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AFRICAN BARRICK GOLD PLC - Preliminary Results for the 12 months ended 31 Dec 2012

Wednesday, February 13, 2013 2:00 AM


                             AFRICAN BARRICK GOLD
                                   LSE: ABG
13 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 from
current levels to ensure the business returns to delivering appropriate levels
of free cash flow." said Greg Hawkins, Chief Executive Officer of African
Barrick Gold. "Cash flow generation and improving returns from our assets form
a key part of our operational review and we will update on our progress
throughout the course of the year. The 2012 dividend is maintained at the 2011
level and this is both an expression of our confidence in the business as well
as our commitment to shareholder returns."

Full Year 2012 Highlights

ABG reports net earnings of US$59 million (US14.5 cents per share), including one-off adjustments of US$46 million, primarily due to impairment charges related to Tulawaka which, after a long and successful run, is coming to a close in 2013. Adjusted net earnings2 were US$105 million (US25.7 cents per share) 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 key expansion projects at Bulyanhulu

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

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

Operational Review initiated to drive improved returns and free cash flow generation 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 of US16.3 cents per share

Operational Review
As announced in January 2013, we have initiated an Operational Review of our
business. The core focus is to drive free cash flow generation commensurate
with the quality and size of our asset base. The Review is expected to run
through the coming six months and we expect to realise clear benefits in our
cost structure and operating metrics throughout the year as we implement
specific initiatives.
The specific initiatives which form the core of the Operational Review are:
Operating Cost Reductions
Capital Discipline
Organisational Structure

Corporate Overhead Cost Reductions

Mine Planning Deliverability

Each of the initiatives outlined above are focused on driving returns for the
business and ultimately for shareholders. Each of the initiatives are being led
by a member of the Senior Leadership Team and will include both internal and
external expertise in order to analyse and implement future initiatives.
Further details as to the progress on the Operational Review will be provided
to 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, at total cash costs2, including royalties, of between US$925 and US$975 per ounce sold. This incorporates a US$120 per ounce reduction resulting from the adoption of the new accounting standard for deferred stripping (IFRIC 20).

Key Statistics                                                                      Year
                                                   Three months ended             ended 31
Operating 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    15,069
Cash cost per tonne milled²                               74        72         75        65
Per 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 ($/lb)                    3.42      3.11     
 3.57      3.82
Financial results
(Unaudited, in US$'000)
Revenue                                              287,944   285,198  1,087,339 1,217,915
Cost of sales                                      (217,797) (177,455)  (802,709) (704,114)
Gross profit                                          70,147   107,743    284,630   513,801
Corporate 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   411,299
Finance income                                           428       313      2,102     1,484
Finance expense5                                     (2,565)   (2,720)   (10,305)  (10,082)
(Loss)/profit before taxation                       (18,802)    75,679    119,247   402,701
Taxation expense                                    (27,182)  (20,595)   (71,063) (117,924)
Net (loss)/profit                                   (45,984)    55,084     48,184   284,777
Attributed 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   584,154
Cash generated from operating activities              92,639   159,621    257,903   498,323
Capital Expenditure4                                 123,606   117,061    340,295   345,235
EBITDA2,5                                             75,565   115,225    330,869   545,448
Adjusted 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     121.5
Dividend per share (cents)                              12.3      13.1       16.3      16.3
Equity                                             2,774,981 2,798,704  2,774,981 2,798,704

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

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

3 Reflects the London PM fix price.

4 Includes non-cash reclamation asset adjustments and finance lease purchases
during the year. It excludes the acquisition of Aviva Mining (Kenya) Limited in
2012.

5 Restated to reclassify bank charges from corporate administration to finance expense.

CEO Statement
Overall for ABG, 2012 was a year where we realised good progress in several
areas but where we did not meet our core production and cost targets. We
continued to invest in the ongoing stability of the business and our licence to
operate. This was rewarded with increasing consistency in the operational
performance at Buzwagi as the year progressed, and improvements in the grade
profile at North Mara where we also received confirmation of the renewal of our
mining 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 our
operations despite the expected decrease in grade. We also significantly
enhanced our early stage exploration portfolio with the acquisition of Aviva
Mining (Kenya) Limited ("AMKL").
Our group production for the year was 9% lower than 2011, with the grade driven
increase at North Mara offset by declines of similar levels at our other three
operations. Bulyanhulu was impacted by paste fill and equipment availability
issues together with the loss of skilled employees due to proposed government
pension law changes; Buzwagi saw an expected reduction in grade to around its
reserve grade although it did benefit from improved plant performance later in
the year; and Tulawaka operated under batch processing following the exhaustion
of surface stockpiles. These lower production levels, together with higher
energy and maintenance expenses, resulted in our cash costs for the year
reaching US$949 per ounce sold. As we move into 2013, we start from a strong
platform with a net cash position of US$401 million, but we nonetheless need to
strengthen our focus on reducing costs in order to ensure the business can
deliver attractive levels of free cash flow generation. This will form a key
part of our ongoing Operational Review.
Beyond the day-to-day operational challenges of our business, for a large part
of the second half of the year we also dealt with several additional factors
resulting from the discussions between Barrick Gold Corporation ("Barrick") and
China National Gold Group Corporation ("CNG") with respect to the Barrick's
majority stake in ABG. These included a detailed due diligence process and site
visits as well as other factors such as dealing with the uncertainty caused
among our employees and also the communities in which we operate. We
implemented a range of measures to deal with these additional challenges and
were largely successful in limiting the disruption to our business. With the
discussions now terminated, we need to ensure everyone in the business remains
focused on delivering the significant potential of our asset base.
Our share price performance in 2012 was set against a backdrop of continuing
underperformance by gold equities relative to the underlying commodity. The key
focus from investors has centred on the lack of free cash flow leverage in the
industry to the gold price, either through rising operational costs or
increasing investment in new projects which do not meet hurdle return rates. In
the three years since ABG listed as an independent company we have been
successful in generating substantial free cash flow and have maintained the
view that capital returns to shareholders are of critical importance: with the
proposed final dividend for 2012, we will have returned in excess of US$150
million to shareholders over that period and we have also invested in two early
stage projects which we believe have the potential to deliver significant
long-term value to the business. Nonetheless, during 2012 the increases in our
operating expenses and in the level of capital we invested in our assets meant
that the business consumed capital which is not sustainable over the longer
term. As such, the Board of ABG has asked management to conduct a full
Operational Review of the business with the aim of recalibrating our operations
so as to drive improved returns from the asset base whilst enhancing the
certainty of delivery. The review commenced in January 2013.

Operating Performance

At an individual mine level, Bulyanhulu remained our largest producing asset
and is set to remain so with the existing mine plan and the growth projects
being advanced. In 2012, production was 10% lower than in 2011 as we
experienced power supply issues earlier in the year which impacted on hoisting
capacity, while later in the year the delivery of ore to surface was reduced by
lack of paste fill availability which led to increased reliance on lower grade
stopes and a shortage of skilled personnel resulting from resignations in the
face of proposed changes to pension fund legislation in Tanzania. We have
several initiatives in place to deal with these short-term factors in order for
Bulyanhulu to get back to its expected run rate as the year progresses.
At North Mara, it was pleasing to see the expected increase in production
levels on the prior year as we accessed the higher grade zones in the Gokona
pit in the second half of the year. This reduced the reliance on lower grade
stockpiles to provide feed to the mill and led to increased head grade and a
13% increase in production compared to 2011. Operations saw some impact from an
increase in illegal mining activity during the second half of the year but this
has now subsided and returned to more normalised levels. Production during 2012
was from the Gokona and Nyabigena pits, with operations at the Nyabirama pit
subject to the necessary land acquisitions and relocations which are a key
focus for mine management in 2013.
At Buzwagi, significant progress was made across both mining and processing
activities during the year. Production was 16% below the level of 2011, a
result of the expected 30% decline in grade as the mine operated at close to
its reserve grade. This impact was slightly offset by the operational
improvements, with a 33% increase in total tonnes mined, which includes a 19%
increase in ore tonnes, and a throughput increase of 24%. Site management are
now firmly focused on ensuring these improvements are maintained during 2013.
At Tulawaka, the processing plant operated on batch milling due to the lack of
sufficient ore to run it full time, which was a consequence of relying
exclusively on underground material during 2012. As a result, throughput was
down substantially on 2011 with a corresponding fall in production levels. We
have successfully extended the life of this operation consistently in the last
three years; however as a part of the Operational Review we have taken the
decision not to further extend the mine life beyond the middle of 2013. We are
currently starting to implement our closure plan for the operation and will
engage 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 a
non-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 the
year: we are progressing the construction of the Carbon in Leach ("CIL")
circuit expansion at Bulyanhulu, and the Board has approved the ordering of
certain long lead items required for the acceleration of mining at an expanded
Upper East Zone project at Bulyanhulu. These two projects will add meaningful
long-term production to our core operating asset.
On our Greenfield exploration portfolio we continued to increase the size of
the Nyanzaga resource, which now has an in-pit resource of over 4.6 million
ounces ("Moz") of gold ("Au") consisting of 3.75 Moz at 1.42 g/t Au Indicated
and 0.85 Moz at 1.81 g/t Au Inferred. We are currently finalising the
pre-feasibility study and expect to take a decision on whether to progress to a
full 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$22
million including exploration funding. The licences add more than 20 existing
targets from grassroots through to the drill testing stage into the exploration
and development pipeline and will be the focus for a significant proportion of
our exploration budget in 2013.
Drilling at North Mara has continued to highlight the potential for underground
development at both the Gokona and Nyabirama pits and we are undertaking the
technical trade-off analysis in order to establish how best to sequence the
underground potential with the existing open pit operations in order to
maximise 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. During
2012, we continued to build on the constructive dialogue we enjoy with the
Tanzanian government as our operations delivered significant benefits and value
to our host communities. The decision to voluntarily move to a royalty rate of
4% from 3% was one that ABG instigated but it was also recognition of the
improved level of cooperation we saw from the Tanzanian authorities as we
solved a range of taxation, permitting and licensing issues, some of which
dated from several years back.
As we move into 2013 there remains much to be done and it is vital we enjoy the
ongoing support of the government in these areas. Across our asset base, the
lack of availability of reliable power is a key issue for us and one which is
receiving attention at the highest levels within the Tanzanian government, and
we look forward to the government delivering on its initiatives to alleviate
this issue. At North Mara, we have seen good support over the last few months
in relation to improving law and order but need to resolve a number of land
access issues to ensure we have the appropriate footprint for our operations
and we look forward to the government's support in achieving this. Elsewhere,
we are encouraging the government to help resolve the pension fund issue which
has impacted our workforce. From a taxation perspective, we are working closely
with the appropriate authorities to ensure we minimise the level of working
capital tied up in payments which are recoverable under the terms of our Mine
Development Agreements ("MDAs").

Licence to Operate

From an operational perspective, ABG has a high quality and well invested
portfolio of assets which positions us strongly for the long-term. However,
without the accompanying licence to operate and a stable working relationship
with all stakeholders, the quality of our assets could be significantly
impacted. For this reason, the achievements we have made with the government
and with our host communities on issues relating to our operating environment
are of key importance. We have benefited from a full year of operation of the
ABG Maendeleo Fund which has supported a range of projects across our
operations throughout the year.
In terms of the individual operations, the key challenges are centred on North
Mara and we have made significant progress in 2012 in order to secure the long
term future of the mine. In addition to the signing of VBIAs with the local
communities, we have invested 39% of the ABG Maendeleo Fund's annual budget
towards new infrastructure around North Mara, including rehabilitating the
local health clinic, the provision of clean water and the launch of a major
school 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 as
the previous licences and are both for a period of 15 years. The original SML's
were issued in February 2000 and had expired in September 2011, since which
time the mine continued to operate on the same basis due to the rollover
provisions contained in the Tanzanian Mining Act.
The life of mine footprint continues to be a challenge at North Mara as land
acquisition is increasingly expensive due to the high levels of speculation.
This has led to the ongoing suspension of operations in the Nyabirama pit. We
are engaging with local and central government in order to find a solution.
During the year we received potentially acid forming ("PAF") waste dump permits
necessary for the immediate operations of the site and we continue to apply for
permits to meet ongoing requirements.
We continue to work with the relevant authorities to progress the lifting of
the Environmental Protection Order ("EPO") at North Mara in order to be able to
discharge water. NEMC, the environmental regulator, has recently visited the
operation 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 of
US12.3 cents per Ordinary Share. This represents a total dividend of US16.3
cents for 2012, in line with dividend payments for 2011 and is a sign of our
confidence in the business.  Subject to shareholders approving this
recommendation at the AGM, the final dividend will be paid on 24 May 2013 to
shareholders 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 has
elected or elects to receive dividends in US dollars, dividends will be paid in
pounds sterling with the US dollar amount being converted into pounds sterling
at exchange rates prevailing on or around 8 May 2013. Currency elections must
be made by return of currency election forms. The deadline for the return of
currency election forms is 7 May 2013.

Operational Review

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

The specific initiatives which will form the core of the Operational Review are:

Operating Cost Reductions - Initial results available in 6 months

Aside from labour, our key costs drivers over the past few years have been
power, maintenance and consumable usage. Whilst the increase in diesel usage
across the group has been necessary to ensure the production outcome it has led
to increased cost, specifically at Buzwagi. We continue to investigate
opportunities to reduce our reliance on the electricity grid including short
term opportunities such as the installation of capacitors to reduce dips and
voltage swings and longer term alternative energy solutions. Optimisation of
management operating systems and supply chain practices are expected to provide
further 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 past
three years, but have still invested over US$750 million into the business in
order to optimise our asset base. This investment provides us with well
invested, modern mines, such that we should be able to substantially lower our
capital budget going forward. We have released our 2013 capital expenditure
guidance today which indicates an initial reduction of approximately over US$50
million from the 2012 sustaining capital expenditure. We are reassessing all of
our future capital expenditure to identify further opportunities to cut capital
expenditure further into 2014 and beyond.

Organisational Structure - Initial results available in 6 months

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

As a part of the review of our organisational design we are reviewing opportunities to reduce our corporate overheads as we align the corporate support and service model to match the business model to take forward into 2014. Aside from labour efficiencies, we see key opportunities for improved efficiencies within our Community, Health, Environment, Safety and Security ("CHESS") function model and in a reduction in travel and accommodation expenses.

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 a
part of this process we are reviewing and optimising the life of mines at each
of the assets to prioritise driving returns and cashflow and are seeking to
improve both productivity and efficiency at each of the assets through improved
organisational structure and training.

Key focus areas for further asset optimisation are:

At our flagship asset Bulyanhulu, we are conducting a number of studies to
optimise the ore extraction schedule, plan for the right infrastructure to
support the ore extraction and transport and, importantly, make sure we have a
clear understanding of the most efficient mining method to be deployed for the
life of mine. Whilst we have some temporary issues to resolve, the mine
represents our best leverage to generate high return ounces, given the scale
and quality of its resources.
At North Mara, as a part of the review we are assessing all options for future
development of the mine, including the potential for underground development.
We have overcome significant legacy issues and our social licence to operate
has been regained, but as part of this exercise we will assess a range of
potential mine plans based around the ability to access land in order to
satisfy the life of mine requirements for the existing three open pits. In
conjunction with the mine development review, we will continue to work with
regional and governmental departments in order to build on the actions we have
implemented over the course of 2011 and 2012 to strengthen further our social
licence to operate.
At Buzwagi, now that we have stabilised mining and processing rates we are
continuing to review options to improve operating efficiencies and thereby the
profitability of this operation. Our key focus in this regard is to review ways
in which we can reduce Buzwagi's reliance on diesel power, which results in
high operating costs, and the reduction of required levels of sustaining
capital. There are clear opportunities to improve sustaining capital investment
levels, given that we are now through the bulk of the catch up capital
investment required in order to stabilise production levels over the past three
years.
At Tulawaka, as a result of our renewed focus on generating returns rather than
ounces, we have decided not to further extend the life of the mine beyond the
second quarter of 2013. Engagement with our employees will be undertaken as we
embark into this process and we will focus efforts on the redeployment of the
mine's skilled workforce to our other assets and the progression of closure
planning. Options for divestment will also be considered.

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

Outlook

ABG enters 2013 with a high quality portfolio of assets and significant
financial 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 and
with the production level forecast for this year we need to implement
efficiencies in our operating cost base as well as applying capital more
selectively to the business following the heavy investment made over the past
three years. As set out above, these will form the key pillars of our
Operational Review, together with a detailed assessment of our life of mine
plans to establish the optimal mining rates as we move forward. Our operating
environment has evolved substantially in recent years, as have our assets, and
we need to ensure the organisation is properly set to maximise returns against
this backdrop.
At the mine level, our expectation is for broadly similar production levels to
2012 at our Buzwagi and North Mara operations, with lower production at
Bulyanhulu as we implement our recovery plan at the mine through the first half
of the year and Tulawaka as it comes to the end of its life in the second
quarter of the year.
As a result of our operational review, we are targeting reductions to our cash
cost per ounce as we go through the year. While we estimate the cash cost per
ounce for the year, including royalties, will be between US$925-975 per ounce
sold (including a reduction of US$120 per ounce sold due to a change in
accounting for waste stripping (IFRIC 20)), we anticipate the run rate will be
below 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$100
million, including land, and we have allocated US$210 million to capital
development inclusive of deferred stripping. The adoption of IFRIC 20, which
recognises eligible production phase deferred waste stripping costs as assets
on a stage-by-stage basis as opposed to the previous single pit basis, will
increase our deferred stripping capitalisation by approximately US$70 million
over 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 per ounce sold

total capital expenditure of US$445 million, comprising US$100 million of sustaining capital, US$210 million of capital development inclusive of deferred stripping 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 at Bulyanhulu

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 acquisitions throughout 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 the development of our business. I would also like to thank our Board for their unwavering support, their wise counsel and their commitment throughout the year.

Greg Hawkins, Chief Executive Officer

For further information, please visit our website: www.africanbarrickgold.com
or contact:
                                                             +44 (0)207 129
African Barrick Gold plc                                     7150
                                                                               
Greg Hawkins, Chief Executive Officer
Kevin Jennings, Chief Financial Officer
Andrew Wray, Head of Corporate Development & Investor                      
Relations
                                                             +44 (0)20 7251
RLM Finsbury                                                 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 producing mines, all located in North West
Tanzania, and several exploration projects at various stages of development. 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 announcement.

Presentation and conference call

A presentation will be held for analysts and investors on 13 February 2013 at 9.00am London time. A dial in facility will be available as follows:

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

There will be a replay facility available until 20 February 2013. Access
details are as follows:
Replay number:                           +44 (0) 208 196 1998
Replay PIN:                              1465206#

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

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

There will be a replay facility available for seven days thereafter, with access 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 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.
AFRICAN BARRICK GOLD
                                   LSE: ABG
TABLE OF CONTENTS
2012 Operating Overview                                                      10
                                                                               
Exploration and Development Review                                         
 15
Financial Review                                                             19
Non-IFRS measures                                                            27
Risk Review                                                                  30
Directors                                                                    30
                                                                               

Consolidated Income Statement and Consolidated Statement of Comprehensive

 31
Income
Consolidated Balance Sheet                                                   32
                                                                               
Consolidated Statement of Changes in Equity                                

33

Consolidated Statement of Cash Flows                                       

34

Notes to the financial information                                         
 35
Reserves and Resources                                                       47

2012 Operating Overview

We continued to make good progress across our assets in 2012 with Q4, as anticipated, being our strongest quarter. However, challenges in our operating environment resulted in us meeting neither our cost nor initial production targets 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 lower
than plan availability of high grade stopes which was further negatively
impacted by lower equipment availabilities. In addition, in Q4 2012 potential
changes to Tanzanian pension legislation led to significant numbers of long
serving Tanzanian employees resigning which further impacted production.
Production at North Mara increased by 13% over 2011 to 193,231 ounces, with
head grade and mill recovery positively impacted by an increase in ore tonnes
mined and mined grade over the second half of the year leading to a reduction
in mill feed from the lower grade stockpiles.
At Buzwagi, all the key operating metrics showed good year-on-year improvement
with 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 performance
helping drive full year production to 165,770 ounces.

At Tulawaka full year production amounted to 31,028 ounces, 47% lower than in 2011 as a result of the lower mined grade from underground stopes and the application of batch milling in order to drive plant efficiencies.

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

Ore tonnes processed amounted to 7.7 million tonnes, an improvement of 4% from 2011 driven by increased throughput at Buzwagi due to process plant improvements.

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

Our cash costs for the year were 37% higher than 2011, and amounted to US$949 per 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 generation
of 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 at Buzwagi due to a higher strip ratio and cost base, and at Bulyanhulu due to the increased 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 the back-ended nature of production during Q4 2012 at Buzwagi and North Mara affecting 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 production base at Bulyanhulu and Buzwagi.

Despite improvements made overall in the Group total reportable injury
frequency rate ("TRIFR"), we regretfully suffered two fatalities across our
operations in 2012. The first involved a contractor employee at Buzwagi who was
involved in a vehicle related incident. The second involved an ABG employee at
Tulawaka who was involved in a mobile equipment accident that is currently
under investigation.
Bulyanhulu
Key statistics
                                            Three months ended     Year ended
Bulyanhulu                                      31 December        31 December
(Unaudited)                                     2012       2011     2012    2011
                                                                                
Underground ore tonnes hoisted   Kt              214        254      959  
1,048
Ore milled                       Kt              230        241    1,012   1,056
Head grade                       g/t             7.2        9.1      8.0     8.5
Mill recovery                    %             89.8%      91.5%    90.6%   91.2%
Ounces produced                  oz           47,684     64,433  236,183 262,034
Ounces sold                      oz           46,306     65,132  235,410 269,981
Cash cost per ounce sold         US$/oz          971        671      803     610
Cash cost per tonne milled       US$/t           196        181      187     156
Copper production                Klbs          1,206      1,617    6,102   7,675
Copper sold                      Klbs          1,293      1,786    5,895   7,716
Capital expenditure              US$('000)    50,406     29,765  117,569  95,432

Operating performance
Bulyanhulu produced 236,183 ounces in 2012, 10% lower than the prior year's
total as a result of paste fill delays, lower than planned availability of high
grade stopesand lower equipment availabilities resulting in lower ore tonnes
hoisted and mined grade than in 2011. Whilst corrective actions are underway,
progress has been slowed by potential changes to Tanzanian pension legislation
which has led to significant numbers of long serving Tanzanian employees
resigning. These included a number of skilled underground mining personnel as
well as maintenance staff dealing with improving mobile equipment
availabilities. With the end of the offer period we are now actively hiring as
well as rotating staff from elsewhere in our operations, in order to minimise
further impacts in 2013.
Head grade of 8.0 g/t was lower than the prior year (8.5 g/t) as a result of
paste fill delays limiting access to the primary long hole stopes leading to
increased tonnes being mined from lower grade stopes. The lower mined grade
together with lower recoveries in the CIL circuit led to a recovery rate of
90.6%.

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

Copper production for the year of 6.1 million pounds was 20% lower than that of
the same period in 2011. This was primarily due to mining of lower copper grade
areas and lower recoveries.
Cash costs for the year of US$803 per ounce sold were 32% higher than the prior
year of US$610. Cash cost was negatively impacted by lower production levels
and the resultant lower co-product revenue; increased maintenance costs driven
by an increase in unplanned mining and processing related breakdowns; increased
energy costs due to increased Tanesco rates and consumption; and increased G&A
charges driven by higher camp costs and aviation charges. This was slightly
offset by increased capitalised mining expenditure. Cash costs per tonne milled
increased to US$187 in 2012 (US$156 in 2011) as a result of the costs outlined
above.
Capital expenditure for the year of US$117.6 million was 23% higher than the
prior year of US$95.4 million mainly driven by expansion capital and increased
underground development. Key capital expenditure included capitalised
underground development (US$45.6 million), CIL expansion project (US$26.1
million) and mining equipment (US$10.6 million).
Buzwagi
Key statistics
                                          Three months ended       Year ended
Buzwagi                                       31 December          31 December
(Unaudited)                                    2012       2011      2012     2011
Tonnes mined                  Kt              7,907      6,205    28,563   21,534
Ore tonnes mined              Kt              1,325        797     4,233    3,545
Ore milled                    Kt              1,062        642     3,715    2,993
Head grade                    g/t               2.1        2.1       1.6      2.3
Mill recovery                 %               90.9%      87.4%     87.3%    88.0%
Ounces produced               oz             64,828     37,916   165,770  196,541
Ounces sold                   oz             51,264     38,547   155,322  200,518
Cash cost per ounce sold      US$/oz            881        870     1,087      691
Cash cost per tonne milled    US$/t              43         52        45       46
Copper production             Klbs            3,059      1,272     6,773    7,201
Copper sold                   Klbs            1,945      1,438     5,628    7,353
Capital expenditure           US$('000)      32,232     27,774    98,054   83,203

Operating performance
Gold production for the year at Buzwagi was 165,770 ounces, 16% lower than the
prior year period. This is as a result of the reversion to mining at reserve
grade for a significant part of the year, with production further impacted by
plant operational factors leading to decreased processing rates in the first
half of the year. With the installation of diesel back up power and improved
plant operational availability and efficiencies in the second half of the year,
2012 mill throughput increased by 24% compared to 2011. There was a significant
increase in tonnes mined compared to the prior year period as a result of a
larger mobile fleet and improved equipment availability. We expect the
improvement 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 the back-ended nature of production in the fourth quarter.

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

Cash costs for the year were US$1,087 per ounce sold compared to US$691 in
2011. Cash costs have been affected by lower production and resultant lower
co-product revenue and increased diesel consumption driven by a requirement to
self generate electricity. Increased consumable usage and contract services
costs, due to increased maintenance and repair contractor ("MARC") repairs were
offset by increased capitalised stripping costs due to the waste stripping
undertaken.

Cash costs per tonne milled of US$45 decreased slightly from 2011 as increased throughput 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 the
prior year of US$83.2 million primarily due to deferred stripping. Key capital
expenditure includes capitalised deferred stripping (US$31.1 million), mine
fleet investments (US$19.8 million) and investments in the process plant's
detoxification process (US$17.2 million). Included in capital expenditure is a
non-cash reclamation adjustment which amounted to US$10.5 million.
North Mara
Key statistics
                                            Three months ended       Year ended
North Mara                                      31 December          31 December
(Unaudited)                                      2012       2011      2012     2011
Tonnes mined                   Kt               5,788      3,591    18,391   21,808
Ore tonnes mined               Kt                 694        549     1,711    2,254
Ore milled                     Kt                 740        773     2,786    3,070
Head grade                     g/t                3.0        2.1       2.5      2.1
Mill recovery                  %                88.7%      78.9%     85.4%    80.6%
Ounces produced                oz              63,235     41,704   193,231  170,832
Ounces sold                    oz              56,800     40,000   186,600  170,625
Cash cost per ounce sold       US$/oz             921        867       965      810
Cash cost per tonne milled     US$/t               71         45        65       45
Capital expenditure            US$('000)       34,449     37,832    91,096  123,146

Operating performance
Gold production for the year was 193,231 ounces, an increase of 13% on 2011 as
a result of improved grade and recoveries partially offset by ore milled being
9% lower than in 2011, as throughput was negatively impacted by unplanned
maintenance in Q2 2012. Gold ounces sold amounted to 186,600 ounces for the
year, 9% higher than in 2011 due to the increase in production, but trailing
production 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 ore
tonnes mined and mine grade during the second half of the year, leading to a
reduction 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 positive
impact from the completed gold plant recovery project.
The focus for North Mara in 2012 was the continuation of the substantial waste
stripping programme in both the Gokona and Nyabirama pits in order to open up
higher grade zones for future years. Mining in the Gokona pit was adversely
impacted by delays in the issuing of PAF waste dumping permits during H1 2012,
and delays in relocating villagers surrounding the Nyabirama pit led to the
suspension of mining in the pit from Q2 2012. As a result, total tonnes mined
of 18.4 million tonnes were 16% lower than in 2011. Ore tonnes mined amounted
to 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 the
prior year period. Direct mining costs were in line with 2011, with increases
in labour, G&A and maintenance offset by lower contracted services charges due
to the move from a MARC to an owner maintenance model. However, lower than
planned capitalised mining and negative inventory valuation changes drove an
increase 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 the
prior year of US$123.1 million due to lower expansion capital. Key capital
expenditure included capitalised deferred stripping (US$25.7 million), mine
equipment (US$10.5 million), infrastructure investment (US$14.5 million) and
capitalised exploration drilling costs (US$5.2 million). Included in capital
expenditure is a non-cash reclamation adjustment which amounted to US$7.5
million.

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

The life of mine footprint continues to be a challenge at North Mara as land
acquisition is increasingly expensive due to the high levels of speculation.
This has led to the ongoing suspension of operations in the Nyabirama pit. We
are engaging with local and central government in order to find a solution.
During the year we received PAF waste dump permits necessary for the immediate
operations of the site and we continue to apply for permits to meet ongoing
requirements.
We continue to work with the relevant authorities to progress the lifting of
the Environmental Protection Order ("EPO") at North Mara in order to be able to
discharge water. NEMC, the environmental regulator, has recently visited the
operation for a final review and we are now awaiting their approval.
Tulawaka
Key statistics
                                        Three months ended    Year ended  
Tulawaka (reflected as 70%)                 31 December       31 December
(Unaudited)                                2012        2011    2012   2011
Underground ore tonnes hoisted  Kt           33          38     124    144
Open pit ore tonnes mined       Kt            -          20      43     22
Open pit waste tonnes mined     Kt            -         437     222    497
Ore milled                      Kt           34          73     185    291
Head grade                      g/t         4.7         7.1     5.5    6.6
Mill recovery                   %         94.6%       95.7%   95.5%  95.1%
Ounces produced                 Oz        4,937      15,967  31,028 58,871
Ounces sold                     Oz        5,215      15,190  31,920 58,415
Cash cost per ounce sold        US$/oz    1,989         781   1,269    727
                                                                          
Cash cost per tonne milled      US$/t       302         162     219    146
Capital 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 compared
to the 58,871 ounces achieved in 2011. The decreased gold production level
resulted from lower mined grade from underground stopes and the application of
batch milling in order to drive plant efficiencies. Gold ounces sold were
broadly in line with production.
Cash costs for the year were US$1,269 per ounce sold compared to US$727 in the
prior year. This cost increase was mainly due to the lower production base and
the impact of lower capitalised mining. These were slightly offset by lower
sales 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 milling campaign.

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

Exploration and Development Review

Overall, 2012 was a successful year of execution and delivery for both the
Exploration and Projects teams across our greenfield and brownfield exploration
and development projects. During 2012, US$29.0 million of exploration and
evaluation activities were expensed, with a further US$16.6 million of
capitalised exploration and evaluation activities taking place. Key highlights
include the addition of resource ounces at Nyanzaga, successful drilling
results from brownfield exploration programmes at North Mara and the
acquisition of the West Kenya JV project.
In early 2012 we announced an increase of over 3 Moz of Indicated and Inferred
in-pit resources at Nyanzaga and in April, following further successful
drilling of the Kilimani Zone, we added a further 500,000 ounces of gold to the
in-pit resource. The project subsequently returned a positive scoping study and
has been moved into a pre-feasibility study. Exploration drilling in 2013 at
Nyanzaga will continue to target the extensions of high grade zones intersected
by deep drilling.
At the North Mara mine, brownfield exploration drilling programmes were
completed below the Gokona and Nyabirama open pits targeting significant
resource expansions with the aim of expanding the current open pits and/or
developing underground resources. Both programmes achieved their aims, with a
trade-off analysis being completed to determine how we proceed with scheduling
and mining the expanded resources at Gokona and a scoping study now underway at
Nyabirama.
At Bulyanhulu, approval was granted for an expansion to the current CIL
circuit, initially, to retreat tailings and to give future processing
flexibility to processing of ore types at the mine. The project has progressed
well with site works now underway. Project commissioning is targeted for early
2014. Additionally, the project to accelerate mining at the Bulyanhulu Upper
East Zone has now been expanded in scope to include both of Reef 1 and Reef 2
and has the potential to add an average of 90,000 ounces of gold per year to
production over the life of mine.

Greenfield Exploration

Greenfield exploration is a key value driver, and when successful, it enables
the business to generate future production ounces at competitive cost.
Therefore, significant focus in 2012 has been placed on identifying new
greenfields exploration opportunities throughout Africa to strengthen our
exploration portfolio. Collectively, the greenfield exploration programmes we
have undertaken have further strengthened our portfolio of exploration
projects, with the potential to add significantly to our production profile
over the medium term.
We have made good progress at our Nyanzaga project throughout the year, and are
currently completing the pre-feasibility study. Elsewhere in Tanzania, during
the year wide zones of lower grade mineralisation have been intersected at the
Dett prospect west of the North Mara mine. Current drilling is targeting higher
grade zones within this mineralised system in order to further explore its
potential.
In addition, initial exploration programmes conducted on the West Kenya JV
Project following completion of our acquisition of AMKL have already started to
yield positive results at several prospects within the 2,800 square kilometre
land package. In 2013, we will continue our focus on advancing grassroots and
other 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 testing
and advanced exploration stages of the exploration pipeline toward tangible
resource projects.

Brownfield Exploration

In 2012, near-mine brownfield exploration successfully identified extensions to
known resources. The main focus was Gokona and Nyabirama depth extensions at
North Mara where drilling returned excellent results from infill and step-out
resource drilling.  At Gokona, we intersected significant high grade
mineralisation 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 significant high-grade underground resource.

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

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

Bulyanhulu CIL Expansion

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

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 for US$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 increasing
underground production. The project was previously solely based on the 1.2 Moz
of gold reserves located in Reef 1 of the Upper East Zone, and we have now
completed a positive scoping study to incorporate the 0.9 Moz of gold which
currently sit in reserves in Reef 2 of the Upper East zone.  We are now
progressing with pre-feasibility and feasibility work on Reef 2 with the aim of
completing a combined feasibility study for both reefs. Production from the
Upper East Zone is targeted to commence in late 2014 and is expected to average
in 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 trial mining

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 million
ounces of gold, consisting of an Indicated resource of 3.48 Moz ounces of gold
at 1.47 g/t Au and an Inferred resource of 0.6 Moz ounces of gold at 2.05 g/t
Au. This represents a fourfold increase on the previous resource declared for
this project. Additional drilling and re-optimisation of the open pits,
undertaken in 2012, saw the inclusion of the Kilimani zone and has added a
further 0.6 Moz of gold to the in-pit resource, which now stands at 3.75 Moz at
1.42 g/t Au Indicated and 0.85 Moz at 1.81 g/t Au Inferred. In addition to
this, we have successfully completed the scoping study for this project and
have now moved into the pre-feasibility stage where we will examine different
options for developing the in-pit resource. In order to ensure an appropriate
mix of upfront capital and future cash flows we will examine a range of options
for 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 and depth.

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 feasibility study

Drilling of deep exploration holes to target underground potential

Gokona Expansion

Drilling throughout 2011 and 2012 has targeted extensions to the Gokona
mineralised system at depths below the current planned open pit. The aim of the
drill programmes was to expand the potential underground resource in order to
complete a detailed feasibility study. Drilling has been successful in
demonstrating that high grade mineralisation extends to significant depths
below the Gokona pit and studies are currently underway to determine the
optimal way of integrating the underground and surface resources at Gokona in
order 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 2013
Complete feasibility study
Nyabirama Expansion
Brownfield exploration drilling around the Nyabirama open pit during 2011 and
2012 has targeted opportunities for open pit expansions and underground
extensions. Drill results during 2012 demonstrated that gold mineralisation
continues to significant depths below current and future open pit depths and
that further drilling is warranted to assess the size potential of the
Nyabirama system. The results from the 2012 drilling have been incorporated
into a scoping study that is expected to be completed in early 2013.

Progress in 2012

Exploration drilling intersected extensions to current resources indicating the system 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. During
2012 we completed a metallurgical drilling programme and incorporated the
findings into our existing model. We continue to examine the opportunity to use
Bulyanhulu as a potential processing facility and this will progress on
completion of the technical review process currently being conducted at
Bulyanhulu 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 the
potential to move to 75% in a joint venture ("Lonmin JV") with Lonmin plc, and
AMKL's right to earn up to a 75% interest in a second joint venture ("Advance
JV") with Advance Gold Corporation. The acquisition of the interests provides
an opportunity for ABG to enter an under explored region with multiple styles
and types of gold prospects in a country with solid transport infrastructure
and synergies with Tanzania.
The licence areas, which have only seen limited previous exploration, contain
multiple large-scale gold anomalies and cover five contiguous licences over a
land package in excess of 2,800km2 of the highly prospective Ndori Greenstone
Belt in Kenya, which forms part of the Tanzanian Archaean Craton. The Ndori
Greenstone Belt has all the geological characteristics of the highly productive
greenstone belts of the Abitibi region of Canada and the Eastern Goldfields of
Western Australia. Colonial and artisanal mining and prospecting has identified
in excess of 120 prospects and targets across the properties. Sporadic historic
and current exploration activities have identified a large number of targets
that justify extensive follow-up, and ABG intends to implement a systematic and
focused gold exploration programme. These targets represent a significant
addition to the grassroots and target delineation segments of our exploration
pipeline.
During 2013, we will focus on advancing our knowledge of the Ndori Greenstone
belt geology and structure through regional programmes, including drill testing
of the more advanced stage targets. The initial aim for 2013 is to drill in
excess of 70,000 metres of aircore, reverse circulation and diamond drill core,
and to collect more than 15,000 auger and soil samples throughout the
properties.
We have divided the properties into two large-scale gold camps, the Kakamega
Dome Camp in the east and the Lake Zone Camp to the west in order to focus our
exploration 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 and prospecting activities. Exploration over the past ten years has included soil sampling, ground and airborne geophysical surveys and limited shallow percussion drilling.

Activities in the Lake Zone Camp during 2012 focused on core drilling of
several projects to investigate the style and controls on gold mineralisation
at several prospects. At one such prospect, Ramula, we have already intersected
significant gold mineralisation in diamond drill core when testing a 600x400
metre 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 from
178m, 4.7m @ 7.40 g/t Au, and 4.1m @ 10.4 g/t Au from 252m. Drilling on the
project will be accelerated in early 2013 and a second rig will be brought in
which is capable of testing greater depths.

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

Kakamega Dome Camp

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

Exploration over the past ten years has focused on soil sampling, ground
geophysics and drilling. The majority of recent exploration activity undertaken
prior to ABG's acquisition of AMKL was focused on the Bumbo VMS Cu-Zn-Ag-Au
deposit in the south of the camp and at the Bushiangala and Kimingini prospects
on the south side of the interpreted Kakamega Dome.
Reconnaissance aircore drilling in 2013 will focus on the Liranda Lineament on
the south side of the Kakamega Dome, which is a feature observed in airborne
magnetic surveys, and is co-incident with a 15-20 kilometre roughly east-west
corridor of gold-in-soil anomalies. This programme will be aimed at delineating
targets for deeper drill testing. Additionally, deeper drilling will be
undertaken at Bushiangala and Kimigini where excellent results include
ASBSDD0001: 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. Drilling
to date shows the systems remain open at depth, and strike extensions can be
expected.
We expect to see the West Kenya JV Project develop over the coming year through
an expansive programme of early stage reconnaissance work and later stage drill
testing with the aim of identifying several projects to move into resource
definition drilling.

2012 Progress

Acquisition of West Kenya JV Project completed in late 2012

Drilling continued to intersect significant gold mineralisation on targets around the Kakamega Dome

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

2013 Priorities

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

Delineate potential for new discoveries at Ramula, Masumbi, Abimbo, Kitson and Wagusu 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 in the 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 by lower production, increased energy and maintenance costs, increased sales related costs and lower co-product revenue. Cash margin decreased by 20% to US$719 per ounce.

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

Adjusted net earnings of US$105.5 million, 62% lower than in 2011 due to lower
EBITDA, partially offset by a lower tax expense. Adjusted earnings per share,
mainly excluding a US$44.5 million non-cash impairment at Tulawaka, amounted to
US25.7 cents, down from US67.0 cents in 2011.
Operational cash flow of US$257.9 million was 48% lower than 2011 mainly due to
lower EBITDA and working capital outflows, including the impact of VAT relief
abolishment in Q4 2012.

Notwithstanding our financial performance we have maintained a strong financial position with a net cash balance of US$401 million at year end, and we have proposed 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 the scale 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 2012
results and the main factors affecting financial performance. It should be read
in conjunction with the financial statements and accompanying notes on pages 31
to 46, which have been prepared in accordance with International Financial
Reporting 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 positioning going into 2013 are set out below.

Commodity prices

Gold prices have a significant impact on ABG's operating earnings and its
ability to generate cash flows. In 2012 the price of gold traded in a range of
US$1,540 to US$1,790 per ounce and closed at US$1,675 per ounce. Gold prices
averaged US$1,669 per ounce, a new record average and a US$97 per ounce
improvement 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 dollar
interest rates, sovereign debt concerns, investment demand and the monetary
policies put in place by the world's most prominent central banks. As a result
of the global easing of monetary policy, as well as large fiscal deficits
incurred in the US and other major developed economies, there is a possibility
that both inflation and US dollar depreciation could emerge in the coming
years. Gold is viewed as a hedge against inflation and has historically been
inversely correlated to the US dollar. Therefore, higher inflation and/or
depreciation 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 gold
purchases and investor interest in owning gold. In 2012, central banks
purchased an estimated 536 metric tonnes of gold, and investor interest led
holdings by major global exchange traded funds to increase by 10 million ounces
in 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 financial
uncertainty and inflation and as a de facto global currency. Investor interest
in 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 of
revenue. Copper prices traded in a wide range of US$3.29 to US$3.93 per pound
and 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 uncertainty
regarding the global economic recovery, and softer demand from emerging
markets, especially China. We expect copper to benefit as the US domestic
recovery accelerates and the effects of the European financial crisis become
clearer. Copper prices will likely also be boosted by a resurgence of Asian
demand, and by the limited availability of scrap metal and lower production
levels of mines and smelters.

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

Currency exchange rates

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

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

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

Fuel

During 2012, Brent crude oil traded between US$126 and US$89 per barrel and
averaged US$112 per barrel. We consume approximately 625 thousand barrels of
diesel fuel annually across all our mines. Diesel fuel is refined from crude
oil and is therefore subject to the same price volatility affecting crude oil
prices. Volatility in crude prices has a significant direct and indirect impact
on our production costs.
Using 3-way option strategies, we have put in place ceiling protection on
approximately 40% of our expected oil exposure for 2013. The hedges cap our oil
exposure at US$110 per barrel should oil trade between US$110 and US$135 per
barrel. Should the price of oil fall, we will participate in the lower price to
a floor of US$85 per barrel.
Financial performance
Revenue
Revenue for the year of US$1,087.3 million was 11% lower than the prior year
period of US$1,217.9 million. Year-on-year group gold sales volume decreased by
14%, while gold revenue benefited from higher average realised gold prices. The
decrease in sales ounces was primarily due to the lower production base and the
back-ended nature of production in December 2012 deferring sales to 2013. The
average realised gold price was US$1,668 per ounce in 2012 compared to US$1,587
per ounce in 2011.
Co-product revenue amounted to US$48.0 million for the year and decreased by
29% from the prior year (US$67.9 million) due to the lower sales volumes and
prices. The decrease in the production of gold/copper concentrate at Bulyanhulu
and Buzwagi resulted in the decrease in copper sales volumes. The 2012 average
realised copper price of US$3.57 per pound compared unfavourably to the prior
year of US$3.82 per pound, and was driven by global market factors regarding
supply 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 processing
activities, overall cost inflation and a change in energy model geared towards
self generated power at Buzwagi which led to increased energy, maintenance and
general administration costs; and

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

The table below provides a breakdown of cost of sales:

                                         Three months ended     Year ended
($'000)                                      31 December        31 December
(Unaudited)                                   2012      2011     2012    2011
Cost of Sales
Direct mining costs                        152,314   125,887  581,483 510,465
Third party smelting and refining fees       4,591     4,984   18,574  21,400
Royalty expense                             13,198     9,445   43,769  38,100
Depreciation and amortisation               47,694    37,139  158,883 134,149
Total                                      217,797   177,455  802,709 704,114
A detailed breakdown of direct mining expenses is shown in the table below:
                                   Three months ended         Year ended
($'000)                                31 December            31 December
(Unaudited)                             2012       2011        2012       2011
Direct mining costs
Labour                                46,146     43,502     177,927    168,781
Energy and fuel                       37,855     30,674     138,199    105,201
Consumables                           27,312     24,395     105,779     93,646
Maintenance                           24,352     22,147      98,384     79,491
Contracted services                   23,713     25,050      89,715     99,414
General administration costs          23,264     19,806      90,974     71,614
Capitalised 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-year inflationary increases and increased national employee headcount primarily at Buzwagi and North Mara, partially offset by a reduction in international employees and a reallocation of travel costs to general and administration costs.

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

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


Maintenance costs rose 24% primarily driven by North Mara due to the transition
from a MARC to an owner maintenance model in H2 2011 (see reduction in
contracted services) and to address lower plant and equipment availability. In
addition, cost increased at Bulyanhulu due to unplanned breakdowns of
underground equipment as a result of increased wear and plant operational
breakdowns.
Contracted services decreased 10%, mainly as a result of the transition away
from a MARC model at North Mara, a decrease in open pit mining at the West Pit
extension at Tulawaka and a reallocation of contracted camp services to general
and administration costs. This was partially offset by increased MARC costs at
Buzwagi to address equipment availabilities and increased contracted
underground costs for Bulyanhulu.
General and administrative costs increased 27%, driven by increased camp costs
and additional security requirements amounting to US$5 million, reallocated
camp costs from contracted services of US$4 million and increased travel costs
of US$9 million reallocated from labour costs. Excluding reallocations, costs
increased 9% over the prior year.

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

Corporate administration costs

Corporate administration expenses totalled US$51.6 million for the year ended
31 December 2012. This equated to a 5% increase from the prior year period of
US$49.1 million. The increase is predominantly due to inflationary increases
which drove labour costs higher, increased share based payment expenses given
the share price performance compared to peers and a one-time adjustment in 2011
relating 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 spent
in 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$4.7
million), metallurgical sampling and modelling at Golden Ridge (US$1.6
million), and the Nyanzaga scoping study (US$1.3 million). Subsequent to the
acquisition of AMKL, exploration expenditure amounting to US$1.1 million has
been incurred. Funding provided to AMKL during the transition period and before
the effective date of the transaction of US$1.3 million has been treated as
part of the acquisition cost.

Corporate social responsibility expenses

Corporate social responsibility expenses costs incurred amounted to US$14.4
million for the year compared to the prior year of US$7.4 million. The increase
has been driven by site focused projects specifically related to VBIAs at North
Mara and larger contributions to general community projects funded from the ABG
Maendeleo 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) expenses
incurred as a part of the CNG offer process including advisor fees and
workforce retention accruals totalling US$6.7 million; (ii) disallowed indirect
tax claims of US$3.0 million (US$7.1 million in 2011) as part of the continued
reconciliation process with the TRA and retrospective legislation changes;
(iii) legal costs of US$1.7 million; (iv) ABG's entry into zero cost collar
contracts as part of a programme to protect it against copper, silver, rand and
fuel cost market volatility, which resulted in a combined mark-to-market
revaluation 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) arising
mainly from the devaluation of the ZAR against the US dollar impacting on the
ZAR denominated payables and dual currency contracts. Refer to note 5 of the
financial statements.
Finance expense and income
Finance expense of US$10.3 million remained in line with 2011. The key drivers
were US$3.0 million (US$4.6 million in 2011) relating to the servicing of the
US$150 million undrawn revolving credit facility and increased accretion
expenses relating to the discounting of the environmental reclamation liability
(US$4.0 million). Other costs include bank charges and interest paid on the
factoring of concentrate receivables and finance leases. At year end, ABG had
no external debt.

Finance income relates predominantly to interest charged on non-current receivables and interest received on time deposits. Refer to note 6 of the financial statements for details.

Impairment charges

During Q4 2012, impairment charges of US$44.5 million (US$ nil in 2011) were
recorded against Tulawaka. The impairment was driven by the annual impairment
review of goodwill and other long lived-assets and compared the recoverable
amount to the net carrying value of Tulawaka. A review of Tulawaka's mine plan
resulted in the downward revision of reserves from the high grade crown pillars
due to geotechnical and recovery concerns. As a result the net carrying value
exceeded the recoverable amount by US$41.0 million. Also included in the
impairment charge is the writedown of capitalised exploration costs of US$3.5
million relating to the unlikelihood of mining the Moja-Moja project near
Tulawaka. 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 to
US$117.9 million in 2011. The 2012 expense consists predominantly of deferred
tax. The lower tax expense was driven by lower profits before tax. The
effective tax rate in 2012 amounted to 60% compared to 29% in 2011. The
increase is mainly driven by tax losses of US$23.7 million for which no
deferred income tax assets were recognised primarily relating to: Tulawaka, ABG
Exploration Ltd and ABG Plc stand alone assessed losses; and a charge of US$8.9
million relating to disallowed tax deductions from the results of a tax
assessment completed by the TRA on the Bulyanhulu historical tax returns. This
was further adversely impacted by a goodwill impairment charge that is not tax
deductible.

Net earnings and earnings per share

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

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

Adjusted net earnings

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

Adjusted net earnings and adjusted earnings per share have been calculated by
excluding the following:
                                                 Three months
(US$'000)                                            ended          Year ended
                                                  31 December      31 December
(Unaudited)                                         2012   2011      2012    2011
Net (loss)/earnings                             (34,694) 52,683    59,471 274,895
Adjusted 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 25.7 cents compared to US 67.0 cents in 2011.

Financial position

ABG had year-end cash and cash equivalents of US$401.3 million (US$584.2
million in 2011). The Group's cash and cash equivalents are with counterparties
whom the Group considers to have an appropriate credit rating. Location of
credit risk is determined by physical location of the bank branch or
counterparty. Investments are held mainly in United States dollars and cash and
cash equivalents in other foreign currencies are maintained for operational
requirements.
The focus in H2 2012 was on the Bulyanhulu CIL project financing. In January
2013 we concluded negotiations with a group of commercial banks (Standard Bank,
Standard Chartered, and ABSA) for the provision of an export credit backed term
loan facility ("Facility") for the amount of US$142 million. The Facility has
been put in place to fund a substantial portion of the construction costs of
the new CIL circuit at the process plant at Bulyanhulu ("Project"). The
Facility is secured upon the Project, has a term of seven years and when drawn
the spread over Libor will be 250 basis points. The Facility is repayable in
equal instalments over the term of the Facility, after a two year repayment
holiday period. This compliments the existing undrawn revolving credit facility
of 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. The
movement predominantly relates to the intangible asset acquired and the
goodwill allocated as a result of the acquisition of AMKL during Q4, 2012. This
has been partially offset by an impairment to goodwill at Tulawaka. Refer to
note 9 of the financial statements for details.
The net book value of property, plant and equipment increased from US$1.82
billion in 2011 to US$1.96 billion in 2012. The main capital expenditure
drivers have been explained in the cash flow used in investing activities
section below, and have been offset by depreciation charges of US$164.9 million
and impairment charges of US$30.7 million at Tulawaka. Refer to note 9 and 10
to the financial statements for detail.
Total indirect tax receivables, net of a discount provision applied to the
non-current portion, increased from US$85.3 million in 2011 to US$98.8 million
in 2012. The increase was mainly due to the impact of VAT relief abolishment in
Q4 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 of
US$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 year
adjustment 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$321.0
million and US$88.9 million of deferred tax assets were not recognised as at 31
December 2012.
Net assets attributable to owners of the parent decreased from US$2.76 billion
in 2011 to US$2.75 billion in 2012. The decrease reflects the current year
profit attributable to owners of the parent of US$59.5 million, which was
offset by the payment of the final 2011 and interim 2012 dividend of US$70.1
million 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   401,012
Closing cash balance                       401,348      584,154      401,348   584,154

Cash flow from operating activities was US$257.9 million for the year, a
decrease of US$240.4 million. The decrease primarily related to decreased
EBITDA combined with an outflow associated with working capital of US$80.3
million. The working capital movement related to: increased investment of
US$42.5 million in critical spares for major fleet overhauls at Buzwagi and
North Mara and consumable inventory impacted by long lead times; an increase in
trade receivables of US$14.4 million mainly due to the timing of shipments at
year end; an increase in gold inventory on hand of US$16.6 million mainly due
to sales delays and increased ore valuation; and an increase in other current
assets of US$21.3 million mainly driven by high VAT receivables owed from the
Tanzanian government.
Cash flow used in investing activities was US$360.7 million for the year. Total
cash capital expenditure for the year of US$312.7 million increased by 14% from
the prior year figure of US$273.2 million driven by both increased sustaining
and capitalised development expenditure, slightly offset by lower expansion
capital expenditure.

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

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

52,761

Non-cash sustaining capital3                                   8,378      
19,266
Total capital expenditure                                    340,295      345,235
Other 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 of cash for US$22.0 million (inclusive of exploration funding US$1.3 million).

2 Non-current asset movements relates to the investment in the land acquisitions reflected as prepaid operating leases, Tanzania government receivables and the settlement of a historical exploration acquisition liability at Buzwagi of US$6.6 million.

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

Sustaining capital

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

Expansionary capital

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

Capitalised development

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

Non-cash capital

Non-cash capital for the year totalled US$27.6 million and consisted of
reclamation asset adjustments (US$19.2 million), and the impact of sustaining
capital accruals (US$6.8 million). The reclamation adjustments were driven by
increased contractor equipment rates, additional disturbance caused by the
expansion 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$1.3 million exploration funding. During the year North Mara incurred land purchases totalling US$25.9 million which was slightly offset by cash proceeds on the sale of assets (US$4.6 million). We have also settled the historical exploration acquisition liability of US$6.6 million at Buzwagi.

Cash used in financing activities for the year ended 31 December 2012 was
US$79.4 million, an increase on the prior year (US$32.7 million). The outflow
primarily 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$3.5
million when compared to 2011, as a result of payments required for a full year
of financing leasing. MDN Inc. contribution payments arising from Tulawaka
during the year amounted to US$3.6 million.

Dividend

An interim dividend of US4.0 cents per share was paid to shareholders on 24 September 2012. The Directors recommend the payment of a final dividend of US12.3 cents per share, subject to the shareholders approving this recommendation at the AGM.

Significant judgements in applying accounting policies and key sources of estimation uncertainty

Many of the amounts included in the consolidated financial statements require
management to make judgements and/or estimates. These judgements and estimates
are continuously evaluated and are based on management's experience and best
knowledge of the relevant facts and circumstances, but actual results may
differ from the amounts included in the consolidated financial information
included in this release. Information about such judgements and estimation is
included in the accounting policies and/or notes to the consolidated financial
statements, and the key areas are summarised below.

Areas of judgement and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the consolidated financial statements 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, the determination of whether these assets are impaired and the measurement of impairment 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 the measurement of depreciation expense;

Property, plant and equipment held under finance leases;

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

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

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

Recognition of deferred income tax assets, amounts recorded for uncertain tax positions, 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 associated
net realisable value and the split between the long term and short term
portions;

Determination of fair value of derivative instruments; and

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

Going concern statement

The ABG Group's business activities, together with factors likely to affect its
future development, performance and position are set out in the operational and
financial review sections of this report. The financial position of the ABG
Group, its cash flows, liquidity position and borrowing facilities are
described in the preceding paragraphs of this financial review.
In assessing the ABG Group's going concern status the Directors have taken into
account the above factors, including the financial position of the ABG Group
and in particular its significant cash position, the current gold and copper
price and market expectations for the same in the medium term, and the ABG
Group's capital expenditure and financing plans. After making appropriate
enquiries, the Directors consider that ABG and the ABG Group as a whole has
adequate resources to continue in operational existence for the foreseeable
future and that it is appropriate to adopt the going concern basis in preparing
the financial statements.
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 costs 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 costs per ounce sold are calculated by dividing the aggregate of
these costs by gold ounces sold. Cash costs and cash costs per ounce sold are
calculated on a consistent basis for the periods presented.

The table below provides a reconciliation between cost of sales and total cash cost 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      2011
Total cost of sales                      217,797    177,455    802,709   704,114
Deduct: 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   502,075
Total ounces sold¹                       161,820    165,379    622,932   724,574
                                                                                
Consolidated cash cost per ounce             972        779        956     
 693
Equity 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 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$1.4 million
to reflect the reclassification of bank charges from corporate administration
charges to finance expense.
A reconciliation between net profit for the period and EBITDA is presented
below:
                                   For the three months ended   For the year ended
(US$'000)                                 31 December              31 December
(Unaudited)                                 2012         2011       2012      2011
Net profit / (loss) for the period      (45,984)       55,084     48,184   284,777
Plus income tax expense                   27,182       20,595     71,063   117,924
Plus depreciation and amortisation        47,694       37,139    158,883   134,149
Plus impairment charges                   44,536            -     44,536         -
Plus finance expense                       2,565        2,720     10,305    10,082
Less 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 for depreciation and amortisation and goodwill impairment charges.

Adjusted net earnings is a non-IFRS financial measure. It is calculated by
excluding one-off costs or credits relating to non-routine transactions from
net profit attributed to owners of the parent. It includes other credit and
charges that individually or in aggregate, if of a similar type, are of a
nature or size that requires explanation in order to provide additional insight
into the underlying business performance.

Adjusted net earnings per share is a non-IFRS financial measure and is calculated by dividing adjusted net earnings by the weighted average number of Ordinary 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 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 costs 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 ratio waste–to–ore 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.

Risk Review
We have made a number of further developments in the identification and
management of our risk profile throughout 2012.  While the overall makeup of
our principal risks has not significantly changed from 2011, there have been
changes in certain risk profiles as a result of developments in our operating
environment and continuing uncertainties and trends within the wider global
economy and/or the mining industry. Where appropriate, risk ratings have been
reviewed against risk management controls and other mitigating factors. In this
regard, we have removed risks relating to health and infectious diseases from
the 2012 principal risks table given that our controls in these areas continue
to mitigate potential impacts of such risks to an acceptable level. In
addition:
Increases in operating costs and capital expenditure: due to continued industry
cost pressures and increased cash costs at our operations, risks relating to
increases 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 intended
cost control plans contained within the ongoing operating review our overall
risk rating for these areas remains unchanged.
Power supply: We have continued to invest in power generation capacities
throughout the year, to help mitigate the effects of stoppages and
interruptions. Therefore, although we have continued to experience issues in
electricity supply during the year as a result of ongoing supply issues
throughout Tanzania, our risk rating as regards interruptions in key utilities
remains unchanged.
Recruitment and retention of qualified personnel: as a result of continued
competition for qualified personnel across the mining industry, we have decided
to maintain a high risk rating for the retention and recruitment of our skilled
workforce. In addition, further developments within pension practices in
Tanzania could produce further adverse affects on the retention of certain
long-term employees.
Political, legal and regulatory developments: we achieved a number of positive
outcomes as regards our operating framework in Tanzania, namely our adoption of
an additional voluntary 1% royalty going forward, the renewal of our special
mining licences at North Mara and the grant of certain PAF permits to support
this operation. However, our ability to progress our government relations
strategy over the latter half of the year was impeded, and in certain instances
negatively impacted, by the prolonged Offer Period to which ABG was subject. We
have now resumed efforts in this area, such that our outlook for political and
regulatory development currently remains unchanged.
Taxation: During the year a revised Finance Act was introduced in Tanzania that
is inconsistent with previous agreements reached between us and the Tanzanian
authorities on the treatment of VAT relief. We continue to progress discussions
on these inconsistencies in order to achieve a resolution in line with what we
had previously agreed under a memorandum of settlement with the Tanzanian
Revenue Authority for the treatment of certain outstanding indirect tax refunds
in respect of fuel levies and value added tax. ABG's financial condition may be
adversely affected if we do not achieve a successful resolution to these
discussions.
Risks relating to security, trespass and vandalism: we have continued to
strengthen our security systems throughout the year and refine our security
plans. Although we experienced a spike in illegal mining activity at North Mara
in the latter half of the year, this has now stabilised to average levels, such
that our outlook on security risks remains largely unchanged.
We have also introduced the following as new risks to the 2012 principal risks
table, as a result of strategic and operational developments and/or continuing
developments in the mining industry:
Land acquisitions: due to the potential ramifications of increases in the cost
of land acquisitions to support the expansion and continuation of our current
mining activities and the potential impacts that delays in completing such
acquisitions may have on our operations, particularly at North Mara, we have
decided to introduce land acquisitions as a standalone risk this year.
Changes affecting the majority shareholding: although discussions between
Barrick and China National Gold did not ultimately result in any transaction
affecting ABG shares, we are mindful of the impact that uncertainty created in
the context of any change in the majority ownership structure could have on ABG
and its operations and the need to flag this risk to our wider stakeholder
base.

Directors

The Directors serving on the Board during the year will be listed in ABG's annual 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             
            2011
Revenue                                              1,087,339                     1,217,915
Cost of sales                                        (802,709)                     (704,114)
Gross profit                                           284,630                       513,801
Corporate 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             
         411,299
Finance income                                     6     2,102                         1,484
Finance expense                                  2,6  (10,305)                      (10,082)
                                                       (8,203)                       (8,598)
Profit before taxation                                 119,247                       402,701
Tax 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                       274,895

Earnings 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      
                   2011
Net 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      
                284,777
Attributed to:
 - Non-controlling interests                                 (11,287)                         9,882
 - Owners of the parent                                        59,834                       274,895

The 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                    
   2011
ASSETS
Non-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                   2,326,182
Current 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                     968,280
Total assets                                  3,328,723                   3,294,462

EQUITY 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                      37,473
Total equity                                  2,774,981                   2,798,704

Non-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                     326,170

Current 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                     169,588
Total liabilities                               553,742                     495,758
Total 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 activities
Net profit for the period                                                          48,184    284,777
Adjustments 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)        179
Working capital adjustments                                                      (80,336)   (42,880)
Other non-cash items                                                                3,088      (704)
                                                                                                    
Cash generated from operations before interest and tax                     
      262,636    503,577
Finance income                                                   6                  2,102      1,484
Finance 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 activities
Purchase 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 its subsidiaries: the "Group") was incorporated on 12 January 2010 and re-registered as a public limited company on 12 March 2010 under the Companies Act 2006. It is registered in England and Wales with registered number 7123187.

On 24 March 2010 the Company's shares were admitted to the Official List of the
United Kingdom Listing Authority ("UKLA") and to trading on the main market of
the London Stock Exchange, hereafter referred to as the Initial Public Offering
("IPO"). The address of its registered office is 6 St James's Place, London
SW1A 1NP, United Kingdom.
Barrick Gold Corporation ('Barrick) currently owns approximately 73.9% of the
shares of the Company and is the ultimate parent and controlling party of the
Group.
The condensed consolidated financial information for the year ended 31 December
2012 was approved for issue by the Board of Directors of the Company on 10
February 2013. The condensed consolidated financial information does not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. The condensed consolidated financial information is unaudited.

The Group's primary business is the mining, processing and sale of gold. The Group has four operating mines located in Tanzania. The Group also has a portfolio 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's
statutory accounts for the year ended 31 December 2012, but is derived from the
Group's full financial accounts, which are in the process of being audited. The
Group's full financial accounts will be prepared under International Financial
Reporting Standards as adopted by the European Union. The financial statements
are prepared on a going concern basis.
The condensed consolidated financial information has been prepared under the
historical cost convention basis, as modified by the revaluation of financial
assets and financial liabilities (including derivative instruments) at fair
value through profit and loss. The financial statements are presented in US
dollars (US$) and all monetary results are rounded to the nearest US$'000
except when otherwise indicated.

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

Bank charges previously included in Corporate Administration expenses have been reclassified 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 accounts
for 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 consistent
with those applied in the financial statements for the year ended 31 December
2011, 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 first
time for the financial year beginning on or after 1 January 2012 that would be
expected 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 are
effective for annual periods beginning after 1 January 2012, and have not been
applied in preparing these consolidated financial statements. None of these are
expected to have a significant effect on the consolidated financial statements
of the Group, except the following set out below:
IFRIC 20, "Stripping costs in the production phase of a surface mine". This
interpretation addresses the following issues: recognition of production
stripping costs as an asset; initial measurement of the stripping activity
asset; and subsequent measurement of the stripping activity asset. This
interpretation considers when and how to account for the benefit arising from
the stripping activity, as well as how to measure these benefits both initially
and subsequently. The interpretation is effective from 1 January 2013. When
published in the Group's 2013 Annual Report, the Group's restated 2012
financial statements are expected to show an increase in mineral properties and
mine development costs of US$11 million, a decrease in inventory of US$6
million and an increase in net income of US$5 million and a decrease of US$9
per ounce in total cash costs. There will be no transitional adjustment as a
result of applying IFRIC 20. The Group expects the impact to be more
significant in 2013.
Amendments to IAS 1,"Financial statement presentation" regarding other
comprehensive income. The main change resulting from these amendments is a
requirement for entities to group items presented in 'other comprehensive
income' (OCI) on the basis of whether they are potentially reclassifiable to
profit or loss subsequently (reclassification adjustments). The amendments do
not 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 transfer
transactions and improve users' understanding of the risk exposures relating to
transfers of financial assets and the effect of those risks on an entity's
financial position, particularly those involving securitisation of financial
assets.
IFRS 9, "Financial instruments", addresses the classification, measurement and
recognition of financial assets and financial liabilities. IFRS 9 was issued in
November 2009 and October 2010. It replaces the parts of IAS 39 that relate to
the classification and measurement of financial instruments. IFRS 9 requires
financial assets to be classified into two measurement categories: those
measured at fair value and those measured at amortised cost. The determination
is made at initial recognition. The classification depends on the entity's
business model for managing its financial instruments and the contractual cash
flow characteristics of the instrument. For financial liabilities, the standard
retains most of the IAS 39 requirements. The main change is that, in cases
where the fair value option is taken for financial liabilities, the part of a
fair value change due to an entity's own credit risk is recorded in other
comprehensive income rather than the income statement, unless this creates an
accounting mismatch. The group is yet to assess IFRS 9's full impact and
intends to adopt IFRS 9 no later than the accounting period beginning on or
after 1 January 2015, subject to endorsement by the EU. The group will also
consider the impact of the remaining phases of IFRS 9 when completed by the
International Accounting Standards Board.
IFRS 10, "Consolidated financial statements', builds on existing principles by
identifying the concept of control as the determining factor in whether an
entity should be included within the consolidated financial statements of the
parent company. The standard provides additional guidance to assist in the
determination of control where this is difficult to assess. The Group is yet to
assess IFRS 10's full impact and intends to adopt IFRS 10 no later than the
accounting period beginning on or after 1 January 2013, subject to endorsement
by the EU.
IFRS 11, "Joint arrangements", is a reflection of joint arrangements which
focuses on the rights and obligations of the parties to the arrangement rather
than its legal form. There are two types of joint arrangements: joint
operations and joint ventures. Joint operations arise where a joint operator
has rights to the assets and obligations relating to the arrangement and
therefore accounts for its share of assets, liabilities, revenue and expenses.
Joint ventures arise where the joint venture has rights to the net assets of
the arrangement and therefore equity accounts for its interest. Proportional
consolidation of joint ventures is no longer allowed. The Group is yet to
assess IFRS 11's full impact and intends to adopt IFRS 11 no later than the
accounting period beginning on or after 1 January 2013, subject to endorsement
by the EU.
IFRS 12, "Disclosures of interests in other entities", includes the disclosure
requirements for all forms of interests in other entities, including joint
arrangements, associates, special purpose vehicles and other off balance sheet
vehicles. The Group is yet to assess IFRS 12's full impact and intends to adopt
IFRS 12 no later than the accounting period beginning on or after 1 January
2013, subject to endorsement by the EU.
IFRS 13, "Fair value measurement", aims to improve consistency and reduce
complexity by providing a precise definition of fair value and a single source
of fair value measurement and disclosure requirements for use across IFRSs. The
requirements, which are largely aligned between IFRSs and US GAAP, do not
extend the use of fair value accounting but provide guidance on how it should
be applied where its use is already required or permitted by other standards
within IFRSs or US GAAP.
Amendment to IAS 32,"Financial Instruments: Presentation", clarifies some of
the requirements for offsetting financial assets and financial liabilities on
the balance sheet.

There are no other IFRSs or IFRIC interpretations that are not yet effective that 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 geographic
location, being gold produced in Tanzania. In addition the Group produces
copper and silver as a co-product. Reportable operating segments are based on
the internal reports provided to the Chief Operating Decision Maker ("CODM") to
evaluate segment performance, decide how to allocate resources and make other
operating decisions.  After applying the aggregation criteria and quantitative
thresholds contained in IFRS 8, the Group's reportable operating segments were
determined to be: North Mara gold mine; Tulawaka gold mine; Bulyanhulu gold
mine; Buzwagi gold mine; and a separate Corporate and Exploration segment,
which primarily consists of costs related to corporate administration and
exploration and evaluation activities ("Other").
Segment results and assets include items directly attributable to the segment
as well as those that can be allocated on a reasonable basis.  Segment assets
consist primarily of property, plant and equipment, inventories and
receivables. Capital expenditures comprise additions to property, plant and
equipment.  Segment liabilities are not reported since they are not considered
by the CODM as material to segment performance. The Group has also included
segment cash costs.

Segment information for the reportable operating segments of the Group for the years 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     Total
Gold revenue                              310,549   75,458    393,347   259,954         -  1,039,308
Co-product revenue                            549      143     24,311    23,028         -     48,031
Total 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 social
responsibility expenses                  (12,921)  (1,995)         40   (4,944)  (12,296)   (32,116)
EBITDA2                                   117,576   15,614    204,348    86,155  (92,824)    330,869
Impairment 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                                                                   2,102
Total segment finance expense5                                             
                (10,305)
Profit before taxation                                                                       119,247
Tax expense                                                                                 (71,063)
Net profit for the period                                                                     48,184

Capital expenditure:
Sustaining                                 47,759   13,157     35,193    56,441     8,988    161,538
Expansionary                               10,091    2,922     36,814        62         -     49,889
Capitalised development                    25,706    7,258     45,605    31,057         -    109,626
Reclamation asset addition/(reduction)      7,540    1,251       (43)    10,494         -     19,242
Total capital expenditure                  91,096   24,588    117,569    98,054     8,988    340,295

Cash 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         -    595,795
Sold ounces3                              186,600   45,600    235,410   155,322         -    622,932
Cash 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     Total
Gold revenue                                                  272,026  131,435    429,528   317,036        - 1,150,025
Co-product revenue                                                917      316     35,509    31,148        -    67,890
Total segment revenue                                         272,943  131,751    465,037   348,184        - 1,217,915
Segment 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)   545,448
Depreciation 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)   411,299
Total segment finance income                                                                                     1,484
                                                                                                                      
Total segment finance expense5                                             
                                  (10,082)
Profit before taxation                                                                                         402,701
Tax expense                                                                                                  (117,924)
Net profit for the period                                                                                      284,777

Capital expenditure:
Sustaining                                                     30,567    3,101     42,749    56,992   11,802   145,211
Expansionary                                                   47,381    8,346      6,626       920        -    63,273
Capitalised development                                        26,407    9,252     32,748    15,583        -    83,990
Rehabilitation asset addition                                  18,791   10,953     13,309     9,708        -    52,761
Total capital expenditure                                     123,146   31,652     95,432    83,203   11,802   345,235

Cash costs:
Segmental cash operating cost1                                139,204   60,952    200,072   169,737        -   569,965
Deduct: Co-product revenue                                      (917)    (316)   (35,509)  (31,148)        -  (67,890)
Total cash costs                                              138,287   60,636    164,563   138,589        -   502,075
Sold ounces3                                                  170,625   83,450    269,981   200,518        -   724,574
Cash cost per ounce sold2                                         810      727        610       691        -       693
Equity ounce adjustment4                                                                                           (1)
                                                                                                                      
Attributable cash cost per ounce sold2                                     
                                       692

1     The Chief Operating Decision Maker reviews cash operating costs for the
four operating mine sites separately from corporate administration costs and
exploration costs. Consequently, the Group has reported these costs in this
manner.

2 These are non-IFRS financial performance measures with no standard meaning 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 corporate administration to finance expense.

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

6 In the current year, assets to the value of US$33.6 million were acquired in 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                           2011
Other 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                         23,679

Other 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 were included in other charges. These costs include advisory fees, travel and accommodation 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          
2011
Interest on time deposits                                  1,231          1,030
Other                                                        871            454
Total                                                      2,102          1,484

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

1 The unwinding of discount is calculated on the environmental rehabilitation provision.

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

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

4     For cash flow purposes the unwinding of discount is excluded from the
finance expense movement.
TAX EXPENSE
                                                                 For the year ended
                                                                                       For the year ended
                                                                        31 December           31 December
                                                                                                           
(in thousands of United States dollars)                                    
   2012                  2011
Current tax:
                                                                                                           
Current tax on profits for the year                                              -                 10,162
Adjustments in respect of prior years1                                     
    120                28,663
Total current tax                                                               120                38,825
Deferred tax:
                                                                                                           
Origination and reversal of temporary differences                          
 70,943                79,099
Total deferred tax                                                           70,943                79,099
Income 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 tax
receivables in 2012 due to assessed losses carried forward and taxable losses
incurred 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                   2011
Profit before taxation                                                       119,247                402,701
Tax calculated at domestic tax rates applicable to profits in
the respective countries                                                   
  36,849                114,199
Tax 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                  7,302
Prior year adjustments                                                         8,258                (2,391)
Effect of tax rates in foreign jurisdictions                               
 (3,187)                     33
Tax 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") in
respect of income taxes for five years following the date of the filing of the
corporate tax return, during which time the authorities have the right to raise
additional tax assessments including penalties and interest. Under certain
circumstances the reviews may cover longer periods. Because a number of tax
periods remain open to review by tax authorities, there is a risk that
transactions that have not been challenged in the past by the authorities may
be challenged by them in the future, and this may result in the raising of
additional tax assessments plus penalties and interest.
8.             Earnings per share
Basic earnings per share ("EPS") is calculated by dividing the net profit for
the period attributable to owners of the Company by the weighted average number
of Ordinary Shares in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average
number of Ordinary Shares outstanding to assume conversion of all dilutive
potential Ordinary Shares. The Company has dilutive potential Ordinary Shares
in the form of stock options. The weighted average number of shares is adjusted
for the number of shares granted assuming the exercise of stock options.
At 31 December 2012 and 31 December 2011, earnings per share have been
calculated as follows:
                                                                   For the
                                                                year ended     For the
                                                                            year ended
                                                               31 December 31 December
                                                                                      
(in thousands of United States dollars)                               2012 
      2011
Earnings
                                                                                      
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                                             410,085,499 410,096,105

Earnings per share
                                                                                      
Basic earnings per share from continuing operations (cents)           14.5 

67.0

Dilutive earnings per share from continuing operations (cents) 14.5

      67.0

9.             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    258,513
Additions2                                       6,216        27,297     33,513
Impairment3                                   (13,805)             -   (13,805)
At 31 December 2012                            170,831       107,390    278,221

At 31 December 2012
Cost                                           401,114       107,390    508,504
Accumulated 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    258,513
Additions                                            -             -          -
At 31 December 2011                            178,420        80,093    258,513
At 31 December 2011
Cost                                           394,898        80,093    474,991
Accumulated impairment                       (216,478)             -  (216,478)
Net carrying amount                            178,420        80,093    258,513

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

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

3 The annual impairment review resulted in an impairment of US$13.8 million to goodwill 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    Total
At 1 January 2011                   21,046    121,546   13,805 22,023   178,420
At 1 January 2012                   21,046    121,546   13,805 22,023   178,420
Additions                                -          -        -  6,216     6,216
Impairments                              -          - (13,805)      -  (13,805)
At 31 December 2012                 21,046    121,546        - 28,239   170,831
Cost                               237,524    121,546   13,805 28,239   401,114
Accumulated impairments          (216,478)          - (13,805)      - (230,283)

Annual impairment review

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

                               For the year ended For the year ended
                                      31 December        31 December
                                             2012               2011
Gold price per ounce                       $1,700             $1,600
South African Rand (US$:ZAR)                 8.00               7.00
Tanzanian Shilling (US$:TZS)                1,600              1,600
Long-term oil price per barrel                $90                $90
Discount rates                        4.16%-5.66%        5.02%-5.96%
NPV multiples                           0.90-1.30          1.00-1.40
The annual goodwill impairment review resulted in an impairment of US$13.8
million to the goodwill of Tulawaka using the methodology and assumptions
described above due to a review of Tulawaka's mine plan which resulted in the
downward revision of reserves. Non-current assets are tested for impairment
when events or changes in circumstances suggest that the carrying amount may
not be recoverable. For the year ended 31 December 2012, impairment charges of
US$30.7 million were recorded for non-current assets at Tulawaka as a result of
the short remaining life of the mine resulting in a total impairment charge of
US$44.5 million. Refer to note 10 for further details.
For purposes of testing for impairment of non-current assets of the Group's
operating mines, a reasonably possible change in the key assumptions used to
estimate the recoverable amount could result in an impairment charge. The
carrying value of the net assets of Buzwagi are most sensitive to changes in
key assumptions in respect of gold price, cash costs and discount rate. Based
on the assessment of fair value less costs to sell, the recoverable amount
exceeds the carrying value by approximately US$165 million (23 percent). The
calculation is highly sensitive to changes in the key assumptions, and a five
percent decrease in the long term gold price or a nine percent increase in cash
costs or a three percent increase in discount rate, in isolation would lead to
the 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 1,823,247
Additions                                       -           -      340,295   340,295
Disposals                                 (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 1,963,924

At 1 January 2012
Cost                                    1,316,602   1,117,311      162,859 2,596,772
Accumulated depreciation                (421,733)   (351,792)            - (773,525)
Net carrying amount                       894,869     765,519      162,859 1,823,247

At 31 December 2012
Cost                                    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 1,963,924

For the year ended 31
December 2011                               Mineral properties
(in thousands of United       Plant and   and mine development  Assets under
States dollars)               equipment                  costs construction¹     Total
At 1 January 2011, net of
accumulated depreciation        796,999                693,834       124,285 1,615,118
Additions                             -                      -       345,235   345,235
Disposals                       (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 1,823,247

At 1 January 2011
Cost                          1,125,072              1,005,279       124,285 2,254,636
Accumulated depreciation      (328,073)              (311,445)             - (639,518)
Net carrying amount             796,999                693,834       124,285 1,615,118

At 31 December 2011
Cost                          1,316,602              1,117,311       162,859 2,596,772
Accumulated depreciation      (421,733)              (351,792)             - (773,525)
Net carrying amount             894,869                765,519       162,859 1,823,247
1 Assets under construction represents (a) sustaining capital expenditures
incurred constructing property, plant and equipment related to operating mines
and advance deposits made towards the purchase of tangible fixed assets; and
(b) expansionary expenditure allocated to a project on a business combination
or asset acquisition, and the subsequent costs incurred to develop the mine.
Once these assets are ready for their intended use, the balance is transferred
to plant and equipment, and/ or mineral properties and mine development costs.

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

Leases

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

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

The following amounts were included in property, plant and equipment where the Group 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          59,641

11.          BUSINESS COMBINATION
On 26 October 2012, the Company, through BUK Holdco Ltd and BUK East Africa
Ltd, immediate subsidiaries, purchased 100% of the issued share capital of AMKL
by way of a takeover offer for an initial consideration of US$22 million. AMKL
is a Kenyan based exploration company with a focus on gold. All of AMKL's
assets are located in Kenya and consist of exploration ground and interests in
two joint venture agreements.

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

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

- Exploration funding advanced prior to acquisition date 1,340

- Contingent consideration                                5,312
Total purchase consideration                             27,352

The assets and liabilities as of 26 October 2012 recognised as a result of the
acquisition are as follows:
                                                           Acquiree's
                                                            carrying  

(in thousands of United States dollars) Fair value amount

Cash and cash equivalents                                1           1
Current Assets                                          36          36
Property, plant and equipment                           32          32
Exploration intangible asset                        27,297       6,576
Liabilities                                           (14)        (14)
Deferred Tax                                       (6,216)           -
Fair value of net assets                            21,136       6,631
Goodwill                                             6,216
Total purchase consideration                        27,352
Total purchase consideration                                    27,352
Contingent consideration not yet payable                       (5,312)
Cash and cash equivalent in subsidiary acquired                    (1)
Net cash outflow on acquisition                                 22,039

The goodwill arose after the application of IAS 12 "Income taxes" and is
attributable principally to expanding growth opportunities in Africa. None of
the goodwill is expected to be deductible for tax purposes. The fair value of
the acquired identifiable intangible assets, goodwill and deferred tax
liability is provisional pending receipt of the final valuations for those
assets.
Included in total purchase consideration is the fair value of a contingent
consideration payable of US$5.3 million. This relates to a US$10.4 million
payment required to be made to Aviva Corporation upon declaration of a N143-101
compliant indicated resource of at least three million ounces of gold from the
mining areas.

Included in exploration and evaluation costs in the consolidated income statement is acquisition costs incurred relating to the AMKL acquisition amounting to US$0.5 million.

Expenses

The acquired business contributed expenses of US$1.1 million to the Group for
the period from 27 October 2012 to 31 December 2012. If the acquisition had
occurred on 1 January 2012, the proforma consolidated net profit for the year
ended 31 December 2012 would have been US$47.7 million. These amounts have been
calculated 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 the following commitments and/or contingencies:

a)            Legal contingencies
As at 31 December 2012, the Group was a defendant in approximately 235
lawsuits. The plaintiffs are claiming damages and interest thereon for the loss
caused 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 failing
to provide a safe working environment, unpaid overtime and public holiday
compensation.
The total amounts claimed from lawsuits in which specific monetary damages are
sought amounted to US$51.6 million. The Group's Legal Counsel is defending the
Group's current position, and the outcome of the lawsuits cannot presently be
determined. 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 of
account.
Included in the total amounts claimed of US$51.6 million is an appeal by the
TRA intended for a tax assessment of US$21.3 million in respect of the
acquisition of Tusker. The case was awarded in favour of ABG however the TRA
have served a notice of appeal. The calculated tax assessment is based on the
sales price of the Nyanzaga property of US$71 million multiplied by the tax
rate of 30%. Management is of the opinion that the assessment is invalid due to
the fact that the acquisition was for Tusker Gold Limited, a company
incorporated in Australia. The share holding of the Tanzanian related entities
did not change and the Tusker Gold Limited group structure remains the same as
prior to the acquisition.
Also included in the total amounts claimed of US$51.6 million is a claim of
US$2.8 million against North Mara Gold Mine being compensation for uncaused
improvements, disturbance and accommodation allowance, rich gold land current
value, interest and costs. Management are of the opinion that the defence is
likely to succeed.
b)            Other tax-related contingencies
i.     On 26 October 2009, the TRA issued a demand notice against the Group for
an amount relating to withholding tax on technical services provided to
Bulyanhulu Gold Mine Ltd. The claim amounts to US$5.4 million. Management is of
the opinion that the Group complied with all of the withholding tax
requirements, and that there will be no amount payable. Therefore no provision
has been raised.
ii.    The TRA has issued a number of tax assessments to the Group relating to
past taxation years from 2002 onwards. The Group believes that these
assessments are incorrect and has filed objections to each of them. The Group
is attempting to resolve these matters by means of discussions with the TRA or
through the Tanzanian Appeals process. Management is of the opinion that these
will not result in any material liabilities to the Group.
c)             Exploration and development agreement
Pursuant to agreements with the Government of the United Republic of Tanzania,
the Group was issued Special Mining Licences for Bulyanhulu, Buzwagi, North
Mara and Tulawaka mines and Mining Licenses for Building Materials at
Bulyanhulu and Buzwagi Mines. The agreement requires the Group to pay to the
Government of Tanzania annual rents of US$5,000 per annum per square kilometre
for as long as the Group holds the Special Mining Licences and US$2,000 per
annum per square kilometre for so long as the Group holds the Mining Licenses
for Building Materials. The total commitment for 2013 based on mineral licences
held 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 and consumables of approximately US$65 million (2011: US$31 million).

e)            Capital commitments

In addition to entering into various operational commitments in the normal course of business, the Group entered into contracts for capital expenditure for 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 result
in a total dividend of US16.3 cents per share for 2012. The final dividend is
to be proposed at the Annual General Meeting on 18 April 2013. These financial
statements do not reflect this dividend payable.
ABG announced on 22 January 2013 that it concluded negotiations with a group of
commercial banks for the provision of an export credit backed term loan
facility ("Facility") for the amount of US$142 million. The Facility has been
put in place to fund the bulk of the costs of the construction of one of our
key growth projects, a new Carbon in Leach circuit at the process plant at
Bulyanhulu ("Project"). The Facility is secured upon the Project, has a term of
seven years and when drawn the spread over Libor will be 250 basis points. The
Facility is repayable in equal instalments over the term of the Facility, after
a two year repayment holiday period.
Subsequent to year end, a legal claim was instituted against ABG in relation to
the termination of a lease agreement in Dar es Salaam. The plaintiffs claim
payment of US$11.4 million purportedly being rent for the remainder of the
lease period, rent that they would have received from other prospective
tenants, costs incurred for alterations made on ABG's instructions and general
damages. 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 CNG
over the potential sale of its 73.9% stake in ABG. As a result, ABG is no
longer in an offer period under the Takeover Code. Management has initiated a
full Operational Review with the aim of recalibrating operations so as to drive
improved returns from the asset base whilst enhancing the certainty of delivery
and initial detail on specific initiatives has been provided within these
results.

Reserves and Resources

Mineral reserves and mineral resources estimates contained in this report have
been calculated as at 31 December 2012 in accordance with National Instrument
43-101 as required by Canadian securities regulatory authorities, unless
otherwise stated. Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
definitions were followed for mineral reserves and resources. Calculations have
been reviewed, verified (including estimation methodology, sampling, analytical
and test data) and compiled by ABG personnel under the supervision of ABG
Qualified 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 that
the indicated quantities of metal will be produced. In addition, totals stated
may not add up due to rounding.
Mineral reserves have been calculated using an assumed long-term average gold
price of US$1,500.00 per ounce, a silver price of US$28.00 per ounce and a
copper 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-term
average gold price of US$1,650.00 per ounce, a silver price of US$30.00 per
ounce and a copper price of US$3.50 per pound while mineral resources for our
exploration properties have been calculated using an assumed long-term average
gold price of US$1,400.00 per ounce. Resources have been estimated using
varying cut-off grades, depending on the type of mine or project, its maturity
and ore types at each property. Reserve estimates are dynamic and are
influenced by changing economic conditions, technical issues, environmental
regulations and any other relevant new information and therefore these can vary
from year to year. Resource estimates can also change and tend to be influenced
mostly by new information pertaining to the understanding of the deposit and
secondly the conversion to ore reserves. In addition, estimates of inferred
mineral resources may not form the basis of an economic analysis and it cannot
be assumed that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Therefore, investors are cautioned not to assume
that all or any part of an inferred mineral resource exists, that it can be
economically or legally mined, or that it will ever be upgraded to a higher
category. Likewise, investors are cautioned not to assume that all or any part
of measured or indicated mineral resources will ever be upgraded to mineral
reserves.

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

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

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

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

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

(Source: PR Newswire )
(Source: Quotemedia)

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