contractor and External Services

* Energy

* Security

Capital Costs

In February, we announced that we had reduced our expected sustaining capital expenditure for 2013 by US$50 million and we remain on track to achieve this. We believe there will be further opportunity to reduce this spend in future years and this will be analysed in more detail in tandem with the mine planning review in order to optimise both our sustaining capital and our capitalised stripping expenditure.

We have also reduced our budgeted spend on exploration for the year to US$22 million, which is a reduction of approximately 50% from 2012 as we refocus the majority of our greenfield exploration efforts on the newly acquired land package in Kenya.

Organisational Structure

The decision to bring Tulawaka to an early close removes higher cost ounces from the portfolio and immediately improves our return profile, as the table above for our ongoing operations illustrates. Once we have commenced implementation ofthe closure plan for the mine we will be able to reduce the level of resource in certain support functions.

In parallel with the operating cost review a zero based review of the entire organisation is in the process of being completed and will ensure that we have the appropriate mix of employees and contractors and appropriate staffing levels.

Corporate Overheads

We have reduced our budgeted corporate overhead spend by approximately 15% from 2012 levels prior to any impact from the Operational Review, and are already seeing the results of this action. With the ongoingreview of our corporate structure we believe there is further opportunity to reduce our corporate overheads and more efficiently support our operations.

Mine Planning

On a mine site level, we are continuing the review process to validate and optimise the life of mine plans at each of our assets in order to prioritise driving returns and cash flow and reduce future capital requirements. Further to this we will look to improve both productivity and efficiency at each of the assets through improved organisational structure and training.

For further information, please visit our website: www.africanbarrickgold.com or contact:

African Barrick Gold plc +44 (0)207 129 7150

Greg Hawkins, Chief Executive Officer Andrew Wray, Head of Corporate Development & Investor Relations Giles Blackham, Investor Relations Manager

RLM Finsbury +44 (0)20 7251 3801 Faeth Birch Charles Chichester

About ABG

ABG is Tanzania's largest gold producer and one of the five largest gold producers in Africa. We have four mines, all located in Northwest Tanzania, and several exploration projects at various stages of development in Tanzania and Kenya. We have a high-quality asset base, solid growth opportunities and a clear strategy of:

* driving operating efficiencies to optimise production from our existing asset

base;

* 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 to our people, the environment and the communities in which we operate is central to achieving our objectives.

ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation, our majority shareholder. ABG reports in US dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this report.

Conference call

A conference call will be held for analysts and investors on 18 April 2013 at 12:30 London time with the dial-in details as follows:

Participant dial in: +44 (0) 203 003 2666 / +1 866 966 5335

Password: ABG

There will be a replay facility available until 25 April 2013. Access details are as follows:

Replay number: +44 (0) 208 196 1998

Replay PIN: 2176234#


                                   

FORWARD- LOOKING STATEMENTS

This report includes "forward-looking statements" that express or imply
expectations of future events or results. Forward-looking statements are
statements that are not historical facts. These statements include, without
limitation, financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and expectations with
respect to future production, operations, costs, products and services, and
statements regarding future performance. Forward-looking statements are
generally identified by the words "plans," "expects," "anticipates,"
"believes," "intends," "estimates" and other similar expressions.

All forward-looking statements involve a number of risks, uncertainties and
other factors, many of which are beyond the control of ABG, which could cause
actual results and developments to differ materially from those expressed in,
or implied by, the forward-looking statements contained in this report. Factors
that could cause or contribute to differences between the actual results,
performance and achievements of ABG include, but are not limited to, changes or
developments in political, economic or business conditions or national or local
legislation in countries in which ABG conducts or may in the future conduct
business, industry trends, competition, fluctuations in the spot and forward
price of gold or certain other commodity prices, changes in regulation,
currency fluctuations (including the US dollar, South African rand, Kenyan
shilling and Tanzanian shilling exchange rates), ABG's ability to successfully
integrate acquisitions, ABG's ability to recover its reserves or develop new
reserves, including its ability to convert its resources into reserves and its
mineral potential into resources or reserves, and to process its mineral
reserves successfully and in a timely manner, risk of trespass, theft and
vandalism, changes in its business strategy, as well as risks and hazards
associated with the business of mineral exploration, development, mining and
production. Although ABG's management believes that the expectations reflected
in such forward-looking statements are reasonable, ABG cannot give assurances
that such statements will prove to be correct. Accordingly, investors should
not place reliance on forward looking statements contained in this report. Any
forward-looking statements in this report only reflect information available at
the time of preparation. Subject to the requirements of the Disclosure and
Transparency Rules and the Listing Rules or applicable law, ABG explicitly
disclaims any obligation or undertaking publicly to update or revise any
forward-looking statements in this report, whether as a result of new
information, future events or otherwise. Nothing in this report should be
construed as a profit forecast or estimate and no statement made should be
interpreted to mean that ABG's profits or earnings per share for any future
period will necessarily match or exceed the historical published profits or
earnings per share of ABG.

Operating Results
                                             Three months                
                                                 ended        Year ended 
                                               31 March       31 December

(Unaudited) 2013 2012 2012

Tonnes mined (thousands of tonnes) 14,001 9,839 48,301

Ore tonnes mined (thousands of tonnes) 1,675 1,747 7,070

Ore tonnes processed (thousands of tonnes) 1,945 1,902 7,698

Process recovery rate (percent) 89.0% 86.0% 88.3%

Head grade (grams per tonne) 2.6 2.8 2.9

Attributable gold production (ounces)¹ 146,105 144,643 626,212

Attributable gold sold (ounces)¹ 148,232 145,417 609,252

Copper production (thousands of pounds) 2,462 3,005 12,875

Copper sold (thousands of pounds) 3,357 2,516 11,523

Cash cost per tonne milled² 71 67 75

Per ounce data (US$)


                                                                         
     Average spot gold price³                 1,631    1,691        1,669
                                                                         
     Average realised gold price²             1,611    1,697        1,668
                                                                         
     Total cash cost²                           931      873          941
                                                                         
     Amortisation and other costs²              318      226          251
                                                                         
     Total production costs²                  1,249    1,099        1,192
                                                                         
     Cash Margin²                               680      824          727

Average realised copper price (US$/pound) 3.39 4.15 3.57


                                                                         

Financial results
                                                                   Year   
                                                                   ended  
                                            Three months ended      31    
                                                 31 March        December 

(Unaudited)

(in US$'000) 2013 2012 2012


                                                                          
                                                                          

Revenue 254,649 267,537 1,087,339

Cost of sales (204,675) (178,522) (797,859)

Gross profit 49,974 89,015 289,480

Corporate administration5 (5,887) (14,890) (51,567)

Exploration and evaluation costs (4,398) (6,515) (28,961)

Corporate social responsibility expenditure (3,446) (3,409) (14,445)

Impairment expense - - (44,536)

Other charges (3,813) (1,645) (17,671)

Profit before net finance cost 32,430 62,556 132,300

Finance income 596 266 2,102

Finance expense5 (2,557) (2,576) (10,305)

Profit before taxation 30,469 60,246 124,097

Taxation expense (14,259) (18,721) (72,604)

Net profit 16,210 41,525 51,493

Attributed to:

- Non-controlling interests (4,506) 1,177 (11,287)

- Owners of the parent (net earnings) 20,716 40,348 62,780

Other Financial information

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 2012


        2012
                                                                                

(in US$'000 except per ounce and per

share figures)


            
                                                                                

Cash and cash equivalents 401,520 581,009


     401,348
                                                                                

Cash generated from operating activities 57,326 64,757


     268,734
                                                                                

Capital Expenditure6 100,840 63,302


     351,127
                                                                                

Operating cash flow per share (cents)2 14.0 16.0


        65.5
                                                                                

Long Term debt (Borrowings) 50,000 -


           -
                                                                                

Equity 2,793,754 2,839,145

2,778,292

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

2 Average realised gold price, total cash cost per ounce, amortisation and other cost per ounce, total production cost per ounce, cash margin, cash cost per tonne milled and operating cash flow per share are non-IFRS financial performance measures with no standard meaning under IFRS. Refer to "Non IFRS measures"' on page 12 for definitions.

3 Reflect the London PM fix price.

4 Restated for the impact of capitalised stripping due to the adoption of IFRIC20.

5 Three months ended 31 March 2013 restated for the reclassification of bank charges from corporate administration to finance expense.

6 Includes non-cash reclamation asset adjustments and finance lease purchases in 2012.

Operating and financial review for the three months ended 31 March 2013

We saw strong performance at both North Mara and Buzwagi during the quarter, which offset the temporary operational issues experienced at Bulyanhulu and the impact of the cessation of mining activities at Tulawaka.

At Buzwagi, all key operating metrics have shown good year-on-year improvement and have sustained the performance levels achieved in the previous quarter. As expected head grade was 13% lower than the prior year as we focused on waste stripping, but increased recovery rates and improved mill throughput rates drove production of 40,020 ounces, a 10% increase from the same period last year.

At North Mara, mining from the higher grade zones in Gokona continued during the quarter resulting in an increased head grade of 3.6 grams per tonne (g/t), 71% higher than last year. Mill recovery rates increased by 10% to 87.3%, predominantly as a result of the gold plant upgrade completed in 2012, further aided by the higher grade mill feed. As a result, production for the quarter amounted to 64,704 ounces, an increase of 83% from the same period in 2012.

Gold production at Bulyanhulu of 38,036 ounces was 38% lower than in Q1 2012, primarily due to lower mined grade as a result of paste fill delays and the impact of the reduced workforce. During the quarter hoisting capacity was reduced for a short period by the failure of the primary winder transformer which has now been replaced.

At Tulawaka production for the quarter amounted to 3,346 ounces, 70% lower than in 2012 as underground operations came to an end resulting in lower tonnes milled.

Total tonnes mined amounted to 14.0 million tonnes, an increase of 42% from 9.8 million in 2012, mainly driven by increased mining rates at Buzwagi. Ore tonnes mined of 1.7 million tonnes were 4% lower than in 2012 as a result of lower ore tonnes mined at Buzwagi and Bulyanhulu which were partially offset by an increase in tonnes mined at North Mara. Ore tonnes processed amounted to 1.9 million tonnes, an improvement of 2% from 2012. Increased throughput at Buzwagi due to stable power supply and process plant improvements was partially offset by lower throughput at Bulyanhulu.

Head grade for the quarter of 2.6 g/t was 7% lower than 2.8 g/t in 2012. This was due to mining at lower grades and the processing of lower grade stockpiles due to the waste stripping programme at Buzwagi and lower availability of higher grade stopes at Bulyanhulu. This was partially offset by higher grade from North Mara.

Our total cash costs for the quarter were 7% higher than 2012, and amounted to US$931 per ounce sold. The increase was primarily due to the impact of lower production at Tulawaka as mining operations ceased (US$38/oz), increased contracted services mainly driven by contracted maintenance at Buzwagi and North Mara due to the increase in mining activity and inventory and sales related costs. This was partially offset by increased capitalised mining expenditure at Buzwagi due to increased waste mining, and increased co-product revenue due to increased production, also at Buzwagi.

Cash costs of US$71 per tonne milled for the quarter have increased by 6% on 2012 (US$67 per tonne), primarily as a result of the above factors.

Gold sales amounted to 148,232 ounces, and were 2% higher than production, as concentrate on hand at Buzwagi at the beginning of the year was shipped during the quarter. Approximately 10,000 ounces remain on hand for sale in Q2 2013 as a result of the timing of production at Bulyanhulu and North Mara.

Our copper production for the quarter of 2.5 million pounds represents an 18% decrease on Q1 2012 (3.0 million pounds), as increased production at Buzwagi was offset by lower production at Bulyanhulu.

Revenue of US$254.6 million was 5% lower than Q1 2012 as increased sales volumes were offset by a 5% decrease in realised price of US$1,611 per ounce sold, compared to US$1,697 per ounce sold in the prior year.

EBITDA of US$81.9 million was 16% lower than in Q1 2012, mainly driven by lower revenue and an increased direct cost base, offset by lower corporate administration and exploration and evaluation costs. Corporate administration costs were down US$9.0 million on the prior year period, aided by a US$3.8 million credit due to the downward revaluation of long term incentives given the share price performance during the quarter.

Excluding Tulawaka, performance from the ongoing operating mines led to production of 142,759 ounces, total cash costs of US$893 per ounce, EBITDA of US$88.8 million and Net Earnings of US$31.2 million.

Cash generated from operating activities amounted to US$57.3 million which was US$24.6 million below EBITDA. This was mainly due to an increase in indirect tax receivables of US$21.5 million due to the change of VAT relief administration measures for mining companies by the Tanzanian Government during Q3 2012 which impacts on the timing of receivables. Our cash balance at the end of the quarter was flat at US$402 million.

Capital expenditure for the quarter amounted to US$100.8 million compared to US$63.3 million in Q1 2012. Key capital expenditure included the CIL expansion project at Bulyanhulu (US$21.5 million), capitalised stripping at Buzwagi and North Mara (US$30.5 million), capitalised underground development at Bulyanhulu (US$12.3 million) and investments in the mining fleet at Buzwagi and North Mara (US$16.6 million).

Bulyanhulu

Key statistics

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 2012 2012

Underground ore tonnes hoisted Kt 172 250 959

Ore milled Kt 171 246 1,012

Head grade g/t 7.6 8.6 8.0

Mill recovery % 91.3% 91.2% 90.6%

Ounces produced oz 38,036 61,836 236,183

Ounces sold oz 33,416 62,216 235,410

Cash cost per ounce sold US$/oz 1,192 701 803

Cash cost per tonne milled US$/t 232 177 187

Copper production Klbs 856 1,631 6,102

Copper sold Klbs 868 1,445 5,895

Capital expenditure US$('000) 40,251 18,815 117,569

Operating performance

Bulyanhulu produced 38,036 ounces during the quarter, 39% lower than the prior year's total as a result of decreased head grade due to lower availability of high grade stopes, lower tonnes mined due to the impact of a reduced workforce and reduced throughput as a result of hoisting capacity being impacted by the failure of the production winder transformer.

As previously reported, potential changes to Tanzanian pension legislation led to the resignation of a significant number of long serving underground mining and maintenance personnel, over the end of 2012 and early 2013. We have made good progress in replacing these employees through both internal and external recruitment and anticipate being back to a full complement of staff during the current quarter.

During the first quarter we continued to add paste fill capacity by drilling further holes from surface in order to improve access to high grade stopes. As we increase throughput through the mill over the current quarter we expect to see greater availability of paste fill underground to alleviate this issue.

Head grade of 7.6 g/t was lower than the prior year (8.6 g/t) as a result of paste fill delays limiting access to primary long hole stopes leading to more tonnes being mined from lower grade stopes. The impact of the lower mined grade on recovery was offset by improvements in the gravity circuit which resulted in an increased overall recovery rate of 91.3%, slightly higher than Q1 2012.

Gold ounces sold for the quarter were 33,416 ounces, with approximately 4,600 ounces held over for sale in Q2 as a result of the timing of production in the quarter.

Copper production for the quarter of 0.9 million pounds was 48% lower than that of the same period in 2012. This was primarily due to a decrease in mill throughput.

Due to the lower sales and resultant lower co-product revenue, cash costs per ounce sold for the quarter of US$1,192 were 70% higher than the prior year of US$701; however gross cash costs were 9% down on the prior year due lower consumable and energy costs as a result of the lower mining and processing rates and lower staff numbers.

Cash costs per tonne milled increased to US$232 in 2013 (US$177 in 2012) as a result of lower mill throughput.

Capital expenditure for the quarter of US$40.3 million was 114% higher than the prior year period of US$18.8 million mainly driven by the CIL expansion project (US$21.5 million). Capitalised underground development was US$12.3 million.

Buzwagi

Key statistics

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 2012# 2012#

Tonnes mined Kt 8,830 4,903 28,563

Ore tonnes mined Kt 701 919 4,233

Ore milled Kt 1,093 928 3,715

Head grade g/t 1.3 1.5 1.6

Mill recovery % 89.3% 82.4% 87.3%

Ounces produced oz 40,020 36,272 165,770

Ounces sold oz 51,811 33,321 155,322

Cash cost per ounce sold US$/oz 802 1,067 1,066

Cash cost per tonne milled US$/t 38 38 45

Copper production Klbs 1,606 1,374 6,773

Copper sold Klbs 2,489 1,071 5,628

Capital expenditure* US$('000) 39,018 15,538 106,452

# Q1 2012 and FY 2012 results are restated for the impact of capitalised stripping due to the adoption of IFRIC20

*Includes non-cash reclamation asset adjustments

Operating performance

We have seen a continued improvement in operating performance at Buzwagi with both mining and processing rates significantly increasing over the prior year period. As expected, head grade was 13% lower than the prior year as we blended ore mined with lower grade stockpiles, but increased recovery rates and improved mill throughput rates drove production of 40,020 ounces, a 10% increase from the same period last year. Gold ounces sold exceeded production by 29% due to the sale of concentrate shipments on hand from Q4 2012.

Improved availability and utilisation of the mobile fleet during the quarter, combined with a focus on waste removal, resulted in an 80% increase in tonnes mined over the prior year period. As a result of the increased focus on waste stripping activities, ore tonnes mined of 701,000 tonnes were 24% lower than in 2012.

Mill throughput was at nameplate capacity, an increase of 18% compared to Q1 2012, driven by improved plant availability and efficiencies. As planned, the mill operated solely on self generated power in order to mitigate the instability of grid power.

Head grade for the quarter amounted to 1.3 g/t, a decrease of 13% from the same period in Q1 2012. This was a result of an increase in processing of lower grade stockpiles due to the increased waste stripping activities.

Copper production for the quarter of 1.6 million pounds was 17% above the prior year's production. This was primarily due to the increased throughput. Copper sold for the quarter amounted to 2.5 million pounds, and exceeded production by 55% due to the sale of copper concentrate on hand at the end of Q4 2012.

Cash costs for the quarter were US$802 per ounce sold compared to US$1,067 in Q1 2012. Cash costs have been positively affected by increased sales and the resultant increase in co-product revenue, increased capitalised mining due to the waste stripping undertaken during the quarter and a decrease in administration costs. This was partially offset by increased energy costs due to increased self generation and mining activity and increased contracted services costs driven by maintenance and repair contracts ("MARC") as a result of increased mining and milling activities and increased sales related costs.

Cash costs per tonne milled of US$38 remained in line with Q1 2012 as increased throughput was offset by an increase in the direct mining costs.

Capital expenditure for the quarter of US$39.0 million was 151% higher than the prior year of US$15.5 million primarily due to capitalised deferred stripping. Key capital expenditure includes capitalised stripping (US$23.9 million), mine fleet investment which rolled over from 2012 (US$10.0 million) and investments in the detoxification plant completed during the quarter (US$5.1 million).

North Mara

Key statistics

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 2012# 2012#

Tonnes mined Kt 4,975 4,391 18,391

Ore tonnes mined Kt 777 505 1,711

Ore milled Kt 646 660 2,786

Head grade g/t 3.6 2.1 2.5

Mill recovery % 87.3% 79.1% 85.4%

Ounces produced oz 64,704 35,361 193,231

Ounces sold oz 59,050 38,050 186,600

Cash cost per ounce sold US$/oz 804 973 953

Cash cost per tonne milled US$/t 73 56 64

Capital expenditure* US$('000) 20,045 20,595 93,529

# Q1 2012 and FY 2012 results are restated for the impact of capitalised stripping due to the adoption of IFRIC20

*Includes non-cash reclamation asset adjustments and excludes land purchases

Operating performance

North Mara delivered strong gold production for the quarter of 64,704 ounces, an increase of 83% on Q1 2012 as a result of improved grade and recoveries. Gold ounces sold amounted to 59,050 ounces for the quarter, an increase of 55% from 2012, with approximately 5,600 ounces held over for sale in Q2 due to the timing of production in the quarter.

Head grade of 3.6 g/t improved by 71% from 2012, driven by an increased mine grade and a reduction in mill feed from the lower grade stockpiles. Recoveries of 87.3% increased by 10% from the prior year period as a result of the positive impact from the gold plant recovery project completed in 2012 and the increased grade profile. For the remainder of the year head grade is expected to be broadly in line with 2012 levels as the lower levels of ore mined will be supplemented with lower grade stockpiles.

Total tonnes mined for the quarter amounted to 5.0 million tonnes, 13% higher than the same quarter in 2012. Ore tonnes mined of 777,000 tonnes were 54% higher than Q1 2012 as the waste stripping programme undertaken in 2012 opened higher grade ore areas in the Gokona pit for mining in early 2013.

Cash costs for the quarter were US$804 per ounce sold compared to US$973 in the prior year period. The decrease in cash costs were driven by the increased sales base, which was partially offset by increased maintenance costs and consumables usage due to the increased activity, and increased sales related costs. Cash cost per tonne milled increased to US$73 in 2013 from US$56 in Q1 2012, as a result of the increased costs above and the decrease in throughput.

Capital expenditure for the quarter of US$20.0 million was in line with the prior year of US$20.6 million. Key capital expenditure included capitalised stripping (US$6.6 million), mine equipment (US$6.6 million) and other sustaining capital (US$5.5 million).

Land acquisition at North Mara remains a key issue and continues to be a priority focus for management. Operations in the Nyabirama pit remain suspended due to delays in relocating villagers close to the pit. We are continuing our discussions with local and central government in order to find a solution and a Government led task force has been on site over the quarter assessing the situation.

We continue to progress the lifting of the Environmental Protection Order ("EPO") at North Mara in order to be able to discharge water.

Tulawaka

Key statistics

Three months ended Year ended

31 March 31 December

(Unaudited) 2013 2012 2012

Underground ore tonnes hoisted Kt 24 30 124

Open pit ore tonnes mined Kt - 43 43

Open pit waste tonnes mined Kt - 222 222

Ore milled Kt 34 67 185

Head grade g/t 3.2 5.4 5.5

Mill recovery % 94.3% 95.4% 95.5%

Ounces produced oz 3,346 11,174 31,028

Ounces sold oz 3,955 11,830 31,920

Cash cost/ounces sold US$/oz 2,328 902 1,269

Cash cost per tonne milled US$/t 267 158 219

Capital expenditure (100%) US$('000) 523 5,122 24,588

Operating performance

As announced as part of our 2012 preliminary results, we have made the decision to bring Tulawaka to a close and as a result mining operations ceased during the quarter. We have now commenced with closing activities and the stripping of equipment from the underground mine. Mill throughput will cease in the coming months as we work through the remaining inventory in solution and process any incidental material due to the closing of the mine.

As a result of the cessation of mining operations during the quarter the mine's attributable gold production for Q1 2013 was 3,346 ounces, down from 11,174 ounces in Q1 2012. The decrease was due to a 49% decrease in throughput and a reduction in head grade as a result of the clean-up of the underground stopes. Recovery decreased mainly as a result of the lower grade. Gold ounces sold were broadly in line with production.

We have submitted the Mine Closure Plan to the relevant Government departments and discussions regarding the ultimate use of mine infrastructure are expected to continue into the second half of the year.

Due to the reduction in production and a predominantly fixed cost base, cash costs for the quarter were US$2,328 per ounce sold compared to US$902 in the prior year.

Cash costs per tonne milled increased to US$267 in 2013 from US$158 in 2012, primarily as a result of a lower mill throughput.

Capital expenditure for the quarter of US$0.5 million was 94% lower than the prior year of US$5.1 million due to the cessation of mining operations. Capital expenditure incurred related to mine site support equipment to be used during closure.

Exploration and Development Update

Tanzania

Bulyanhulu CIL Expansion

Construction of the CIL Expansion progressed well during the quarter and remains on budget and on track for first production in Q1 2014. The construction of camp facilities and early site works are close to completion with key equipment including four of the leach tanks arriving on site and now are awaiting construction.

During the quarter we completed the financing of the project through an export credit facility for US$142 million, of which US$50 million was drawn down in January. Project execution spend to date is approximately US$50 million which is in line with expectations

Bulyanhulu Upper East

The combined feasibility study incorporating both Reef-1 and Reef-2 into the Upper East Project has been completed subject to a peer review process. The peer review and any follow up analysis will be undertaken during the second quarter, after which it is expected that the project will be submitted to the Board for approval. The project remains on target for first production in early 2015.

Nyanzaga

The pre-feasibility study at Nyanzaga is close to completion, with technical work on the project now complete. The project will now go through a peer review process before being submitted to the Board. Given the scale of the project at over 4.5 million ounces of resource, it represents a potentially large capital investment and we will continue to assess the project with strict capital discipline that we apply to the rest of the business as well as assessing alternative methods of finance should we progress the project.

Dett-Ochuna Project

Dett-Ochuna is a large gold system hosted in granitic and sedimentary rocks located approximately 45 kilometres west of North Mara. Historic drilling programmes intersected very wide zones of low grade (0.6-0.9g/t Au) mineralisation extending from surface to depths greater than 300 metres and current drilling is targeting higher grades zones within this mineralised system. The current phase of reverse circulation and diamond drilling was completed during Q1 2013 with encouraging results received from two discrete higher grade (>1.5g/t Au) zones that are likely to justify further drilling on the project. A total of 5 diamond core holes for 1,384 metres were completed during the reporting period bringing the total to 24 reverse circulation and diamond core holes for 6,657 metres for this phase of the programme.

Selected significant results for the quarter included:

DTD0009 - 62m @ 1.15g/t Au from 66m, including 29m @ 1.85g/t Au from 79m

DTD0011 - 68m @ 1.33g/t Au from 88m, including 26m @ 2.08g/t Au from 124m

DTD0014 - 95m @ 1.08g/t Au from 67m, including 41m @ 1.52g/t Au from 68m

DTD0017 - 85m @ 1.44g/t Au from 140m, including 56m @ 1.67g/t Au from 144m

DTD0018 - 73m @ 1.84g/t Au from 181m, including 43m @ 2.46g/t Au from 198m

DTD0019 - 111m @ 1.16g/t Au from 72m, including 36m @ 1.51g/t Au from 94m

DTD0020 - 134m @ 1.00g/t Au from 111m, including 26m @ 2.21g/t Au from 159m

Figure - Dett-Ochuna drill hole location plan with selected significant assays and approximate trend of gold zones

[See www.africanbarrickgold.com for picture]

During Q1 2013, two holes (DTDDM0021 and DTDDM0023) were drilled to infill several broader spaced holes in order to show continuity of the higher grade zones and to complete preliminary metallurgical and communition test-work. Results for the metallurgical test work are anticipated during Q2 2013, and these results, combined with an assessment of the resource potential, will determine future exploration programmes.

Kenya

West Kenya JV Project

Exploration programmes in Kenya during Q1 2013 focused on target generation, mapping and rock chip sampling across selected regional prospects in order to validate targets and design follow up programmes. At the same time, planning is well underway for regional soil sampling programmes and an extensive programme of reconnaissance RAB/Aircore drilling that will test existing soil anomalies throughout the Kakamega Dome and Lake Zone gold camps. Regional drilling and soil sampling programmes are expected to commence during the second quarter, following the completion of Presidential elections during the first quarter. Additionally, we expect to complete a programme of diamond core drilling across the Ramula, Rosterman and Bushiangala prospects targeting sufficient gold mineralisation to move each target up our Exploration and Development pipeline.

Non IFRS Measures

ABG has identified certain measures in this report that are not measures defined under IFRS. Non-IFRS financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing ABG's financial condition and operating results. These measures are not in accordance with, or a substitute for, IFRS, and may be different from or inconsistent with non-IFRS financial measures used by other companies. These measures are explained further below.

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

Unrealised gains and losses on non-hedge derivative contracts;

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

Export duties.

Cash cost per ounce sold is a non-IFRS financial measure. Cash costs include all 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 from non-hedge currency and commodity contracts, depreciation and amortisation and corporate social responsibility charges. Cash cost is calculated net of co-product revenue.

The presentation of these statistics in this manner allows ABG to monitor and manage those factors that impact production costs on a monthly basis. ABG calculates cash costs based on its equity interest in production from its mines. Cash cost per ounce sold are calculated by dividing the aggregate of these costs by gold ounces sold. Cash costs and cash cost per ounce sold are calculated on a consistent basis for the periods presented.

Cash cost from operating mines is a non-IFRS financial measure. It is calculated by excluding the impact of Tulawaka from cash cost per ounce sold.

EBITDA is a non-IFRS financial measure. ABG calculates EBITDA as net profit or loss 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 be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA differently. Prior year EBITDA was restated by US$1.4 million to reflect the reclassification of bank charges from corporate administration charges to finance expense.

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

Amortisation and other cost per ounce sold is a non-IFRS financial measure. Amortisation and other costs include amortisation and depreciation expenses and the inventory purchase accounting adjustments at ABG's producing mines. ABG calculates amortisation and other costs based on its equity interest in production from its mines. Amortisation and other costs per ounce sold is calculated by dividing the aggregate of these costs by ounces of gold sold. Amortisation and other cost per ounce sold are calculated on a consistent basis for the periods presented.

Cash cost per tonne milled is a non-IFRS financial measure. Cash costs include all 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 from non-hedge currency and commodity contracts, depreciation and amortisation and corporate social responsibility charges. Cash cost is calculated net of co-product revenue. ABG calculates cash costs based on its equity interest in production from its mines. Cash cost per tonne milled are calculated by dividing the aggregate of these costs by total tonnes milled.

Cash margin is a non-IFRS financial measure. The cash cost margin is the average 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 calculated by dividing Net cash generated by operating activities by the weighted average number of Ordinary Shares in issue.

Mining statistical information

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

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

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

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

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

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

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

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

Total production costs - measures the total cost of production and is an aggregate of total cash costs as well as production specific depreciation and amortisation.

END

-0- Apr/18/2013 06:00 GMT

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