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African Barrick Gold (ACA)

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Monday 23 July, 2012

African Barrick Gold

Interim Results for the six months ended 30 Jun...


                             AFRICAN BARRICK GOLD                              

                                   LSE: ABG                                    

23 July 2012

Interim Results for the six months ended 30 June 2012 (Unaudited)

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

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

→ Continued progress, full year guidance maintained, dividend increased

Operational Highlights

Attributable gold production1 of 297,742 ounces (Group production1 of 305,692
ounces), 14% below H1 2011, due to expected lower grade material mined at
Buzwagi, waste stripping at North Mara and batch processing at Tulawaka.

Cash cost per ounce sold2 of US$938 per ounce, up 43% on H1 2011, primarily due
to lower production, higher energy costs and industry wide cost pressures.

Board approved the expansion of the Carbon in Leach Circuit at Bulyanhulu.

Waste rock permits for North Mara received, critical to the expected production
increase in H2 2012.

Continued success in our exploration programmes:

Declared an in-pit gold resource of 3.75 million ounces Indicated and 0.85
million ounces Inferred at Nyanzaga.

Delineated an additional 1 million ounce gold resource at Gokona, North Mara.

Successfully extended Tulawaka's mine life into 2013.

Financial Highlights

Revenue of US$534 million, down 8% on H1 2011.

Cash margin2 of US$704 per ounce, a decrease of 13% on H1 2011.

Impact of planned lower production levels due to mine sequencing contributed
to:

EBITDA2 of US$171 million, down 30% on H1 2011.

Net profit of US$65 million, down 46% on H1 2011, with EPS of US15.9 cents.

Net cash position of US$504 million as at 30 June 2012.

Proposed interim dividend of US4.0 cents per share, up 25% on 2011.

                                         Three months ended         Six months ended       
African Barrick Gold plc                       30 June                  30 June            
                                                                                           
                                                               %                       %   
(Unaudited)                                   2012      2011 change    2012     2011 change
                                                                                           
                                                                                           
                                                                                           
Attributable Gold Production (ounces)1     153,099   171,950   -11% 297,742  345,857   -14%
                                                                                           
Attributable Gold Sold (ounces)1           157,224   185,080   -15% 302,641  357,082   -15%
                                                                                           
Cash cost per ounce sold (US$/ounce)2          950       652    46%     938      655    43%
                                                                                           
Average realised gold price (US$/ounce)2     1,591     1,524     4%   1,642    1,461    12%
                                                                                           
(in US$'000)                                                                               
                                                                                           
Revenue                                    266,930   311,760   -14% 534,467  578,387    -8%
                                                                                           
EBITDA 2                                    81,381   140,072   -42% 170,939  244,927   -30%
                                                                                           
Cash generated from operating activities    54,783    99,450   -45% 110,309  186,134   -41%
                                                                                           
Net profit attributable to owners           29,889    69,773   -57%  65,152  120,134   -46%
                                                                                           
Basic earnings per share (EPS) (cents)         7.3      17.0   -57%    15.9     29.3   -46%
                                                                                           
Dividend per share (cents)                     4.0       3.2    25%    4.0       3.2    25%
                                                                                           
Operating cash flow per share (cents) 2       13.4      24.2   -45%    26.9     45.3   -41%
                                                                                           

1 Group production and sold ounces consolidate 100% of Tulawaka's production
base. Attributable production and sold ounces reflect equity ounces which
exclude 30% of Tulawaka's production and sales base.

2 Cash costs per ounce sold, average realised price, EBITDA, operating cash
flow per share and cash margin are non-IFRS financial performance measures with
no standard meaning under IFRS. Refer to "Non-IFRS measures" on page 29 for the
definition of each measure.

Commenting on the results, CEO Greg Hawkins said: "Over the first six months of
the year we have delivered solid results, while making significant progress in
developing the business. The Board approved our first brownfield growth
project, we declared a substantial in-pit resource at Nyanzaga and have further
demonstrated our commitment to Tanzania through our new royalty agreement. Over
the second half of 2012 our focus will be on continuing to deliver against our
mine plan with an expected grade driven increase in production and
corresponding decline in cash costs, while maintaining capital discipline. We
maintain our guidance for the full year, although expect to be towards the
upper end of our cash cost range. With the continuing cost pressure in the
industry, we will be intensifying our focus on taking costs out of the business
with the aim of maximising returns for shareholders."

Current operations

As expected, the first half of the year was characterised by the step down to
reserve grade at Buzwagi, representing a 38% decrease on the prior year period,
the ongoing waste stripping programme at North Mara and the start of batch
processing at Tulawaka. As a result, we have seen lower production and higher
cash costs than in the prior year period, with H1 2012 attributable production
amounting to 297,742 ounces compared to 345,857 ounces in H1 2011. As we
progress current mining schedules, we remain confident that we will benefit
from increased grades during the second half of the year, which should allow us
to deliver increased production and lower cost, in line with our guidance.

We continued to optimise our gold inventory levels throughout the reporting
period and as a result sold 302,641 attributable gold ounces for the first six
months of the year, 2% above production.

We mined 21.7 million tonnes in the first half of the year, compared to 22.7
million in H1 2011, primarily as a result of waste dumping constraints at North
Mara, which have now been alleviated as a result of the grant of the
potentially acid forming ("PAF") waste rock dump permit for the mine.

Tonnes of ore processed for the first half of the year totalled 3.7 million, a
4% increase on 2011 levels of 3.6 million tonnes. The average grade for the
first half of the year of 2.9 grams per tonne ("g/t") was in line with plan but
15% lower than H1 2011, driven primarily by the planned reversion to reserve
grade at Buzwagi.

Our copper production in the first half of the year of 6.1 million pounds
represented a 22% decrease on H1 2011 (7.8 million pounds), driven by lower
copper grades at both Bulyanhulu and Buzwagi.

We saw a 43% increase in cash costs per ounce sold over the first half of 2011
to US$938. The key contributors and the cash cost per ounce impact to this
increase were:

lower production base and associated lower co-product revenue, combined with
lower realised copper prices (US$137/oz);

higher energy costs due to increased usage and pricing of diesel in tandem with
increased electricity tariffs (US$66/oz); and

increased maintenance costs due to the impact of plant downtime at North Mara
and Buzwagi and a revised owner maintenance model at North Mara (US$44/oz).

Cash costs of US$76 per tonne milled for the first half of the year were 17%
higher than the prior year period, primarily as a result of the key cost
factors explained above which were partially offset by the increase in tonnes
milled.

We expect current cost levels to reduce throughout the second half of the year
as head grade and production levels improve at each of our operations. In
support of this, we will maintain our focus on minimising the impact of
inflationary pressures on each of our operations and will continue to explore
opportunities over the next twelve months to reduce costs through localisation
efforts, lower cost power sources and the ongoing optimisation of our
operations.

Bulyanhulu performed in line with expectations and delivered solid results for
the reporting period. During the period, the Board also approved our first
brownfield expansion project involving the construction of a new 2.4 million
tonnes per annum ("Mtpa") Carbon in Leach ("CIL") circuit at the process plant
which will provide additional production of 600 thousand ounces ("Koz") over
the life of mine ("LOM") from H1 2014.

As noted above, waste stripping for the first few months of the year was
constrained at North Mara, predominantly as a result of delays with PAF permits
and land acquisitions. The grant of the PAF permit at the end of April allows
us to move ahead with the waste stripping programme, in order to access higher
grade areas in the Gokona pit during the second half of the year.

As planned, Buzwagi has operated close to its reserve grade of 1.5g/t for the
first six months of 2012. In addition, ongoing grid instability and a number of
unplanned shutdowns have impacted the operation, with the process plant
operating at 80% of capacity over the reporting period. As part of the plan to
address this, the process plant at Buzwagi has been running predominantlyon
diesel power generationto ensure the reliability of power supply and we have
seen noticeable improvements to date. We are also increasing mining capacity,
in order to deliver increased future production, with further additions to the
mining fleet.

Tulawaka continued to perform in line with expectations during the reporting
period, as it transitioned to a solely underground operation and the process
plant began to operate under a batch processing method. This led to an expected
reduction in production and associated higher cost. An increase in the grade
profile is expected during the second half of the year, which should help to
increase production levels and lower cash costs at the mine. In addition, we
have progressed our exploration drilling programmes and have replaced reserves
mined so far in 2012 which will enable the mine to continue operating into mid
2013. We will provide further updates later this year as we progress our mine
planning for 2013.

Our Total Reportable Injury Frequency Rate ("TRIFR") of 0.82 is 31% lower than
the corresponding period in 2011 and we continue to implement further
initiatives in order to continually improve safety and ensure that all of our
employees go home safely every day. It is with great regret that we report a
vehicle incident in May at Buzwagi that claimed the life of one of our
contractors. We have carried out a thorough investigation into the incident and
are in the process of strengthening procedures to ensure this type of accident
is not repeated.

Financial results

Our financial performance over the first half of the year reflected the planned
lower production levels when compared to the corresponding period, with the
benefit of the 12% increase in the gold price compared to H1 2011.
Notwithstanding the lower production levels, we generated EBITDA of US$171
million and EPS of US15.9 cents, which enabled us to declare an interim
dividend of US4.0 cents per share for 2012, up 25% on 2011.

We are also in a position to continue to invest in profitable growth in our
business, as evidenced by the approval of the Bulyanhulu CIL expansion during
the period on which we expect to commit up to US$50 million in 2012. We have
also invested US$119 million over the first half of the year in our ongoing
operations in order to maintain our strong operational platform. While we are
committed to investing in the business, we also remain focused on improving
efficiencies throughout the organisation in order to further enhance cost and
capital control.

Exploration and growth projects

We have made further progress in our portfolio of growth projects in the first
half of the year, having announced Board approval for the Bulyanhulu CIL
expansion, a project that will add over 600Koz of production over the LOM,
starting from 2014 and will help to lower overall cash costs at the mine. In
addition, we have made good progress on our other projects as follows:

Gokona Expansion: we continue to evaluate the extension of the open pit in
parallel with the underground development at the Gokona pit. Following the
successful completion of the 18 month drilling programme and initial reworking
of the open pit, we have been able to delineate an additional 1.0Moz of
resource in the extended open pit and the underground.

Bulyanhulu Upper East Project: mining of the test stope is on track to commence
in Q3 2012 to test the mining method and geotechnical assumptions. We have
initiated a further drilling programme to test whether Reef 2, which currently
sits outside of the project, can be mined in parallel and we will provide
further updates in due course. This will not affect the timing of the project.

Tulawaka: drilling continues to be successful, and we have been able to replace
reserves in the first half, thereby extending the mine life into mid 2013.
Deeper drilling continues to encounter continuity of mineralisation at depth
and we are targeting further extensions of the mine life.

Greenfield exploration activities during the reporting period continued to
focus on the Nyanzaga project where we were able to declare an initial in-pit
resource of 4.1Moz of gold in January and then, in April, upgrade further to
4.6Moz, consisting of 3.75Moz at 1.42g/t Au Indicated and 0.75Moz at 1.81g/t Au
Inferred, through the inclusion of Kilimani near surface mineralisation and
further material at depth.

Interim Dividend

In line with ABG's formal dividend policy of paying out between 15% and 30% of
earnings in the proportion of approximately one third following the interim
results and two thirds following the final results, the Board of ABG has
approved an interim dividend for 2012 of US4.0 cents per share, a 25% increase
on the amount paid in 2011.

The interim dividend will be paid on 24 September 2012 to holders on record at
31 August 2012. The ex-dividend date will be 29 August 2012. ABG will declare
the interim dividend in US dollars. Unless a shareholder elects to receive
dividends in US dollars, they will be paid in pounds sterling with the US
dollar interim dividend being converted into pounds sterling at exchange rates
prevailing at the relevant time. The last date for receipt of currency
elections will be 3 September 2012. The exchange rate conversion for the
interim dividend will be made on or around 4 September 2012.

Outlook

Over the past six months, we have made significant progress towards the ongoing
development of the business, through both our existing mines and our portfolio
of growth projects. We look forward to building on this progress in the second
half, where we expect production to increase with a subsequent decline in cash
costs per ounce sold, in accordance with our mine plan. As a result, we
maintain our production guidance of 675,000-725,000 ounces of gold for 2012. At
the same time, we still expect our cash costs for the year to come within the
range set of US$790-860 per ounce (US$740-810 per ounce on a cash operating
cost basis, excluding royalties), albeit in the upper part of the range.

As part of our longer term focus, we continue to drive operational efficiencies
to optimise production at our existing assets, whilst focusing on the growth of
our business through our organic projects and potential acquisitions. With the
ongoing economic uncertainty and challenges within the global market, we remain
positive on the outlook for gold, and are confident that the fundamental
attraction of the precious metal as a store of value will continue to support
future gold prices.

Other developments

Agreement to Acquire Interests in Kenyan Licences

ABG has today announced that it has entered into an agreement with Aviva
Corporation Limited ("Aviva", ASX:AVA) to acquire all of the outstanding share
capital of Aviva Mining (Kenya) Limited ("AMKL"), the assets of which include
interests in a number of Licences in West Kenya, for initial cash consideration
of A$20 million. The acquisition is subject to the approval of Aviva's
shareholders, which is expected to be sought at a general meeting in lateAugust
or early September; and the consent of the Kenyan Competition Authority, with
completion expected shortly thereafter. 

The properties, which have only seen limited previous exploration, contain
multiple large 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. 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 will represent a significant
addition to the grassroots and target delineation segments of our exploration
pipeline.

Board Changes

Following his departure from Barrick in June 2012, Aaron Regent stepped down as
Chairman of ABG. Since then, Derek Pannell, Senior Independent Director of ABG
has been Acting Chairman of the Board. We also welcomed Kelvin Dushnisky,
Executive Vice President, Corporate and Legal Affairs of Barrick, as a nominee
Director to the Board of ABG during the reporting period, and he brings many
complementary and valued skills to the Board.

Also, during the first half of the year James Cross stepped down as
Non-Executive Director. Mr Cross' breadth of experience and detailed knowledge
of Africa was a valued source of advice for the Board and we wish him well for
the future.

More recently, on 19th July 2012, we welcomed Rick McCreary, Senior Vice
President, Corporate Development of Barrick as a nominee Director to the Board
of ABG. Before joining Barrick in April 2011, Mr. McCreary worked in mining
investment banking for over fourteen years culminating as Head of CIBC World
Markets' Global Mining investment banking group. Prior to his career in mining
investment banking, he worked in the Noranda/Falconbridge organisation for
eight years in various areas, including metals marketing, geophysics,
geological engineering and technology development.

We are in the process of identifying an additional Independent Non-Executive
Director for the Board. This will restore the appropriate balance between
Independent and Non-Independent Directors following the recent changes to the
Board.

Regulatory and tax framework

During the reporting period we concluded discussions with the Tanzanian
Government with respect to the level of royalty payments applicable to our
operations. In light of the current gold price environment, we have agreed to a
voluntary additional 1% royalty going forward. This is in addition to the 3%
rate stipulated in our Mineral Development Agreements ("MDAs"), which remain
unchanged. This decision is an important step for ABG and has been taken after
careful consideration, based on ABG's overall tax status in Tanzania, in order
to ensure we achieve the optimum long-term structure for our operations and all
of our stakeholders.

North Mara licence renewal and Environmental Protection Order ("EPO") update

The Mining Advisory Board required to approve the renewal of the Special Mining
Licence at North Mara was formed during the reporting period and we have been
informed that it will deal with the licence renewal as one of its immediate
priorities. In the meantime, operations at North Mara will continue under the
terms of our existing licence, ensuring that there remains no disruption to our
mining activities.

The joint water sampling exercise with NEMC, the Tanzanian environmental
regulator, and an independent third party, to test the quality of the output
from the water treatment plant at North Mara continued through the period and
will extend into the second half of 2012. Once successfully completed, the EPO
should be lifted, which would allow North Mara to discharge water from the mine
site. We aim to complete this exercise in the second half of 2012.

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

                                                             +44 (0)207 129    
African Barrick Gold plc                                     7150              
                                                                               
Andrew Wray, Head of Corporate Development & Investor                          
Relations                                                                      
                                                                               
Giles Blackham, Investor Relations Manager                                     
                                                                               
                                                             +44 (0)207 251    
RLM Finsbury                                                 3801              
                                                                               
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 northwest
Tanzania, and several exploration projects at various stages of development.
ABG has a high-quality asset base, solid growth opportunities and a clear
strategy for growth.

The key pillars to our strategy are:

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 (Barrick), our majority
shareholder. ABG reports in US dollars in accordance with IFRS as adopted by
the European Union, unless otherwise stated in this report.

Presentation and conference call

A presentation will be held for analysts and investors on Monday 23rd July 2012
at 9:00am BST.

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

Please quote 'ABG' when prompted by the operator   

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: 2826842#            
                                

There will also be a conference call for analysts and investors based in North
America on Monday 23rd July at 1.30pm BST

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

Please quote 'ABG' when prompted by the operator   

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: 4803684#            
                                

 

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," "expect," "anticipates," "believes,"
"intends," "estimates" and other similar expressions. 

All forward-looking statements involve a number of risks, uncertainties and
other factors. Although ABG's management believes that the expectations
reflected in such forward-looking statements are reasonable, investors are
cautioned that forward-looking information and statements are subject to
various risks and uncertainties, many of which are difficult to predict and
generally beyond the control of ABG, that could cause actual results and
developments to differ materially from those expressed in, or implied or
projected by, the forward-looking information and 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, political, economic and business conditions, industry trends,
competition, commodity prices, changes in regulation, currency fluctuations
(including the US dollar; South African rand and Tanzanian shilling exchange
rates), 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 timely and successfully process
its mineral reserves, risks 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. Accordingly, investors
should not place reliance on forward-looking statements contained in this
report.

The forward-looking statements in this report reflect information available at
the time of preparing this report. 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 release the
result of any revisions to any forward-looking statements in this report that
may occur due to any change in ABG's expectations or to reflect events or
circumstances after the date of this report. No statements made in this report
regarding expectations of future profits are profit forecasts or estimates, and
no statements made in this report 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 or any
other level.

AFRICAN BARRICK GOLD

                                   LSE: ABG                                    

 

TABLE OF CONTENTS

Key Statistics                                                               7 
                                                                               
Interim Operating Review                                                     9 
                                                                               
Exploration and Development Update                                           13
                                                                               
Financial Update                                                             22
                                                                               
Non-IFRS measures                                                            29
                                                                               
Principal Risks and Uncertainties                                            31
                                                                               
Statement of Directors' Responsibility                                       32
                                                                               
Auditor's Review Report                                                      33
                                                                               
Consolidated Income Statement and Consolidated Statement of Comprehensive    34
Income                                                                         
                                                                               
Consolidated Balance Sheet                                                   35
                                                                               
Consolidated Statement of Changes in Equity                                  36
                                                                               
Consolidated Statement of Cash Flows                                         37
                                                                               
Notes to the Consolidated Interim Financial Information                      38
                                                                               

Key Statistics

African Barrick Gold

African Barrick Gold plc                     Three months                     
                                                 ended        Six months ended
                                                30 June           30 June     
                                                                              
(Unaudited)                                   2012      2011     2012     2011
                                                                              
Operating results                                                             
                                                                              
Tonnes mined (thousands of tonnes)          11,834    10,901   21,673   22,660
                                                                              
Ore tonnes mined (thousands of tonnes)       1,848     1,614    3,595    3,223
                                                                              
Ore tonnes processed (thousands of tonnes)   1,840     1,693    3,742    3,613
                                                                              
Process recovery rate (percent)              87.4%     88.7%    86.7%    87.9%
                                                                              
Head grade (grams per tonnes)                  3.0       3.6      2.9      3.4
                                                                              
Attributable gold production (ounces)¹     153,099   171,950  297,742  345,857
                                                                              
Attributable gold sold (ounces)¹           157,224   185,080  302,641  357,082
                                                                              
Copper production (thousands of pounds)      3,121     4,068    6,126    7,809
                                                                              
Copper sold (thousands of pounds)            3,443     4,147    5,959    7,882
                                                                              
Cash cost per tonne milled² (US$)               81        71       76       65
                                                                              
Per ounce data (US$/ounce)                                                    
                                                                              
     Average spot gold price³                1,609     1,506    1,651    1,445
                                                                              
     Average realised gold price²            1,591     1,524    1,642    1,461
                                                                              
     Cash cost²                                950       652      938      655
                                                                              
     Amortisation and other costs²             218       168      222      172
                                                                              
     Total production cost²                  1,168       820    1,160      827
                                                                              
     Cash margin²                              641       872      704      806
                                                                              
Average realised copper price (US$/lb)        3.07      3.89     3.53     4.20
                                                                              

                                               Three months ended    Six months ended  
                                                     30 June              30 June      
                                                                                       
(Unaudited)                                                                            
                                                                                       
Financial results                                   2012      2011       2012      2011
                                                                                       
(in US$'000)                                                                           
                                                                                       
Revenue                                          266,930   311,760    534,467   578,387
                                                                                       
Cost of sales                                  (201,159) (176,487)  (386,981) (344,639)
                                                                                       
Gross profit                                      65,771   135,273    147,486   233,748
                                                                                       
Corporate administration                        (10,454)   (7,667)   (25,609)  (20,525)
                                                                                       
Exploration and evaluation costs                 (3,870)   (8,621)   (10,385)  (16,078)
                                                                                       
Corporate social responsibility expenses5        (4,611)     (642)    (6,750)   (1,372)
                                                                                       
Other charges5                                   (1,360)  (10,260)    (4,275)  (14,200)
                                                                                       
Profit before net finance expense and taxation    45,476   108,083    100,467   181,573
                                                                                       
Finance income                                       813       437      1,079       809
                                                                                       
Finance expense                                  (2,378)   (2,239)    (4,689)   (4,121)
                                                                                       
Profit before taxation                            43,911   106,281     96,857   178,261
                                                                                       
Tax expense                                     (14,829)  (33,862)   (31,335)  (54,031)
                                                                                       
Net profit for the period                         29,082    72,419     65,522   124,230
                                                                                       
Profit/ (loss) attributable to:                                                        
                                                                                       
- Non-controlling interests                        (807)     2,646        370     4,096
                                                                                       
- Owners of the parent                            29,889    69,773     65,152   120,134
                                                                                       

                                         Three months ended    Six months ended  
                                               30 June              30 June      
                                                                                 
(Unaudited)                                                                      
                                                                                 
Other Financial information                                                      
                                                                                 
(in US$'000 except per share figures)         2012      2011       2012      2011
                                                                                 
Cash and cash equivalents                  503,667   455,077    503,667   455,077
                                                                                 
Cash generated from operating activities    54,783    99,450    110,309   186,134
                                                                                 
Capital expenditure4                        70,835    67,275    124,906   118,666
                                                                                 
EBITDA2                                     81,381   140,072    170,939   244,927
                                                                                 
Basic earnings per share (cents)               7.3      17.0       15.9      29.3
                                                                                 
Operational cash flow per share2 (cents)      13.4      24.2       26.9      45.3
                                                                                 
Equity                                   2,807,761 2,651,571  2,807,761 2,651,571
                                                                                 

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, EBITDA, operational cash flow per share and cash margin are non-IFRS
financial performance measures with no standard meaning under IFRS. Refer to
"Non-IFRS measures" on page 29 for definitions. 

3 Reflects the London PM fix price.

4 Includes non-cash rehabilitation asset adjustments and finance lease
purchases during the period.

5 Restated to separately disclose corporate social responsibility expenses on
the face of the income statement.

Interim Operating Review

Bulyanhulu

Key statistics

                                                              Six months   
                                        Three months ended       ended     
Bulyanhulu                                   30 June            30 June    
                                                                           
(Unaudited)                                 2012      2011     2012    2011
                                                                           
Underground ore tonnes hoisted Kt            256       271      506     538
                                                                           
Ore milled                     Kt            286       286      532     539
                                                                           
Head grade                     g/t           8.4       8.3      8.5     8.6
                                                                           
Mill recovery                  %           90.4%     90.4%    90.8%   91.1%
                                                                           
Ounces produced                oz         69,750    69,272  131,586 135,537
                                                                           
Ounces sold                    oz         71,201    72,698  133,417 141,805
                                                                           
Cash cost per ounce sold       US$/oz        699       573      700     578
                                                                           
Cash cost per tonne milled     US$/t         174       146      176     152
                                                                           
Copper production              Klbs        1,851     2,186    3,482   4,224
                                                                           
Copper sold                    Klbs        1,808     2,202    3,253   4,141
                                                                           
Capital expenditure            US$(000)   21,424    18,553   40,239  34,769
                                                                           

Operating performance

Bulyanhulu performed in line with management expectations and continued to
deliver solid results for the reporting period.

Gold production for the first half of the year was 131,586 ounces, 3% lower
than the prior year's total of 135,537 ounces due to slightly lower head grade
and recoveries. Production for the second quarter of the year increased by 13%
on the first quarter and was marginally ahead of the prior year comparative
period.

Mill throughput for the first half of the year was broadly in line with the
prior year period.  We saw an improvement in the second quarter of 16% over the
first quarter, and we should see further benefit from the investment in plant
efficiencies in the second half of 2012. We continue to expect the upgrading of
our back up power capacity at the mine to be completed during the third
quarter.

Tonnes hoisted for the year were 6% lower than the prior year period and were
negatively impacted by shaft availability due to the impact of power outages
and associated maintenance. 

Copper production for the first half of the year of 3.5 million pounds was 18%
lower than that of the same period in 2011 as a result of lower grades. Cash
costs for the first half of the year of US$700 per ounce sold were 21% higher
than the prior year comparative of US$578. This increase is predominantly
attributable to the lower production base and co-product revenue, increased
energy costs from the increased necessity to self generate power, and increased
maintenance costs to address plant operational inefficiencies. This was in part
offset by lower smelting and refining fees and increased capitalised
underground development.

Cash costs per tonne milled increased to US$176 in 2012 compared to US$152 in
the prior year period as a result of the cost increases outlined above.

Capital expenditure for the six month period totalled US$40.2 million, 16%
higher than the US$34.8 million in the prior year. Key capital expenditure
included:

Capitalised development: capitalised underground development of US$22.1
million;

Expansion capital: Bulyanhulu CIL expansion project and Upper East expansion of
US$1.2 million; and

Sustaining capital: US$16.9 million mostly relating to mining equipment,
infrastructure and continuous improvement projects and non-cash rehabilitation
asset adjustments of US$1.9 million.

Buzwagi

Key statistics

                                    Three months ended    Six months ended 
Buzwagi                                   30 June             30 June      
                                                                           
(Unaudited)                            2012        2011      2012      2011
                                                                           
Tonnes mined               Kt         7,088       4,347    11,991     9,672
                                                                           
Ore tonnes mined           Kt         1,189         646     2,108     1,677
                                                                           
Ore milled                 Kt           837         583     1,765     1,423
                                                                           
Head grade                 g/t          1.5         2.5       1.5       2.4
                                                                           
Mill recovery              %          85.6%       89.5%     83.9%     88.0%
                                                                           
Ounces produced            oz        34,459      41,613    70,731    97,926
                                                                           
Ounces sold                oz        37,928      46,932    71,249   101,033
                                                                           
Cash cost per ounce sold   US$/oz     1,195         566     1,152       620
                                                                           
Cash cost per tonne milled US$/t         54          46        47        44
                                                                           
Copper production          Klbs       1,270       1,882     2,644     3,585
                                                                           
Copper sold                Klbs       1,636       1,945     2,707     3,741
                                                                           
Capital expenditure        US$(000)  19,418      17,916    32,485    20,900
                                                                           

Operating performance

As planned, Buzwagi has operated close to its reserve grade of 1.5g/t for the
first six months of 2012, a 38% decrease on the prior year period. As a result
there has been a focus on increasing mining rates in order to maintain
production. Tonnes mined for the half year increased by 24% on the comparative
prior year period due to an increased focus on waste stripping, additional
hauling capacity and the improvement in equipment availability.  Equipment
availability in the second quarter was notably improved due to enhanced
maintenance regimes which led to an increase of 45% in total tonnes mined
compared to the first quarter of 2012.

As a result of the lower grade and resultant lower recoveries, gold production
of 70,731 ounces for the six months was 28% lower than the previous year period
despite a 24% increase in tonnes milled. Gold ounces sold were broadly in line
with production. The process plant has not reached the expected throughput
rates over the period as a result of ongoing power related issues and a number
of unplanned maintenance shutdowns. As a result of this, during the second
quarter Buzwagi moved to running predominantlyon diesel power generationto
ensure stability of power supply to the process plant. We continue to expect an
improvement in throughput as we move into the second half of the year. 

Copper production for the six month period of 2.6 million pounds was 26% below
the prior year's production. This was mainly due to the lower concentrate
production as a result of lower grade.

Cash costs for the first half of the year were US$1,152 per ounce sold compared
to US$620 in H1 2011. The key drivers of this increase were the step up in
mining and processing levels together with the expected reduction in grade
compared to the prior year period, as well as the lower production base and
co-product revenue. The increased activity led to significantly higher energy
costs which were also driven by the increased reliance on self generation, and
increased consumable costs due to additional usage. These were partially offset
by the capitalisation of waste stripping; higher cost allocation to ore
stockpiles on hand predominantly driven by lower throughput compared to mining
and a higher cost base; and lower contracted services costs.  

Cash costs per tonne milled increased to US$47 in H1 2012 from US$44 in H1
2011. The increase in costs was primarily due to the key cost factors explained
above which was partially offset by increased tonnes milled.

Capital expenditure for the reporting period totalled US$32.5 million, 55%
higher than the US$20.9 million in the prior year period. Key capital
expenditure included:

Capitalised development: capitalised deferred stripping of US$8.7 million; and

Sustaining capital: US$23.8 million relating to plant improvements and mining
equipment of which US$5.3 million related to the mining acceleration project
and US$2.0 million of non-cash rehabilitation asset adjustments.

We are expanding the mining fleet at Buzwagi in order to accelerate mining with
a view to delivering increased production, whilst reducing operating risk and
cash costs by ensuring the required effective utilisation is maintained. The
mining fleet expansion will cost an estimated US$21 million of which
approximately US$8 million will be incurred in 2012.

North Mara

Key statistics

                                     Three months ended   Six months ended 
North Mara                                 30 June             30 June     
                                                                           
(Unaudited)                               2012      2011      2012     2011
                                                                           
Tonnes mined                Kt           4,461     6,254     8,852   12,390
                                                                           
Ore tonnes mined            Kt             374       668       879      947
                                                                           
Ore milled                  Kt             677       751     1,337    1,500
                                                                           
Head grade                  g/t            2.3       2.3       2.2      2.1
                                                                           
Mill recovery               %            82.8%     83.8%     81.1%    81.4%
                                                                           
Ounces produced             oz          41,515    46,003    76,876   83,602
                                                                           
Ounces sold                 oz          41,550    49,700    79,600   85,650
                                                                           
Cash cost per ounce sold    US$/oz       1,100       853     1,119      814
                                                                           
Cash cost per tonne milled  US$/t           67        56        67       46
                                                                           
Capital expenditure         US$(000)    21,365    24,468    35,201   52,143
                                                                           

Operating performance

The focus for the first six months of the year at North Mara remained on the
waste stripping programme in the Gokona and Nyabirama pits. Activity was
constrained due to delays in the issuing of waste dumping permits at the newly
constructed PAF waste dumps and delays regarding land acquisition and
relocation of communities surrounding the Nyabirama pit, resulting in lower
tonnes mined. Approval of the PAF permit was obtained at the end of April, and
full PAF waste movement commenced in June. This will enable us to deliver in
line with the mine plan by accessing higher grade zones in the Gokona pit from
the second half of this year. 

Gold production for the first half of the year was 76,876 ounces, down 8% on H1
2011 but broadly in line with expectations. Ore mined from the Gokona pit drove
overall mine grade slightly higher at 2.2g/t but the impact was more than
offset by lower mill throughput as a result of unplanned maintenance. Gold
ounces sold amounted to 79,600 ounces for the first half of the year, lower
than the same period in 2011, but in line with lower production. The second
quarter of 2012 showed a 17% increase in production over the first quarter of
the year driven mainly by improved throughput, grade and plant recoveries.

Cash costs for the first half of the year were US$1,119 per ounce sold compared
to US$814 in the prior year period. The increase in cost was primarily driven
by the lower capitalisation of costs compared to H1 2011 and a reduction in the
production base. These were partially offset by lower contractor services costs
due to a move away from contract maintenance and a reduction in consumable
usage due to lower mining and milling activity.

Cash costs per tonne milled increased to US$67 in H1 2012 from US$46 in H1
2011, primarily due to the key cost factors explained above and lower plant
throughput.

Capital expenditure for the reporting period totalled US$35.2 million, 32%
lower than the US$52.1 million in the prior year period. Key capital
expenditure included:

Capitalised development: capitalised deferred stripping of US$8.2 million;

Expansion capital: capitalised exploration drilling of US$4.6 million; and

Sustaining capital: US$22.4 million driven predominantly by mining equipment,
investment in continuous improvement projects, the water treatment plant and
non-cash rehabilitation asset adjustments of US$1.3 million.

The joint water sampling exercise with NEMC, the Tanzanian environmental
regulator, and an independent third party, to test the quality of the output
from the water treatment plant at North Mara continued through the period and
will extend into the second half of 2012. Once successfully completed, the EPO
should be lifted, which would allow North Mara to discharge water from the mine
site. We aim to complete this exercise in the second half of 2012.

In March 2012, we were pleased to announce the signing of individual agreements
with all seven villages surrounding the mine, which provide for an investment
of US$8.5 million over the next three years in the local communities. These
agreements include two new Village Benefit Agreements with the villages of
Nyakunguru and Matongo that did not previously have formal agreements in place,
together with implementation agreements with each of the five villages
(Nyangoto, Kewanja, Kerende, Genkuru and Nyamwaga) that had previously signed
Village Benefit Agreements with North Mara in 1995/96. The form of investment
in each of the villages will differ, but includes the development of school
infrastructure, provision of clean water, the upgrading of a local health
centre, rehabilitation of village offices and improvements to the road
infrastructure. In addition, we are continuing to invest in a range of
initiatives in the communities surrounding all of our operations through the
ABG Maendeleo Fund.

Tulawaka

Key statistics

                                                              Six months   
                                        Three months ended       ended     
Tulawaka (reflected as 70%)                  30 June            30 June    
                                                                           
(Unaudited)                              2012         2011     2012    2011
                                                                           
Underground ore tonnes hoisted Kt          29           30       59      60
                                                                           
Open pit ore tonnes mined      Kt           -            -       43       -
                                                                           
Open pit waste tonnes mined    Kt           -            -      222       -
                                                                           
Ore milled                     Kt          41           74      108     151
                                                                           
Head grade                     g/t        5.9          6.7      5.6     6.3
                                                                           
Mill recovery                  %        95.9%        95.0%    95.6%   94.3%
                                                                           
Ounces produced                oz       7,376       15,062   18,550  28,792
                                                                           
Ounces sold                    oz       6,545       15,750   18,375  28,595
                                                                           
Cash cost per ounce sold       US$/oz   1,305          645    1,046     686
                                                                           
Cash cost per tonne milled     US$/t      211          138      178     130
                                                                           
Capital expenditure (100%)     US$(000) 4,442        5,384    9,564   9,279
                                                                           

Operating performance

Tulawaka continued to perform in line with expectations during the reporting
period. We are progressing our exploration drilling programmes and have
replaced reserves mined to date in 2012, allowing the mine life to be extended
again, into the middle of 2013. Work is currently ongoing to construct a second
underground portal, which will provide increased access for mining and future
drill platforms.

During the second quarter of 2012, Tulawaka focused on process plant
optimisation given ore stockpile levels. This resulted in the application of
batch milling where the mill was being run at optimum throughput levels for
shorter periods of time as opposed to low throughput levels on a consistent
basis. This resulted in mill throughput decreasing by 39% in the second quarter
of 2012, leading to production for the quarter of 7,376 ounces, 51% lower than
2011.

As a result of the above, Tulawaka's attributable gold production for the six
months was 18,550 ounces, 36% lower than the 28,792 ounces produced in 2011.
Gold ounces sold were in line with production and 36% lower than in 2011. Head
grade was 11% lower than 2011 as a result of the blending of the last of the
low grade stockpiles into the mill feed in the second quarter and should
improve as we progress through the year.

Cash costs for the first half of the year were US$1,046 per ounce sold compared
to US$686 in the prior year period. This cost increase was mainly due to the
lower production base, an increase in mining activity (specifically relating to
open pit mining during the first quarter) in combination with the costs
incurred to service an ageing mining fleet and increased general administration
cost.  

Cash costs per tonne milled increased to US$178 in H1 2012 from US$130 in H1
2011, primarily as a result of the higher cost base as explained above and
lower mill throughput due to the batch milling campaign.

Capital expenditure for the reporting period totalled US$9.6 million, 3% higher
than the US$9.3 million in the prior year period.

Key capital expenditure included:

Capitalised development: capitalised underground development of US$3.6 million;

Expansion capital: capitalised exploration drilling of US$1.9 million; and

Sustaining capital: US$4.1 million sustaining capital including a non-cash
rehabilitation asset adjustment credit of US$0.6 million.

Exploration and Development Update

Exploration and development programmes during the first half of the year met
with good success, especially at our North Mara and Nyanzaga projects, where
drilling continues to deliver encouraging results. The Exploration and Projects
teams remain focused on ABG's strategy of organic growth through near-mine
exploration, resource expansion, optimisation of existing assets, and regional
exploration programmes. The principal focus for the first half of 2012 has been
on advancing the highest ranked projects in ABG's development pipeline. A total
of 422 holes for 79,400 metres have been completed across the exploration and
development projects and significant progress has been made on most projects.

At the Nyanzaga Project, an initial in-pit resource of 4.1Moz of gold,
consisting of 3.5Moz at 1.47 g/t Au Indicated and 0.6Moz at 2.05g/t Au Inferred
was released in January 2012. This represented a fourfold increase on the
previously declared resource of 0.3Moz Indicated and 0.6Moz Inferred.
Subsequently, in April 2012, we announced the resource had increased by a
further 0.5Moz and is now in excess of 4.6Moz Au, consisting of 3.75 Moz at
1.42g/t Au Indicated and 0.85Moz at 1.81g/t Au Inferred. The updated modelling
confirms the opportunity to exploit the Tusker and Kilimani mineralised zones
in a single open pit and the project is expected to move into the
pre-feasibility study stage in the second half of 2012.

At Bulyanhulu, the ABG Board approved a construction of a new 2.4Mtpa CIL
circuit. The project has a pre-tax Internal Rate of Return ("IRR") of 22.1% at
current gold prices and will provide additional life of mine production in
excess of 600 thousand ounces ("Koz") from H1 2014 at a lower cash cost than
the underground mine. This is the first step in the future optimisation of the
Bulyanhulu mine.

At the Bulyanhulu Upper East Reef 1 Project, the feasibility study is complete
and mining of the test stope will commence in Q3 2012 to assess the proposed
mining method as well as geotechnical conditions in the zone. Drilling
programmes on near surface material on Bulyanhulu Reef 2 at the Upper East Zone
have shown initial success and will be expanded to better delineate reserves
and resources between 150 metres and 600 metres below surface, in order to
investigate the potential of expanding the Upper East Zone Project to
incorporate accessing Reef 2 Upper East ore at the same time as Reef 1.    

At North Mara, positive results continue to be returned from the 2011-2012
infill drilling programme and we have delineated an additional 1.0Moz of
resource beneath and within the expanded Gokona open pit. The results of the
drilling programme are being incorporated into an updated feasibility study on
Gokona Underground which is being undertaken in conjunction with the current
optimisation of the open pit expansion.

Also at North Mara, testing below the final planned Nyabirama open pit for
potential mineable underground resources has been positive with drilling
intersecting multiple, high-grade zones. With a number of assays still to be
received, we estimate that a resource of 0.5Moz will be delineated. The current
phase of drilling is expected to be completed in early H2 2012 with a second
phase of drilling likely to be undertaken once an initial underground resource
and study is complete.

At Tulawaka East Zone Underground, exploration drilling continues to be
successful, and we have been able to fully replace mined reserves in the first
half, thereby extending the mine life into 2013. Deeper drilling continues to
encounter continuity of mineralisation at depth and we continue to be
optimistic about extending the mine life further.

ORGANIC GROWTH PROJECTS

NORTH MARA

At North Mara the focus year to date has been on the infill drilling of
Inferred resources around the Gokona open pit. Phase one of the resource
definition programme at Gokona was completed in late May 2012, and a revised
mid-year resource for both the underground and an expanded open pit has been
calculated, with the plan now to progress both the pit expansion and the
underground feasibility study once all assay results have been received. The
Nyabirama Deeps infill programme has been expanded and is moving towards
completion with positive results from the drill programme continuing to be
received. The aim of all these programmes is to delineate, and ultimately
produce, underground ounces at North Mara and at the same time extend the life
of mine. 

Figure - 3D view of Gokona open pit models and current underground block model
(with blocks greater than 2g/t Au shown)

[For picture see www.africanbarrickgold.com]

Gokona

The successful 2011 and 2012 Gokona drilling programme has effectively added
approximately 1.0Moz of resources, split between the expanded open pit (0.5Moz)
and the underground (0.5Moz) with only approximately 65% of the original
planned programme completed due to access issues in and around the mining
infrastructure.

Open Pit Expansion

Due to the improvement in community relations at North Mara, we now have the
opportunity to re-site a public road which had previously constrained access.
As a result we have reworked the mine plan to incorporate a lateral cut back of
the open pit. Mine plan optimisations remain ongoing but the latest pit designs
incorporate an additional 0.5Moz into the open pit. We will provide a further
update on this later in the year once we have completed the re-optimisation of
the open pit planning.

Underground

The first phase of a significant resource drill-out programme beneath the
planned Gokona and Nyabigena open pits was completed during H1 2012. A total of
12,636 metres of drilling was completed during H1 2012, bringing the total for
the resource definition drill programme to 40,810 metres. An additional
resource of 0.5Moz has been calculated with the revised underground resource
now to approximately 0.9Moz, which will now be incorporated into an updated
feasibility study on the underground which we expect to complete during H2
2012. Infill drilling has continued to return very positive assay results
showing good continuity of mineralised zones encountered in broader spaced
exploration drilling. Several wide zones of high-grade gold mineralisation were
also returned. Based on the positive results from exploration and infill
drilling which show the system remains open and robust in terms of grade at
depth, it is anticipated that further deep drilling is warranted and could
further expand the underground resources in the future.

Selected significant assay results received for H1 2012 include:

GKD334:  3m @ 17.9g/t Au from 29m, 3m @ 3.7g/t Au from 174m and 21m @ 15.4g/t
Au from 188m.

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

GKD338W:  5m @ 5.6g/t Au from 326m and 3m at 24.9g/t Au from 363m.

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

GKD349:  12m @ 5.6g/t Au from 347m.

GKD351:  3m @ 8.2g/t Au from 544m, 3.5m @ 10.9g/t Au from 562m, 3m @ 57.0g/t
from Au 590m, and 5m @ 36.2g/t Au from 612m.

GKD355A:  2m @ 12.2g/t Au from 347m, 3m @ 4.5g/t Au from 444m and 4m @ 3.9g/t
Au from 469m.

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

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

GKD372:  6m @ 24.8g/t Au from 257m, 10m @ 5.6g/t Au from 290m, and 13m @ 16.1g/
t Au from 367m.

Figure - Gokona Deeps - Section 12,625mE (looking mine west) showing recent
drill intercepts

[For picture see www.africanbarrickgold.com]

Nyabirama Resource Definition and Extension Drilling

The Nyabirama programme is aimed at defining underground potential from areas
previously not able to be drilled from the open pit or during early exploration
drilling. During H1 2012, 5,479 metres of core drilling were completed bringing
the programme total to 35,660 metres. Assay results received during the half
continue to confirm the current resource interpretation, intersecting multiple
high-grade gold zones within a broader 1g/t Au mineralised envelope. Based on
the drilling to date, and with a number of assays still to be received, we
estimate an underground resource of 0.5Moz has been delineated and once all
assays are received, we will incorporate the results into the scoping study.

Selected significant assay results during H1 2012 include:

NBD040:  3m @ 143.0g/t Au from 99m and 6m at 5.2g/t Au from 208m.

NBD042:  2m @ 14.1g/t from 84m, 5.60m at 2.6g/t from 122m and 5m at 3.4g/t from
211m.
NBD045:  1m @ 57.0g/t Au from 167m and 22m at 4.4g/t Au from 217m.

NBD048:  4m @ 76.3g/t from 93m, 3.6m at 12.0g/t from 440m and 4m at 13.3g/t
from 484m.

NBD061:  3m @ 20.0g/t from 6m and 3m at 12.6g/t from 232m.

NBD068:  5m @ 10.2g/t Au from 159m, 6m @ 84.8g/t Au from 263 and 11m @ 6.3g/t
Au from 366m.

NBD071:  2m @ 22.2g/t Au from 100m and 7m @ 23.3g/t Au from 200m.

NBD074:  9m @ 12.6g/t Au from 200.8m, 10.9m @ 29.3g/t Au from 237m and 4m @
22.1g/t Au from 255m.

NBD085:  5m @ 19.3g/t Au from 39m, 2m @ 40.1g/t Au from 204m and 6m @ 13.8g/t
Au from 333m.

The results received continue to show that mineralisation extends deeper than
previously interpreted.

Figure - Nyabirama drill plan showing location of section 8350mE (below) and
planned Nyabirama West holes

[For picture see www.africanbarrickgold.com]

Figure - Nyabirama Deeps cross section 8,350mE (looking mine west) showing
recent drill results from infill drilling

[For picture see www.africanbarrickgold.com]

TULAWAKA

East Zone Underground Extensions

A total of 73 underground diamond core holes for 9,251 metres were drilled
during H1 2012 from four drill platforms located at Levels 11E (Zone 550), 9E
(Zone 250), 10 DD1 and 10 Access (Zone 150) to test the Tulawaka East Zone
underground extensions between Level 11 and Level 20 (160m to 400m below the
completed pit floor).

As a result, we were able to fully replace reserves mined in the first half of
2012 and thereby have been able to extend the life of the mine into 2013.
Diamond drilling continues to test depth, plunge and strike extensions of the
mineralised lodes between Levels 10 and 12, below current reserves in the East
Zone and we remain confident in further extending the mine life.

The majority of the holes drilled during the period returned patchy grades
which confirm the pinch and swell (boudinage) nature of the Tulawaka orebody.
During the early part of the year, three of the holes drilled through Zone 550E
returned promising high grades with visible gold in core between levels 11 and
12. This re-emphasises the potential of high grade mineralisation at depth,
within the 550 Zone even though holes around them did not show the same
concentration of mineralisation.

Significant intersections made during the period include the following:

TUGD00427: 1.1m @ 9.8g/t Au.

TUGD00430: 2.2m @ 13.7g/t Au.

TUGD00437: 1.6m @ 120.0/t Au and 2m @ 34.8g/t Au.

TUGD00443: 0.9m @ 680.0g/t Au.

TUGD00470: 0.6m @ 11.5g/t Au.

TUGD00474: 3.5m @ 13.5g/t Au.

TUGD00511: 1.0m @ 12.0g/t Au.

Figure - Tulawaka long section showing reserve outline, planned drill
programmes and recent assay results

[For picture see www.africanbarrickgold.com]

Though results received to date consist of narrow intercepts, they are
significant in that they confirm the predicted continuity (at depth) of the
orebody, within zones 150 and 250. The intersection of 1.0m @ 12.0g/t Au from
TUGD00511 is around Level 19 (850m RL) in zone 150. This, and the fact that
historically, close spaced sampling has realised more ounces than the reserve
estimates, provides a good indication of the resource potential at depth.

BULYANHULU

Bulyanhulu Upper East

During the first half of 2012, rehabilitation and dewatering work was completed
on the decline to the Upper East Zone. The planned eleven geotechnical and
metallurgical test holes were completed with associated test work on the drill
core underway. Work on detailed execution design and execution procedures has
been completed in advance of the commencement of the test stope which is
scheduled to take place in Q3 2012. In order to manage the test stope with
sufficient expertise, additional experienced mining personnel have been
contracted to undertake the initial mining and training of the Bulyanhulu
staff. Following completion of the test stope, Board approval will be sought to
commence development of the zone.

In conjunction with the Reef 1 Upper East Zone feasibility work, we have also
been completing drilling to test the Upper East Zone on Reef 2. During H1 2012,
52 reverse circulation (RC) holes were drilled for 4,847 metres targeting gold
mineralisation at up to150 metres below surface. This relatively shallow RC
drilling intersected gold mineralisation that is consistent with Reef 2 style
mineralisation over a strike length of approximately 500 metres. At the end of
June 2012 we commenced infill definition drilling on the Reef 2 Upper East Zone
between 150m and 600m (vertically below surface) to allow investigation of the
potential to access Upper East Zone Reef 2 mineralisation in conjunction with
Reef 1. We anticipate completion of the infill definition drill programme
during Q3 2012. Selected results from the shallow RC drilling programme
include:

BGMRC0147:  4m @ 4.3g/t Au from 72m including 1m @ 12.7g/t Au from 97m.

BGMRC0148:  3m @ 4.9g/t from 106m including 1m @ 11.6g/t Au from 106m.

BGMRC0150:  5m @ 6.8g/t Au from 97m including 2m @ 14.7g/t Au from 97m.

BGMRC0151:  7m @ 3.1g/t Au from 110m.

BGMRC0157:  5m @ 8.8g/t Au from 86m including 3m @ 14.1g/t Au from 86m.

Figure - Bulyanhulu collar location plan and significant results for shallow
reverse circulation drilling programme

[For picture see www.africanbarrickgold.com]

Bulyanhulu CIL Circuit Expansion

As announced in May 2012, we received Board approval to progress with the
construction of the expansion of the new CIL circuit. The project will add
production in excess of 40Koz Au per annum for the first six years of the
project from H1 2014 at a lower cost than the existing underground operations,
and further incremental production for the remainder of the life of mine. The
pre-production capital costs of US$167 million for the project will be split
approximately 30% in 2012 and 70% in 2013 and we continue to assess funding
options. We have selected a company to execute the project based on an EPC
contract and expect to complete contract negotiations in Q3 2012. Parallel to
the detailed design, early works related to site preparation and infrastructure
for the construction activities are ongoing.

Golden Ridge

We continue to evaluate the various scenarios for developing the resource at
Golden Ridge, including processing the ore at Bulyanhulu. Based on the outcomes
from the value engineering programme in 2011 and as a part of the revised
feasibility study, we are undertaking further geo-metallurgical test work,
which is 50% complete. The work programme is expected to be completed by the
end of H2 2012. In parallel to the technical work, conceptual work continues to
assess environmental and social requirements for the project.

GREENFIELD PROJECTS

Nyanzaga Project

At the Nyanzaga Project, an initial in-pit resource of 4.1Moz Au, consisting of
3.5Moz at 1.47g/t Au Indicated and 0.6Moz at 2.05g/t Au Inferred was released
in January 2012. This represented a fourfold increase on the previously
declared resource of 0.3Moz Indicated and 0.6Moz Inferred. Subsequently, in
April 2012, we announced the resource had increased by a further 0.5Moz,
through the inclusion of Kilimani near surface mineralisation and additional
material at depth, and is now in excess of 4.6Moz Au, consisting of 3.75Moz at
1.42g/t Au Indicated and 0.85Moz at 1.81g/t Au Inferred. The updated modelling
now confirms the opportunity to exploit the Tusker and Kilimani mineralised
zones in a single open pit. The project is expected to move into the
pre-feasibility study stage in H2 2012.

During the first half of 2012 the main focus on the project was to complete
geotechnical, metallurgical and hydrological drilling, sampling and technical
studies to assist with modelling of the Nyanzaga ore body and open pit
scenarios. A total of 26 reverse circulation and diamond core holes were
drilled for 8,802 metres, and all drilling and sampling programmes were
completed on schedule, with the technical review of data ongoing at the end of
June. Preliminary geotechnical studies are complete and were positive
indicating the average pit wall angles can be steepened which will result in a
reduction in the strip ratio. Likewise, metallurgical testwork is in line with
expectations, indicating recoveries in oxidised and transitional material of
greater than 94% and in fresh rock between 86% and 92% with standard CIL
processing, and as results are received they are being fed into the
geometallurgical model.

At Kilimani, two hydrological holes as part of the scoping study work returned
significant results from shallow depths including intersections of:

NYZRCDDHY0006: 2m @ 22.8g/t Au from 23m.

NYZRCDDHY0011: 24m @ 1.3g/t Au from 4m.

In addition to the resource upgrade and ongoing drilling for the technical
studies, we continued to receive encouraging assay results for infill and
step-out drilling during H1 2012 that show excellent continuity when compared
to the broader spaced drilling. A total of 50 reverse circulation and diamond
core holes were drilled, totalling 13,931 metres during the first half of 2012.
Results from H1 2012 include intersections of:

NYZRCDD0506: 307m @ 1.6g/t Au from 218m, including 3m @ 64.7g/t Au from 441m.

NYZRCDD0509: 345m @ 1.5g/t Au from 329m, including 16m @ 5.4g/t Au from 532m.

NYZRCDD0510: 150m @ 2.7g/t Au from 262m, including 13m @ 20.2g/t Au from 392m
and 135m @ 2.6g/t Au from 448m, including 14m @ 9.3g/t Au from 459m.

NYZRCDD0512: 244m @ 1.3g/t Au from 244m and 159m at 2.1g/t Au from 515m,
including 9m at 9.0g/t Au from 524m.

NYZRCDD0514: 102m @ 1.8g/t Au from 343m, including 10m @ 4.0g/t Au from 358m.

Additionally, at the Kilimani prospect, infill drilling continued to confirm
the width, grade and tenor of gold mineralisation within the near-surface zone
from the historical broader-spaced drilling. During H1 2012, drill testing of
extensions to the Kilimani Zone in the southeast, outside of the current
resource area, identified near-surface gold mineralisation, including selected
results:

NYZRC0558: 2m @ 1.9g/t Au from 148m.

NYZRC0559: 9m @ 1.2g/t Au from 73m.

NYZRC0560: 27m @ 1.9g/t Au from 10m.

The principal objectives of the ongoing exploration drill programmes are to
expand the global resource through delineating strike and down-dip extensions
to the Tusker and Kilimani mineralised zones, as well as identifying new zones
of gold mineralisation adjacent to the current resource area and potential
satellite deposits within 15km of the Nyanzaga resource. Regional exploration
work is focused on the Kasubuya property approximately 12-15km southwest of,
and contiguous with, the Nyanzaga property. The current programmes at Kasubuya
are mapping and rock chip sampling of several multi-kilometre gold anomalies
associated with sulphidised banded iron formations, with the aim of advancing
the highest priority targets to drill testing stage during the second half of
2012.  

Figure - Nyanzaga (Tusker and Kilimani Zones) drill location plan with the
recent 2011 and 2012 holes shown separately

[For picture see www.africanbarrickgold.com]

Figure - Nyanzaga section 2320mN

[For picture see www.africanbarrickgold.com]

Dett

The Dett prospect lies in the western part of the Mara-Musoma Greenstone Belt
and is located approximately 65 kilometres north east of North Mara gold mine.
During the first half of 2012, a desktop analysis has continued ahead of the
planned drill programme in the third quarter which will target further
validating and extending the higher grade gold zones and investigating the
potential of delineating a large, in excess of 1.0 - 1.5g/t Au, mineable
resource.

Financial Update

The following review provides an analysis of our consolidated results for the
six months ended 30 June 2012 and the main factors affecting financial
performance. It should be read in conjunction with the financial statements and
accompanying notes on pages 34 to 48, which have been prepared in accordance
with International Financial Reporting Standards as adopted for use in the
European Union ("IFRS").

Revenue

Revenue for the six months of US$534.5 million was 8% lower than the prior year
period of US$578.4 million. The decrease in group gold sales volume of 58,822
ounces was the primary reason for lower revenue and resulted mainly from the
lower production base, as well as the higher number of on hand ounces sold in
2011. The lower volume impact was partially offset by the increase in the
average realised gold price to US$1,642 per ounce in the first half of 2012
compared to US$1,461 in 2011. Gold revenue amounted to US$510.0 million
compared to US$539.5 million in 2011.

Co-product revenue is included in total revenue and amounted to US$24.5 million
for the first half of the year, a decrease of 37% from the prior year of
US$38.9 million. The decrease was primarily driven by reduced copper volumes
sold due to a lower production base at Buzwagi and lower grades at Bulyanhulu.
Also, negative price variances due to global economic factors resulted in a
decrease in the H1 2012 average realised copper price of US$3.53 per pound
compared to the prior year of US$4.20.

Cost of sales

Cost of sales was US$387.0 million for the six months ended 30 June 2012,
representing an increase of 12% from the prior year period of US$344.6 million.
The key aspects that impacted cost of sales during the year were:

-   higher energy costs due to increased fuel usage, driven by the requirement
to self generate power as well as higher volumes milled, in combination with a
high oil price environment during the first half of the year and increased
Tanesco (the national Tanzanian electricity supplier) power tariffs;

-   the higher inflationary environment that increased the cost of both
international and national labour, the higher cost of renewing contractor
services and significant increases in commodity inputs for key operating
consumables which was partially offset by lower milling and mining activity
levels compared to plan; and

-   increased maintenance costs due to the change to an ownership model from a
maintenance and repair contractors ("MARC") model at North Mara where these
costs were previously reflected in contracted services, increased plant
maintenance at North Mara, Bulyanhulu plant efficiency focus, the focus on
addressing mining equipment availability and plant downtime concerns at
Buzwagi, and the effect of power disruptions resulting in plant equipment
failure due to wear.

Cost of sales for H1 2012 was negatively impacted by a reduction in capitalised
waste stripping costs due to constrained mining resulting in lower strip ratios
compared to plan.

Royalties included in revenue related costs increased on the prior year despite
significantly lower sales volumes driven by the increase in the government
royalty (from 3% to 4%) from May 2012 and higher realised prices. This was
partially offset by lower third party smelting fees. Depreciation and
amortisation was US$70.5 million for the first half of the year representing an
increase of 11% from the prior year period (US$63.4 million). This increase was
driven by a higher capital investment base employed and depreciated in 2012
partially offset by a lower production base.

The table below provides a breakdown of cost of sales:

                                          Three months ended    Six months ended  
(US$'000)                                       30 June              30 June      
                                                                                  
(Unaudited)                                    2012      2011       2012      2011
                                                                                  
Cost of Sales                                                                     
                                                                                  
Direct mining costs                         149,196   128,870    287,423   252,144
                                                                                  
Third party smelting and refining fees        5,729     6,014      9,663    11,266
                                                                                  
Royalty expense                              10,329     9,614     19,423    17,875
                                                                                  
Depreciation and amortisation                35,905    31,989     70,472    63,354
                                                                                  
Total                                       201,159   176,487    386,981   344,639
                                                                                  

The consolidated direct mining expenses totalled US$287.4 million for the six
month period. This represents an increase of 14% from the prior year of
US$252.1 million. The key reasons for the increase can be attributed to an
overall increase in the operating costs of operations. A detailed breakdown of
direct mining expenses is shown in the table below.

                                         Three months                              
                             ended                                 Six months ended
                                                  30 June                 30 June  
                                                                                   
(US$'000)                              2012           2011         2012        2011
                                                                                   
Direct mining costs                                                                
                                                                                   
Labour                               41,939         41,625       87,764      81,992
                                                                                   
Energy and fuel                      33,843         24,942       67,975      47,494
                                                                                   
Consumables                          25,829         21,535       51,848      46,037
                                                                                   
Maintenance                          23,498         17,334       49,512      35,602
                                                                                   
Contracted services                  22,483         23,563       41,785      50,058
                                                                                   
General administration costs         21,413         19,632       44,291      34,078
                                                                                   
Capitalised mining costs           (19,809)       (19,761)     (55,752)    (43,117)
                                                                                   
Total direct mining costs           149,196        128,870      287,423     252,144
                                                                                   

Individual cost components comprised:

Labour costs were 7% higher than the first half of 2011 driven predominantly by
inflationary increases passed on through the Q4 2011 annual salary increase
process and increased headcount.

Energy and diesel fuel expenses account for all electricity, diesel fuel and
oil/lubricant expenditures. The 43% increase over the first half of 2011
reflects mainly the utilisation of diesel spinning and back-up generated power
in order to ensure stable and consistent power supply because of the
difficulties in sourcing from the national power grid at Buzwagi in combination
with a high oil price environment. Furthermore, Bulyanhulu showed an increase
driven by a combination of higher Tanesco tariffs and the requirement to self
generate. The cost per barrel of Brent crude oil, the key input of diesel,
remained fairly in line at an average of US$111/bbl in H1 2011 to US$114/bbl in
H1 2012.

Consumable costs increased 13% mainly due to a combination of inflationary
pressure and the increased usage of in-process reagents to maintain recoveries
throughout our operations. At Buzwagi, a large proportion of talc minerals were
processed requiring additional reagents to maintain recovery levels and prevent
recovery losses. Processing of coarser crushed material also increased the
usage of grinding media.

Maintenance costs rose 39% primarily due to the change to an ownership model at
North Mara, increased plant maintenance at North Mara, Bulyanhulu plant
efficiency focus, the focus on addressing mining equipment availability and
plant downtime at Buzwagi, and the effect of power disruptions resulting in
plant equipment failure due to wear.

Contracted services decreased 17%, mainly as a result of decreased MARC costs
at North Mara and lower drilling costs at North Mara and Buzwagi due to
decreased drilling activity.

General and administrative costs increased by 30%, mainly driven by increased
warehousing and logistics costs associated with increased inventory level
requirements and freight increases; increased camp costs due to increased
headcount and inflationary increases from contractors; increased aviation costs
driven by the use of charters; and increased general site maintenance.

Capitalised direct mining costs were 29% higher than H1 2011 and can be split
primarily between the change in gold inventory and capitalised underground and
waste stripping cost. Capitalised underground and waste stripping amounted to
US$42.6 million in H1 2012 compared to US$40.6 million in H1 2011. Capitalised
waste stripping at North Mara was lower due to a lower strip ratio (strip ratio
of 9.1 for H1 2012 compared to 12.1 for H1 2011) which was partially offset by
increased stripping at Buzwagi. Capitalised underground development at
Bulyanhulu increased due to higher direct mining costs and an increase in the
capitalisation ratio.

For the first six months of 2012, US$11.2 million was capitalised to gold
inventory primarily driven by Buzwagi ore capitalisation as a result of mined
tonnes exceeding processed tonnes in combination with a higher average costing
allocation caused by the increased cost profile. This was in part offset by the
absorption of finished gold on hand sold in excess of production and North Mara
lower grade ore stockpiles processed to supplement limited ore mined. In the
first half of 2011, 11,141 ounces of finished gold ounces on hand were sold in
excess of production resulting in a net capitalisation of US$0.5 million.   

Corporate administration costs

Corporate administration expenses totalled US$25.6 million for the six months
ended 30 June 2012. This equated to a 25% increase from the prior year period
of US$20.5 million. Corporate administration costs comprise the expenses
associated with maintaining the corporate company functions located in the Dar
es Salaam, Johannesburg and London offices. Costs include salaries, office
rent, consulting, legal, audit fees and investor relations expenses. The
increase is attributable to a one time adjustment in 2011 that reduced costs
relating to an employee share based payment scheme due to forfeitures and the
inclusion of US$2.6 million for continuous improvement projects in H1 2012.

In general, inflationary pressures and increased headcount have been offset by
the positive impact of a weakened rand at the Johannesburg office.

Exploration and evaluation costs

Exploration and evaluation costs are incurred to advance the exploration at our
greenfield projects and also includes exploration overheads and technical
evaluation costs.  For H1 2012, US$10.4 million was incurred, 35% lower than
the US$16.1 million spent in H1 2011. The increased expenditure in the first
six months of 2011 was due to attention being focused on the Nyanzaga project
which resulted in a fourfold increase of the in-pit resource in January 2012
with a further increase announced during the first quarter of the current year.
We continue to advance exploration drilling at Nyanzaga while capitalising
costs associated with the existing scoping study in respect of the existing
resource.

Where it is probable that resources at adjacent reserve areas will be converted
into reserves, the expenditure is capitalised prospectively. During the first
six months of 2012, an amount of US$9.5 million of exploration costs was
capitalised compared to US$8.4 million in the corresponding period in 2011.
Capitalised costs predominantly relate to the Gokona and Nyabirama underground
drilling projects at North Mara and geotechnical, metallurgical and
hydrological drilling as part of the scoping study at Nyanzaga.

Corporate social responsibility expenses

Corporate social responsibility expenses incurred amounted to US$6.8 million
for the year compared to the prior year of US$1.4 million. The increase has
been driven by larger contributions to general community projects funded from
the ABG Maendeleo Fund (which was launched in September 2011) and general site
projects and overheads.

Other charges

Other charges amounted to US$4.3 million for the period, 70% down from the H1
2011 amount of US$14.2 million. Other charges comprise mostly one-off costs and
include foreign exchange gains and losses, gains and losses on disposals,
unrealised gains and losses on derivative contracts, asset write downs and
certain provision movements. The main contributors to the net expense were: (i)
derivative losses of US$3.0 million (gain of US$2.2 million in 2011); (ii)
historical supply writedowns of US$1.7 million (US$0 million in 2011); (iii)
legal fees incurred of US$0.8 million (US$0 million in 2011); (iv) disallowed
indirect tax claims of US$0.4 million (US$3.2 million in 2011); and (v) bad
debt writedowns on supplier backcharge receivables of US$0.5 million (US$0
million in 2011). This was offset by net foreign exchange gains given the
strengthening of the Tanzanian shilling of US$2.3 million (loss of US$12.5
million in 2011) and the gain on disposal of property, plant and equipment of
US$2.3 million (US$0 million in 2011). 

Finance expense and income

The finance expense increased to US$4.7 million for the first half of the year,
compared to US$4.1 million in H1 2011. The key drivers were increased accretion
expenses relating to the discounting of the environmental rehabilitation
liability and interest payable on finance leases. This was offset by finance
charges of US$1.5 million (US$2.4 million in 2011) relating to the revolving
credit facility agreement which has been extended until 2014 resulting in a
lower monthly interest amortisation charge. Currently, ABG has no external
debt.

Finance income relates predominantly to interest charged on non-current
receivables and interest received on time deposits.

Taxation matters

The taxation expense decreased to US$31.3 million for the period, compared to
US$54.0 million in H1 2011. The H1 2012 expense consists of current corporate
tax of US$0.7 million and deferred tax of US$30.6 million. The decreased tax
expense was driven by lower profits before tax, predominantly due to lower
revenue and increased costs. The effective tax rate in H1 2012 increased to 32%
from 30% in H1 2011, and is mainly driven by tax losses on which deferred tax
assets are not recognised.

Consistent with the terms of the Memorandum of Settlement which allows ABG to
offset income tax payable against outstanding refunds for VAT and fuel levies,
the corporate tax liability relating to Tulawaka of US$0.6 million was offset
against amounts owed to ABG, leaving a net discounted receivable of US$77.2
million as part of the settlement.

Net profit for the period

As a result of the factors discussed above, net profit for the six months ended
30 June 2012 was US$65.5 million. This represents a decrease of 47% from the
prior year period (US$124.2 million). The key driver was decreased revenue as a
result of lower sales ounces partially offset by an increase in realised gold
prices. This was further impacted by increases in our cost base, increased
corporate administration and corporate social responsibility expenses, in part
offset by decreased taxation due to the lower profit before tax, other charges
and exploration and evaluation costs.

Key financial performance indicators and reconciliations

Cash Costs

With respect to our cash costs per ounce sold for the year, we saw a 43%
increase from the comparable period in 2011 to US$938 per ounce sold from
US$655 per ounce sold. Refer to the current operations overview on page 2 and
cost of sales explanations as part of the financial review detailing the year
on year change.

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

                                          Three months ended    Six months ended  
(US$'000)                                       30 June              30 June      
                                                                                  
 (Unaudited)                                   2012      2011       2012      2011
                                                                                  
Total cost of sales                         201,159   176,487    386,981   344,639
                                                                                  
Deduct: depreciation and amortisation      (35,905)  (31,989)   (70,472)  (63,354)
                                                                                  
Deduct: co-product revenue                 (12,270)  (19,401)   (24,501)  (38,883)
                                                                                  
Total cash cost                             152,984   125,097    292,008   242,402
                                                                                  
Total ounces sold¹                          160,029   191,830    310,516   369,338
                                                                                  
Consolidated cash cost per ounce                956       652        940       656
                                                                                  
Equity ounce adjustment²                        (6)         0        (2)       (1)
                                                                                  
Attributable cash cost per ounce                950       652        938       655
                                                                                  

1Reflects 100% of ounces sold.

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

EBITDA

EBITDA for the six months ended 30 June 2012 decreased by 30% to US$170.9
million compared to the prior year period of US$244.9 million as a result of
the lower revenue base. Furthermore, cost of sales increased driven
predominantly by increased direct mining costs across all sites, as well as
increased royalty costs. Note that EBITDA includes the impact of other charges
totalling US$4.3 million which includes one-off expenditures. A reconciliation
between net profit for the period and EBITDA is presented below:

                                                         Three months ended           Six months ended
                                                                                                      
(US$000)                                                     30 June                       30 June    
                                                                                                      
 (Unaudited)                                      2012                 2011          2012         2011
                                                                                                      
Net profit for the period                       29,082               72,419        65,522      124,230
                                                                                                      
Plus: income tax expense                        14,829               33,862        31,335       54,031
                                                                                                      
Plus: depreciation and amortisation             35,905               31,989        70,472       63,354
                                                                                                      
Plus: finance expense                            2,378                2,239         4,689        4,121
                                                                                                      
Less: finance income                             (813)                (437)       (1,079)        (809)
                                                                                                      
EBITDA                                          81,381              140,072       170,939      244,927
                                                                                                      

Basic earnings per share

Earnings per share for the six months ended 30 June 2012 amounted to US15.9
cents, a decrease of 46% from the prior year period of US29.3 cents. The
decrease was driven by lower net profit for the period and there was no change
in the underlying issued shares.

Cash flow

                                            Three months ended        Six months      
                                                                                      
(US'$000)                                          30 June              30 June       
                                                                                      
(Unaudited)                                   2012        2011         2012       2011
                                                                                      
Cash flow from operating activities         54,783      99,450      110,309    186,134
                                                                                      
Cash used in investing activities         (77,022)    (63,800)    (131,093)  (116,108)
                                                                                      
Cash used in financing activities         (56,273)    (13,770)     (60,767)   (15,205)
                                                                                      
(Decrease)/Increase in cash               (78,512)      21,880     (81,551)     54,821
                                                                                      
Foreign exchange difference on cash          1,170       (620)        1,064      (756)
                                                                                      
Opening cash balance                       581,009     433,817      584,154    401,012
                                                                                      
Closing cash balance                       503,667     455,077      503,667    455,077
                                                                                      

Cash flow from operating activities was US$110.3 million for the six months
ended 30 June 2012, a decrease of US$75.8 million. The decrease primarily
related to decreased EBITDA of US$74.0 million. Net working capital movements
remained similar to the comparative period and the US$63.0 million outflow
related to: increased investment in supplies inventory of US$38.5 million given
mining constraints, plant downtime and increased general maintenance supplies
given breakdowns; an increase in ore inventory of US$12.2 million which was
primarily driven by higher mining costs; and a decrease in trade and other
payables of US$9.9 million mainly due to timing differences in payments. This
was offset by a reduction in trade receivables (US$6.4 million).

Cash flow used in investing activities was US$131.1 million for the six months
ended 30 June 2012, an increase of 13% from the prior year of US$116.1 million.
Total cash capital expenditure for the year of US$118.7 million remained in
line with the prior year figure of US$117.1 million.

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

                                                           Six months ended   
                                                                              
                                                                30 June       
                                                                              
(US$'000)                                                                     
                                                                              
(Unaudited)                                          2012                 2011
                                                                              
Sustaining capital                                 65,510               57,428
                                                                              
Expansionary capital                               10,639               19,035
                                                                              
Capitalised development1                           42,600               40,608
                                                                              
Total cash capital                                118,749              117,071
                                                                              
Rehabilitation asset adjustment                     4,534                1,595
                                                                              
Non-cash sustaining capital2                        1,623                    -
                                                                              
Total capital expenditure                         124,906              118,666
                                                                              
Other investing capital                                                       
                                                                              
 Non-current asset movement3                       15,083                  643
                                                                              

1 The prior year capital expenditure breakdown has been restated to separately
reflect capitalised development.

2 Total non-cash sustaining capital relates to the capital finance lease at
Buzwagi for the drill rigs.

3 Non-current asset movement relates to the investment in land acquisitions
reflected as prepaid operating leases; village housing project; and other
items.

Sustaining capital

Sustaining capital expenditure includes investment in the mining equipment
fleet at Buzwagi (US$8.9 million), Bulyanhulu (US$4.5 million) and North Mara
(US$2.7 million); investment in continuous improvement systems relating to
North Mara, Buzwagi and Bulyanhulu (US$7.4 million); process plant investments
at Buzwagi (US$7.9 million) and Bulyanhulu (US$1.2 million); the water
treatment plant at North Mara (US$1.6 million); and investment in
infrastructure across all sites (US$11.6 million).

Expansionary capital

Expansionary capital expenditure includes capitalised exploration drilling at
North Mara (US$4.6 million) and Tulawaka (US$1.9 million); investment in the
Tulawaka underground Eastern portal extension (US$1.9 million) and the process
plant expansion and redesign project at Bulyanhulu (US$0.9 million).

Capitalised development

Capitalised development include capitalised waste stripping at North Mara
(US$8.2 million) and Buzwagi (US$8.7 million); and capitalised underground
development expenditure at Bulyanhulu (US$22.1 million) and Tulawaka (US$3.6
million).

Non-cash capital

Non-cash capital for the period relates to the rehabilitation asset adjustment
reflecting the impact of the change in discount rates relating to the estimated
future reclamation liability across all sites (US$4.5 million) and investment
in drill rigs under a finance lease at Buzwagi (US$1.6 million).

Other investing capital

Other investing capital for the period includes US$13.4 million relating to
land purchases at North Mara which is included in long term prepayments.

Cash used in financing activities

Cash used in financing activities for the six months ended 30 June 2012 of
US$60.8 million increased from the prior year of US$15.2 million. The 2011
final dividend totalled US$53.7 million and was paid during the period. Finance
lease instalments amounted to US$3.7 million and distributions to
non-controlling interests amounted to US$3.3 million.

Financial Position

At 30 June 2012, ABG had cash and cash equivalents of US$503.7 million
(US$584.2 million at 31 December 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. The maximum allowable term of maturity for any
individual security is 12 months. Investment counterparties must have a credit
rating of at least Baa2 or better by Moody's Investor Services or BBB by
Standard and Poor's. No more than 25% of the aggregate market value of the
investment portfolio is maintained in any one country, with the exception of
the United States of America, United Kingdom and Barbados, or in any one
industry group. Investments are held mainly in United States dollars and cash
and cash equivalents in other foreign currencies are maintained for operational
requirements.

Debt remained at zero, as in 2011. The revolving credit facility of US$150
million remains in place. The facility has been provided to service the general
corporate needs of the Group and to fund potential acquisitions. All provisions
contained in the credit facility documentation have been negotiated on normal
commercial and customary terms for such finance arrangements. The term of the
facility has been extended to 2014 and when drawn, the spread over LIBOR will
be 350 basis points. At 30 June 2012, none of the funds were drawn under the
facility.

Goodwill and intangible assets remained in line with levels as at 31 December
2011.

The net book value of property, plant and equipment increased from US$1.8
billion at the end of 2011 to US$1.9 billion in H1 2012. The main capital
expenditure drivers have been explained in the cash flow used in investing
activities section above, and have been offset by depreciation charges of
US$75.2 million.

Total indirect tax receivables, net of a discount provision applied to the
non-current portion, increased from US$85.3 million at the end of 2011 to
US$87.4 million in 2012. The increase was mainly due to indirect taxes incurred
in the normal course of business, and was impacted by the offset of corporate
tax payable at Tulawaka of US$0.6 million for the six month period.

The net deferred tax position increased from a net deferred tax liability of
US$94.0 million at the end of 2011 to a net deferred tax liability of US$124.6
million in H1 2012. This was driven by the taxable income generated during the
first half of 2012.

Net assets attributable to owners of the parent remained in line at US$2.8
billion when compared to 31 December 2011. Profits attributable to owners of
the parent of US$65.2 million was offset by the payment of the final 2011
dividend of US$53.7 million to shareholders in May 2012.

Dividend

An interim dividend of US4.0 cents per share has been declared and will be paid
to shareholders on 24 September 2012 (refer page 3).

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

The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the year ended 31
December 2011, with the exception of changes in estimates that are required in
determining the provision for income taxes (see Note 4 of the financial
statements).

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:

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
social development costs. 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. Refer to page 25 as
part of the financial review section 10 for a reconciliation of cost of sales
to cash costs.

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

Goodwill impairment charges.

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. Refer to page 25 as part of the financial review
section 10 for a reconciliation of net profit to EBITDA.

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

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

Cash cost per tonne milled is a non-IFRS financial measure. Cash costs include
all costs absorbed into inventory, as well as royalties, by-product credits,
and production taxes, and exclude capitalised production stripping costs,
inventory purchase accounting adjustments, unrealised gains/losses from
non-hedge currency and commodity contracts, depreciation and amortisation and
social development costs. 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 margin is the average
realised gold price per ounce sold 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.

Cash operating cost per ounce - measures the total direct cash cost
attributable to producing an ounce. It reflects cash costs adjusted to exclude
royalties on an ounce basis.

Principal Risks and Uncertainties

There are a number of potential risks and uncertainties which could have a
material impact on the ABG Group's performance over the remaining six months of
the financial year and could cause actual results to differ materially from
expected and historical results. The Directors do not consider that the
principal risks and uncertainties have changed significantly since the
publication of the annual report for the year ended 31 December 2011. As such
these risks continue to apply to the Group for the remaining six months of the
financial year.

The principal risks and uncertainties disclosed in the 2011 annual report were
categorised as:

- Single country risk: In order to ensure continued growth, we need to identify
new resources and development opportunities through exploration and acquisition
targets outside of Tanzania.

- Reserves and resources estimates: Our stated mineral reserves and resources
are estimates based on a range of assumptions, including geological,
metallurgical and technical factors; there can be no assurance that the
anticipated tonnages or grades will be achieved.

- Commodity prices: Our financial performance is highly dependent upon the
price of gold and, to a lesser extent, the price of copper and silver. The
prices of these commodities are affected by a number of factors beyond our
control. Rapid fluctuations in pricing of these commodities will have a
corresponding impact on our financial position.

- Cost and capital expenditure: We operate a cyclical business where
fluctuations in operating cash flow and capital expenditure may adversely
affect our financial position. In addition, industry cost pressures, notably as
regards labour, capital equipment and energy may affect our cash flow and
capital expenditure.

- Political, legal and regulatory developments: Changes to existing law and
regulations in jurisdictions where we operate, or more stringent application or
interpretation of current laws and regulations by relevant government
authorities, could adversely affect our operations and development projects. In
particular, our operations and financial condition may be adversely affected by
legal and regulatory changes and developments in Tanzania, or if our mineral
development agreements (MDAs) are not honoured by the Tanzanian government. We
may also be adversely affected by changes in global economic conditions,
political and/or economic instability in Tanzania or any of its surrounding
countries.

- Taxation reviews: Our financial condition may be adversely affected in the
event of the introduction of revised royalty or corporate tax regimes in
Tanzania that go beyond agreements contained in our MDAs. Our financial
condition may also be adversely affected if we are unsuccessful in our current
appeals and/or discussions with the TRA regarding outstanding tax assessments
and unresolved tax disputes.

- Utilities supply:  Power stoppages, fluctuations and disruptions in
electrical power supply or other utilities could adversely affect our
operations and financial condition. In addition, increases in power costs would
make production more costly and alternative power sources may not be available.

- Community relations: A failure to adequately engage or manage relations with
local communities and stakeholders could have a direct impact on our ability to
operate.

- Variations to production and cost estimates:  Our actual production and costs
may vary from estimates of future production, cash costs and capital costs for
a variety of reasons, including actual ore mined varying from estimates of
grade, tonnage, dilution and metallurgical and other characteristics;
short-term operating factors relating to ore reserves; revisions to mine plans;
risks and hazards associated with mining; natural phenomena; unexpected labour
shortages or strikes; delays in permitting and licensing processes; and the
timely completion of expansion projects, including land acquisitions required
for the expansion of our operations from time to time.  Costs of production may
also be affected by a variety of factors, including: changing waste-to-ore
ratios; ore grade metallurgy; labour costs; the cost of commodities; general
inflationary pressures; and currency exchange rates. Failure to achieve
production or cost estimates or material increases in costs could have an
adverse impact on our future business, cash flows, profitability, results of
operations and financial condition.

- Loss of critical processes: Our mining, processing, development and
exploration activities depend on the continuous availability of our operational
infrastructure, in addition to reliable utilities and water supplies and access
to roads. Any failure or unavailability of operational infrastructure, for
example through equipment failure or disruption, could adversely affect
production output and/or impact exploration and development activities.
Deficiencies in core supply chain availability could also adversely affect our
operations.

- Environmental hazards and rehabilitation: Our activities are subject to
environmental hazards as a result of processes and chemicals used in extraction
and production methods and we may be liable for losses and costs associated
with environmental hazards at our operations. We may also have our licences and
permits withdrawn or suspended as a result of such hazards, or may be forced to
undertake extensive clean-up and remediation action. Any such action could have
a material adverse effect on our business, operations and financial condition.

- Employees, contractors and industrial relations: Our business significantly
depends upon our ability to recruit and retain qualified personnel, the loss of
which may negatively impact our ability to operate. Our business also depends
on good relations generally with our employees and employee representative
groups, such as trade unions. A breakdown in these relations could result in a
decrease in production levels and/or increased costs, which in turn could have
a material adverse effect on our business. In addition to employees, ABG
depends on certain key contractors. Interruptions in contracted services could
result in production slowdowns and/or stoppages.

- Security, trespass and vandalism:  We face certain risks in dealing with
trespass, theft, corruption and vandalism at our mines and unauthorised
small-scale mining in proximity to and on specific areas covered by our
exploration and mining licences may have an adverse effect upon our operations
and financial condition.

- Health and safety, infectious diseases: A wide range of occupational health
diseases, such as noise-induced hearing loss and lung diseases, pose a risk to
our workforce. In addition, tropical and infectious diseases, such as malaria
and HIV/AIDS, pose significant health risks to our employees, due to the
epidemic proportions that such diseases may have in areas in which we operate.
The potential liabilities related to such diseases and the impact that these
diseases may have on our workforce may have an adverse effect on our operations
and financial condition.

Further information regarding these risks and uncertainties can be found on
pages 74 to 77 of the 2011 Annual Report which is available at
www.africanbarrickgold.com.

Statement of Directors' Responsibility

The Directors confirm that, to the best of their knowledge, the condensed
consolidated interim financial information has been prepared in accordance with
IAS 34 as adopted by the European Union. The half-year management report
includes a fair review of the information required by Disclosure and
Transparency Rule 4.2.7R and Disclosure and Transparency Rule 4.2.8R, namely:

§ an indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed consolidated
interim financial information, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and

§ material related-party transactions in the first six months of the financial
year and any material changes in the related party  transactions described in
the last Annual Report.

A list of current Directors is maintained on the African Barrick Gold plc Group
website: www.africanbarrickgold.com.

By order of the Board

Greg Hawkins            Kevin Jennings         
                                               
Chief Executive Officer Chief Financial Officer
                                               

23 July 2012

Auditor's Review Report

             Independent review report to African Barrick Gold plc             

Introduction

We have been engaged by the company to review the condensed consolidated
interim financial information in the half-yearly financial report for the six
months ended 30 June 2012, which comprises the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet,
Consolidated Statement of Changes in Equity, Consolidated Statement of Cash
Flows and related notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
consolidated interim financial information.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed consolidated interim financial information included in this
half-yearly financial report has been prepared in accordance with International
Accounting Standard 34, "Interim Financial Reporting", as adopted by the
European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed
consolidated interim financial information in the half-yearly financial report
based on our review. This report, including the conclusion, has been prepared
for and only for the company for the purpose of the Disclosure and Transparency
Rules of the Financial Services Authority and for no other purpose. We do not,
in producing this report, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated interim financial information in the
half-yearly financial report for the six months ended 30 June 2012 is not
prepared, in all material respects, in accordance with International Accounting
Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP

Chartered Accountants, London
23 July 2012

Notes:

The maintenance and integrity of the African Barrick Gold website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.

FINANCIAL STATEMENTS

Consolidated Income Statement

                                                                              For the 
                                                                               year   
                                                                               ended  
                                                       For the six months       31    
                                               Notes      ended 30 June      December 
                                                                                      
                                                     (Unaudited) (Unaudited) (Audited)
                                                                                      
(in thousands of United States dollars)                     2012        2011      2011
                                                                                      
                                                                                      
                                                                                      
Revenue                                                  534,467     578,387 1,217,915
                                                                                      
Cost of sales                                          (386,981)   (344,639) (704,114)
                                                                                      
Gross profit                                             147,486     233,748   513,801
                                                                                      
Corporate administration                                (25,609)    (20,525)  (50,505)
                                                                                      
Exploration and evaluation costs                        (10,385)    (16,078)  (30,339)
                                                                                      
Corporate social responsibility expenses                 (6,750)     (1,372)   (7,376)
                                                                                      
Other charges                                      6     (4,275)    (14,200)  (15,639)
                                                                                      
Profit before net finance expense and taxation           100,467     181,573   409,942
                                                                                      
                                                                                      
                                                                                      
Finance income                                     7       1,079         809     1,484
                                                                                      
Finance expense                                    7     (4,689)     (4,121)   (8,725)
                                                                                      
                                                         (3,610)     (3,312)   (7,241)
                                                                                      
Profit before taxation                                    96,857     178,261   402,701
                                                                                      
Tax expense                                        8    (31,335)    (54,031) (117,924)
                                                                                      
Net profit for the period                                 65,522     124,230   284,777
                                                                                      
Profit attributable to:                                                               
                                                                                      
 - Non-controlling interests                                 370       4,096     9,882
                                                                                      
 - Owners of the parent                                   65,152     120,134   274,895
                                                                                      

Earnings per share:                                                                  
                                                                                     
 - Basic earnings per share (cents)                            9   15.9   29.3   67.0
                                                                                     
 - Diluted earnings per share (cents)                          9   15.9   29.3   67.0
                                                                                     

Consolidated Statement of Comprehensive Income

                                                                        For the year  
                                              For the six months          ended 31    
                                                 ended 30 June            December    
                                                                                      
                                              (Unaudited) (Unaudited)    (Audited)    
                                                                                      
(in thousands of United States dollars)              2012        2011             2011
                                                                                      
                                                                                      
                                                                                      
Net profit for the period                          65,522     124,230          284,777
                                                                                      
Other comprehensive expenses for the period         (222)           -              -  
                                                                                      
Total comprehensive income for the period          65,300     124,230          284,777
                                                                                      
Attributed to:                                                                        
                                                                                      
 - Non-controlling interests                          370       4,096            9,882
                                                                                      
 - Owners of the parent                            64,930     120,134          274,895
                                                                                      

The notes on pages 38-48 form an integral part of this financial information.

Consolidated Balance Sheet

                                                            As at              As at    
                                            Notes          30 June          31 December 
                                                                                        
                                                  (Unaudited)  (Unaudited)   (Audited)  
                                                                                        
(in thousands of United States dollars)                   2012         2011         2011
                                                                                        
ASSETS                                                                                  
                                                                                        
Non-current assets                                                                      
                                                                                        
     Goodwill and intangible assets                    258,513      258,513      258,513
                                                                                        
     Property, plant and equipment             11    1,871,524    1,673,481    1,823,247
                                                                                        
     Deferred tax assets                                23,186       89,908       55,529
                                                                                        
     Non-current portion of inventory                   97,152       69,122       78,022
                                                                                        
     Derivative financial instruments                      254            -          213
                                                                                        
     Other assets                                      124,626      106,969      110,658
                                                                                        
                                                     2,375,255    2,197,993    2,326,182
                                                                                        
Current assets                                                                          
                                                                                        
     Inventories                                       352,218      274,966      316,947
                                                                                        
     Trade and other receivables                        23,443       59,242       29,858
                                                                                        
     Derivative financial instruments                    1,723            -        4,050

                                                                                        
     Other current assets                               38,276       62,697       33,271
                                                                                        
     Cash and cash equivalents                         503,667      455,077      584,154
                                                                                        
                                                       919,327      851,982      968,280
                                                                                        
Total assets                                         3,294,582    3,049,975    3,294,462
                                                                                        
                                                                                        
                                                                                        
EQUITY AND LIABILITIES                                                                  
                                                                                        
     Share capital and share premium                   929,199      929,199      929,199
                                                                                        
     Other reserves                                  1,844,017    1,689,745    1,832,032
                                                                                        
     Total owners' equity                            2,773,216    2,618,944    2,761,231
                                                                                        
     Non-controlling interests                          34,545       32,627       37,473
                                                                                        
Total equity                                         2,807,761    2,651,571    2,798,704
                                                                                        
                                                                                        
                                                                                        
Non-current liabilities                                                                 
                                                                                        
     Deferred tax liabilities                          147,800      158,606      149,544
                                                                                        
     Derivative financial instruments                      938          476           56
                                                                                        
     Provisions                                        164,172      112,592      157,582
                                                                                        
     Other non-current liabilities                      17,561        3,871       18,988
                                                                                        
                                                       330,471      275,545      326,170
                                                                                        
                                                                                        
                                                                                        
Current liabilities                                                                     
                                                                                        
     Trade and other payables                          150,340      115,730      161,916
                                                                                        
     Derivative financial instruments                      839          989           58
                                                                                        
     Provisions                                          1,042        4,000        1,034
                                                                                        
     Other current liabilities                           4,129        2,140        6,580
                                                                                        
                                                       156,350      122,859      169,588
                                                                                        
Total liabilities                                      486,821      398,404      495,758
                                                                                        
Total equity and liabilities                         3,294,582    3,049,975    3,294,462
                                                                                        

The notes on pages 38-48 form an integral part of this financial information

Consolidated Statement of Changes in Equity

                                                                   Contributed Cash           
                                                                   surplus/    flow    Stock  
                                                   Share   Share   Other       hedging option 
(in thousands of United States dollars)      Notes capital premium reserve     reserve reserve
                                                                                              
Balance at 31 December 2010 (Audited)               62,097 867,102   1,368,774       -     640
                                                                                              
Total comprehensive income for the period                -       -           -       -       -
                                                                                              
Conversion to contributed surplus                        -       -        (62)       -       -
                                                                                              
Dividends to equity holders of the Company               -       -           -       -       -
                                                                                              
Distributions from non-controlling interests             -       -           -       -       -
                                                                                              
Stock option grants                                      -       -           -       -     753
                                                                                              
Balance at 30 June 2011 (Unaudited)                 62,097 867,102   1,368,712       -   1,393
                                                                                              
Total comprehensive income for the period                -       -           -       -       -
                                                                                              
Conversion to contributed surplus                        -       -           1       -       -
                                                                                              
Dividends to equity holders of the Company               -       -           -       -       -
                                                                                              
Distributions from non-controlling interests             -       -           -       -       -
                                                                                              
Stock option grants                                      -       -           -       -     648
                                                                                              
Balance at 31 December 2011 (Audited)               62,097 867,102   1,368,713       -   2,041
                                                                                              
Total comprehensive income for the period                -       -           -   (222)       -
                                                                                              
Dividends to equity holders of the Company      10       -       -           -       -       -
                                                                                              
Distributions from non-controlling interests             -       -           -       -       -
                                                                                              
Stock option grants                                      -       -           -       -     776
                                                                                              
Balance at 30 June 2012 (Unaudited)                 62,097 867,102   1,368,713   (222)   2,817
                                                                                              

                                                              Total   Total non-           
                                                   Retained  owners'  controlling     Total
(in thousands of United States dollars)      Notes earnings  equity    interests    equity 
                                                                                           
Balance at 31 December 2010 (Audited)               214,711 2,513,324      29,761 2,543,085
                                                                                           
Total comprehensive income for the period           120,134   120,134       4,096   124,230
                                                                                           
Conversion to contributed surplus                         -      (62)           -      (62)
                                                                                           
Dividends to equity holders of the Company         (15,205)  (15,205)           -  (15,205)
                                                                                           
Distributions from non-controlling interests              -         -     (1,230)   (1,230)
                                                                                           
Stock option grants                                       -       753           -       753
                                                                                           
Balance at 30 June 2011 (Unaudited)                 319,640 2,618,944      32,627 2,651,571
                                                                                           
Total comprehensive income for the period           154,761   154,761       5,786   160,547
                                                                                           
Conversion to contributed surplus                         -         1           -         1
                                                                                           
Dividends to equity holders of the Company         (13,123)  (13,123)           -  (13,123)
                                                                                           
Distributions from non-controlling interests              -         -       (940)     (940)
                                                                                           
Stock option grants                                       -       648           -       648
                                                                                           
Balance at 31 December 2011 (Audited)               461,278 2,761,231      37,473 2,798,704
                                                                                           
Total comprehensive income for the period            65,152    64,930         370    65,300
                                                                                           
Dividends to equity holders of the Company      10 (53,721)  (53,721)           -  (53,721)
                                                                                           
Distributions from non-controlling interests              -         -     (3,298)   (3,298)
                                                                                           
Stock option grants                                       -       776           -       776
                                                                                           
Balance at 30 June 2012 (Unaudited)                 472,709 2,773,216      34,545 2,807,761
                                                                                           

The notes on pages 38-48 form an integral part of this financial information

Consolidated Statement of Cash Flows

                                                                                        For the 
                                                                                         year   
                                                                 For the six months      ended  
                                                                        ended             31    
                                                         Notes         30 June         December 
                                                                                                
                                                               (Unaudited) (Unaudited) (Audited)
                                                                                                
(in thousands of United States dollars)                               2012    2011       2011   
                                                                                                
Cash flows from operating activities                                                            
                                                                                                
Net profit for the period                                           65,522     124,230   284,777
                                                                                                
Adjustments for:                                                                                
                                                                                                
  Taxation                                                          31,335      54,031   117,924
                                                                                                
  Depreciation and amortisation                                     75,235      60,099   135,683
                                                                                                
  Finance items                                              7       3,610       3,312     7,241
                                                                                                
(Gain)/Loss on disposal of property, plant and equipment     6     (2,250)           -       179
                                                                                                
Working capital adjustments                                       (62,985)    (64,730)  (42,880)
                                                                                                
Other non-cash items                                                 1,397      10,961     (704)
                                                                                                
Cash generated from operations before interest and tax             111,864     187,903   502,220
                                                                                                
Finance income                                               7       1,079         809     1,484
                                                                                                
Finance expenses                                             7     (2,634)     (2,578)   (5,381)
                                                                                                
Income tax paid                                              8           -           -         -
                                                                                                
Net cash generated by operating activities                         110,309     186,134   498,323
                                                                                                
                                                                                                
                                                                                                
Cash flows from investing activities                                                            
                                                                                                
Purchase of property, plant and equipment                        (118,749)   (117,071) (273,207)
                                                                                                
Investments in other assets                                       (15,083)       (643)   (8,645)
                                                                                                
Other investing activities                                           2,739       1,606       320
                                                                                                
Net cash used in investing activities                            (131,093)   (116,108) (281,532)
                                                                                                
                                                                  (20,784)                      
                                                                                                
Cash flows from financing activities                                                            
                                                                                                
Dividends paid                                              10    (53,721)    (15,205)  (28,328)
                                                                                                
Distributions to non-controlling interest holders                  (3,298)           -   (2,170)
                                                                                                
Finance lease instalments                                          (3,748)           -   (2,184)
                                                                                                
Net cash used in financing activities                             (60,767)    (15,205)  (32,682)
                                                                                                
                                                                                                
                                                                                                
Net (decrease)/increase in cash and equivalents                   (81,551)      54,821   184,109
                                                                                                
Net foreign exchange difference                                      1,064       (756)     (967)
                                                                                                
Cash and cash equivalents at 1 January                             584,154     401,012   401,012
                                                                                                
Cash and cash equivalents at period end                            503,667     455,077   584,154
                                                                                                

The notes on pages 38-48 form an integral part of this financial information.

Notes to the Consolidated Interim Financial Information

GENERAL INFORMATION

African Barrick Gold plc (the "Company") is a public limited company, which is
listed on the London Stock Exchange and incorporated and domiciled in the UK.
The Company's shares are also listed on the official list of the Dar Es Salaam
Stock Exchange in Tanzania. It is registered in England and Wales with
registered number 7123187.  The address of its registered office is 6 St
James's Place, London, SW1A 2NP, United Kingdom.

Barrick Gold Corporation (''BGC'') currently owns 73.9% percent of the shares
of the company and is the ultimate controlling party of the Group.

This condensed consolidated interim financial information for the six months
ended 30 June 2012 were approved for issue by the Board of Directors of the
company on 20 July 2012. The condensed consolidated interim financial
information does not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year ended 31
December 2011 were approved by the board of directors on 7 March 2012 and
delivered to the Registrar of Companies. The report of the auditors' on those
accounts was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under section 498 of the Companies Act 2006. The
condensed consolidated interim financial information has been reviewed, not
audited.

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. 

BASIS OF PREPARATION OF the condensed annual financial statements

The condensed consolidated interim financial information for the six months
ended 30 June 2012 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS 34,
'Interim Financial Reporting' as adopted by the European Union. The condensed
consolidated interim financial information should be read in conjunction with
the annual financial statements for the year ended 31 December 2011, which have
been prepared in accordance with IFRS's as adopted by the European Union.

The condensed consolidated interim financial information has been prepared
under the historical cost basis, as modified by the revaluation of financial
assets and financial liabilities (including derivative instruments) at fair
value through profit or loss.

The financial information is presented in US dollars ($) and all monetary
results are rounded to the nearest thousand ($'000) except when otherwise
indicated.

Changes in the presentational format between the 2011 and 2010 annual reports
have been reflected in this interim financial information, with 30 June 2011
comparative figures being restated accordingly. This includes the following
presentational changes:

Corporate social responsibility expenses previously included in other charges
have been separately disclosed on the face of the consolidated income
statement.

The movement in the rehabilitation liability previously included in the
investing cash flows of the cash flow statement has been reclassified. The
movement and the corresponding increase in property, plant and equipment has
been excluded from the cash flow statement due to the fact that it is a
non-cash movement. The nature of the change is reclassification and does not
affect the net cash used in investing activities.

The segment capital expenditure has been expanded in the current period and
restated in the prior period to include expenditure on capitalised development
as a separate category. (Note 5)

The impact of the seasonality on operations is not considered significant on
the condensed consolidated interim financial information.

After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. The Group therefore continues to adopt the going concern
basis in preparing the consolidated interim financial information.

ACCOUNTING POLICIES

The accounting policies adopted are consistent with those used in the African
Barrick Gold plc annual financial statements for the year ended 31 December
2011 except as described below.

Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual earnings.

The following exchange rates to the US dollar have been applied:

                                                                              Average 
                                     Average            Average                year   
                             As at  six months  As at  six months    As at     ended  
                              30      ended      30      ended        31        31    
                             June    30 June    June    30 June    December  December 
                             2012      2012     2011      2011       2011      2011   
                                                                                      
South African Rand (US$:ZAR) 8.18      7.93     6.76      6.89       8.08      7.23   
                                                                                      
Tanzanian Shilling (US$:TZS) 1,569    1,572     1,580    1,500       1,582     1,558  
                                                                                      
Australian Dollars (US$:AUD) 0.98      0.97     0.93      0.97       0.98      0.97   
                                                                                      
UK Pound (US$:GBP)           0.64      0.63     0.62      0.62       0.64      0.62   
                                                                                      

There are no new standards, interpretations or amendments to standards issued
and effective for the period which materially impacted on the Group.

ESTIMATES

The preparation of condensed consolidated interim financial information
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.

In preparing this condensed consolidated interim financial information, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the year ended 31
December 2011, with the exception of changes in estimates that are required in
determining the provision for income taxes (see Note 3).

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 consist 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, other assets
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
six months ended 30 June 2012 and 30 June 2011, and year ended 31 December 2011
is set out below.

(Unaudited)                                 For the six months ended 30 June 2012           
                                                                                            
(in thousands of United States                                                              
dollars except references to                                                                
ounces)                           North Mara Tulawaka Bulyanhulu Buzwagi   Other     Total  
                                                                                            
Gold revenue                         130,911   43,499    218,581  116,975        -   509,966
                                                                                            
Co-product revenue                       292       87     13,362   10,760        -    24,501
                                                                                            
Total segment revenue                131,203   43,586    231,943  127,735        -   534,467
                                                                                            
Segment cash operating cost¹        (89,370) (27,537)  (106,766) (92,836) (35,994) (352,503)
                                                                                            
Other charges and corporate                                                                 
social responsibility expenses       (3,460)    (717)        551  (2,220)  (5,179)  (11,025)
                                                                                            
EBITDA²                               38,373   15,332    125,728   32,679 (41,173)   170,939
                                                                                            
Depreciation and amortisation       (21,718) (11,113)   (16,473) (19,615)  (1,553)  (70,472)
                                                                                            
EBIT²                                 16,655    4,219    109,255   13,064 (42,726)   100,467
                                                                                            
Total segment finance income                                                           1,079
                                                                                            
Total segment finance expense                                                        (4,689)
                                                                                            
Profit before taxation                                                                96,857
                                                                                            
Tax expense                                                                         (31,335)
                                                                                            
Net profit for the period                                                             65,522
                                                                                            
                                                                                            
                                                                                            
Capital expenditure:                                                                        
                                                                                            
Sustaining                            21,178    4,700     15,059   21,832    4,364    67,133
                                                                                            
Expansionary                           4,557    1,861      1,168        -    3,053    10,639
                                                                                            
Capitalised development                8,213    3,605     22,126    8,656        -    42,600
                                                                                            
Rehabilitation asset adjustment        1,253    (602)      1,886    1,997        -     4,534
                                                                                            
Total capital expenditure             35,201    9,564     40,239   32,485    7,417   124,906
                                                                                            
                                                                                            
                                                                                            
Cash costs:                                                                                 
                                                                                            
Segment cash operating cost1          89,370   27,537    106,766   92,836       -    316,509
                                                                                            
Deduct: Co-product revenue             (292)     (87)   (13,362) (10,760)       -   (24,501)
                                                                                            
Total cash costs                      89,078   27,450     93,404   82,076       -    292,008
                                                                                            
Sold ounces3                          79,600   26,250    133,417   71,249       -    310,516
                                                                                            
Cash cost per ounce sold2              1,119    1,046        700    1,152       -        940
                                                                                            
Equity ounce adjustment4                                                                 (2)
                                                                                            
Attributable cash cost per ounce                                                            
sold2                                                                                    938
                                                                                            

(Unaudited)                                For the six months ended 30 June 2011           
                                                                                           
(in thousands of United States                                                             
dollars except references to                                                               
ounces)                          North Mara Tulawaka Bulyanhulu Buzwagi   Other     Total  
                                                                                           
Gold revenue                        125,209   59,670    206,695  147,930        -   539,504
                                                                                           
Co-product revenue                      470      147     20,895   17,371        -    38,883
                                                                                           
Total segment revenue               125,679   59,817    227,590  165,301        -   578,387
                                                                                           
Segment cash operating cost¹       (70,193) (28,190)  (102,869) (80,033) (36,603) (317,888)
                                                                                           
Other charges and corporate                                                                
social responsibility expenses      (5,752)  (3,424)    (4,520)  (5,465)    3,589  (15,572)
                                                                                           
EBITDA²                              49,734   28,203    120,201   79,803 (33,014)   244,927
                                                                                           
Depreciation and amortisation      (16,944)  (6,533)   (16,172) (21,833)  (1,872)  (63,354)
                                                                                           
EBIT²                                32,790   21,670    104,029   57,970 (34,886)   181,573
                                                                                           
Total segment finance income                                                            809
                                                                                           
Total segment finance expense                                                       (4,121)
                                                                                           
Profit before taxation                                                              178,261
                                                                                           
Tax expense                                                                        (54,031)
                                                                                           
Net profit for the period                                                           124,230
                                                                                           
                                                                                           
                                                                                           
Capital expenditure:                                                                       
                                                                                           
Sustaining                           24,593    4,055     12,657   14,548    1,575    57,428
                                                                                           
Expansionary5                        10,319    2,331      5,799      586        -    19,035
                                                                                           
Capitalised development5             16,638    2,880     15,695    5,395        -    40,608
                                                                                           
Rehabilitation asset adjustment         593       13        618      371        -     1,595
                                                                                           
Total capital expenditure            52,143    9,279     34,769   20,900    1,575   118,666
                                                                                           
                                                                                           
                                                                                           
Cash costs:                                                                                
                                                                                           
Segment cash operating cost1         70,193   28,190    102,869   80,033        -   281,285
                                                                                           
Deduct: Co-product revenue            (470)    (147)   (20,895) (17,371)        -  (38,883)
                                                                                           
Total cash costs                     69,723   28,043     81,974   62,662        -   242,402
                                                                                           
Sold ounces3                         85,650   40,850    141,805  101,033        -   369,338
                                                                                           
Cash cost per ounce sold2               814      686        578      620        -       656
                                                                                           
Equity ounce adjustment4                                                                (1)
                                                                                           
Attributable cash cost per ounce                                                           
sold2                                                                                   655
                                                                                           

(Audited)                                   For the year ended 31 December 2011            
                                                                                           
(in thousands of United States                                                             
dollars except references to                                                               
ounces)                         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     (139,204) (60,952)  (200,072) (169,737) (80,844) (650,809)
                                                                                           
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 (75,126)   544,091
                                                                                           
Depreciation and amortisation     (34,724) (17,251)   (32,320)  (46,029)  (3,825) (134,149)
                                                                                           
EBIT²                               93,903   50,722    224,184   120,084 (78,951)   409,942
                                                                                           
Total segment finance income                                                          1,484
                                                                                           
Total segment finance expense                                                       (8,725)
                                                                                           
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 adjustment     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:                                                                                
                                                                                           
Segment 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 29 for definitions.

3    Reflects 100% of ounces sold.

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

5    The prior year segment capital expenditure has been restated to separately
reflect capitalised development.

                                                              As at   
                                             As at              31    
                                            30 June          December 
                                                                      
                                    (Unaudited) (Unaudited) (Audited) 
                                                                      
(in thousands of United States                                        
dollars)                               2012        2011        2011   
                                                                      
Segment assets                                                        
                                                                      
North Mara                              745,484     643,851    727,552
                                                                      
Tulawaka                                104,957     111,589    131,193
                                                                      
Bulyanhulu                            1,138,681   1,112,766  1,128,992
                                                                      
Buzwagi                                 870,029     774,388    830,790
                                                                      
Other                                   435,431     407,381    475,935
                                                                      
Total segment assets                  3,294,582   3,049,975  3,294,462
                                                                      

OTHER CHARGES

                                                                            For the 
                                                                             year   
                                                     For the six months      ended  
                                                            ended             31    
                                                           30 June         December 
                                                                                    
                                                   (Unaudited) (Unaudited) (Audited)
                                                                                    
(in thousands of United States dollars)               2012        2011       2011   
                                                                                    
Other expenses                                                                      
                                                                                    
 Loss on disposal of property, plant and equipment           -           -       179
                                                                                    
 Severance payments                                          -         874     1,646
                                                                                    
 Foreign exchange losses (net)                               -      12,509     6,001
                                                                                    
 Unrealised non-hedge derivative losses                  2,956           -         -
                                                                                    
 Construction and consumable inventory write-down        1,667           -     4,684
                                                                                    
 Bad debt expense                                          527           -     1,098
                                                                                    
 Disallowed indirect taxes                                 358       3,195     7,123
                                                                                    
 Asset write-downs                                           -           -     1,252
                                                                                    
 Legal fees                                                789           -         -
                                                                                    
 Other                                                   2,573       (185)     1,696
                                                                                    
 Total¹                                                  8,870      16,393    23,679
                                                                                    
                                                                                    
                                                                                    
Other income                                                                        
                                                                                    
 Gain on disposal of property, plant and equipment     (2,250)           -         -
                                                                                    
 Unrealised non-hedge derivative gains                       -     (2,193)   (7,901)
                                                                                    
 Foreign exchange gains (net)                          (2,345)           -         -
                                                                                    
 Other                                                       -           -     (139)
                                                                                    
 Total                                                 (4,595)     (2,193)   (8,040)
                                                                                    
                                                                                    
                                                                                    
Total other charges                                      4,275      14,200    15,639
                                                                                    

1    Corporate social responsibility expenses previously included in other
charges have been disclosed separately on the face of the consolidated income
statement.

FINANCE INCOME AND FINANCE EXPENSE

Finance income

                                          For the six months                      
                                                 ended          For the year ended
                                                30 June            31 December    
                                                                                  
                                        (Unaudited) (Unaudited)     (Audited)     
                                                                                  
(in thousands of United States dollars)    2012        2011            2011       
                                                                                  
Interest on time deposits                       618         571              1,030
                                                                                  
Other                                           461         238                454
                                                                                  
Total                                         1,079         809              1,484
                                                                                  

Finance expense

                                          For the six months                      
                                                 ended          For the year ended
                                                30 June            31 December    
                                                                                  
                                        (Unaudited) (Unaudited)     (Audited)     
                                                                                  
(in thousands of United States dollars)    2,012       2,011          2,011       
                                                                                  
Unwinding of discount¹                        2,055       1,543              3,344
                                                                                  
Interest on bank overdraft                        7         204                199
                                                                                  
Revolving credit facility charges²            1,499       2,374              4,570
                                                                                  
Interest on finance lease liability             459           -                247
                                                                                  
Other                                           669           -                365
                                                                                  
Total³                                        4,689       4,121              8,725
                                                                                  

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

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

3   For cash flow purposes unwinding of discount is excluded from the finance
expense movement.

TAX EXPENSE

                                                                           For the 
                                                                            year   
                                                    For the six months      ended  
                                                           ended             31    
                                                          30 June         December 
                                                                                   
                                                  (Unaudited) (Unaudited) (Audited)
                                                                                   
(in thousands of United States dollars)              2012        2011       2011   
                                                                                   
Current tax:                                                                       
                                                                                   
Current tax on profits for the period                    737          249    10,162
                                                                                   
Adjustments in respect of prior years¹                     -            -    28,663
                                                                                   
Total current tax                                         737         249    38,825
                                                                                   
Deferred tax:                                                                      
                                                                                   
Origination and reversal of temporary differences      30,598      53,782    79,099
                                                                                   
Total deferred tax                                     30,598      53,782    79,099
                                                                                   
Income tax expense                                     31,335      54,031   117,924
                                                                                   
                                                                                   
                                                                                   
                                                                                   
1 During 2011, a binding Memorandum of Settlement 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 Memorandum of Settlement 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 and in the absence of      
the capital expenditure deduction in Buzwagi, the Tulawaka mine has prior year     
taxable profits which can be immediately paid by offsetting against the            
indirect tax receivable balance owing to the Group.                                
                                                                                   
                                                                                   
                                                                                   
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   
                                                    For the six months      ended  
                                                           ended             31    
                                                          30 June         December 
                                                                                   
                                                  (Unaudited) (Unaudited) (Audited)
                                                                                   
(in thousands of United States dollars)              2012        2011       2011   
                                                                                   
Profit before taxation                                 96,857     178,261   402,701
                                                                                   
Tax on profit on ordinary activities at the                                        
Tanzanian tax rate of 30%                             29,057       53,478   114,199
                                                                                   
Tax effects of:                                                                    
                                                                                   
Non-taxable income                                         -            -   (1,219)
                                                                                   
Tax losses for which no deferred income tax asset                                  
was recognised                                         3,357        4,157     7,302
                                                                                   
Prior year adjustments                                     -            -   (2,391)
                                                                                   
Effect of tax rates in foreign jurisdictions         (1,079)      (3,604)        33
                                                                                   
Tax charge                                             31,335      54,031   117,924
                                                                                   
                                                                                   
                                                                                   
The tax rate in Tanzania is 30% (2011: 30%) and in South Africa 28% (2011:         
28%). The effective forecast tax rate for the period of 32% (six months ended      
30 June 2011: 30%; year ended 31 December 2011: 28%) is in line with the           
applicable standard tax rate of corporation tax in Tanzania (30%).                 
                                                                                   

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.

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 30 June 2012, 30 June 2011 and 31 December 2011, earnings per share have
been calculated as follows:

                                                                 For the six months      For the  
                                                                        ended          year ended 
                                                                       30 June         31 December
                                                                                                  
                                                               (Unaudited) (Unaudited)  (Audited) 
                                                                                                  
(in thousands of United States dollars)                           2012        2011        2011    
                                                                                                  
Earnings                                                                                          
                                                                                                  
Profit from continuing operations attributable to owners of                                       
the parent                                                          65,152     120,134     274,895
                                                                                                  
                                                                                                  
                                                                                                  
Weighted average number of Ordinary Shares in issue            410,085,499 410,085,499 410,085,499
                                                                                                  
Adjusted for dilutive effect of:                                                                  
                                                                                                  
 - Stock options                                                         -      13,384      10,606
                                                                                                  
Weighted average number of Ordinary Shares for diluted                                            
earnings per share                                             410,085,499 410,098,883 410,096,105
                                                                                                  
                                                                                                  
                                                                                                  
Earnings per share                                                                                
                                                                                                  
Basic earnings per share from continuing operations (cents)           15.9        29.3        67.0
                                                                                                  
Dilutive earnings per share from continuing operations (cents)        15.9        29.3        67.0
                                                                                                  

DIVIDENDS

The final dividend declared in respect of the year ended 31 December 2011 of
US$53.7 million (US13.1 cents per share) was paid during 2012 and recognised in
the financial statements.

Property plant and equipment

(Unaudited)                                                                            
(in thousands of United       Plant and  Mineral properties and  Assets under          
States dollars)              equipment  mine development costs  construction¹   Total  
                                                                                       
For the six months ended 30                                                            
June 2012                                                                              
                                                                                       
At 1 January 2012, net of                                                              
accumulated depreciation        894,869                 765,519       162,859 1,823,247
                                                                                       
Additions                             -                       -       124,906   124,906
                                                                                       
Disposals/write-downs           (1,394)                       -             -   (1,394)
                                                                                       
Depreciation                   (54,148)                (21,087)             -  (75,235)
                                                                                       
Transfers between categories     50,509                  51,475     (101,984)         -
                                                                                       
At 30 June 2012                 889,836                 795,907       185,781 1,871,524
                                                                                       
                                                                                       
                                                                                       
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 30 June 2012                                                                        
                                                                                       
Cost                          1,361,372               1,168,786       185,781 2,715,939
                                                                                       
Accumulated depreciation      (471,536)               (372,879)             - (844,415)
                                                                                       
Net carrying amount             889,836                 795,907       185,781 1,871,524
                                                                                       
                                                                                       
                                                                                       
For the six months ended 30                                                            
June 2011                                                                              
                                                                                       
At 1 January 2011, net of                                                              
accumulated depreciation        796,999                 693,834       124,285 1,615,118
                                                                                       
Additions                             -                       -       118,666   118,666
                                                                                       
Disposals/write-downs             (204)                       -             -     (204)
                                                                                       
Depreciation                   (22,632)                (37,467)             -  (60,099)
                                                                                       
Transfers between categories     25,507                  48,860      (74,367)         -
                                                                                       
At 30 June 2011                 799,670                 705,227       168,584 1,673,481
                                                                                       
                                                                                       
                                                                                       
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 30 June 2011                                                                        
                                                                                       
Cost                          1,148,965               1,054,139       168,584 2,371,688
                                                                                       
Accumulated depreciation      (349,295)               (348,912)             - (698,207)
                                                                                       
Net carrying amount             799,670                 705,227       168,584 1,673,481
                                                                                       

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

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 and spinning
power 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 drill rigs leased at Buzwagi
mine under a one year rent to own lease agreement. The lease has been
classified as a finance lease.

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

                                           For the six months ended  For the year ended
                                                    30 June             31 December    
                                                                                       
                                           (Unaudited)  (Unaudited)      (Audited)     
                                                                                       
 (in thousands of United States dollars)       2012         2011            2011       
                                                                                       
 Cost - capitalised finance leases               69,812       48,661             67,223
                                                                                       
 Accumulated depreciation                      (10,865)      (6,236)            (7,582)
                                                                                       
 Net carrying amount                             58,947       42,425             59,641
                                                                                       

Commitments and Contingencies

The Group is subject to various laws and regulations which, if not observed,
could give rise to penalties. As at 30 June 2012, the Group has the following
commitments and/or contingencies:

a)            Legal contingencies

As at 30 June 2012, the Group was a defendant in approximately 201 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 holidays compensation.

The total amounts claimed from lawsuits in which specific monetary damages are
sought amounted to US$31.5 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.

A claim by the TRA in respect of a tax assessment of US$21.3 million for the
acquisition of Tusker was heard during the current year and ruled in the favour
of ABG.

Also included in the total amounts claimed of US$31.5 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)            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.
Management is of the opinion that this will not result in any material
liabilities to the Group.

RELATED PARTY BALANCES AND TRANSACTIONS

The Group has related party relationships with entities owned or controlled by
Barrick Gold Corporation, which is the ultimate controlling party of the Group.

The Company and its subsidiaries, in the ordinary course of business, enter
into various sales, purchase and service transactions with others in the Group.
These transactions are under terms that are on normal commercial terms and
conditions. These transactions are not considered to be significant.

At 30 June 2012 the Group had no loans of a funding nature due to or from
related parties (30 June 2011: zero; 31 December 2011: zero).

subsequent events

The Board of the Company has approved an interim dividend of US4.0 cents per
share for this financial year to be paid on 24 September 2012 to shareholders
on the register on 31 August 2012.

On 23 July 2012, ABG entered into an agreement with Aviva Corporation Limited
("Aviva", ASX:AVA) to acquire all of the outstanding share capital of Aviva
Mining (Kenya) Limited ("AMKL"), the assets of which include interests in a
number of Licences in West Kenya, for initial cash consideration of
A$20 million. The acquisition is subject to the approval of Aviva's
shareholders, which is expected to be sought at a general meeting in lateAugust
or early September; and the consent of the Kenyan Competition Authority, with
completion expected shortly thereafter.