African Barrick Gold plc Update on 2011/12 Tanzanian Budget The Tanzanian Minister for Finance presented the 2011/12 Budget to Parliament yesterday in Dodoma. Amongst the range of initiatives and measures put forward, there were several of relevance to our business in Tanzania. Chief amongst these were: - The proposal of a special escrow account to deal with indirect tax payments from the mining industry in order to facilitate the timely repayment of fuel excise duties. We have been working with the government and the Tanzania Revenue Authority to find a solution to this administrative issue and the new process should improve our working capital management going forward. - Further measures to address the power shortage in Tanzania through supporting investment in an additional 160MW of generating capacity, as well as a commitment to help secure financing for the state utility TANESCO for the longer term development of the national network. - Contrary to media reports earlier in the day, no other measures were announced addressing the tax status of mining companies in Tanzania. As previously communicated, the tax treatment of our existing operations is, and will continue to be, that set out in the respective Mineral Development Agreements. Commenting on these developments, ABG CEO Greg Hawkins commented, "Today's Budget speech is illustrative of the Tanzanian government's ongoing commitment to promoting a balanced investment environment for mining businesses operating here in Tanzania. We have put considerable effort into achieving a workable framework for dealing with the issue of fuel excise duty recovery and it is encouraging to see this articulated in the solution proposed today. This builds on the increased level of governmental engagement we have seen following the recent unfortunate events at North Mara as well as in dealing with the replacement of the SAG mill motor at Buzwagi, which is now installed and fully functional. Although the replacement took slightly longer than first expected with a short-term production loss of around 15,000 ounces we remain confident this will largely be recovered over the balance of the year. ABG continues to focus on optimizing our current operations and further expanding the business in Tanzania. We will be doing this in partnership with the government for the benefit of all our stakeholders."