EX-99.3 4 d693534dex993.htm EX-99.3

Exhibit 99.3

MANAGEMENT’S RESPONSIBILITY

Management’s Responsibility for Financial Statements

The accompanying consolidated financial statements have been prepared by and are the responsibility of the Board of Directors and Management of the Company.

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and reflect Management’s best estimates and judgments based on currently available information. The Company has developed and maintains a system of internal controls in order to ensure, on a reasonable and cost effective basis, the reliability of its financial information.

The consolidated financial statements have been audited by PricewaterhouseCoopers LLP, Chartered Professional Accountants. Their report outlines the scope of their examination and opinion on the consolidated financial statements.

Ammar Al-Joundi
Executive Vice President and Chief Financial Officer
Toronto, Canada
February 12, 2014

BARRICK YEAR END 2013 |  | 74 |  | MANAGEMENT’S DISCUSSION AND ANALYSIS

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Barrick’s management is responsible for establishing and maintaining internal control over financial reporting.

Barrick’s management assessed the effectiveness of the Company’s internal control over financial reporting as at December 31, 2013. Barrick’s Management used the Internal Control – Integrated Framework (1992) as issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission to evaluate the effectiveness of Barrick’s internal control over financial reporting. Based on management’s assessment, Barrick’s internal control over financial reporting is effective as at December 31, 2013.

The effectiveness of the Company’s internal control over financial reporting as at December 31, 2013 has been audited by PricewaterhouseCoopers LLP, Chartered Professional Accountants, as stated in their report which is located on pages 76 - 78 of Barrick’s 2013 Annual Financial Statements.

BARRICK YEAR END 2013 |  | 75 |  | MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

February 12, 2014

Independent Auditor’s Report

To the Shareholders of

Barrick Gold Corporation

We have completed integrated audits of Barrick Gold Corporation’s 2013 and 2012 consolidated financial statements and its internal control over financial reporting as at December 31, 2013. Our opinions, based on our audits are presented below.

Report on the consolidated financial statements

We have audited the accompanying consolidated financial statements of Barrick Gold Corporation, which comprise the consolidated balance sheets as at December 31, 2013, December 31, 2012 and January 1, 2012 and the consolidated statements of income, comprehensive income, cash flow and changes in equity for the years ended December 31, 2013 and December 31, 2012 and the related notes.

Management’s responsibility for the consolidated financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. Canadian generally accepted auditing standards also require that we comply with ethical requirements.

An audit involves performing procedures to obtain audit evidence, on a test basis, about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting principles and policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

76

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Barrick Gold Corporation as at December 31, 2013, December 31, 2012 and January 1, 2012 and its financial performance and its cash flows for the years ended December 31, 2013 and December 31, 2012 in accordance with IFRS as issued by the IASB.

Emphasis of matter

As discussed in Note 2 to the consolidated financial statements, on January 1, 2013, the entity adopted new accounting guidance, International Financial Reporting Interpretations Committee Interpretation 20,

Stripping Costs in the Production Phase of a Surface Mine. Our opinion is not modified with respect to this matter.

Report on internal control over financial reporting

We have also audited Barrick Gold Corporation’s internal control over financial reporting as at December 31, 2013, based on criteria established in Internal Control - Integrated Framework (1992), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Management’s responsibility for internal control over financial reporting

Management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting.

Auditor’s responsibility

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control, based on the assessed risk, and performing such other procedures as we consider necessary in the circumstances.

We believe that our audit provides a reasonable basis for our audit opinion on the Company’s internal control over financial reporting.

Definition of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

77

A company’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Inherent limitations

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, Barrick Gold Corporation maintained, in all material respects, effective internal control over financial reporting as at December 31, 2013, based on criteria established in Internal Control – Integrated Framework (1992) issued by COSO.

(Signed) “PricewaterhouseCoopers LLP”

Chartered Professional Accountants, Licensed Public Accountants

78

Consolidated Statements of Income

Barrick Gold Corporation |  |  |  |  |  |
|  | 2013 |  |  | 2012 |
For the years ended December 31 (in millions of United States dollars, except per share data) |  |  |  |  | (restated - note 2y) |
Revenue (notes 5 and 6) |  | $ | 12,511 |  |  | $ | 14,394 |
Costs and expenses |  |  |  |  |  |  |  |
Cost of sales (notes 5 and 7) |  |  | 7,243 |  |  |  | 7,257 |
General and administrative expenses (note 10) |  |  | 390 |  |  |  | 503 |
Exploration and evaluation (notes 5 and 8) |  |  | 208 |  |  |  | 359 |
Other expense (income) (note 9a) |  |  | 878 |  |  |  | 303 |
Impairment charges (note 9b) |  |  | 12,687 |  |  |  | 6,294 |
Loss from equity investees (note 15a) |  |  | - |  |  |  | 12 |
Gain on non-hedge derivatives (note 24e) |  |  | (76 | ) |  |  | (31 | )
Loss before finance items and income taxes |  |  | (8,819 | ) |  |  | (303 | )
Finance items |  |  |  |  |  |  |  |
Finance income |  |  | 9 |  |  |  | 11 |
Finance costs (note 13) |  |  | (657 | ) |  |  | (174 | )
Loss before income taxes |  |  | (9,467 | ) |  |  | (466 | )
Income tax (expense) recovery (note 11) |  |  | (630 | ) |  |  | 102 |
Loss from continuing operations |  |  | (10,097 | ) |  |  | (364 | )
Loss from discontinued operations (note 4b) |  |  | (506 | ) |  |  | (185 | )
Net loss |  | $ | (10,603 | ) |  | $ | (549 | )
Attributable to: |  |  |  |  |  |  |  |
Equity holders of Barrick Gold Corporation |  | $ | (10,366 | ) |  | $ | (538 | )
Non-controlling interests (note 31) |  | $ | (237 | ) |  | $ | (11 | )
|  |  | (10,603 | ) |  |  | (549 | )
Earnings per share data attributable to the equity holders of Barrick Gold Corporation (note 12) |  |  |  |  |  |  |  |
Loss from continuing operations |  |  |  |  |  |  |  |
Basic |  | $ | (9.65 | ) |  | $ | (0.35 | )
Diluted |  | $ | (9.65 | ) |  | $ | (0.35 | )
Loss from discontinued operations |  |  |  |  |  |  |  |
Basic |  | $ | (0.49 | ) |  | $ | (0.19 | )
Diluted |  | $ | (0.49 | ) |  | $ | (0.19 | )
Net loss |  |  |  |  |  |  |  |
Basic |  | $ | (10.14 | ) |  | $ | (0.54 | )
Diluted |  | $ | (10.14 | ) |  | $ | (0.54 | )

The accompanying notes are an integral part of these consolidated financial statements.

BARRICK YEAR-END 2013 |  | 79 |  | FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income

Barrick Gold Corporation |  |  |  |  |  |
|  | 2013 |  |  | 2012 |
For the years ended December 31 (in millions of United States dollars) |  |  |  |  | (restated - note 2y) |
Net loss |  | $ | (10,603 | ) |  | $ | (549 | )
Other comprehensive income (loss), net of taxes |  |  |  |  |  |  |  |
Items that may be reclassified subsequently to profit or loss: |  |  |  |  |  |  |  |
Unrealized gains (losses) on available-for-sale (“AFS”) financial securities, net of tax $6, $6 |  |  | (68 | ) |  |  | (37 | )
Realized (gains) losses and impairments on AFS financial securities, net of tax ($3), ($6) |  |  | 17 |  |  |  | 34 |
Unrealized gains (losses) on derivative investments designated as cash flow hedges, net of tax ($7), ($20) |  |  | (63 | ) |  |  | 167 |
Realized (gains) losses on derivative investments designated as cash flow hedges, net of tax $73, $96 |  |  | (325 | ) |  |  | (331 | )
Currency translation adjustments gain (loss), net of tax $nil, $nil |  |  | (93 | ) |  |  | 35 |
Items that will not be reclassified to profit or loss: |  |  |  |  |  |  |  |
Remeasurement gains (losses) of post-employment benefit obligations, net of tax ($13), $3 |  |  | 24 |  |  |  | (5 | )
Total other comprehensive loss |  |  | (508 | ) |  |  | (137 | )
Total comprehensive loss |  | $ | (11,111 | ) |  | $ | (686 | )
Attributable to: |  |  |  |  |  |  |  |
Equity holders of Barrick Gold Corporation |  |  |  |  |  |  |  |
Continuing operations |  | $ | (10,337 | ) |  | $ | (525 | )
Discontinued operations |  | $ | (537 | ) |  | $ | (149 | )
Non-controlling interests |  | $ | (237 | ) |  | $ | (12 | )

The accompanying notes are an integral part of these consolidated financial statements.

BARRICK YEAR-END 2013 |  | 80 |  | FINANCIAL STATEMENTS

Consolidated Statements of Cash Flow

Barrick Gold Corporation |  |  |  |  |  |
|  | 2013 |  |  | 2012 |
For the years ended December 31 (in millions of United States dollars) |  |  |  |  | (restated - note 2y) |
OPERATING ACTIVITIES |  |  |  |  |  |  |  |
Net loss |  | $ | (10,097) |  |  | $ | (364) |
Adjustments for the following items: |  |  |  |  |  |  |  |
Depreciation |  |  | 1,732 |  |  |  | 1,651 |
Finance costs (excludes accretion) |  |  | 589 |  |  |  | 121 |
Impairment charges (note 9b) |  |  | 12,687 |  |  |  | 6,294 |
Income tax expense (recovery) (note 11) |  |  | 630 |  |  |  | (102) |
Increase in inventory |  |  | (352) |  |  |  | (360) |
Proceeds from settlement of hedge contracts |  |  | 219 |  |  |  | 450 |
Gain on non-hedge derivatives (note 24e) |  |  | (76) |  |  |  | (31) |
Gain on sale of long-lived assets/investments |  |  | (41) |  |  |  | (18) |
Other operating activities (note 14a) |  |  | 669 |  |  |  | (283) |
Operating cash flows before interest and income taxes |  |  | 5,960 |  |  |  | 7,358 |
Interest paid |  |  | (662) |  |  |  | (118) |
Income taxes paid |  |  | (1,109) |  |  |  | (1,459) |
Net cash provided by operating activities from continuing operations |  |  | 4,189 |  |  |  | 5,781 |
Net cash provided by operating activities from discontinued operations |  |  | 50 |  |  |  | 202 |
Net cash provided by operating activities |  |  | 4,239 |  |  |  | 5,983 |
INVESTING ACTIVITIES |  |  |  |  |  |  |  |
Property, plant and equipment |  |  |  |  |  |  |  |
Capital expenditures (note 5) |  |  | (5,501) |  |  |  | (6,773) |
Sales proceeds |  |  | 50 |  |  |  | 18 |
Acquisitions |  |  | - |  |  |  | (37) |
Divestitures (note 4) |  |  | 522 |  |  |  | - |
Investment sales |  |  | 18 |  |  |  | 168 |
Other investing activities (note 14b) |  |  | (262) |  |  |  | (311) |
Net cash used in investing activities from continuing operations |  |  | (5,173) |  |  |  | (6,935) |
Net cash used in investing activities from discontinued operations |  |  | (64) |  |  |  | (130) |
Net cash used in investing activities |  |  | (5,237) |  |  |  | (7,065) |
FINANCING ACTIVITIES |  |  |  |  |  |  |  |
Capital stock |  |  |  |  |  |  |  |
Proceeds on exercise of stock options |  |  | 1 |  |  |  | 18 |
Proceeds on common share offering (note 30) |  |  | 2,910 |  |  |  | - |
Debt (note 24b) |  |  |  |  |  |  |  |
Proceeds |  |  | 5,414 |  |  |  | 2,000 |
Repayments |  |  | (6,412) |  |  |  | (1,393) |
Dividends (note 30) |  |  | (508) |  |  |  | (750) |
Funding from non-controlling interests (note 31) |  |  | 55 |  |  |  | 505 |
Deposit on silver sale agreement (note 28) |  |  | - |  |  |  | 137 |
Other financing activities (note 14c) |  |  | (118) |  |  |  | (25) |
Net cash provided by financing activities from continuing operations |  |  | 1,342 |  |  |  | 492 |
Net cash used in financing activities from discontinued operations |  |  | - |  |  |  | (69) |
Net cash provided by financing activities |  |  | 1,342 |  |  |  | 423 |
Effect of exchange rate changes on cash and equivalents |  |  | (17) |  |  |  | 7 |
Net increase (decrease) in cash and equivalents |  |  | 327 |  |  |  | (652) |
Cash and equivalents at beginning of year (note 24a) |  |  | 2,097 |  |  |  | 2,749 |
Cash and equivalents at the end of year (note 24a) |  | $ | 2,424 |  |  | $ | 2,097 |
Less cash and equivalents of assets classified as held for sale at the end of year |  |  | 20 |  |  |  | - |
Cash and equivalents excluding assets classified as held for sale at the end of year |  | $ | 2,404 |  |  | $ | 2,097 |

The accompanying notes are an integral part of these consolidated financial statements.

BARRICK YEAR-END 2013 |  | 81 |  | FINANCIAL STATEMENTS

Consolidated Balance Sheets

Barrick Gold Corporation |  | As at |  |  | As at |  |  | As at |
|  | December 31, |  |  | December 31, |  |  | January 1, |
|  | 2013 |  |  | 2012 |  |  | 2012 |
(in millions of United States dollars) |  |  |  |  | (restated - note 2y) |  |  | (restated - note 2y) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and equivalents (note 24a) |  | $ | 2,404 |  |  | $ | 2,097 |  |  | $ | 2,749 |
Accounts receivable (note 17) |  |  | 385 |  |  |  | 449 |  |  |  | 426 |
Inventories (note 16) |  |  | 2,679 |  |  |  | 2,585 |  |  |  | 2,498 |
Other current assets (note 17) |  |  | 421 |  |  |  | 626 |  |  |  | 876 |
Total current assets (excluding assets classified as held for sale) |  |  | 5,889 |  |  |  | 5,757 |  |  |  | 6,549 |
Assets classified as held for sale |  |  | 323 |  |  |  | - |  |  |  | - |
Total current assets |  |  | 6,212 |  |  |  | 5,757 |  |  |  | 6,549 |
Non-current assets |  |  |  |  |  |  |  |  |  |  |  |
Equity in investees (note 15a) |  |  | 27 |  |  |  | 20 |  |  |  | 341 |
Other investments (note 15b) |  |  | 120 |  |  |  | 78 |  |  |  | 161 |
Property, plant and equipment (note 18) |  |  | 21,688 |  |  |  | 29,277 |  |  |  | 29,076 |
Goodwill (note 19a) |  |  | 5,835 |  |  |  | 8,837 |  |  |  | 9,626 |
Intangible assets (note 19b) |  |  | 320 |  |  |  | 453 |  |  |  | 569 |
Deferred income tax assets (note 29) |  |  | 501 |  |  |  | 437 |  |  |  | 409 |
Non-current portion of inventory (note 16) |  |  | 1,679 |  |  |  | 1,555 |  |  |  | 1,153 |
Other assets (note 21) |  |  | 1,066 |  |  |  | 1,064 |  |  |  | 1,002 |
Total assets |  | $ | 37,448 |  |  | $ | 47,478 |  |  | $ | 48,886 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable (note 22) |  |  | 2,165 |  |  |  | 2,267 |  |  |  | 2,085 |
Debt (note 24b) |  |  | 179 |  |  |  | 1,848 |  |  |  | 196 |
Current income tax liabilities |  |  | 75 |  |  |  | 41 |  |  |  | 306 |
Other current liabilities (note 23) |  |  | 303 |  |  |  | 261 |  |  |  | 326 |
Total current liabilities (excluding liabilities classified as held for sale) |  |  | 2,722 |  |  |  | 4,417 |  |  |  | 2,913 |
Liabilities classified as held for sale |  |  | 162 |  |  |  | - |  |  |  | - |
Total current liabilities |  |  | 2,884 |  |  |  | 4,417 |  |  |  | 2,913 |
Non-current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Debt (note 24b) |  |  | 12,901 |  |  |  | 12,095 |  |  |  | 13,173 |
Provisions (note 26) |  |  | 2,428 |  |  |  | 2,812 |  |  |  | 2,326 |
Deferred income tax liabilities (note 29) |  |  | 2,258 |  |  |  | 2,668 |  |  |  | 4,231 |
Other liabilities (note 28) |  |  | 976 |  |  |  | 850 |  |  |  | 689 |
Total liabilities |  |  | 21,447 |  |  |  | 22,842 |  |  |  | 23,332 |
Equity |  |  |  |  |  |  |  |  |  |  |  |
Capital stock (note 30) |  |  | 20,869 |  |  |  | 17,926 |  |  |  | 17,892 |
Retained earnings (deficit) |  |  | (7,581 | ) |  |  | 3,269 |  |  |  | 4,562 |
Accumulated other comprehensive income |  |  | (69 | ) |  |  | 463 |  |  |  | 595 |
Other |  |  | 314 |  |  |  | 314 |  |  |  | 314 |
Total equity attributable to Barrick Gold Corporation shareholders |  |  | 13,533 |  |  |  | 21,972 |  |  |  | 23,363 |
Non-controlling interests (note 31) |  |  | 2,468 |  |  |  | 2,664 |  |  |  | 2,191 |
Total equity |  |  | 16,001 |  |  |  | 24,636 |  |  |  | 25,554 |
Contingencies and commitments (notes 16, 18 and 35) |  |  |  |  |  |  |  |  |  |  |  |
Total liabilities and equity |  | $ | 37,448 |  |  | $ | 47,478 |  |  | $ | 48,886 |

The accompanying notes are an integral part of these consolidated financial statements.

Signed on behalf of the Board, |  |  |  |
Jamie C. Sokalsky, Director |  | Steven J. Shapiro, Director |  |

BARRICK YEAR-END 2013 |  | 82 |  | FINANCIAL STATEMENTS

Consolidated Statements of Changes in Equity

Barrick Gold Corporation |  | Attributable to equity holders of the company |
(in millions of United States dollars) |  | Common Shares (in thousands) |  |  | Capital stock |  |  | Retained earnings |  |  | Accumulated other comprehensive income (loss)1 |  |  | Other2 |  |  | Total equity attributable to Shareholders |  |  | Non- controlling interests |  |  | Total equity |
At January 1, 2013 (restated - note 2y) |  |  | 1,001,108 |  |  | $ | 17,926 |  |  | $ | 3,269 |  |  | $ | 463 |  |  | $ | 314 |  |  | $ | 21,972 |  |  | $ | 2,664 |  |  | $ | 24,636 |
Net loss |  |  | - |  |  |  | - |  |  |  | (10,366) |  |  |  | - |  |  |  | - |  |  |  | (10,366) |  |  |  | (237) |  |  |  | (10,603) |
Total other comprehensive income (loss) |  |  | - |  |  |  | - |  |  |  | 24 |  |  |  | (532) |  |  |  | - |  |  |  | (508) |  |  |  | - |  |  |  | (508) |
Total comprehensive loss |  |  | - |  |  | $ | - |  |  | $ | (10,342) |  |  | $ | (532) |  |  | $ | - |  |  | $ | (10,874) |  |  | $ | (237) |  |  | $ | (11,111) |
Transactions with owners |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends |  |  | - |  |  |  | - |  |  |  | (508) |  |  |  | - |  |  |  | - |  |  |  | (508) |  |  |  | - |  |  |  | (508) |
Issued on public equity offering |  |  | 163,500 |  |  |  | 2,934 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,934 |  |  |  | - |  |  |  | 2,934 |
Issued on exercise of stock options |  |  | 44 |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 1 |
Recognition of stock option expense |  |  | - |  |  |  | 8 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8 |  |  |  | - |  |  |  | 8 |
Funding from non-controlling interests |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 55 |  |  |  | 55 |
Other decrease in non-controlling interests |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (14) |  |  |  | (14) |
Total transactions with owners |  |  | 163,544 |  |  | $ | 2,943 |  |  | $ | (508) |  |  | $ | - |  |  | $ | - |  |  | $ | 2,435 |  |  | $ | 41 |  |  | $ | 2,476 |
At December 31, 2013 |  |  | 1,164,652 |  |  | $ | 20,869 |  |  | $ | (7,581) |  |  | $ | (69) |  |  | $ | 314 |  |  | $ | 13,533 |  |  | $ | 2,468 |  |  | $ | 16,001 |
At January 1, 2012 (restated - note 2y) |  |  | 1,000,423 |  |  | $ | 17,892 |  |  | $ | 4,562 |  |  | $ | 595 |  |  | $ | 314 |  |  | $ | 23,363 |  |  | $ | 2,191 |  |  | $ | 25,554 |
Net loss |  |  | - |  |  |  | - |  |  |  | (538) |  |  |  | - |  |  |  | - |  |  |  | (538) |  |  |  | (11) |  |  |  | (549) |
Total other comprehensive loss |  |  | - |  |  |  | - |  |  |  | (5) |  |  |  | (132) |  |  |  | - |  |  |  | (137) |  |  |  | - |  |  |  | (137) |
Total comprehensive loss |  |  | - |  |  | $ | - |  |  | $ | (543) |  |  | $ | (132) |  |  | $ | - |  |  | $ | (675) |  |  | $ | (11) |  |  | $ | (686) |
Transactions with owners |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends |  |  | - |  |  |  | - |  |  |  | (750) |  |  |  | - |  |  |  | - |  |  |  | (750) |  |  |  | - |  |  |  | (750) |
Issued on exercise of stock options |  |  | 685 |  |  |  | 18 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 18 |  |  |  | - |  |  |  | 18 |
Recognition of stock option expense |  |  | - |  |  |  | 16 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 16 |  |  |  | - |  |  |  | 16 |
Funding from non-controlling interests |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 505 |  |  |  | 505 |
Other decrease in non-controlling interests |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (21) |  |  |  | (21) |
Total transactions with owners |  |  | 685 |  |  | $ | 34 |  |  | $ | (750) |  |  | $ | - |  |  | $ | - |  |  | $ | (716) |  |  | $ | 484 |  |  | $ | (232) |
At December 31, 2012 (restated - note 2y) |  |  | 1,001,108 |  |  | $ | 17,926 |  |  | $ | 3,269 |  |  | $ | 463 |  |  | $ | 314 |  |  | $ | 21,972 |  |  | $ | 2,664 |  |  | $ | 24,636 |

1 | Includes cumulative translation adjustments as at December 31, 2013: $80 million loss (2012: $13 million).

2 | Includes additional paid-in capital as at December 31, 2013: $276 million (December 31, 2012: $276 million) and convertible borrowings - equity component as at December 31, 2013: $38 million (December 31, 2012: $38 million).

The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO CONSOLIDATED

FINANCIAL STATEMENTS

Barrick Gold Corporation. Tabular dollar amounts in millions of United States dollars, unless otherwise shown. References to A$, ARS, C$, CLP, EUR, GBP, JPY, PGK, TZS, ZAR, and ZMW are to Australian dollars, Argentinean pesos, Canadian dollars, Chilean pesos, Euros, British pound sterling, Japanese yen, Papua New Guinea kina, Tanzanian shillings, South African rand, and Zambian kwacha, respectively.

1 > CORPORATE INFORMATION

Barrick Gold Corporation (“Barrick” or the “Company”) is a corporation governed by the Business Corporations Act (Ontario). The Company’s head and registered office is located at Brookfield Place, TD Canada Trust Tower, 161 Bay Street, Suite 3700, Toronto, Ontario, M5J 2S1. We are principally engaged in the production and sale of gold and copper, as well as related activities such as exploration and mine development. Our producing gold mines are concentrated in seven operating units; Goldstrike, Cortez, Pueblo Viejo, Lagunas Norte, Veladero, North America – Other and Australia Pacific. We also hold a 73.9% equity interest in African Barrick Gold plc (“ABG”), a company listed on the London Stock Exchange that owns gold mines and exploration properties in Africa. Our Copper business unit contains producing copper mines located in Chile and Zambia and a mine under construction located in Saudi Arabia. We also have one project located in South America. We sell our gold and copper production into the world market.

2 > SIGNIFICANT ACCOUNTING POLICIES

A) | Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) under the historical cost convention, as modified by revaluation of derivative contracts and certain financial assets. Accounting policies are consistently applied to all years presented, unless otherwise stated. Certain items have been reclassified in the current year. The prior periods have been restated to reflect the change in presentation. These consolidated financial statements were approved for issuance by the Board of Directors on February 12, 2014.

B) | Basis of Preparation

Subsidiaries

These consolidated financial statements include the accounts of Barrick and its subsidiaries. All intercompany balances, transactions, income and expenses, and profits or losses have been eliminated on consolidation. We consolidate subsidiaries where we have the ability to exercise control. Control of an investee is defined to exist when we are exposed to variable returns from our involvement with the investee and have the ability to affect those returns through our power over the investee. Specifically, we control an investee if, and only if, we have all of the following: power over the investee (i.e., existing rights that give us the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from our involvement with the investee; and the ability to use our power over the investee to affect its returns. For non wholly-owned, controlled subsidiaries, the net assets attributable to outside equity shareholders are presented as “non-controlling interests” in the equity section of the consolidated balance sheet. Profit for the period that is attributable to non-controlling interests is calculated based on the ownership of the minority shareholders in the subsidiary.

Joint Arrangements

A joint arrangement is defined as one over which two or more parties have joint control, which is the contractually agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control. There are two types of joint arrangements, joint operations (“JO”) and joint ventures (“JV”).

A JO is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to our interests in joint operations, we recognize our share of any assets, liabilities, revenues and expenses of the JO.

A JV is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Our investment in the JV is accounted for using the equity method.

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On acquisition, an equity method investment is initially recognized at cost. The carrying amount of equity method investments includes goodwill identified on acquisition, net of any accumulated impairment losses. The carrying amount is adjusted by our share of post-acquisition net income or loss, depreciation, amortization or impairment of the fair value adjustments made at the date of acquisition, dividends, cash contributions and our share of post-acquisition movements in Other Comprehensive Income (“OCI”).

Associates

An associate is an entity over which the investor has significant influence but not control and that is neither a subsidiary nor an interest in a joint arrangement. Significant influence is presumed to exist where the Company has between 20% and 50% of the voting rights, but can also arise where the Company has less than 20% if we have the power to be actively involved and influential in policy decisions affecting the entity. Our share of the net assets and net income or loss is accounted for in the consolidated financial statements using the equity method of accounting.

Outlined below is information related to our joint arrangements and entities other than 100% owned Barrick subsidiaries at December 31, 2013:

|  | Place of business |  | Entity type |  | Economic interest1 |  | Method2
Marigold Mine3 |  | United States |  | JO |  | 33% |  | Our share
Round Mountain Mine |  | United States |  | JO |  | 50% |  | Our share
Turquoise Ridge Mine3 |  | United States |  | JO |  | 75% |  | Our share
Kalgoorlie Mine |  | Australia |  | JO |  | 50% |  | Our share
Porgera Mine |  | Papua New Guinea |  | JO |  | 95% |  | Our share
African Barrick Gold plc4 |  | Tanzania |  | Subsidiary, publicly traded |  | 73.9% |  | Consolidation
Pueblo Viejo4 |  | Dominican Republic |  | Subsidiary |  | 60% |  | Consolidation
Cerro Casale Project4 |  | Chile |  | Subsidiary |  | 75% |  | Consolidation
Donlin Gold Project |  | United States |  | JO |  | 50% |  | Our share
Kabanga Project5 |  | Tanzania |  | JV |  | 50% |  | Equity Method

1 | Unless otherwise noted, all of our joint arrangements are funded by contributions made by their partners in proportion to their economic interest.

2 | For our JOs, we recognize our share of any assets, liabilities, revenues and expenses of the JO.

3 | We have joint control given that decisions about relevant activities require unanimous consent of the parties to the joint operation.

4 | We consolidate our interests in Pueblo Viejo, Cerro Casale and ABG and record a non-controlling interest for the 40%, 25% and 26.1%, respectively, that we do not own.

5 | Our JV is an early stage exploration project and, as such, does not have any significant assets, liabilities, income, contractual commitments or contingencies. Expenses are recognized through our equity pick-up (loss). Refer to note 15 for further details.

C) | Business Combinations

On the acquisition of a business, the acquisition method of accounting is used, whereby the purchase consideration is allocated to the identifiable assets and liabilities on the basis of fair value at the date of acquisition. Provisional fair values allocated at a reporting date are finalized as soon as the relevant information is available, within a period not to exceed twelve months from the acquisition date with retroactive restatement of the impact of adjustments to those provisional fair values effective as at the acquisition date. Incremental costs related to acquisitions are expensed as incurred.

When the amount of purchase consideration is contingent on future events, the initial cost of the acquisition recorded includes an estimate of the fair value of the contingent amounts expected to be payable in the future. When the fair value of contingent consideration as at the date of acquisition is finalized before the purchase price allocation

is finalized, the adjustment is allocated to the identifiable assets and liabilities acquired. Subsequent changes to the estimated fair value of contingent consideration are recorded in the consolidated statement of income.

When the cost of the acquisition exceeds the fair values of the identifiable net assets acquired, the difference is recorded as goodwill. If the fair value attributable to Barrick’s share of the identifiable net assets exceeds the cost of acquisition, the difference is recognized as a gain in the consolidated statement of income.

Non-controlling interests represent the fair value of net assets in subsidiaries, as at the date of acquisition, that are not held by Barrick and are presented in the equity section of the consolidated balance sheet.

When control of a subsidiary is acquired in stages, its carrying value prior to the acquisition of control is

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compared with the fair value of the identifiable net assets at that date. If fair value is greater than/less than carrying value, gain/loss is recorded in the consolidated statement of income.

D) | Non-current assets and disposal groups held for sale and Discontinued Operations

Non-current assets and disposal groups are classified as assets held for sale (“HFS”) if it is highly probably that they will be recovered primarily through sale rather than through continuing use. They are recorded at the lower of carrying amount and fair value less cost of disposal. Impairment losses on initial classification as HFS and subsequent gains and losses on re measurement are recognized in the income statement. Once classified as held-for sale, property, plant and equipment are no longer amortized. The assets and liabilities are presented as held for sale in the consolidated balance sheet when the sale is highly probable, the asset or disposal group is available for immediate sale in its present condition and management is committed to the sale, which should be expected to be completed within one year from the date of classification. Results of operations and any gain or loss from disposal are excluded from income before finance items and income taxes and are reported separately as income/loss from discontinued operations.

A discontinued operation is a component of the Company that can be clearly distinguished from the rest of the Company, both operationally and for financial reporting purposes, and is expected to be recovered primarily through sale rather than continuing use.

E) | Foreign Currency Translation

The functional currency of the Company, for each subsidiary of the Company, and for joint arrangements and associates, is the currency of the primary economic environment in which it operates. The functional currency of all of our operations is the US dollar. We translate non-US dollar balances for these operations into US dollars as follows:

— |  | Property, plant and equipment (“PP&E”), intangible assets and equity method investments using the rates at the time of acquisition;

— |  | Available-for-sale securities using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in OCI;

— |  | Deferred tax assets and liabilities using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in income tax expense;

— |  | Other assets and liabilities using the closing exchange rate as at the balance sheet date with translation gains and losses recorded in other income/expense; and

— |  | Income and expenses using the average exchange rate for the period, except for expenses that relate to non-monetary assets and liabilities measured at historical rates, which are translated using the same historical rate as the associated non-monetary assets and liabilities.

F) | Revenue Recognition

We record revenue when evidence exists that all of the following criteria are met:

— |  | The significant risks and rewards of ownership of the product have been transferred to the buyer;

— |  | Neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold, has been retained;

— |  | The amount of revenue can be reliably measured;

— |  | It is probable that the economic benefits associated with the sale will flow to us; and

— |  | The costs incurred or to be incurred in respect of the sale can be reliably measured.

These conditions are generally satisfied when title passes to the customer.

Gold Bullion Sales

Gold bullion is sold primarily in the London spot market. The sales price is fixed at the delivery date based on the gold spot price. Generally, we record revenue from gold bullion sales at the time of physical delivery, which is also the date that title to the gold passes.

Concentrate Sales

Under the terms of concentrate sales contracts with independent smelting companies, gold and copper sales prices are provisionally set on a specified future date after shipment based on market prices. We record revenues under these contracts at the time of shipment, which is also when the risk and rewards of ownership pass to the smelting companies, using forward market gold and copper prices on the expected date that final sales prices will be determined. Variations between the price recorded at the shipment date and the actual final price set under the smelting contracts are caused by changes in market gold and copper prices, which result in the existence of an embedded derivative in accounts receivable. The embedded derivative is recorded at fair value each period until final settlement occurs, with changes in fair value classified as provisional price adjustments and included in revenue in the consolidated statement of income.

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Copper Cathode Sales

Under the terms of copper cathode sales contracts, copper sales prices are provisionally set on a specified future date based upon market commodity prices plus certain price adjustments. Revenue is recognized at the time of shipment, which is also when the risks and rewards of ownership pass to the customer. Revenue is provisionally measured using forward market prices on the expected date that final selling prices will be determined. Variations occur between the price recorded on the date of revenue recognition and the actual final price under the terms of the contracts due to changes in market copper prices, which result in the existence of an embedded derivative in accounts receivable. This embedded derivative is recorded at fair value each period until final settlement occurs, with changes in fair value classified as provisional price adjustments and included in revenue in the consolidated statement of income.

G) | Exploration and Evaluation (“E&E”)

Exploration expenditures are the costs incurred in the initial search for mineral deposits with economic potential or in the process of obtaining more information about existing mineral deposits. Exploration expenditures typically include costs associated with prospecting, sampling, mapping, diamond drilling and other work involved in searching for ore.

Evaluation expenditures are the costs incurred to establish the technical and commercial viability of developing mineral deposits identified through exploration activities or by acquisition. Evaluation expenditures include the cost of (i) establishing the volume and grade of deposits through drilling of core samples, trenching and sampling activities in an ore body that is classified as either a mineral resource or a proven and probable reserve; (ii) determining the optimal methods of extraction and metallurgical and treatment processes; (iii) studies related to surveying, transportation and infrastructure requirements; (iv) permitting activities; and (v) economic evaluations to determine whether development of the mineralized material is commercially justified, including scoping, prefeasibility and final feasibility studies.

Exploration and evaluation expenditures are capitalized if management determines that probable future economic benefits will be generated as a result of the expenditures. Cash flows attributable to capitalized exploration and evaluation expenditures are classified as investing activities in the consolidated statements of cash flow.

H) | Earnings per Share

Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if additional common shares are assumed to be issued under securities that entitle their holders to obtain common shares in the future. For stock options, the number of additional shares for inclusion in diluted earnings per share calculations is determined using the treasury stock method. Under this method, stock options, whose exercise price is less than the average market price of our common shares, are assumed to be exercised and the proceeds are used to repurchase common shares at the average market price for the period. The incremental number of common shares issued under stock options and repurchased from proceeds is included in the calculation of diluted earnings per share.

I) | Taxation

Current tax for each taxable entity is based on the local taxable income at the local statutory tax rate enacted or substantively enacted at the balance sheet date and includes adjustments to tax payable or recoverable in respect of previous periods.

Deferred tax is recognized using the balance sheet method in respect of all temporary differences between the tax bases of assets and liabilities, and their carrying amounts for financial reporting purposes, except as indicated below.

Deferred income tax liabilities are recognized for all taxable temporary differences, except:

— |  | Where the deferred income tax liability arises from the initial recognition of goodwill, or the initial recognition of an asset or liability in an acquisition that is not a business combination and, at the time of the acquisition, affects neither the accounting profit nor taxable profit or loss; and

— |  | In respect of taxable temporary differences associated with investments in subsidiaries and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred income tax assets are recognized for all deductible temporary differences and the carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilized, except:

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— |  | Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in an acquisition that is not a business combination and, at the time of the acquisition, affects neither the accounting profit nor taxable profit or loss; and

— |  | In respect of deductible temporary differences associated with investments in subsidiaries and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. To the extent that an asset not previously recognized fulfills the criteria for recognition, a deferred income tax asset is recorded.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the asset is realized or the liability is settled, based on tax rates and tax laws enacted or substantively enacted at the balance sheet date.

Current and deferred tax relating to items recognized directly in equity are recognized in equity and not in the income statement.

Royalties and Special Mining Taxes

Income tax expense includes the cost of royalty and special mining taxes payable to governments that are calculated based on a percentage of taxable profit whereby taxable profit represents net income adjusted for certain items defined in the applicable legislation.

Indirect Taxes

Indirect tax recoverable is recorded at their undiscounted amount, and are disclosed as non-current if not expected to be recovered within twelve months.

J) | Other Investments

Investments in publicly quoted equity securities that are neither subsidiaries nor associates are categorized as available-for-sale. Available-for-sale equity investments are recorded at fair value with unrealized gains and losses recorded in OCI. Realized gains and losses are recorded in earnings when investments are sold and are calculated using the average carrying amount of securities sold.

If the fair value of an investment declines below the carrying amount, we undertake qualitative and quantitative assessments of whether the impairment is either significant or prolonged. If an unrealized loss on an available-for-sale investment has been recognized in OCI and it is deemed to be either significant or prolonged, any cumulative loss that had been recognized in OCI is reclassified as an impairment loss in the consolidated statement of income. The reclassification adjustment is calculated as the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized. If the value of a previously impaired available-for-sale equity investment subsequently recovers, additional unrealized gains are recorded in OCI and the previously recorded impairment losses are not reversed through the consolidated statement of income.

K) | Inventory

Material extracted from our mines is classified as either ore or waste. Ore represents material that, at the time of extraction, we expect to process into a saleable form and sell at a profit. Raw materials are comprised of both ore in stockpiles and ore on leach pads as processing is required to extract benefit from the ore. Ore is accumulated in stockpiles that are subsequently processed into gold/copper in a saleable form. The recovery of gold and copper from certain oxide ores is achieved through the heap leaching process. Work in process represents gold/copper in the processing circuit that has not completed the production process, and is not yet in a saleable form. Finished goods inventory represents gold/copper in saleable form. Mine operating supplies represent commodity consumables and other raw materials used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items.

Inventories are valued at the lower of cost and net realizable value. Cost is determined on a weighted average basis and includes all costs incurred, based on a normal production capacity, in bringing each product to its present location and condition. Cost of inventories comprises direct labor, materials and contractor expenses, including non-capitalized stripping costs; depreciation on PP&E including capitalized stripping costs; and an allocation of mine site overhead costs. As ore is removed for processing, costs are removed based on the average cost per ounce/pound in the stockpile.

We record provisions to reduce inventory to net realizable value to reflect changes in economic factors that impact inventory value and to reflect present intentions for the use of slow moving and obsolete supplies inventory. Net

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realizable value is determined with reference to relevant market prices less applicable variable selling expenses. Provisions recorded also reflect an estimate of the remaining costs of completion to bring the inventory into its saleable form. Provisions are also recorded to reduce mine operating supplies to net realizable value, which is generally calculated by reference to its salvage or scrap value, when it is determined that the supplies are obsolete. Provisions are reversed to reflect subsequent recoveries in net realizable value where the inventory is still on hand.

L) | Production Stage

We assess each mine construction project to determine when a mine moves into production stage. The criteria used to assess the start date are determined based on the nature of each mine construction project, such as the complexity of a plant or its location. We consider various relevant criteria to assess when the mine is substantially complete and ready for its intended use and moved into the production stage. Some of the criteria considered would include, but are not limited to, the following: (1) the level of capital expenditures compared to construction cost estimates; (2) the completion of a reasonable period of testing of mine plant and equipment; (3) the ability to produce minerals in saleable form (within specifications); and (4) the ability to sustain ongoing production of minerals.

When a mine construction project moves into the production stage, the capitalization of certain mine construction costs ceases and costs are either capitalized to inventory or expensed, except for capitalizable costs related to property, plant and equipment additions or improvements, open pit stripping activities that provide a future benefit, underground mine development or E&E expenditures that meet the criteria for capitalization.

Pre-production stripping costs are capitalized until an “other than de minimis” level of mineral is extracted, after which time such costs are either capitalized to inventory or, if it qualifies as an open pit stripping activity that provides a future benefit, to PP&E. We consider various relevant criteria to assess when an “other than de minimis” level of mineral is produced. Some of the criteria considered would include, but are not limited to, the following: (1) the amount of minerals mined versus total ounces in life of mine (“LOM”) ore; (2) the amount of ore tons mined versus total LOM expected ore tons mined; (3) the current stripping ratio versus the LOM strip ratio; and (4) the ore grade versus the LOM grade.

M) | Property, Plant and Equipment

Buildings, Plant and Equipment

At acquisition, we record buildings, plant and equipment at cost, including all expenditures incurred to prepare an asset for its intended use. These expenditures consist of: the purchase price; brokers’ commissions; and installation costs including architectural, design and engineering fees, legal fees, survey costs, site preparation costs, freight charges, transportation insurance costs, duties, testing and preparation charges.

We capitalize costs that meet the asset recognition criteria. Costs incurred that do not extend the productive capacity or useful economic life of an asset are considered repairs and maintenance expense and are accounted for as a cost of the inventory produced in the period.

Buildings, plant and equipment are depreciated over their expected useful life, which commences when the assets are considered available for use. Once buildings, plant and equipment are considered available for use they are measured at cost less accumulated depreciation and applicable impairment losses.

Depreciation on equipment utilized in the development of assets, including open pit and underground mine development, is recapitalized as development costs attributable to the related asset.

Estimated useful lives of Major Asset Categories

Buildings, plant and equipment |  | 5 - 29 years
Underground mobile equipment |  | 5 - 7 years
Light vehicles and other mobile equipment |  | 2 - 3 years
Furniture, computer and office equipment |  | 2 - 3 years

Leasing Arrangements

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date, including whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or whether the arrangement conveys a right to use the asset.

Leasing arrangements that transfer substantially all the risks and rewards of ownership of the asset to Barrick are classified as finance leases. Finance leases are recorded as an asset with a corresponding liability at an amount equal to the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance costs using the effective interest method, whereby a constant rate of interest expense is recognized on the balance of the

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liability outstanding. The interest element of the lease is charged to the consolidated statement of income as a finance cost.

PP&E assets acquired under finance leases are depreciated, over the shorter of the useful life of the asset and the lease term.

All other leases are classified as operating leases. Operating lease payments are recognized as an operating cost in the consolidated statements of income on a straight-line basis over the lease term.

Mineral Properties

Mineral properties consist of: the fair value attributable to mineral reserves and resources acquired in a business combination or asset acquisition; underground mine development costs; open pit mine development costs; capitalized exploration and evaluation costs; and capitalized interest.

i) Acquired Mining Properties

On acquisition of a mining property we prepare an estimate of the fair value attributable to the proven and probable mineral reserves, mineral resources and exploration potential attributable to the property. The estimated fair value attributable to the mineral reserves and the portion of mineral resources considered to be probable of economic extraction at the time of the acquisition is depreciated on a units of production (“UOP”) basis whereby the denominator is the proven and probable reserves and the portion of mineral resources considered to be probable of economic extraction. The estimated fair value attributable to mineral resources that are not considered to be probable of economic extraction at the time of the acquisition is not subject to depreciation, until the resources become probable of economic extraction in the future. The estimated fair value attributable to exploration licenses is recorded as an intangible asset and is not subject to depreciation until the property enters production.

ii) Underground Mine Development Costs

At our underground mines, we incur development costs to build new shafts, drifts and ramps that will enable us to physically access ore underground. The time over which we will continue to incur these costs depends on the mine life. These underground development costs are capitalized as incurred.

Capitalized underground development costs incurred to enable access to specific ore blocks or areas of the underground mine, and which only provide an economic

benefit over the period of mining that ore block or area, are depreciated on a UOP basis, whereby the denominator is estimated ounces/pounds of gold/copper in proven and probable reserves and the portion of resources within that ore block or area that is considered probable of economic extraction.

If capitalized underground development costs provide an economic benefit over the entire mine life, the costs are depreciated on a UOP basis, whereby the denominator is the estimated ounces/pounds of gold/copper in total accessible proven and probable reserves and the portion of resources that is considered probable of economic extraction.

iii) Open Pit Mining Costs

In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore from which minerals can be extracted economically. The process of mining overburden and waste materials is referred to as stripping. Stripping costs incurred in order to provide initial access to the ore body (referred to as pre-production stripping) are capitalized as open pit mine development costs.

Stripping costs incurred during the production stage of a pit are accounted for as costs of the inventory produced during the period that the stripping costs are incurred, unless these costs are expected to provide a future economic benefit to an identifiable component of the ore body. Production phase stripping costs generate a future economic benefit when the related stripping activity: (i) improves access to a component of the ore body to be mined in the future; (ii) increases the fair value of the mine (or pit) as access to future mineral reserves becomes less costly; and (iii) increases the productive capacity or extends the productive life of the mine (or pit). Production phase stripping costs that are expected to generate a future economic benefit are capitalized as open pit mine development costs.

Capitalized open pit mine development costs are depreciated on a UOP basis whereby the denominator is the estimated ounces/pounds of gold/copper in proven and probable reserves and the portion of resources considered probable of economic extraction based on the current LOM plan in the components of the ore body that have been made more accessible through the stripping activity. Capitalized open pit mine development costs are depreciated once the open pit has entered production and the future economic benefit is being derived.

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Construction-in-Progress

Assets under construction at operating mines are capitalized as construction-in-progress. The cost of construction-in-progress comprises its purchase price and any costs directly attributable to bringing it into working condition for its intended use. Construction-in-progress amounts related to development projects are included in the carrying amount of the development project. Construction-in-progress amounts incurred at operating mines are presented as a separate asset within PP&E. Construction-in-progress also includes deposits on long lead items. Construction-in-progress is not depreciated. Depreciation commences once the asset is complete and available for use.

Capitalized Interest

We capitalize interest costs for qualifying assets. Qualifying assets are assets that require a significant amount of time to prepare for their intended use, including projects that are in the exploration and evaluation, development or construction stages. Qualifying assets also include significant expansion projects at our operating mines. Capitalized interest costs are considered an element of the cost of the qualifying asset which is determined based on gross expenditures incurred on an asset. Capitalization ceases when the asset is substantially complete or if active development is suspended or ceases. Where the funds used to finance a qualifying asset form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to the relevant borrowings during the period. Where funds borrowed are directly attributable to a qualifying asset, the amount capitalized represents the borrowing costs specific to those borrowings. Where surplus funds available out of money borrowed specifically to finance a project are temporarily invested, the total capitalized interest is reduced by income generated from short-term investments of such funds.

Insurance

We record losses relating to insurable events as they occur. Proceeds receivable from insurance coverage are recorded at such time as receipt is receivable or virtually certain and the amount receivable is fixed or determinable. For business interruption the amount is only recognized when it is virtually certain or receivable as supported by receipt of notification of a minimum or proposed settlement amount from the insurance adjuster.

N) Goodwill

Under the acquisition method of accounting, the costs of business combinations are allocated to the assets acquired and liabilities assumed based on the estimated fair value at

the date of acquisition. The excess of the fair value of consideration paid over the fair value of the identifiable net assets acquired is recorded as goodwill. Goodwill is not amortized; instead it is tested annually for impairment at the beginning of the fourth quarter for all of our segments. Our copper segment was previously tested at the end of the fourth quarter. In addition, at each reporting period we assess whether there is an indication that goodwill is impaired and, if there is such an indication, we would test for goodwill impairment at that time. At the date of acquisition, goodwill is assigned to the cash generating unit (“CGU”) or group of CGUs that is expected to benefit from the synergies of the business combination. For the purposes of impairment testing, goodwill is allocated to the Company’s operating segments, which corresponds to the level at which goodwill is internally monitored by the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer.

The recoverable amount of an operating segment is the higher of Value in Use (“VIU”) and Fair Value Less Costs of Disposal (“FVLCD”). A goodwill impairment is recognized for any excess of the carrying amount of the segment over its recoverable amount. Goodwill impairment charges are not reversible.

O) Intangible Assets

Intangible assets acquired by way of an asset acquisition or business combination are recognized if the asset is separable or arises from contractual or legal rights and the fair value can be measured reliably on initial recognition.

On acquisition of a mineral property in the exploration stage, we prepare an estimate of the fair value attributable to the exploration licenses acquired, including the fair value attributable to mineral resources, if any, of that property. The fair value of the exploration license is recorded as an intangible asset (acquired exploration potential) as at the date of acquisition. When an exploration stage property moves into development, the acquired exploration potential attributable to that property is transferred to mining interests within PP&E.

P) Impairment of Non-Current Assets

We review and test the carrying amounts of PP&E and intangible assets with definite lives when an indicator of impairment is considered to exist. Impairment assessments on PP&E and intangible assets are conducted at the level of CGU, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. For operating mines and projects, the individual mine/project represents a CGU for impairment testing.

BARRICK YEAR END 2013 |  | 91 |  | NOTES TO FINANCIAL STATEMENTS

The recoverable amount of a CGU is the higher of VIU and FVLCD. An impairment loss is recognized for any excess of the carrying amount of a CGU over its recoverable amount. Where it is not appropriate to allocate the loss to a separate asset, an impairment loss related to a CGU is allocated to the carrying amount of the assets of the CGU on a pro rata basis based on the carrying amount of its non-monetary assets.

Impairment Reversal

Impairment losses for PP&E and intangible assets are reversed if the conditions that gave rise to the impairment are no longer present and it has been determined that the asset is no longer impaired as a result. This reversal is recognized in the consolidated statements of income and is limited to the carrying value that would have been determined, net of any depreciation where applicable, had no impairment charge been recognized in prior years. When an impairment reversal is undertaken, the recoverable amount is assessed by reference to the higher of VIU and FVLCD.

Q) Debt

Debt is recognized initially at fair value, net of financing costs incurred, and subsequently measured at amortized cost. Any difference between the amounts originally received and the redemption value of the debt is recognized in the consolidated statement of income over the period to maturity using the effective interest method.

R) Derivative Instruments and Hedge Accounting

Derivative Instruments

Derivative instruments are recorded at fair value on the consolidated balance sheet, classified based on contractual maturity. Derivative instruments are classified as either hedges of the fair value of recognized assets or liabilities or of firm commitments (“fair value hedges”), hedges of highly probable forecast transactions (“cash flow hedges”) or non-hedge derivatives. Derivatives designated as either a fair value or cash flow hedge that are expected to be highly effective in achieving offsetting changes in fair value or cash flows are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. Derivative assets and derivative liabilities are shown separately in the balance sheet unless there is a legal right to offset and intent to settle on a net basis.

Fair Value Hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the consolidated statement of income, together with any

changes in the fair value of the hedged asset or liability or firm commitment that is attributable to the hedged risk.

Cash Flow Hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity. The gain or loss relating to the ineffective portion is recognized in the consolidated statements of income. Amounts accumulated in equity are transferred to the consolidated statements of income in the period when the forecasted transaction impacts earnings. When the forecasted transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the measurement of the initial carrying amount of the asset or liability.

When a derivative designated as a cash flow hedge expires or is sold and the forecasted transaction is still expected to occur, any cumulative gain or loss relating to the derivative that is recorded in equity at that time remains in equity and is recognized in the consolidated statements of income when the forecasted transaction occurs. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was recorded in equity is immediately transferred to the consolidated statements of income.

Non-Hedge Derivatives

Derivative instruments that do not qualify as either fair value or cash flow hedges are recorded at their fair value at the balance sheet date, with changes in fair value recognized in the consolidated statements of income.

S) Embedded Derivatives

Derivatives embedded in other financial instruments or executory contracts are accounted for as separate derivatives when their risks and characteristics are not closely related to their host financial instrument or contract. In some cases, the embedded derivatives may be designated as hedges and are accounted for as described above.

T) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Refer to note 25 for further information.

BARRICK YEAR END 2013 |  | 92 |  | NOTES TO FINANCIAL STATEMENTS

U) Environmental Rehabilitation Provision

Mining, extraction and processing activities normally give rise to obligations for environmental rehabilitation. Rehabilitation work can include facility decommissioning and dismantling; removal or treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; security and other site-related costs required to perform the rehabilitation work; and operation of equipment designed to reduce or eliminate environmental effects. The extent of work required and the associated costs are dependent on the requirements of relevant authorities and our environmental policies. Routine operating costs that may impact the ultimate closure and rehabilitation activities, such as waste material handling conducted as an integral part of a mining or production process, are not included in the provision. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned discharges, are recognized as an expense and liability when the event that gives rise to an obligation occurs and reliable estimates of the required rehabilitation costs can be made.

Provisions for the cost of each rehabilitation program are normally recognized at the time that an environmental disturbance occurs or a constructive obligation is determined. When the extent of disturbance increases over the life of an operation, the provision is increased accordingly. The major parts of the carrying amount of provisions relate to tailings pond closure/rehabilitation; demolition of buildings/mine facilities; ongoing water treatment; and ongoing care and maintenance and security of closed mines. Costs included in the provision encompass all closure and rehabilitation activity expected to occur progressively over the life of the operation at the time of closure and post-closure in connection with disturbances as at the reporting date. Estimated costs included in the determination of the provision reflect the risks and probabilities of alternative estimates of cash flows required to settle the obligation at each particular operation. The expected rehabilitation costs are estimated based on the cost of external contractors performing the work or the cost of performing the work internally depending on management’s intention.

The timing of the actual rehabilitation expenditure is dependent upon a number of factors such as the life and nature of the asset, the operating license conditions and the environment in which the mine operates. Expenditures may occur before and after closure and can continue for an extended period of time depending on rehabilitation requirements. Rehabilitation provisions are measured at the expected value of future cash flows, which exclude the

effect of inflation, discounted to their present value using a current US dollar real risk-free pre-tax discount rate. The unwinding of the discount, referred to as accretion expense, is included in finance costs and results in an increase in the amount of the provision. Provisions are updated each reporting period for changes to expected cash flows and for the effect of changes in the discount rate, and the change in estimate is added or deducted from the related asset and depreciated over the expected economic life of the operation to which it relates.

Significant judgments and estimates are involved in forming expectations of future activities and the amount and timing of the associated cash flows. Those expectations are formed based on existing environmental and regulatory requirements or, if more stringent, our environmental policies which give rise to a constructive obligation.

When provisions for closure and rehabilitation are initially recognized, the corresponding cost is capitalized as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The capitalized cost of closure and rehabilitation activities is recognized in PP&E and depreciated over the expected economic life of the operation to which it relates.

Adjustments to the estimated amount and timing of future closure and rehabilitation cash flows are a normal occurrence in light of the significant judgments and estimates involved. The principal factors that can cause expected cash flows to change are: the construction of new processing facilities; changes in the quantities of material in reserves and resources with a corresponding change in the life of mine plan; changing ore characteristics that impact required environmental protection measures and related costs; changes in water quality that impact the extent of water treatment required; changes in discount rates; changes in foreign exchange rates and changes in laws and regulations governing the protection of the environment.

Rehabilitation provisions are adjusted as a result of changes in estimates and assumptions. Those adjustments are accounted for as a change in the corresponding cost of the related assets, including the related mineral property, except where a reduction in the provision is greater than the remaining net book value of the related assets, in which case the value is reduced to nil and the remaining adjustment is recognized in the consolidated statement of income. In the case of closed sites, changes in estimates and assumptions are recognized immediately in the consolidated statement of income. For an operating mine, the adjusted carrying amount of the related asset is depreciated prospectively. Adjustments also result in changes to future finance costs.

BARRICK YEAR END 2013 |  | 93 |  | NOTES TO FINANCIAL STATEMENTS

V) Litigation and Other Provisions

Provisions are recognized when a present obligation exists (legal or constructive), as a result of a past event, for which it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are discounted to their present value using a current US dollar real risk-free pre-tax discount rate and the accretion expense is included in finance costs.

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, the Company with assistance from its legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.

If the assessment of a contingency suggests that a loss is probable, and the amount can be reliably estimated, then a loss is recorded. When a contingent loss is not probable but is reasonably possible, or is probable but the amount of loss cannot be reliably estimated, then details of the contingent loss are disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case we disclose the nature of the guarantee. Legal fees incurred in connection with pending legal proceedings are expensed as incurred. Contingent gains are only recognized when the inflow of economic benefits is virtually certain.

W) Stock-Based Compensation

Barrick offers equity-settled (Employee Stock Option Plan (“ESOP”), Employee Share Purchase Plan (“ESPP”)) and cash-settled (Restricted Share Units (“RSU”), Deferred Share Units (“DSU”), Performance Restricted Share Units (“PRSU”)) awards to certain employees, officers and directors of the Company.

Equity-settled awards are measured at fair value using the Lattice model with market related inputs as of the date of the grant. The cost is recorded over the vesting period of the award to the same expense category as the award recipient’s payroll costs (i.e. cost of sales, operating segment administration, corporate administration) and the corresponding entry is recorded in equity. Equity-settled

awards are not remeasured subsequent to the initial grant date.

Cash-settled awards are measured at fair value initially using the market value of the underlying shares at the date of the grant of the award and are required to be remeasured to fair value at each reporting date until settlement. The cost is then recorded over the vesting period of the award. This expense, and any changes in the fair value of the award, is recorded to the same expense category as the award recipient’s payroll costs. The cost of a cash-settled award is recorded within liabilities until settled.

We use the accelerated method (also referred to as ‘graded’ vesting) for attributing stock option expense over the vesting period. Stock option expense incorporates an expected forfeiture rate. The expected forfeiture rate is estimated based on historical forfeiture rates and expectations of future forfeiture rates. We make adjustments if the actual forfeiture rate differs from the expected rate.

Employee Stock Option Plan (“ESOP”)

Under Barrick’s ESOP, certain officers and key employees of the Corporation may purchase common shares at an exercise price that is equal to the closing share price on the day before the grant of the option. The grant date is the date when the details of the award, including the number of options granted to the individual and the exercise price, are approved. Stock options vest equally over four years, beginning in the year after granting. The ESOP arrangement has graded vesting terms, and therefore, multiple vesting periods must be valued and accounted for separately over their respective vesting periods. The compensation expense of the instruments issued for each grant under the ESOP is calculated using the Lattice model. The compensation expense is adjusted by the estimated forfeiture rate which is estimated based on historical forfeiture rates and expectations of future forfeiture rates. We make adjustments if the actual forfeiture rate differs from the expected rate.

Restricted Share Units (“RSU”)

Under our RSU plan, selected employees are granted RSUs where each RSU has a value equal to one Barrick common share. RSUs vest at the end of two and a half years and are settled in cash upon vesting. Additional RSUs are credited to reflect dividends paid on Barrick common shares over the vesting period.

A liability for RSUs is measured at fair value on the grant date and is subsequently adjusted for changes in fair value.

BARRICK YEAR END 2013 |  | 94 |  | NOTES TO FINANCIAL STATEMENTS

The liability is recognized on a straight-line basis over the vesting period, with a corresponding charge to compensation expense, as a component of corporate administration and operating segment administration. Compensation expenses for RSUs incorporate an estimate for expected forfeiture rates based on which the fair value is adjusted.

Deferred Share Units (“DSU”)

Under our DSU plan, Directors must receive a specified portion of their basic annual retainer in the form of DSUs, with the option to elect to receive 100% of such retainer in DSUs. Each DSU has the same value as one Barrick common share. DSUs must be retained until the Director leaves the Board, at which time the cash value of the DSUs is paid out. Additional DSUs are credited to reflect dividends paid on Barrick common shares. The initial fair value of the liability is calculated as of the grant date and is recognized immediately. Subsequently, at each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense in the period.

Performance Restricted Share Units

Under our PRSU plan, selected employees are granted PRSUs, where each PRSU has a value equal to one Barrick common share. PRSUs vest at the end of a three-year period and are settled in cash on the third anniversary of the grant date. Additional PRSUs are credited to reflect dividends paid on Barrick common shares over the vesting period. Vesting, and therefore the liability, is based on the achievement of performance goals and the target settlement ranges from 0% to 200% of the original grant of units.

The value of a PRSU reflects the value of a Barrick common share and the number of shares issued is adjusted for its relative performance against certain competitors. Therefore, the fair value of the PRSUs is determined with reference to the closing stock price at each remeasurement date.

The initial fair value of the liability is calculated as of the grant date and is recognized within compensation expense using the straight-line method over the vesting period. Subsequently, at each reporting date and on settlement, the liability is remeasured, with any changes in fair value recorded as compensation expense. The fair value is adjusted for the revised estimated forfeiture rate.

Employee Share Purchase Plan

Under our ESPP plan, Barrick employees can purchase Company shares through payroll deduction. Each year,

employees may contribute 1%-6% of their combined base salary and annual bonus, and Barrick will match 50% of the contribution, up to a maximum of $5,000 per year.

Both Barrick and the employee make the contributions on a bi-monthly basis with the funds being transferred to a custodian who purchases Barrick Common Shares in the open market. Shares purchased with employee contributions have no vesting requirement; however, shares purchased with Barrick’s contributions vest one year from contribution date. All dividend income is used to purchase additional Barrick shares.

Barrick records an expense equal to its bi-monthly cash contribution. No forfeiture rate is applied to the amounts accrued. Where an employee leaves prior to vesting, any accrual for contributions by Barrick during the year related to that employee is reversed.

X) Post-Retirement Benefits

Defined Contribution Pension Plans

Certain employees take part in defined contribution employee benefit plans whereby we contribute up to 6% of the employees’ annual salary. We also have a retirement plan for certain officers of Barrick under which we contribute 15% of the officer’s annual salary. The contributions are recognized as compensation expense as incurred. The Company has no further payment obligations once the contributions have been paid.

Defined Benefit Pension Plans

We have qualified defined benefit pension plans that cover certain United States and Canadian employees and provide benefits based on employees’ years of service. Our policy is to fund the amounts necessary on an actuarial basis to provide enough assets to meet the benefits payable to plan members. Independent trustees administer assets of the plans, which are invested mainly in fixed income and equity securities.

As well as the qualified plans, we have non-qualified defined benefit pension plans covering certain employees and former directors of Barrick. No funding is done on these plans and contributions for future years are required to be equal to benefit payments.

Actuarial gains and losses arise when the actual return on plan assets differs from the expected return on plan assets for a period, or when the accrued benefit obligations change during the year. We record actuarial gains and losses in OCI and retained earnings.

BARRICK YEAR END 2013 |  | 95 |  | NOTES TO FINANCIAL STATEMENTS

Our valuations are carried out using the projected unit credit method. We record the difference between the fair value of the plan assets and the present value of the plan obligations as an asset or liability on the consolidated balance sheets.

Pension Plan Assets and Liabilities

Pension plan assets, which consist primarily of fixed-income and equity securities, are valued using current market quotations. Plan obligations and the annual pension expense are determined on an actuarial basis and are affected by numerous assumptions and estimates including the market value of plan assets, estimates of the expected return on plan assets, discount rates, future wage increases and other assumptions.

The discount rate is the assumption that generally has the most significant impact on our pension cost and obligation.

Other Post-Retirement Benefits

We provide post-retirement medical, dental, and life insurance benefits to certain employees. Actuarial gains and losses resulting from variances between actual results and economic estimates or actuarial assumptions are recorded in OCI.

Y) New Accounting Standards adopted during the year

The Company has adopted the following new standards, along with any consequential amendments, effective January 1, 2013. These changes were made in accordance with the applicable transitional provisions.

IFRS 10 Consolidated Financial Statements

In May 2011, the IASB issued IFRS 10 Consolidated Financial Statements to replace the consolidation guidance in IAS 27 Consolidated and Separate Financial Statements and SIC 12 Consolidation – Special Purpose Entities. The new consolidation standard changes the definition of control so that the same criteria apply to all entities, both operating and special purpose entities, to determine control. The revised definition of control focuses on the need to have power over the investee, exposure to variable returns from its involvement with the investee and the ability to use its power over the investee to affect its returns. We conducted a review of all our non-wholly owned entities and structured entities and determined that the adoption of IFRS 10 did not result in any change in the consolidation status of any of our subsidiaries and investees.

IFRS 11 Joint Arrangements

In May 2011, the IASB issued IFRS 11 Joint Arrangements to replace IAS 31, Interests in Joint Ventures. The new standard defines two types of arrangements: Joint

Operations and Joint Ventures. The focus of the standard is to reflect the rights and obligations of the parties involved in the joint arrangement, regardless of whether the joint arrangement operates through a separate legal entity. Joint arrangements that are classified as joint ventures are accounted for using the equity method of accounting. Joint arrangements that are classified as joint operations require the venturers to recognize the individual assets, liabilities, revenues and expenses to which they have legal rights or are responsible. As a result of adopting IFRS 11, we have classified our interest in the Donlin Gold project as a joint operation. Our 50% interest in the project was previously accounted for using the equity method of accounting.

As a result of the change in accounting, we now recognize our share of the project’s assets, liabilities, revenue and expenses. This change in accounting was adopted as at January 1, 2013 with retrospective application by the derecognition of our equity investment and the recognition of our share of the project’s assets, liabilities, revenues and expenses.

IFRS 12 Disclosure of Interests in Other Entities

In May 2011, the IASB issued IFRS 12 Disclosure of Interests in Other Entities to create a comprehensive disclosure standard to address the requirements for subsidiaries, joint arrangements and associates including the reporting entity’s involvement with other entities. It also includes the requirements for unconsolidated structured entities (i.e. special purpose entities). We have adopted IFRS 12 effective January 1, 2013. We have added additional disclosures in notes 2B, 15, 31.

IFRS 13 Fair Value Measurement

In May 2011, the IASB issued IFRS 13 Fair Value Measurement as a single source of guidance for all fair value measurements required by IFRS to reduce the complexity and improve consistency across its application. The standard provides a definition of fair value and guidance on how to measure fair value as well as a requirement for enhanced disclosures. We have adopted IFRS 13 on a prospective basis. We have added additional disclosures on fair value measurement in note 25.

IAS 19 Employee Benefits

In June 2011, the IASB issued revised IAS 19. As a result we replaced interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability (asset). Adoption of revised IAS 19 did not materially impact the measurement, recognition or disclosure in our financial statements. See note 34 for further details.

BARRICK YEAR END 2013 |  | 96 |  | NOTES TO FINANCIAL STATEMENTS

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

In October 2011, the IASB issued IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine. IFRIC 20 provides guidance on the accounting for the costs of stripping activities during the production phase of surface mining when two benefits accrue to the entity as a result of the stripping: useable ore that can be used to produce inventory and improved access to further quantities of material that will be mined in future periods. We have adopted IFRIC 20 effective January 1, 2013. Upon adoption of IFRIC 20, we assessed the stripping asset on the balance sheet as at January 1, 2012 and determined that there are identifiable components of

the ore body with which this stripping asset can be associated, and therefore no balance sheet adjustment was required. The adoption of IFRIC 20 has resulted in increased capitalization of waste stripping costs and a reduction in our cost of sales in 2012. If we had not adopted the standard, our net income and capitalized waste stripping costs for current and comparative periods would have decreased.

For the quantitative impact of adopting IFRS 11 and IFRIC 20 on our prior year consolidated financial statements and of the impact of the discontinued operations of our energy business (note 4b), please refer to tables below.

Adjustments to the consolidated balance sheets:

|  | As at January 1, 2012 |  |  | Adjustments for Changes in Accounting Policy |  |  | As at January 1, 2012 |
|  | (previously stated) |  |  | IFRS 11 |  |  | IFRIC 20 |  |  | (restated) |
Cash and equivalents |  |  | $ 2,745 |  |  |  | $ 4 |  |  |  | $ - |  |  |  | $ 2,749 |
Equity in investees |  |  | 440 |  |  |  | (99) |  |  |  | - |  |  |  | 341 |
Property, plant and equipment |  |  | 28,979 |  |  |  | 97 |  |  |  | - |  |  |  | 29,076 |
Accounts payable |  |  | (2,083) |  |  |  | (2) |  |  |  | - |  |  |  | (2,085) |
Increase in net assets |  |  |  |  |  |  | $ - |  |  |  | $ - |  |  |  |  |
|  | As at December 31, 2012 |  |  | Adjustments for Changes in Accounting Policy |  |  | As at December 31, 2012 |
|  | (previously stated) |  |  | IFRS 11 |  |  | IFRIC 20 |  |  | (restated) |
Cash and equivalents |  |  | $ 2,093 |  |  |  | $ 4 |  |  |  | $ - |  |  |  | $ 2,097 |
Inventories |  |  | 4,387 |  |  |  | - |  |  |  | (247) |  |  |  | 4,140 |
Equity in investees |  |  | 135 |  |  |  | (115) |  |  |  | - |  |  |  | 20 |
Property, plant and equipment |  |  | 28,717 |  |  |  | 113 |  |  |  | 447 |  |  |  | 29,277 |
Deferred income tax assets |  |  | 443 |  |  |  | - |  |  |  | (6) |  |  |  | 437 |
Accounts payable |  |  | (2,265) |  |  |  | (2) |  |  |  | - |  |  |  | (2,267) |
Deferred income tax liabilities |  |  | (2,602) |  |  |  |  |  |  |  | (66) |  |  |  | (2,668) |
Increase in net assets |  |  |  |  |  |  | $ - |  |  |  | $ 128 |  |  |  |  |

Adjustments to the consolidated statements of income:

For the year ended December 31 |  | 2012 |  |  | Adjustments for Changes in Accounting Policy |  |  | Discontinued Operations1 |  |  | 2012 |
|  | (previously stated) |  |  | IFRS 11 |  |  | IFRIC 20 |  |  |  |  |  | (restated) |
Revenue |  |  | $ 14,547 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ (153) |  |  |  | $ 14,394 |
Cost of sales |  |  | 7,654 |  |  |  | - |  |  |  | (232) |  |  |  | (165) |  |  |  | 7,257 |
Impairment charges |  |  | 6,470 |  |  |  | - |  |  |  | 32 |  |  |  | (208) |  |  |  | 6,294 |
Other expense (income) |  |  | 326 |  |  |  | 1 |  |  |  | - |  |  |  | (24) |  |  |  | 303 |
Loss from equity investees |  |  | (13) |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | (12) |
Finance costs |  |  | (177) |  |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | (174) |
Income tax recovery (expense) |  |  | 236 |  |  |  | - |  |  |  | (72) |  |  |  | (62) |  |  |  | 102 |
Increase in net income from continuing operations |  |  |  |  |  |  | $ - |  |  |  | $ 128 |  |  |  | $ 185 |  |  |  |  |

BARRICK YEAR END 2013 |  | 97 |  | NOTES TO FINANCIAL STATEMENTS

Adjustments to the consolidated statements of cash flow:

For the year ended December 31 |  | 2012 |  |  | Adjustments For Changes in Accounting Policy |  |  | Discontinued Operations1 |  |  | 2012 |
|  | (previously stated) |  |  | IFRS 11 |  |  | IFRIC 20 |  |  |  |  |  | (restated) |
Net loss |  |  | $ (677) |  |  |  | $ - |  |  |  | $ 128 |  |  |  | $ 185 |  |  |  | $ (364) |
Adjusted for the following items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 1,722 |  |  |  | - |  |  |  | 31 |  |  |  | (102) |  |  |  | 1,651 |
Finance costs (excludes accretion) |  |  | 123 |  |  |  | - |  |  |  | - |  |  |  | (2) |  |  |  | 121 |
Impairment charges |  |  | 6,470 |  |  |  | - |  |  |  | 32 |  |  |  | (208) |  |  |  | 6,294 |
Income tax expense (recovery) |  |  | (236) |  |  |  | - |  |  |  | 72 |  |  |  | 62 |  |  |  | (102) |
Increase in inventory |  |  | (616) |  |  |  | - |  |  |  | 256 |  |  |  | - |  |  |  | (360) |
Other operating activities |  |  | (144) |  |  |  | (2) |  |  |  | - |  |  |  | (137) |  |  |  | (283) |
Net cash (provided by) used in operating activities from continuing operations |  |  |  |  |  |  | (2) |  |  |  | 519 |  |  |  | (202) |  |  |  |  |
Capital expenditures |  |  | (6,369) |  |  |  | (15) |  |  |  | (519) |  |  |  | 130 |  |  |  | (6,773) |
Other investing activities |  |  | (328) |  |  |  | 17 |  |  |  | - |  |  |  | - |  |  |  | (311) |
Net cash (provided by) used in investing activities from continuing operations |  |  |  |  |  |  | 2 |  |  |  | (519) |  |  |  | 130 |  |  |  |  |
Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Repayments |  |  | (1,462) |  |  |  | - |  |  |  | - |  |  |  | 69 |  |  |  | (1,393) |
Net cash used in financing activities from continuing operations |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 69 |  |  |  |  |
Net decrease in cash and equivalents |  |  | (652) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (652) |
Cash and equivalents at beginning of year |  |  | 2,745 |  |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | 2,749 |
Cash and equivalents at end of year |  |  | $ 2,093 |  |  |  | $ 4 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,097 |

1 | Refer to note 4b

Z) | New Accounting Standards Issued But Not Yet Effective

IFRS 9 Financial Instruments

In November 2009, the IASB issued IFRS 9 Financial Instruments as the first step in its project to replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on an entity’s business model and the contractual cash flows of the financial asset. Classification is made at the time the financial asset is initially recognized, namely when the entity becomes a party to the contractual provisions of the instrument. Requirements for classification and measurement of financial liabilities were added in October 2010 and they largely carried forward existing requirements in IAS 39, except that fair value changes due to an entity’s own credit risk for liabilities designated at fair value through profit and loss would generally be recorded in OCI rather than the income statement.

IFRS 9 amends some of the requirements of IFRS 7 Financial Instruments: Disclosures, including added disclosures about investments in equity instruments measured at fair value in OCI, and guidance on financial liabilities and derecognition of financial instruments. In December 2011, amendments to IFRS 7 were issued to require additional disclosures on transition from IAS 39 to IFRS 9. In November 2013, IFRS 9 was amended to include guidance on hedge accounting and to allow entities to early adopt the requirement to recognize changes in fair value attributable to changes in entity’s own credit risk, from financial liabilities designated under the fair value option, in OCI (without having to adopt the remainder of IFRS 9). In July 2013, the IASB tentatively decided to defer the mandatory effective date of IFRS 9. The IASB agreed that the mandatory effective date should no longer be annual periods beginning on or after January 1, 2015 but rather be left open pending the finalization of the impairment and classification and measurement requirements. We are currently assessing the impact of adopting IFRS 9 on our consolidated financial statements.

BARRICK YEAR END 2013 |  | 98 |  | NOTES TO FINANCIAL STATEMENTS

IFRIC 21 Levies

In May 2013, IASB issued IFRIC 21 Levies, which sets out the accounting for an obligation to pay a levy that is not income tax. The interpretation addresses what the obligating event is that gives rise to pay a levy and when should a liability be recognized. We are currently assessing the impact of adopting IFRIC 21 on our consolidated financial statements.

3 > SIGNIFICANT JUDGMENTS, ESTIMATES, ASSUMPTIONS AND RISKS

Many of the amounts included in the consolidated balance sheet require management to make judgments and/or estimates. These judgments and estimates are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. Actual results may differ from the estimates. Information about such judgments and estimates is contained in the description of our accounting policies and/or other notes to the financial statements. The key areas where judgments, estimates and assumptions have been made are summarized below.

Reserves and Resources

Estimates of the quantities of proven and probable mineral reserves and mineral resources, form the basis for our life of mine (“LOM”) plans, which are used for a number of important business and accounting purposes, including: the calculation of depreciation expense; the capitalization of production phase stripping costs; and forecasting the timing of the payments related to the environmental rehabilitation provision. In addition, the underlying LOM plans are used in the impairment tests for goodwill and non-current assets. We estimate our ore reserves and mineral resources based on information compiled by qualified persons as defined in accordance with the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects requirements. Refer to notes 18 and 20.

Impairment of Goodwill and Non-Current Assets

Goodwill and non-current assets are tested for impairment if there is an indicator of impairment, and in the case of goodwill, annually at the beginning of the fourth quarter for all of our operating segments. Calculating the estimated fair values of CGUs for non-current asset impairment tests and CGUs or groups of CGUs for goodwill impairment tests requires management to make estimates and assumptions with respect to future production levels, operating and capital costs in our LOM plans, future metal prices, foreign exchange rates, Net Asset Value (“NAV”) multiples, value of reserves outside LOM plans in relation to the assumptions

related to comparable entities and the market values per ounce and per pound and discount rates. Changes in any of the assumptions or estimates used in determining the fair values could impact the impairment analysis. Management is also required to make a judgment with respect to which CGUs should be grouped together for goodwill testing purposes, including the assessment of operating segments, the highest level at which goodwill can be tested. Refer to note 2n, note 2p and note 20 for further information.

Capitalization of Exploration and Evaluation Costs

Management has determined that costs related to exploration drilling, evaluation studies and other development work that have been capitalized have probable future benefit and are economically recoverable. Management’s criteria for assessing the economic recoverability of these costs is disclosed in note 2g.

Production Stage of a Mine

The determination of the date on which a mine enters the production stage is a significant judgment since capitalization of certain costs ceases upon entering production. As a mine is constructed, costs incurred are capitalized and proceeds from mineral sales are offset against the capitalized costs. This continues until the mine is available for use in the manner intended by management, which requires significant judgment in its determination. Refer to note 2l for further information on the criteria used to make this assessment.

Provisions for Environmental Rehabilitation

Management assesses its provision for environmental rehabilitation on an annual basis or when new information becomes available. This assessment includes the estimation of the future rehabilitation costs, the timing of these expenditures, and the impact of changes in discount rates and foreign exchange rates. The actual future expenditures may differ from the amounts currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and/or regulatory requirements in the future. Refer to notes 2u and 26 for further information.

Taxes

Management is required to make estimations regarding the tax basis of assets and liabilities and related deferred income tax assets and liabilities, amounts recorded for uncertain tax positions, the measurement of income tax expense and indirect taxes, and estimates of the timing of repatriation of earnings, which would impact the recognition of withholding taxes and taxes related to the outside basis on subsidiaries/associates. A number of these estimates require management to make estimates of

BARRICK YEAR END 2013 |  | 99 |  | NOTES TO FINANCIAL STATEMENTS

future taxable profit, and the recoverability of indirect taxes, and if actual results are significantly different than our estimates, the ability to realize the deferred tax assets and indirect tax receivables recorded on our balance sheet could be impacted. Refer to note 2i, note 11 and note 29 for further information.

Contingencies

Contingencies can be either possible assets or possible liabilities arising from past events which, by their nature, will only be resolved when one or more future events not wholly within our control occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims, that may result in such proceedings or regulatory or government actions that may negatively impact our business or operations, the Company with assistance from its legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims or actions as well as the perceived merits of the nature and amount of relief sought or expected to be sought, when determining the amount, if any, to recognize as a contingent liability or assessing the impact on the carrying value of assets. Contingent assets are not recognized in the consolidated financial statements. Refer to note 35 for more information.

Pascua-Lama Suspension Costs

As a result of our decision to suspend the construction of our Pascua-Lama project, significant judgment and estimation has been used in determining our accrued liabilities, including: demobilization, contract claims, severance and VAT refunds previously received in Chile. For contractors, it is necessary to estimate accruals for work completed but not yet invoiced based on subjective assessments of the stage of completion of their work in relation to invoices rendered; and for costs arising from existing contracts for legal or constructive obligations arising from our demobilization actions. For employees it is necessary to estimate accruals for termination obligations that have been incurred in accordance with our detailed, formal demobilization plan. In addition, we have received VAT refunds in Chile related to Pascua-Lama of $429 million that will require repayment should the project not come into production, which has not been accrued as the suspension is considered temporary.

Joint Arrangements

Judgment is required to determine when we have joint control, which requires an assessment of the relevant activities and when the decisions in relation to those

activities require unanimous consent. We have determined that the relevant activities for our joint arrangements are those relating to the operating and capital decisions of the arrangement, such as: the approval of the LOM plan, and appointing, remunerating and terminating the key management personnel of the joint arrangement.

Judgment is also required to classify a joint arrangement. Classifying the arrangement requires us to assess our rights and obligations arising from the arrangement. Specifically, it considers:

| — |  | The structure of the joint arrangement – whether it is structured through a separate vehicle

| — |  | When the arrangement is structured through a separate vehicle, we also consider the rights and obligations arising from:

| — |  | The legal form of the separate vehicle

| — |  | The terms of the contractual arrangement

| — |  | Other facts and circumstances (when relevant)

This assessment often requires significant judgment, and a different conclusion on joint control and also whether the arrangement is a JO or a JV, may materially impact the accounting. Donlin Gold is a joint arrangement which is structured through a separate vehicle, being an LLC, however the terms of the contractual arrangement indicate that we have rights to our share of the assets, liabilities, revenues and expenses of the mine and therefore concluded that it was a joint operations and as such, we recorded our share of assets and liabilities of Donlin Gold.

Refer to note 27 for a summary of our key financial risks.

BARRICK YEAR END 2013 |  | 100 |  | NOTES TO FINANCIAL STATEMENTS

Other Notes to the Financial Statements

|  |  | Note |
Divestitures |  |  | 4 |
Segment information |  |  | 5 |
Revenue |  |  | 6 |
Cost of sales |  |  | 7 |
Exploration and evaluation |  |  | 8 |
Other expenses |  |  | 9 |
General and administrative expenses |  |  | 10 |
Income tax expense (recovery) |  |  | 11 |
Earnings (loss) per share |  |  | 12 |
Finance costs |  |  | 13 |
Cash flow - other items |  |  | 14 |
Investments |  |  | 15 |
Inventories |  |  | 16 |
Accounts receivable and other current assets |  |  | 17 |
Property, plant and equipment |  |  | 18 |
Goodwill and other intangible assets |  |  | 19 |
Impairment of goodwill and non-current assets |  |  | 20 |
Other assets |  |  | 21 |
Accounts payable |  |  | 22 |
Other current liabilities |  |  | 23 |
Financial instruments |  |  | 24 |
Fair value measurements |  |  | 25 |
Provisions |  |  | 26 |
Financial risk management |  |  | 27 |
Other non-current liabilities |  |  | 28 |
Deferred income taxes |  |  | 29 |
Capital stock |  |  | 30 |
Non-controlling interests |  |  | 31 |
Remuneration of key management personnel |  |  | 32 |
Stock-based compensation |  |  | 33 |
Post-retirement benefits |  |  | 34 |
Contingencies |  |  | 35 |

4 > DIVESTITURES

A) | Disposition of Yilgarn South assets

On September 30, 2013, we recorded the sale of Yilgarn South assets, which comprised of Granny Smith, Lawlers and Darlot mines from our Australia Pacific operating unit for total proceeds of $266 million, consisting of $135 million in cash and $131 million in Gold Fields Limited shares (“GFL”). We measured GFL shares using the quoted market price at September 30, 2013 and there are no restrictions on when we can divest these shares. As a result of this sale, we recognized a gain of $11 million for the year ended December 31, 2013.

B) | Disposition of Barrick Energy

On July 31, 2013, we closed the sale of Barrick Energy for total proceeds of $435 million, consisting of $387 million in cash and a future royalty valued at $48 million. As a result of the sale, we recognized a loss of $519 million for the year ended December 31, 2013 representing the difference between the net proceeds and our carrying value.

The condensed statements of income for Barrick Energy for the years ended December 31, 2013 and 2012, which has been disclosed as a discontinued operation in the consolidated statements of income, are as follows:

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 |
Revenue |  |  | $ 93 |  |  |  | $ 153 |
Cost of sales1 |  |  | 79 |  |  |  | 165 |
Loss on remeasurement/impairment |  |  | 519 |  |  |  | 208 |
Other expense |  |  | 13 |  |  |  | 24 |
Loss before finance items and income taxes |  |  | (518) |  |  |  | (244) |
Finance items |  |  | (1) |  |  |  | (3) |
Loss before income taxes |  |  | (519) |  |  |  | (247) |
Income tax recovery |  |  | 13 |  |  |  | 62 |
Net loss |  |  | $ (506) |  |  |  | $ (185) |

1 | Includes depreciation of $43 million for the year ended December 31, 2013 (2012: $102 million).

C) | Assets and liabilities classified as held for sale

On January 31, 2014, we completed the sale of our Plutonic mine, part of our Australia Pacific operating unit, for total cash consideration of A$25 million. As at December 31, 2013, the assets and liabilities of Plutonic were written down to their realizable value, resulting in a loss of $17 million and have been presented as held for sale on the consolidated balance sheet.

BARRICK YEAR END 2013 |  | 101 |  | NOTES TO FINANCIAL STATEMENTS

On January 22, 2014, we announced we had agreed to divest our Kanowna mine, part of our Australia Pacific operating unit, for total cash consideration of A$75 million, subject to certain closing adjustments. The transaction is expected to close in March 2014. Based on the expected proceeds of this transaction, we have reversed $66 million of impairment losses that we had recorded against Kanowna in second quarter 2013. As at December 31, 2013, the assets and liabilities of Kanowna have been presented as held for sale on the consolidated balance sheet.

On February 4, 2014, we announced we had agreed to divest our minority interest in the Marigold mine, part of our North America – Other operating unit for total cash consideration of $86 million, subject to certain closing adjustments. The transaction is expected to close in April 2014. As at December 31, 2013, the assets and liabilities of Marigold were written down to their realizable value, resulting in a loss of $60 million and have been presented as held for sale on the consolidated balance sheet.

5 > SEGMENT INFORMATION

In the fourth quarter 2013, we reorganized our operating structure and as a result, we are now organized into ten Operating Units: five individual gold mines, two gold mine portfolios, one publicly traded gold company, a global copper business, and one project. Barrick’s CODM, reviews the operating results, assesses performance and makes capital allocation decisions for each of these business operations at an Operating Unit level. Therefore, these Operating Units are operating segments for financial reporting purposes. We have restated our prior period results to conform to the current presentation. See note 19 for details regarding goodwill reallocation.

Segment performance is evaluated based on a number of measures including operating income before tax, production levels and unit production costs. Income tax, operating segment administration, finance income and costs, impairment charges and reversals, investment write-downs and gains/losses on non-hedge derivatives are managed on a consolidated basis and are therefore not reflected in segment income.

Consolidated Statements of Income Information |  |
|  |  |  |  |  |  | Cost of Sales |  |  |  |  |  |  |  |  |  |  |  |  |
For the year ended December 31, 2013 |  |  | Revenue |  |  |  | Direct Mining & Royalties |  |  |  | Depreciation |  |  |  | Exploration & Evaluation |  |  |  | Other Expenses (Income)1 |  |  | Segment Income (Loss) |  |
Gold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goldstrike |  |  | $ 1,252 |  |  |  | $ 544 |  |  |  | $ 112 |  |  |  | $ - |  |  |  | $ 10 |  |  | $ 586 |  |
Cortez |  |  | 1,938 |  |  |  | 309 |  |  |  | 321 |  |  |  | 3 |  |  |  | 11 |  |  | 1,294 |  |
Pueblo Viejo |  |  | 979 |  |  |  | 420 |  |  |  | 139 |  |  |  | - |  |  |  | (4) |  |  | 424 |  |
Lagunas Norte |  |  | 839 |  |  |  | 216 |  |  |  | 54 |  |  |  | 3 |  |  |  | 18 |  |  | 548 |  |
Veladero |  |  | 941 |  |  |  | 398 |  |  |  | 168 |  |  |  | 6 |  |  |  | 63 |  |  | 306 |  |
North America - Other |  |  | 1,205 |  |  |  | 693 |  |  |  | 202 |  |  |  | 7 |  |  |  | 22 |  |  | 281 |  |
Australia Pacific |  |  | 2,621 |  |  |  | 1,351 |  |  |  | 324 |  |  |  | 26 |  |  |  | 16 |  |  | 904 |  |
ABG |  |  | 937 |  |  |  | 580 |  |  |  | 160 |  |  |  | 17 |  |  |  | 60 |  |  | 120 |  |
Copper2 |  |  | 1,653 |  |  |  | 903 |  |  |  | 188 |  |  |  | - |  |  |  | 77 |  |  | 485 |  |
Pascua-Lama |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | - |  |  |  | 546 |  |  | (549) |  |
|  |  | $ 12,365 |  |  |  | $ 5,414 |  |  |  | $ 1,671 |  |  |  | $ 62 |  |  |  | $ 819 |  |  | $ 4,399 |  |

BARRICK YEAR END 2013 |  | 102 |  | NOTES TO FINANCIAL STATEMENTS

Consolidated Statements of Income Information |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Cost of Sales |  |  |  |  |  |  |  |  |  |  |  |  |
For the year ended December 31, 2012 (restated) |  |  | Revenue |  |  |  | Direct Mining & Royalties |  |  |  | Depreciation |  |  |  | Exploration & Evaluation |  |  |  | Other Expenses (Income) | 1 |  |  | Segment Income (Loss) |
Gold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goldstrike |  |  | $ 1,969 |  |  |  | $ 617 |  |  |  | $ 113 |  |  |  | $ 13 |  |  |  | $ (7) |  |  |  | $ 1,233 |
Cortez |  |  | 2,238 |  |  |  | 314 |  |  |  | 289 |  |  |  | 25 |  |  |  | 7 |  |  |  | 1,603 |
Pueblo Viejo |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Lagunas Norte |  |  | 1,245 |  |  |  | 238 |  |  |  | 58 |  |  |  | 5 |  |  |  | 15 |  |  |  | 929 |
Veladero |  |  | 1,230 |  |  |  | 392 |  |  |  | 194 |  |  |  | 7 |  |  |  | 32 |  |  |  | 605 |
North America - Other |  |  | 1,515 |  |  |  | 686 |  |  |  | 176 |  |  |  | 9 |  |  |  | 13 |  |  |  | 631 |
Australia Pacific |  |  | 3,233 |  |  |  | 1,627 |  |  |  | 319 |  |  |  | 54 |  |  |  | 47 |  |  |  | 1,186 |
ABG |  |  | 1,081 |  |  |  | 632 |  |  |  | 162 |  |  |  | 29 |  |  |  | 37 |  |  |  | 221 |
Copper2 |  |  | 1,690 |  |  |  | 974 |  |  |  | 253 |  |  |  | 14 |  |  |  | 57 |  |  |  | 392 |
Pascua-Lama |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | - |  |  |  | 79 |  |  |  | (82) |
|  |  | $ 14,201 |  |  |  | $ 5,480 |  |  |  | $ 1,567 |  |  |  | $ 156 |  |  |  | $ 280 |  |  |  | $ 6,718 |

1 | Other expenses include accretion expense, which is included with finance costs in the consolidated statements of income. For the year ended December 31, 2013, accretion expense was $51 million (2012: $37 million). Refer to note 9a for detail of other expenses. Pascua-Lama other expenses include $235 million in severance and demobilization costs and $65 million in project care and maintenance costs.

2 | The Copper segment includes exploration and evaluation expense and losses from equity investees that hold copper projects.

Reconciliation of Segment Income to Loss from Continuing Operations Before Income Taxes |  |  |  |  |
For the years ended December 31 |  |  | 2013 |  |  |  | 2012 (restated) |
Segment income |  |  | $ 4,399 |  |  |  | $ 6,718 |
Other revenue1 |  |  | 146 |  |  |  | 193 |
Other cost of sales/amortization1 |  |  | (158) |  |  |  | (210) |
Exploration not attributable to segments |  |  | (129) |  |  |  | (212) |
Evaluation not attributable to segments |  |  | (17) |  |  |  | (3) |
General and administrative expenses |  |  | (390) |  |  |  | (503) |
Other expense not attributable to segments |  |  | (110) |  |  |  | (60) |
Impairment charges not attributable to segment |  |  | (12,687) |  |  |  | (6,294) |
Finance income |  |  | 9 |  |  |  | 11 |
Finance costs (includes non segment accretion) |  |  | (606) |  |  |  | (137) |
Unrealized gain on non-hedge derivatives |  |  | 76 |  |  |  | 31 |
Loss before income taxes |  |  | $ (9,467) |  |  |  | $ (466) |

1 | Other revenue and cost of sales represents revenue from Pierina, which is not part of any of our operating segments. Pierina entered closure in 2013.

BARRICK YEAR END 2013 |  | 103 |  | NOTES TO FINANCIAL STATEMENTS

Geographic Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Non-current assets1 |  |  |  |  |  | Revenue2 |
|  |  | As at Dec. 31, 2013 |  |  |  | As at Dec. 31, 2012 (restated) |  |  |  | As at Jan. 1, 2012 (restated) |  |  |  |  |  | 2013 |  |  |  | 2012 |
United States |  |  | $ 7,014 |  |  |  | $ 6,658 |  |  |  | $ 5,774 |  |  |  |  |  | $ 4,117 |  |  |  | $ 5,373 |
Zambia |  |  | 1,036 |  |  |  | 973 |  |  |  | 5,153 |  |  |  |  |  | 666 |  |  |  | 566 |
Chile |  |  | 3,998 |  |  |  | 6,072 |  |  |  | 5,111 |  |  |  |  |  | 987 |  |  |  | 1,124 |
Dominican Republic |  |  | 4,836 |  |  |  | 4,799 |  |  |  | 3,638 |  |  |  |  |  | 979 |  |  |  | - |
Argentina |  |  | 2,425 |  |  |  | 4,427 |  |  |  | 2,893 |  |  |  |  |  | 941 |  |  |  | 1,230 |
Tanzania |  |  | 1,549 |  |  |  | 2,325 |  |  |  | 2,099 |  |  |  |  |  | 937 |  |  |  | 1,081 |
Canada |  |  | 448 |  |  |  | 1,294 |  |  |  | 1,405 |  |  |  |  |  | 278 |  |  |  | 349 |
Saudi Arabia |  |  | 741 |  |  |  | 1,550 |  |  |  | 1,611 |  |  |  |  |  | - |  |  |  | - |
Australia |  |  | 997 |  |  |  | 1,632 |  |  |  | 1,485 |  |  |  |  |  | 1,962 |  |  |  | 2,520 |
Papua New Guinea |  |  | 672 |  |  |  | 1,218 |  |  |  | 1,017 |  |  |  |  |  | 659 |  |  |  | 713 |
Peru |  |  | 734 |  |  |  | 785 |  |  |  | 602 |  |  |  |  |  | 985 |  |  |  | 1,438 |
Other |  |  | - |  |  |  | - |  |  |  | 121 |  |  |  |  |  | - |  |  |  | - |
Unallocated1 |  |  | 6,786 |  |  |  | 9,988 |  |  |  | 11,428 |  |  |  |  |  | - |  |  |  | - |
Total |  |  | $ 31,236 |  |  |  | $ 41,721 |  |  |  | $ 42,337 |  |  |  |  |  | $ 12,511 |  |  |  | $ 14,394 |

| 1 | Unallocated assets include goodwill, deferred tax assets and certain financial assets. Goodwill is not allocated on country basis as it is allocated on an operating segment basis, which could be across multiple countries.

| 2 | Presented based on the location from which the product originated.

Asset Information1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Total Assets |  |  |  |  |  | Segment Capital Expenditures2 |
|  |  | As at Dec. 31, 2013 |  |  |  | As at Dec. 31, 2012 (restated) |  |  |  | As at Jan. 1, 2012 (restated) |  |  |  |  |  | For the year ended Dec. 31, 2013 |  |  |  | For the year ended Dec. 31, 2012 (restated) |
Gold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goldstrike |  |  | $ 2,222 |  |  |  | $ 1,876 |  |  |  | $ 1,475 |  |  |  |  |  | $ 474 |  |  |  | $ 453 |
Cortez |  |  | 3,042 |  |  |  | 2,938 |  |  |  | 2,693 |  |  |  |  |  | 396 |  |  |  | 502 |
Pueblo Viejo |  |  | 4,836 |  |  |  | 4,799 |  |  |  | 3,638 |  |  |  |  |  | 169 |  |  |  | 1,067 |
Lagunas Norte |  |  | 614 |  |  |  | 534 |  |  |  | 405 |  |  |  |  |  | 145 |  |  |  | 162 |
Veladero |  |  | 634 |  |  |  | 1,058 |  |  |  | 1,041 |  |  |  |  |  | 208 |  |  |  | 196 |
North America - Other |  |  | 1,525 |  |  |  | 1,696 |  |  |  | 1,449 |  |  |  |  |  | 341 |  |  |  | 355 |
Australia Pacific |  |  | 1,669 |  |  |  | 2,869 |  |  |  | 2,521 |  |  |  |  |  | 438 |  |  |  | 568 |
ABG |  |  | 1,515 |  |  |  | 2,295 |  |  |  | 2,079 |  |  |  |  |  | 387 |  |  |  | 327 |
Copper |  |  | 3,018 |  |  |  | 3,799 |  |  |  | 8,149 |  |  |  |  |  | 405 |  |  |  | 859 |
Pascua-Lama |  |  | 2,593 |  |  |  | 6,270 |  |  |  | 3,913 |  |  |  |  |  | 2,226 |  |  |  | 2,113 |
Segment total |  |  | $ 21,668 |  |  |  | $ 28,134 |  |  |  | $ 27,363 |  |  |  |  |  | $ 5,189 |  |  |  | $ 6,602 |
Cash and equivalents |  |  | 2,404 |  |  |  | 2,097 |  |  |  | 2,749 |  |  |  |  |  | - |  |  |  | - |
Other current assets |  |  | 3,485 |  |  |  | 3,660 |  |  |  | 3,800 |  |  |  |  |  | - |  |  |  | - |
Equity in investees |  |  | - |  |  |  | - |  |  |  | 209 |  |  |  |  |  | - |  |  |  | - |
Other investments |  |  | 120 |  |  |  | 78 |  |  |  | 161 |  |  |  |  |  | - |  |  |  | - |
Intangible assets |  |  | 320 |  |  |  | 453 |  |  |  | 569 |  |  |  |  |  | - |  |  |  | - |
Deferred income tax assets |  |  | 501 |  |  |  | 437 |  |  |  | 409 |  |  |  |  |  | - |  |  |  | - |
Assets of held for sale |  |  | 323 |  |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |  | - |
Goodwill |  |  | 5,835 |  |  |  | 8,837 |  |  |  | 9,626 |  |  |  |  |  |  |  |  |  | - |
Other items not allocated to segments3 |  |  | 2,792 |  |  |  | 3,782 |  |  |  | 4,000 |  |  |  |  |  | 120 |  |  |  | 265 |
Total |  |  | $ 37,448 |  |  |  | $ 47,478 |  |  |  | $ 48,886 |  |  |  |  |  | $ 5,309 |  |  |  | $ 6,867 |

| 1 | Liabilities are not provided to the CODM on a segment basis and have therefore been excluded from segment disclosures.

| 2 | Segment capital expenditures are presented for internal management reporting purposes on an accrual basis. Capital expenditures in the Consolidated Statements of Cash Flow are presented on a cash basis. In 2013, cash expenditures were $5,501 million (2012: $6,773 million) and the decrease in accrued expenditures was $192 million (2012: $94 million increase).

| 3 | Primarily relates to long lived assets at Cerro Casale, Pierina and Barrrick Energy (2012 and 2011).

BARRICK YEAR END 2013 |  | 104 |  | NOTES TO FINANCIAL STATEMENTS

6 > REVENUE

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 |
Gold bullion sales1 |  |  |  |  |  |  |  |
Spot market sales |  |  | $ 10,427 |  |  |  | $ 12,241 |
Concentrate sales |  |  | 243 |  |  |  | 323 |
|  |  | $ 10,670 |  |  |  | $ 12,564 |
Copper sales1 |  |  |  |  |  |  |  |
Copper cathode sales |  |  | $ 987 |  |  |  | $ 1,123 |
Concentrate sales |  |  | 664 |  |  |  | 566 |
|  |  | $ 1,651 |  |  |  | $ 1,689 |
Other metal sales2 |  |  | $ 190 |  |  |  | $ 141 |
Total |  |  | $ 12,511 |  |  |  | $ 14,394 |

1 | Revenues include amounts transferred from OCI to earnings for commodity cash flow hedges (see note 24d).

2 | Revenues include the sale of by-products for our gold and copper mines.

Principal Products

All of our gold mining operations produce gold in doré form, except Bulyanhulu and Buzwagi which produce both gold doré and gold concentrate. Gold doré is unrefined gold bullion bars usually consisting of 90% gold that is refined to pure gold bullion prior to sale to our customers. Concentrate is a processing product containing the valuable ore mineral from which most of the waste mineral has been eliminated. Our Lumwana mine produces a concentrate that primarily contains copper. At our Zaldívar mine we produce copper cathode, which consists of 99.9% copper.

Revenue

Revenue is presented net of direct sales taxes of $51 million (2012: $65 million). Incidental revenues from the sale of by-products, primarily copper and silver at our gold mines, are classified within other metal sales.

Provisional Copper and Gold Sales

We have provisionally priced sales for which price finalization, referenced to the relevant copper and gold index, is outstanding at the balance sheet date. Our exposure at December 31, 2013 to the impact of movements in market commodity prices for provisionally priced sales is set out in the following table:

|  |  | Volumes subject to final pricing |  |  |  | Impact on net income before taxation of 10% movement in market price $M |
As at December 31 |  |  | 2013 |  |  |  | 2012 |  |  |  | 2013 |  |  |  | 2012 |
Copper pounds (millions) |  |  | 63 |  |  |  | 64 |  |  |  | $ 21 |  |  |  | $ 23 |
Gold ounces (000s) |  |  | 19 |  |  |  | 28 |  |  |  | 3 |  |  |  | 5 |

For the year ended December 31, 2013, our provisionally priced copper sales included provisional pricing losses of $9 million (2012: $10 million gain) and our provisionally priced gold sales included provisional pricing losses of $10 million (2012: $3 million gain).

At December 31, 2013, our provisionally priced copper and gold sales subject to final settlement were recorded at average prices of $3.34/lb (2012: $3.59/lb) and $1,349/oz (2012: $1,688/oz), respectively. The sensitivities in the above tables have been determined as the impact of a 10% change in commodity prices at each reporting date, while holding all other variables, including foreign currency exchange rates, constant.

7 > COST OF SALES

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 (restated) |
Direct mining cost 1,2,3 |  |  | $ 5,190 |  |  |  | $ 5,232 |
Depreciation |  |  | 1,732 |  |  |  | 1,651 |
Royalty expense |  |  | 321 |  |  |  | 374 |
Total |  |  | $ 7,243 |  |  |  | $ 7,257 |

1 | Direct mining cost includes charges to reduce the cost of inventory to net realizable value of $46 million (2012: $74 million).

2 | Direct mining cost includes the costs of extracting by-products.

3 | Includes employee costs of $1,737 million (2012: $1,681 million).

BARRICK YEAR END 2013 |  | 105 |  | NOTES TO FINANCIAL STATEMENTS

Cost of Sales

Cost of sales consists of direct mining costs (which include personnel costs, certain general and administrative costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third-party smelting and transport fees), and depreciation related to sales and royalty expenses. Cost of sales is based on the weighted average cost of contained or recoverable ounces sold and royalty expense for the period. Costs also include any impairment to reduce inventory to its net realizable value.

Royalties

Certain of our properties are subject to royalty arrangements based on mineral production at the properties. The primary type of royalty is a net smelter return (NSR) royalty. Under this type of royalty we pay the holder an amount calculated as the royalty percentage multiplied by the value of gold production at market gold prices less third-party smelting, refining and transportation costs. Other types of royalties include:

Ø | Net profits interest (NPI) royalty to other than a government

Ø | Modified net smelter return (NSR) royalty,

Ø | Net smelter return sliding scale (NSRSS) royalty,

Ø | Gross proceeds sliding scale (GPSS) royalty,

Ø | Gross smelter return (GSR) royalty,

Ø | Net value (NV) royalty,

Ø | Land tenement (LT) royalty, and a

Ø | Gold revenue royalty.

Royalty expense is recorded on completion of the production or sales process.

Producing mines and projects |  | Type of royalty
Goldstrike |  | 0%-5% NSR, 0%-6% NPI
Cortez |  | 1.5% GSR
Cortez – Pipeline/South Pipeline deposit |  | 0.4%-9% GSR
Cortez – portion of Pipeline/ South Pipeline deposit |  | 5% NV
Pueblo Viejo |  | 3.2% NSR (for gold & silver)
Lagunas Norte |  | 2.51% NSR
Veladero |  | 3.75% gross proceeds
North America – Other |  |
Williams |  | 1.5% NSR, 0.75%-1% NV
David Bell |  | 3%-3.5% NSR
Hemlo – Interlake property |  | 50% NPI, 3% NSR
Round Mountain |  | 3.53%-6.35% NSRSS
Bald Mountain |  | 3.5%-7% NSRSS, 2.9%-4% NSR, 10% NPI
Ruby Hill |  | 3% modified NSR
Australia Pacific |  |
Porgera |  | 2% NSR, 0.25% other
Western Australia production1 |  | 2.5% of gold revenue
Cowal |  | 4% of net gold revenue
African Barrick Gold |  |
Bulyanhulu |  | 4% NSR
Tulawaka |  | 4% NSR
North Mara – Nyabirama and Nyabigena pit |  | 4% NSR, 1% LT
North Mara – Gokona pit |  | 4% NSR, 1.1% LT
Buzwagi |  | 4% NSR, 30% NPI2
Copper |  |
Lumwana |  | 6% GSR
Kabanga |  | 4% NSR
Pascua-Lama Project – |  |
Chile gold production |  | 1.4%-9.6% GPSS
Pascua-Lama Project – |  |
Chile copper production |  | 1.9% NSR
Pascua-Lama Project – |  |
Argentina production |  | 3% modified NSR
Other |  |
Cerro Casale |  | 3% NSR (capped at $3 million cumulative)
Donlin Gold Project |  | 1.5% NSR (first 5 years),
|  | 4.5% NSR (thereafter),
|  | 8.0% NPI3

1 | Includes the Kalgoorlie, Kanowna and Plutonic mines.

2 | The NPI is calculated as a percentage of profits realized from the Buzwagi mine after all capital, exploration, and development costs and interest incurred in relation to the Buzwagi mine have been recouped and all operating costs relating to the Buzwagi mine have been paid. No amount is currently payable.

3 | The NPI is calculated as a percentage of profits realized from the mine until all funds invested to date with interest at an agreed upon rate are recovered. No amount is currently payable.

BARRICK YEAR END 2013 |  | 106 |  | NOTES TO FINANCIAL STATEMENTS

8 > EXPLORATION AND EVALUATION

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 (restated) |
Exploration: |  |  |  |  |  |  |  |
Minesite exploration |  |  | $ 51 |  |  |  | $ 82 |
Global programs |  |  | 128 |  |  |  | 211 |
|  |  | $ 179 |  |  |  | $ 293 |
Evaluation costs |  |  | 29 |  |  |  | 66 |
Exploration and evaluation expense1 |  |  | $ 208 |  |  |  | $ 359 |

1 | Approximates the impact on operating cash flow.

9 > OTHER EXPENSES

A Other Expense (Income) |  |  |  |  |  |  |  |
For the years ended December 31 |  |  | 2013 |  |  |  | 2012 (restated) |
Corporate social responsibility |  |  | 89 |  |  |  | 83 |
Changes in estimate of rehabilitation costs at closed mines or mines in closure |  |  | 100 |  |  |  | 39 |
World Gold Council fees |  |  | 7 |  |  |  | 14 |
Currency translation losses1 |  |  | 180 |  |  |  | 73 |
Severance and demobilization costs - Pascua-Lama |  |  | 235 |  |  |  | - |
Severance - other |  |  | 26 |  |  |  | 2 |
Project care and maintenance costs - Pascua-Lama |  |  | 65 |  |  |  | - |
Project care and maintenance costs - Jabal Sayid |  |  | 52 |  |  |  | - |
Pension and other post-retirement benefit expense (recovery) |  |  | 3 |  |  |  | (17) |
Gain on sale of long-lived assets/investments |  |  | (41) |  |  |  | (18) |
Other income |  |  | (48) |  |  |  | (32) |
Other expensed items |  |  | 210 |  |  |  | 159 |
Total |  |  | $ 878 |  |  |  | $ 303 |

1 | Primarily relates to currency translation losses on working capital balances.

B Impairment Charges

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 |
Impairment of long-lived assets1 |  |  | $ 9,734 |  |  |  | $ 5,075 |
Impairment of other intangibles1 |  |  | 112 |  |  |  | 169 |
Impairment of other investments1 |  |  | - |  |  |  | 206 |
Impairment of goodwill1 |  |  | 2,815 |  |  |  | 798 |
Impairment of available-for-sale investments |  |  | 26 |  |  |  | 46 |
Total |  |  | $ 12,687 |  |  |  | $ 6,294 |

1 | Refer to note 20 for further details.

10> GENERAL AND ADMINISTRATIVE EXPENSES

In 2013, we amended the presentation of Corporate Administration to include certain general administrative expenditures related to management of our operating unit offices, which were previously classified within other expense. As a result of the amended presentation, general and administrative expenses now include corporate administration costs and operating segment administration costs,

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 (restated) |
Corporate administration |  |  | $ 192 |  |  |  | $ 274 |
Operating segment administration |  |  | 198 |  |  |  | 229 |
Total1 |  |  | $ 390 |  |  |  | $ 503 |

1 | Includes employee costs of $241 million (2012: $295 million).

BARRICK YEAR END 2013 |  | 107 |  | NOTES TO FINANCIAL STATEMENTS

11 > INCOME TAX EXPENSE (RECOVERY)

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 (restated) |
Tax on profit |  |  |  |  |  |  |  |
Current tax |  |  |  |  |  |  |  |
Charge for the year |  |  | $ 1,106 |  |  |  | $ 1,422 |
Adjustment in respect of prior years |  |  | (5) |  |  |  | (67) |
|  |  | $ 1,101 |  |  |  | $ 1,355 |
Deferred tax |  |  |  |  |  |  |  |
Origination and reversal of temporary differences in the current year |  |  | $ (517) |  |  |  | $ (1,545) |
Adjustment in respect of prior years |  |  | 46 |  |  |  | 88 |
|  |  | $ (471) |  |  |  | $ (1,457) |
Income tax expense (recovery) |  |  | $ 630 |  |  |  | $ (102) |
Tax expense related to continuing operations |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |
Canada |  |  | $ (6) |  |  |  | $ 10 |
International |  |  | 1,107 |  |  |  | 1,345 |
|  |  | $ 1,101 |  |  |  | $ 1,355 |
Deferred |  |  |  |  |  |  |  |
Canada |  |  | $ (11) |  |  |  | $ 14 |
International |  |  | (460) |  |  |  | (1,471) |
|  |  | $ (471) |  |  |  | $ (1,457) |
Income tax expense (recovery) |  |  | $ 630 |  |  |  | $ (102) |

Currency Translation

Deferred tax balances are subject to remeasurement for changes in currency exchange rates each period. The most significant balances are Argentinean deferred tax liabilities. In 2013 and 2012, tax expense of $49 and $46 million respectively primarily arose from translation losses due to the weakening of the Argentinean peso against the US dollar. These losses and gains are included within deferred tax expense/recovery.

Reconciliation to Canadian Statutory Rate |  |
For the years ended December 31 |  |  | 2013 |  |  | 2012 (restated) |  |
At 26.5% statutory rate |  |  | $ (2,509) |  |  | $ (123) |  |
Increase (decrease) due to: |  |  |  |  |  |  |  |
Allowances and special tax deductions1 |  |  | (181) |  |  | (272) |  |
Impact of foreign tax rates2 |  |  | (169) |  |  | (475) |  |
Expenses not tax deductible |  |  | 111 |  |  | 47 |  |
Goodwill impairment charges not tax deductible |  |  | 837 |  |  | 322 |  |
Impairment charges not recognized in deferred tax assets |  |  | 1,699 |  |  | 119 |  |
Net currency translation losses on deferred tax balances |  |  | 49 |  |  | 46 |  |
Current year tax losses not recognized in deferred tax assets |  |  | 183 |  |  | 72 |  |
Pueblo Viejo SLA amendment |  |  | 384 |  |  | - |  |
Non-recognition of US AMT credits |  |  | 48 |  |  | - |  |
Adjustments in respect of prior years |  |  | 5 |  |  | 21 |  |
Impact of tax rate changes |  |  | - |  |  | (22) |  |
Amendment in Australia |  |  | - |  |  | (58) |  |
Foreign tax assessment |  |  | - |  |  | (19) |  |
Impact of functional currency changes |  |  | - |  |  | 16 |  |
Other withholding taxes |  |  | 64 |  |  | 43 |  |
Mining taxes |  |  | 134 |  |  | 175 |  |
Other items |  |  | (25) |  |  | 6 |  |
Income tax expense (recovery) |  |  | $ 630 |  |  | $ (102) |  |

1 | We are able to claim certain allowances and tax deductions unique to extractive industries that result in a lower effective tax rate.

2 | We operate in multiple foreign tax jurisdictions that have tax rates different than the Canadian statutory rate. Amounts in 2012 included the impact of impairments in a high tax jurisdiction.

Pueblo Viejo Special Lease Agreement (SLA) Amendment

In third quarter 2013, the Pueblo Viejo Special Lease Agreement (SLA) Amendment was substantively enacted. The amendment included the following items: Elimination of a 10 percent return embedded in the initial capital investment for purposes of the net profits tax (NPI); An extension of the period over which Pueblo Viejo will recover its capital investment; A delay of application of NPI deductions; A reduction of the depreciation rates; and the establishment of a graduated minimum tax.

The tax impact of the amendment is a charge of $384 million, comprised of current tax and deferred tax expense, including $36 million of graduated minimum tax related to 2012 sales proceeds.

BARRICK YEAR END 2013 |  | 108 |  | NOTES TO FINANCIAL STATEMENTS

Non Recognition of US Alternative Minimum Tax (AMT) Credits

In fourth quarter 2013, we recorded a deferred tax expense of $48 million related to US AMT credits which are not probable to be realized based on our current life of mine plans.

Tax Rate Changes

In second quarter 2012, a tax rate change was enacted in the province of Ontario, Canada, resulting in a deferred tax recovery of $11 million.

In third quarter 2012, a tax rate change was enacted in Chile, resulting in a current tax expense of $4 million and deferred tax recovery of $15 million.

Amendment in Australia

In fourth quarter 2012, amendments were made to prior year tax returns for one of our Australian consolidated tax groups, based on updated tax pool amounts from the time of the consolidation election. These amendments resulted in a current tax recovery of $44 million and a deferred tax recovery of $14 million.

Foreign Income Tax Assessment

In second quarter 2012, a foreign income tax assessment was received which resulted in a current tax recovery of $19 million.

Functional Currency Changes

In fourth quarter 2012, we received approval to prepare certain of our Papua New Guinea tax returns using US dollar functional currency effective January 1, 2012. This approval resulted in a one-time deferred tax expense of $16 million. Going forward, the material Papua New Guinea tax return will now be filed using a US dollar functional currency.

12 > EARNINGS (LOSS) PER SHARE

For the years ended December 31 ($ millions, except shares in millions and per share amounts in dollars) |  |  | 2013 |  |  |  |  | 2012 (restated) |
|  | Basic |  |  |  | Diluted |  |  |  |  | Basic |  |  | Diluted |
Loss from continuing operations |  |  | $ (10,097) |  |  |  | $ (10,097) |  |  |  |  | $ (364) |  |  | $ (364) |
Loss from discontinued operations |  |  | (506) |  |  |  | (506) |  |  |  |  | (185) |  |  | (185) |
Loss attributable to non-controlling interests |  |  | 237 |  |  |  | 237 |  |  |  |  | 11 |  |  | 11 |
Net loss attributable to equity holders of Barrick Gold Corporation |  |  | $ (10,366) |  |  |  | $ (10,366) |  |  |  |  | $ (538) |  |  | $ (538) |
Weighted average shares outstanding |  |  | 1,022 |  |  |  | 1,022 |  |  |  |  | 1,001 |  |  | 1,001 |
Stock options |  |  | - |  |  |  | - |  |  |  |  | - |  |  | - |
|  |  | 1,022 |  |  |  | 1,022 |  |  |  |  | 1,001 |  |  | 1,001 |
Loss per share data attributable to the equity holders of Barrick Gold Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss from continuing operations |  |  | $ (9.65) |  |  |  | $ (9.65) |  |  |  |  | $ (0.35) |  |  | $ (0.35) |
Loss from discontinued operations |  |  | $ (0.49) |  |  |  | $ (0.49) |  |  |  |  | $ (0.19) |  |  | $ (0.19) |
Net loss |  |  | $ (10.14) |  |  |  | $ (10.14) |  |  |  |  | $ (0.54) |  |  | $ (0.54) |

13 > FINANCE COSTS

For the years ended December 31 |  |  | 2013 |  |  |  | 2012 |
Interest |  |  | $ 775 |  |  |  | $ 675 |
Amortization of debt issue costs |  |  | 22 |  |  |  | 17 |
Income on interest rate hedges |  |  | (1) |  |  |  | (4) |
Interest capitalized1 |  |  | (297) |  |  |  | (567) |
Accretion |  |  | 68 |  |  |  | 53 |
Debt extinguishment fees |  |  | 90 |  |  |  | - |
Total |  |  | $ 657 |  |  |  | $ 174 |

1 | For the year ended December 31, 2013, the general capitalization rate was 5.00% (2012: 5.30%)

BARRICK YEAR END 2013 |  | 109 |  | NOTES TO FINANCIAL STATEMENTS

14 > CASH FLOW – OTHER ITEMS

A Operating Cash Flows - Other Items |  |  |  |  |  |  |  |
|  |  |  |  |  |  | 2012 |
For the years ended December 31 |  |  | 2013 |  |  |  | (restated) |
Adjustments for non-cash income statement items: |  |  |  |  |  |  |  |
Currency translation losses (note 9a) |  |  | $ 180 |  |  |  | $ 73 |
RSU expense |  |  | (1) |  |  |  | 29 |
Stock option expense |  |  | 8 |  |  |  | 16 |
Change in estimate of rehabilitation provisions at closed mines or mines in closure |  |  | 100 |  |  |  | 39 |
Inventory impairment charges (note 16) |  |  | 46 |  |  |  | 74 |
Accretion |  |  | 68 |  |  |  | 53 |
Cash flow arising from changes in: |  |  |  |  |  |  |  |
Derivative assets and liabilities |  |  | (269) |  |  |  | (38) |
Other current assets |  |  | (22) |  |  |  | 18 |
Value added tax recoverable |  |  | (53) |  |  |  | 7 |
Accounts receivable |  |  | 28 |  |  |  | (31) |
Other current liabilities |  |  | (60) |  |  |  | (14) |
Prepaid assets |  |  | 253 |  |  |  | (113) |
Accounts payable and accrued liabilities |  |  | 429 |  |  |  | 103 |
Other assets and liabilities |  |  | 18 |  |  |  | (401) |
Contingent consideration related to the acquisition of the additional 40% of the Cortez property |  |  | - |  |  |  | (50) |
Settlement of rehabilitation obligations |  |  | (56) |  |  |  | (48) |
Other net operating activities |  |  | $ 669 |  |  |  | $ (283) |
B Investing Cash Flows – Other Items |  |  |  |  |  |  |  |
|  |  |  |  |  |  | 2012 |
For the years ended December 31 |  |  | 2013 |  |  |  | (restated) |
Value added tax recoverable on project capital expenditures |  |  | (237) |  |  |  | (281) |
Proceeds from settlement of hedge contracts |  |  | 20 |  |  |  | 15 |
Other |  |  | (45) |  |  |  | (45) |
Other net investing activities |  |  | $ (262) |  |  |  | $ (311) |
Investing cash flow includes payments for: |  |  |  |  |  |  |  |
Capitalized interest (note 24) |  |  | $ 394 |  |  |  | $ 547 |
C Financing Cash Flows – Other Items |  |  |  |  |  |  |  |
|  |  |  |  |  |  | 2012 |
For the years ended December 31 |  |  | 2013 |  |  |  | (restated) |
Financing fees on long-term debt |  |  | $ (32) |  |  |  | (22) |
Debt extinguishment fees |  |  | (90) |  |  |  | - |
Derivative settlements |  |  | 4 |  |  |  | (3) |
Other net financing activities |  |  | $ (118) |  |  |  | $ (25) |

BARRICK YEAR END 2013 |  | 110 |  | NOTES TO FINANCIAL STATEMENTS

15 > INVESTMENTS

A Equity Accounting Method Investment Continuity

|  | Highland Gold |  |  | Reko Diq |  |  | Kabanga |  |  | Total |
At January 1, 2012 (restated) |  |  | $ 209 |  |  |  | $ 121 |  |  |  | $ 11 |  |  |  | $ 341 |
Loss from equity investees |  |  | - |  |  |  | (11) |  |  |  | (1) |  |  |  | (12) |
Funds invested |  |  | - |  |  |  | 10 |  |  |  | 10 |  |  |  | 20 |
Impairment charges |  |  | - |  |  |  | (120) |  |  |  | - |  |  |  | (120) |
Transfer to other investments |  |  | (209) |  |  |  | - |  |  |  | - |  |  |  | (209) |
At December 31, 2012 (restated) |  |  | $ - |  |  |  | $ - |  |  |  | $ 20 |  |  |  | $ 20 |
Funds invested |  |  | - |  |  |  | - |  |  |  | 7 |  |  |  | 7 |
At December 31, 2013 |  |  | $ - |  |  |  | $ - |  |  |  | $ 27 |  |  |  | $ 27 |
Publicly traded |  |  | Yes |  |  |  | No |  |  |  | No |  |  |  |  |

B Other Investments

|  | As at Dec. 31, 2013 |  | As at Dec. 31, 2012 |  | As at Jan. 1, 2012
|  | Fair Value1 |  | Cumulative Losses in AOCI |  | Fair Value1 |  | Cumulative Gains in AOCI |  | Fair value1 |  | Cumulative Gains in OCI
Available-for-sale securities |  | $ 120 |  | $ (32) |  | $ 78 |  | $ 22 |  | $ 161 |  | $ 25
1 Refer to note 25 for further information on the measurement of fair value.
Gains on Investments Recorded in Earnings
For the years ended December 31 |  | 2013 |  | 2012
Gains realized on sales |  |  |  | $ 6 |  | $ 6
Cash proceeds from sales |  |  |  | 18 |  | 46

BARRICK YEAR END 2013 |  | 111 |  | NOTES TO FINANCIAL STATEMENTS

16 > INVENTORIES

|  | Gold |  |  | Copper |
|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 |  |  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 |
Raw materials |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ore in stockpiles |  |  | $ 1,835 |  |  |  | $ 1,703 |  |  |  | $ 1,401 |  |  |  | $ 236 |  |  |  | $ 273 |  |  |  | $ 189 |
Ore on leach pads |  |  | 334 |  |  |  | 292 |  |  |  | 335 |  |  |  | 320 |  |  |  | 298 |  |  |  | 247 |
Mine operating supplies |  |  | 1,027 |  |  |  | 956 |  |  |  | 757 |  |  |  | 151 |  |  |  | 140 |  |  |  | 128 |
Work in process |  |  | 209 |  |  |  | 322 |  |  |  | 371 |  |  |  | 6 |  |  |  | 6 |  |  |  | 6 |
Finished products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gold doré |  |  | 177 |  |  |  | 108 |  |  |  | 111 |  |  |  | - |  |  |  | - |  |  |  | - |
Copper cathode |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12 |  |  |  | 11 |  |  |  | 14 |
Copper concentrate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 47 |  |  |  | 26 |  |  |  | 89 |
Gold concentrate |  |  | 4 |  |  |  | 5 |  |  |  | 3 |  |  |  | - |  |  |  | - |  |  |  | - |
|  |  | $ 3,586 |  |  |  | $ 3,386 |  |  |  | $ 2,978 |  |  |  | $ 772 |  |  |  | $ 754 |  |  |  | $ 673 |
Non-current ore in stockpiles1 |  |  | (1,477) |  |  |  | (1,314) |  |  |  | (980) |  |  |  | (202) |  |  |  | (241) |  |  |  | (173) |
|  |  | $ 2,109 |  |  |  | $ 2,072 |  |  |  | $ 1,998 |  |  |  | $ 570 |  |  |  | $ 513 |  |  |  | $ 500 |

1 | Ore that we do not expect to process in the next 12 months is classified within other long-term assets

For the years ended December 31 |  | 2013 |  |  | 2012 (restated) |
Inventory impairment charges |  |  | $ 53 |  |  |  | $ 74 |
Inventory impairment charges reversed |  |  | (7) |  |  |  | - |

Ore on leach pads

The recovery of gold and copper from certain oxide ores is achieved through the heap leaching process. Our Pierina, Lagunas Norte, Veladero, Cortez, Bald Mountain, Round Mountain, Ruby Hill and Marigold mines all use a heap leaching process for gold and our Zaldívar mine uses a heap leaching process for copper. Under this method, ore is placed on leach pads where it is treated with a chemical solution, which dissolves the gold or copper contained in the ore. The resulting “pregnant” solution is further processed in a plant where the gold or copper is recovered. For accounting purposes, costs are added to ore on leach pads based on current mining and leaching costs, including applicable depreciation, depletion and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces or pounds are recovered based on the average cost per recoverable ounce of gold or pound of copper on the leach pad.

Estimates of recoverable gold or copper on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type).

Although the quantities of recoverable gold or copper placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of gold or

copper actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is regularly monitored and estimates are refined based on actual results over time. Historically, our operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of gold or copper on our leach pads. At December 31, 2013, the weighted average cost per recoverable ounce of gold and recoverable pound of copper on leach pads was $753 per ounce and $1.28 per pound, respectively (2012: $788 per ounce of gold and $1.15 per pound of copper and January 1, 2012: $653 per ounce and $1.03 per pound). Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

The ultimate recovery of gold or copper from a leach pad will not be known until the leaching process is concluded. Based on current mine plans, we expect to place the last ton of ore on our current leach pads at dates for gold ranging from 2014 to 2026 and for copper in 2028. Including the estimated time required for residual leaching, rinsing and reclamation activities, we expect that our leaching operations will terminate within a period of up to six years following the date that the last ton of ore is placed on the leach pad.

BARRICK YEAR END 2013 |  | 112 |  | NOTES TO FINANCIAL STATEMENTS

The current portion of ore inventory on leach pads is determined based on estimates of the quantities of gold or copper at each balance sheet date that we expect to recover during the next 12 months.

Ore in Stockpiles

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 (restated) |
Gold |  |  |  |  |  |  |  |  |  |  |  |
Goldstrike |  |  | $ 656 |  |  |  | $ 545 |  |  |  | $ 525 |
Pueblo Viejo |  |  | 271 |  |  |  | 190 |  |  |  | 55 |
Porgera |  |  | 259 |  |  |  | 251 |  |  |  | 149 |
Cortez |  |  | 203 |  |  |  | 209 |  |  |  | 192 |
Cowal |  |  | 129 |  |  |  | 113 |  |  |  | 90 |
Kalgoorlie |  |  | 104 |  |  |  | 100 |  |  |  | 99 |
Buzwagi |  |  | 43 |  |  |  | 81 |  |  |  | 59 |
North Mara |  |  | 42 |  |  |  | 53 |  |  |  | 75 |
Lagunas Norte |  |  | 37 |  |  |  | 24 |  |  |  | 22 |
Veladero |  |  | 35 |  |  |  | 34 |  |  |  | 30 |
Turquoise Ridge |  |  | 17 |  |  |  | 15 |  |  |  | 15 |
Round Mountain |  |  | 5 |  |  |  | 35 |  |  |  | 47 |
Other |  |  | 34 |  |  |  | 53 |  |  |  | 43 |
Copper |  |  |  |  |  |  |  |  |  |  |  |
Zaldívar |  |  | 140 |  |  |  | 152 |  |  |  | 175 |
Jabal Sayid |  |  | 54 |  |  |  | 53 |  |  |  | - |
Lumwana |  |  | 42 |  |  |  | 68 |  |  |  | 14 |
|  |  | $ 2,071 |  |  |  | $ 1,976 |  |  |  | $ 1,590 |
Ore on Leachpads |
|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 (restated) |
Gold |  |  |  |  |  |  |  |  |  |  |  |
Veladero |  |  | $ 178 |  |  |  | $ 115 |  |  |  | $ 128 |
Cortez |  |  | 56 |  |  |  | 22 |  |  |  | 12 |
Bald Mountain |  |  | 38 |  |  |  | 68 |  |  |  | 61 |
Round Mountain |  |  | 29 |  |  |  | 15 |  |  |  | 17 |
Lagunas Norte |  |  | 18 |  |  |  | 10 |  |  |  | 15 |
Ruby Hill |  |  | 9 |  |  |  | 20 |  |  |  | 9 |
Pierina |  |  | 6 |  |  |  | 15 |  |  |  | 71 |
Marigold |  |  | - |  |  |  | 27 |  |  |  | 22 |
Copper |  |  |  |  |  |  |  |  |  |  |  |
Zaldívar |  |  | 320 |  |  |  | 298 |  |  |  | 247 |
|  |  | $ 654 |  |  |  | $ 590 |  |  |  | $ 582 |

Purchase Commitments

At December 31, 2013, we had purchase obligations for supplies and consumables of approximately $1,221 million (2012: $1,859 million).

17 > ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | As at Jan. 1, 2012 |
Accounts receivable |  |  |  |  |  |  |  |  |  |  |  |
Amounts due from concentrate sales |  |  | $ 162 |  |  |  | $ 139 |  |  |  | $ 99 |
Amounts due from copper cathode sales |  |  | 84 |  |  |  | 122 |  |  |  | 107 |
Other receivables |  |  | 139 |  |  |  | 188 |  |  |  | 220 |
|  |  | $ 385 |  |  |  | $ 449 |  |  |  | $ 426 |
Other current assets |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets (note 24f) |  |  | $ 37 |  |  |  | $ 124 |  |  |  | $ 507 |
Goods and services taxes recoverable1 |  |  | 262 |  |  |  | 226 |  |  |  | 194 |
Prepaid expenses |  |  | 81 |  |  |  | 239 |  |  |  | 123 |
Other |  |  | 41 |  |  |  | 37 |  |  |  | 52 |
|  |  | $ 421 |  |  |  | $ 626 |  |  |  | $ 876 |

1 | Primarily includes VAT and fuel tax receivables of $91 million in Tanzania, $86 million in Argentina, $24 million in Chile, and $15 million in Peru (Dec. 31, 2012: $26 million, $82 million, $50 million, and $9 million, Jan. 1, 2012: $22 million, $80 million, $43 million, and $8 million).

BARRICK YEAR END 2013 |  | 113 |  | NOTES TO FINANCIAL STATEMENTS

18 > PROPERTY, PLANT AND EQUIPMENT

|  | Buildings, plant and equipment |  |  | Mining property costs subject to depreciation1,3 |  |  | Mining property costs not subject to depreciation1,2 |  |  | Oil and gas properties4 |  |  | Total |
At January 1, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net of accumulated depreciation |  |  | $ 3,829 |  |  |  | $ 8,722 |  |  |  | $ 15,863 |  |  |  | $ 863 |  |  |  | $ 29,277 |
Adjustment on currency translation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (28) |  |  |  | (28) |
Additions |  |  | 151 |  |  |  | 630 |  |  |  | 4,420 |  |  |  | 7 |  |  |  | 5,208 |
Capitalized interest |  |  | - |  |  |  | - |  |  |  | 295 |  |  |  | - |  |  |  | 295 |
Disposals |  |  | (531) |  |  |  | 4 |  |  |  | (5) |  |  |  | (799) |  |  |  | (1,331) |
Depreciation |  |  | (848) |  |  |  | (1,052) |  |  |  | - |  |  |  | (43) |  |  |  | (1,943) |
Impairment charges |  |  | (1,046) |  |  |  | (1,524) |  |  |  | (7,078) |  |  |  | - |  |  |  | (9,648) |
Transfers5 |  |  | 4,691 |  |  |  | 1,867 |  |  |  | (6,539) |  |  |  | - |  |  |  | 19 |
Assets held for sale |  |  | (36) |  |  |  | (96) |  |  |  | (29) |  |  |  | - |  |  |  | (161) |
At December 31, 2013 |  |  | $ 6,210 |  |  |  | $ 8,551 |  |  |  | $ 6,927 |  |  |  | $ - |  |  |  | $ 21,688 |
At December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost |  |  | $ 13,817 |  |  |  | $ 20,769 |  |  |  | $ 16,602 |  |  |  | $ - |  |  |  | $ 51,188 |
Accumulated depreciation and impairments |  |  | (7,607) |  |  |  | (12,218) |  |  |  | (9,675) |  |  |  | - |  |  |  | (29,500) |
Net carrying amount – December 31, 2013 |  |  | $ 6,210 |  |  |  | $ 8,551 |  |  |  | $ 6,927 |  |  |  | $ - |  |  |  | $ 21,688 |
|  | Buildings, plant and equipment |  |  | Mining property costs subject to depreciation1,3 |  |  | Mining property costs not subject to depreciation1,2 |  |  | Oil and gas properties4 |  |  | Total |
At January 1, 2012 (restated) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost |  |  | $ 9,519 |  |  |  | $ 17,036 |  |  |  | $ 14,456 |  |  |  | $ 1,281 |  |  |  | $ 42,292 |
Accumulated depreciation and impairments |  |  | (5,838) |  |  |  | (7,022) |  |  |  | (89) |  |  |  | (267) |  |  |  | (13,216) |
Net carrying amount – January 1, 2012 (restated) |  |  | $ 3,681 |  |  |  | $ 10,014 |  |  |  | $ 14,367 |  |  |  | $ 1,014 |  |  |  | $ 29,076 |
Adjustment on currency translation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 22 |  |  |  | 22 |
Additions |  |  | 203 |  |  |  | 1,464 |  |  |  | 5,060 |  |  |  | 137 |  |  |  | 6,864 |
Capitalized interest |  |  | - |  |  |  | - |  |  |  | 558 |  |  |  | - |  |  |  | 558 |
Disposals |  |  | (15) |  |  |  | - |  |  |  | (12) |  |  |  | (2) |  |  |  | (29) |
Acquisitions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Depreciation |  |  | (731) |  |  |  | (1,070) |  |  |  | - |  |  |  | (101) |  |  |  | (1,902) |
Impairment charges |  |  | (9) |  |  |  | (2,559) |  |  |  | (2,508) |  |  |  | (207) |  |  |  | (5,283) |
Transfers5 |  |  | 700 |  |  |  | 873 |  |  |  | (1,602) |  |  |  | - |  |  |  | (29) |
At December 31, 2012 (restated) |  |  | $ 3,829 |  |  |  | $ 8,722 |  |  |  | $ 15,863 |  |  |  | $ 863 |  |  |  | $ 29,277 |
At December 31, 2012 (restated) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost |  |  | $ 10,371 |  |  |  | $ 19,373 |  |  |  | $ 18,460 |  |  |  | $ 1,416 |  |  |  | $ 49,620 |
Accumulated depreciation and impairments |  |  | (6,542) |  |  |  | (10,651) |  |  |  | (2,597) |  |  |  | (553) |  |  |  | (20,343) |
Net carrying amount – December 31, 2012 (restated) |  |  | $ 3,829 |  |  |  | $ 8,722 |  |  |  | $ 15,863 |  |  |  | $ 863 |  |  |  | $ 29,277 |

1 | Includes capitalized reserve acquisition costs, capitalized development costs and capitalized exploration and evaluation costs other than exploration license costs included in intangible assets.

2 | Assets not subject to depreciation includes construction-in-progress, projects and acquired mineral resources and exploration potential at operating mine sites and development projects.

3 | Assets subject to depreciation include the following items for production stage properties: acquired mineral reserves and resources, capitalized mine development costs, capitalized stripping and capitalized exploration and evaluation costs.

4 | Represents Barrick Energy which was divested in July 2013 (refer to note 4b).

5 | Primarily relates to long-lived assets that are transferred to PP&E on commissioning of the mine. The Pueblo Viejo mine entered commercial production in early 2013. As a result, all mining property costs not subject to depreciation related to Pueblo Viejo ($4.6 billion at December 31, 2012) were transferred to mining property costs subject to depreciation in January 2013.

BARRICK YEAR END 2013 |  | 114 |  | NOTES TO FINANCIAL STATEMENTS

A Mineral Property Costs Not Subject to Depreciation

|  | Carrying amount at Dec. 31, 2013 |  |  | Carrying amount at Dec. 31, 2012 (restated) |  |  | Carrying amount at Jan. 1, 2012 (restated) |
Construction-in-progress1 |  |  | $ 1,870 |  |  |  | $ 1,590 |  |  |  | $ 1,314 |
Acquired mineral resources and exploration potential |  |  | 272 |  |  |  | 370 |  |  |  | 2,639 |
Projects |  |  |  |  |  |  |  |  |  |  |  |
Pascua-Lama |  |  | 2,053 |  |  |  | 5,861 |  |  |  | 3,749 |
Pueblo Viejo2,3 |  |  | - |  |  |  | 4,596 |  |  |  | 3,554 |
Cerro Casale2 |  |  | 1,920 |  |  |  | 1,836 |  |  |  | 1,732 |
Jabal Sayid |  |  | 687 |  |  |  | 1,497 |  |  |  | 1,282 |
Donlin Gold |  |  | 125 |  |  |  | 113 |  |  |  | 97 |
|  |  | $ 6,927 |  |  |  | $ 15,863 |  |  |  | $ 14,367 |

1 | Represents assets under construction at our operating mine sites.

2 | Amounts are presented on a 100% basis and include our partner’s non-controlling interest.

3 | In first quarter 2013, the property plant and equipment balance of Pueblo Viejo was transferred out of project capital as a result of entering production.

B Changes in Gold and Copper Mineral Reserves

At the end of each fiscal year, as part of our annual business cycle, we prepare updated estimates of proven and probable gold and copper mineral reserves for each mineral property. We prospectively revise calculations

of amortization expense for property, plant and equipment amortized using the UOP method, whereby the denominator is estimated recoverable ounces of gold/pounds of copper. The effect of changes in estimated recoverable ounces of gold/pounds of copper based on a $1,500 gold price assumption on amortization expense for 2013 was a $45 million decrease (2012: $51 million decrease). The price for the 2014 LOM plans has been determined on a $1,100 per ounce of gold for the first five years and $1,300 per ounce thereafter, which we will use to calculate amortization expense.

C Capital Commitments and operating leases

In addition to entering into various operational commitments in the normal course of business, we had commitments of approximately $249 million at December 31, 2013 (2012: $1,800 million) for construction activities at our capital projects.

Operating leases are recognized as an operating cost in the consolidated statement of income on a straight-line basis over the lease term. At December 31, 2013, we have operating lease commitments totaling $233 million, of which $26 million is expected to be paid within a year, $106 million is expected to be paid within two to five years and the remaining amount to be paid beyond five years.

19 > GOODWILL AND OTHER INTANGIBLE ASSETS

A Goodwill

|  | Gold |  |  |  |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | Australia |  |  | South America |  |  | ABG |  |  | Capital Projects |  |  | Copper |  |  | Barrick Energy |  |  | Total |
Opening balance January 1, 2012 |  |  | $ 2,376 |  |  |  | $ 1,480 |  |  |  | $ 441 |  |  |  | $ 179 |  |  |  | $ 809 |  |  |  | $ 4,249 |  |  |  | $ 92 |  |  |  | $ 9,626 |
Additions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6 |
Other1 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | 3 |
Impairments3 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (798) |  |  |  | - |  |  |  | (798) |
Closing balance December 31, 2012 |  |  | $ 2,376 |  |  |  | $ 1,480 |  |  |  | $ 441 |  |  |  | $ 185 |  |  |  | $ 809 |  |  |  | $ 3,451 |  |  |  | $ 95 |  |  |  | $ 8,837 |
Additions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Other2 |  |  | (18) |  |  |  | (74) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (92) |
Impairments3 |  |  | - |  |  |  | (1,200) |  |  |  | - |  |  |  | (185) |  |  |  | (397) |  |  |  | (1,033) |  |  |  | (95) |  |  |  | (2,910) |
Transfers4 |  |  | 412 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (412) |  |  |  | - |  |  |  | - |  |  |  | - |
Closing balance December 31, 2013 |  |  | $ 2,770 |  |  |  | $ 206 |  |  |  | $ 441 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,418 |  |  |  | $ - |  |  |  | $ 5,835 |
Cost |  |  | $2,788 |  |  |  | $1,480 |  |  |  | $441 |  |  |  | $185 |  |  |  | $397 |  |  |  | $4,249 |  |  |  | $95 |  |  |  | $9,635 |
Accumulated impairment losses and other |  |  | (18) |  |  |  | (1,274) |  |  |  | - |  |  |  | (185) |  |  |  | (397) |  |  |  | (1,831) |  |  |  | (95) |  |  |  | (3,800) |
Net carrying amount |  |  | $ 2,770 |  |  |  | $ 206 |  |  |  | $ 441 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,418 |  |  |  | $ - |  |  |  | $ 5,835 |

1 | Represents the impact of foreign exchange rate changes on the translation of Barrick Energy from C $ to US $.

2 | Represents the allocation of Goodwill to assets held for sale as well as the disposition of YSS assets.

3 | Refer to note 20.

4 | In the first quarter 2013 we transferred $412 million of goodwill from the Capital Projects segment to the North American segment as a result of Pueblo Viejo entering production.

BARRICK YEAR END 2013 |  | 115 |  | NOTES TO FINANCIAL STATEMENTS

As a result of the reorganization of our operating segments in fourth quarter 2013, we reallocated goodwill, which had previously been recorded in our Regional Business Units (our former operating segments), to the new Operating Units on a relative fair value basis except for Pueblo Viejo, which had specifically identified goodwill from the earlier allocation in 2013. The reorganization of the Operating Units did not result in any indicators of impairment (see note 20). At December 31, 2013, goodwill allocated to each operating segment is as follows:

|  | Goldstrike |  |  | Cortez |  |  | Pueblo Viejo |  |  | Lagunas Norte |  |  | Veladero |  |  | North America - Other |  |  | Australia- Pacific |  |  | Copper |  |  | Total |
Net carrying amount |  |  | $ 730 |  |  |  | $ 869 |  |  |  | $ 412 |  |  |  | $ 247 |  |  |  | $ 195 |  |  |  | $ 758 |  |  |  | $ 206 |  |  |  | $ 2,418 |  |  |  | $ 5,835 |

B Intangible Assets

|  | Water rights1 |  |  | Technology2 |  |  | Supply contracts3 |  |  | Exploration potential4 |  |  | Total |
Opening balance January 1, 2012 |  |  | $ 116 |  |  |  | $ 17 |  |  |  | $ 23 |  |  |  | $ 413 |  |  |  | $ 569 |
Additions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 54 |  |  |  | 54 |
Amortization and impairment losses |  |  | - |  |  |  | - |  |  |  | (1) |  |  |  | (169) |  |  |  | (170) |
Closing balance December 31, 2012 |  |  | $ 116 |  |  |  | $ 17 |  |  |  | $ 22 |  |  |  | $ 298 |  |  |  | $ 453 |
Additions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Amortization and impairment losses |  |  | - |  |  |  | (1) |  |  |  | (2) |  |  |  | (130) |  |  |  | (133) |
Closing balance December 31, 2013 |  |  | $ 116 |  |  |  | $ 16 |  |  |  | $ 20 |  |  |  | $ 168 |  |  |  | $ 320 |
Cost |  |  | $ 116 |  |  |  | $ 17 |  |  |  | $ 39 |  |  |  | $ 467 |  |  |  | $ 639 |
Accumulated amortization and impairment losses |  |  | - |  |  |  | (1) |  |  |  | (19) |  |  |  | (299) |  |  |  | (319) |
Net carrying amount December 31, 2013 |  |  | $ 116 |  |  |  | $ 16 |  |  |  | $ 20 |  |  |  | $ 168 |  |  |  | $ 320 |

1 | Relates to water rights in South America which are subject to annual impairment testing and will be amortized through cost of sales when we begin using these in the future.

2 | The amount will be amortized through cost of sales using the UOP method over the estimated proven and probable reserves of the Pueblo Viejo mine, with no assumed residual value.

3 | Relates to a supply agreement with Michelin North America Inc. to secure a supply of tires and is amortized over the effective term of the contract through cost of sales.

4 | Exploration potential consists of the estimated fair value attributable to exploration licenses acquired as a result of a business combination or asset acquisition. The carrying value of the licenses will be transferred to PP&E when the development of attributable mineral resources commences (note 2m(i)).

BARRICK YEAR END 2013 |  | 116 |  | NOTES TO FINANCIAL STATEMENTS

20 > IMPAIRMENT OF GOODWILL AND NON-CURRENT ASSETS

In accordance with our accounting policy, goodwill is tested for impairment in the fourth quarter and also when there is an indicator of impairment. Non-current assets are tested for impairment when events or changes in circumstances suggest that the carrying amount may not be recoverable.

When there is an indicator of impairment of non-current assets within an operating segment consisting of a Cash Generating Unit (“CGU”) or group of CGUs that contain goodwill, we test the non-current assets for impairment first and recognize any impairment loss on the non-current assets before testing the operating segment for any potential goodwill impairment. When there is an indicator of impairment of non-current assets within an operating segment consisting of a single CGU that contains goodwill, we test the non-current assets for impairment first and recognize any impairment loss on goodwill first and then any remaining impairment loss is applied against the non-current assets.

An impairment loss is recognized when the carrying amount exceeds the recoverable amount. The recoverable amount of each operating segment for goodwill testing purposes has been determined based on its estimated fair value less cost of disposal (“FVLCD”), which has been determined to be greater than the Value in Use (“VIU”) amounts. The recoverable amount for non-current asset testing is calculated using the same approach as for goodwill, however, the assessment is done at the CGU level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. A CGU is generally an individual operating mine or development project.

A Summary of impairments

For the year ended December 31, 2013, we recorded impairment losses of $9.9 billion (2012: $5.5 billion) for non-current assets and $2.8 billion (2012: $798 million) for goodwill, as summarized in the following table:

For the year ended December 31 |  | 2013 |  |  | 2012 (restated) |
Pascua-Lama |  |  | $ 6,061 |  |  |  | $ - |
Lumwana |  |  | - |  |  |  | 4,982 |
Buzwagi |  |  | 721 |  |  |  | - |
Porgera |  |  | 746 |  |  |  | - |
Veladero |  |  | 464 |  |  |  | - |
Jabal Sayid |  |  | 860 |  |  |  | - |
Exploration (Tusker, Kainantu, Saudi Licenses) |  |  | 112 |  |  |  | 169 |
North Mara |  |  | 286 |  |  |  | - |
Pierina |  |  | 140 |  |  |  | - |
Reko Diq |  |  | - |  |  |  | 120 |
Kanowna |  |  | 41 |  |  |  | - |
Highland Gold |  |  | - |  |  |  | 86 |
Granny Smith |  |  | 73 |  |  |  | - |
Round Mountain |  |  | 78 |  |  |  | - |
Ruby Hill PPE Write Off |  |  | 66 |  |  |  | - |
Marigold Mine |  |  | 60 |  |  |  | - |
Bald Mountain |  |  | 16 |  |  |  | - |
Darlot |  |  | 36 |  |  |  | - |
Plutonic |  |  | 37 |  |  |  | - |
PV Power Asset |  |  | - |  |  |  | 46 |
Tulawaka |  |  | 16 |  |  |  | 31 |
AFS Investments |  |  | 26 |  |  |  | 46 |
Other |  |  | 33 |  |  |  | 16 |
Total non-current asset impairment losses |  |  | $ 9,872 |  |  |  | $ 5,496 |
Australia goodwill |  |  | 1,200 |  |  |  | - |
Copper goodwill |  |  | 1,033 |  |  |  | 798 |
Capital Project goodwill |  |  | 397 |  |  |  | - |
ABG goodwill |  |  | 185 |  |  |  | - |
Total goodwill impairment losses |  |  | $ 2,815 |  |  |  | $ 798 |
Total impairment losses |  |  | $ 12,687 |  |  |  | $ 6,294 |

BARRICK YEAR END 2013 |  | 117 |  | NOTES TO FINANCIAL STATEMENTS

2013 indicators of impairment

Second Quarter 2013

The significant decrease in our long-term gold, silver and copper price assumptions in second quarter 2013, due to declining market prices, as well as the regulatory challenges to Pascua-Lama in May 2013 and the resulting schedule delays and associated capital expenditure increases; and a significant change to the mine plan at our Pierina mine, were all considered indicators of impairment, and, accordingly, we performed an impairment assessment for every mine site and significant advanced development project. As a result of this assessment, we recorded non-current asset impairment losses of $7.1 billion, including a $5.2 billion impairment loss related to the carrying value of the PP&E at Pascua-Lama; $501 million related to the Jabal Sayid project in our copper segment; $874 million related to Buzwagi and North Mara in African Barrick Gold; $236 million related to the Kanowna, Granny Smith, Plutonic and Darlot mines in our Australia Pacific Gold segment; and $140 million related to our Pierina mine in South America.

After reflecting the above non-current asset impairment losses, we conducted goodwill impairment tests and determined that the carrying value of our Copper, Australia Pacific Gold, Capital Projects and African Barrick Gold segments exceeded their FVLCD, and therefore we recorded a total goodwill impairment loss of $2.3 billion. The FVLCD of our copper segment was negatively impacted by the decrease in our long-term copper price assumption in second quarter 2013. The FVLCD of our Australia Pacific Gold segment was negatively impacted by the significant decrease in second quarter 2013 in our long-term gold price assumption. The FVLCD of our Capital Projects segment was negatively impacted by the significant decrease in second quarter 2013 in our long-term gold and silver price assumptions, as well as the schedule delays and associated capital expenditure increase at our Pascua-Lama project. The FVLCD of our African Barrick Gold segment was negatively impacted by significant changes in the life of mine (“LOM”) plans in second quarter 2013 for various assets in the segment, as well as the significant decrease in our long-term gold price assumption.

Third Quarter 2013

In September 2013, we finalized an agreement with the Government of the Dominican Republic (“the Government”) concerning amendments to the SLA. The amendments will result in significant additional and accelerated tax revenues to the Government, and therefore we determined this was an indicator of impairment. Based on our assessment of the economic impact of these amendments, the carrying value of the mine was recoverable as at September 30, 2013.

Fourth Quarter 2013

In fourth quarter 2013, as described below, we identified indicators of impairment at certain of our mines, resulting in non-current asset impairment losses totaling $2.8 billion. As a result of our fourth quarter 2013 decision to temporarily suspend construction of our Pascua-Lama Project, we have recorded a further impairment loss on the project of $896 million, bringing the total impairment loss for Pascua-Lama to $6.1 billion for the full year. At our Porgera mine in Papua New Guinea, we have changed our LOM plan to focus primarily on the higher grade underground mine. The new plan resulted in a decrease in the estimated mine life from 13 to 9 years, and a decrease in the estimated FVLCD of the mine, which has resulted in an impairment loss of $746 million. At our Veladero mine in Argentina, the annual update to the LOM plan, which was completed in fourth quarter 2013, was significantly impacted by the lower gold price assumption as well as the effect of sustained local inflationary pressures on operating and capital costs. The new plan resulted in a reduction of reserves and LOM production. This resulted in a significant decrease in the estimated FVLCD of the mine, and accordingly, we recorded an impairment loss of $462 million. The annual update to the LOM plan resulted in a decrease in the net present value of our Jabal Sayid project, which is the basis for estimating the project’s FVLCD, and was therefore considered an indicator of impairment. Jabal Sayid’s FVLCD was also negatively impacted by the delay in achieving first production as a result of the HCIS compliance requirements and ongoing discussions with the DMMR with respect to the transfer of ownership of the project. As a result, we recorded an impairment loss of $359 million. The annual update to the LOM plan showed a decrease in the net present value at our Round Mountain mine, which was considered to be an indicator of impairment, and we recorded an impairment loss of $78 million. At North Mara, several changes were made to the LOM plan, including a decision to defer Gokona Cut 3, while ABG finalizes a feasibility study into the alternative of mining out this reserve by underground methods. This was considered an indicator of impairment for North Mara, resulting in an impairment loss of $133 million. A wall failure at our Ruby Hill mine in Nevada was also identified as an indicator of impairment, resulting in the impairment of assets specifically related to the open pit of $51 million.

BARRICK YEAR END 2013 |  | 118 |  | NOTES TO FINANCIAL STATEMENTS

As at December 31, 2013, four of our mines, namely Plutonic, Kanowna, Marigold and Tulawaka, met the criteria as assets held for sale. Accordingly, we are required to re-measure these CGUs to the lower of carrying value and FVLCD. Using these new re-measured values, resulted in impairment losses of $17 million at Plutonic and $60 million at Marigold. Also, based on the estimated FVLCD of the expected proceeds related to the expected sale of Kanowna, we have reversed $66 million of the impairment loss recorded in second quarter 2013.

After reflecting the above non-current asset impairment losses, we conducted our annual goodwill impairment test, prior to the reorganization of our operating segments, and determined that the carrying value of our Australia Pacific segment exceeded its FVLCD and therefore we recorded a goodwill impairment loss of $551 million bringing the total impairment loss for Australia Pacific Gold goodwill to $1,200 million for the full year. After the reorganization of the operating segments, we did not identify any indicators of impairment.

2012 indicators of impairment

In fourth quarter 2012, we prepared an updated LOM plan for Lumwana, which reflected information obtained from an extensive exploration and infill drilling program that was completed late in the fourth quarter of 2012. The new LOM plan also reflected revised operating and sustaining capital costs. In particular, unit mining costs were determined to be significantly higher than previously estimated. The significant changes in the LOM plan were considered an indicator of impairment, and, accordingly, we performed an impairment assessment for Lumwana as at the end of the 2012. As a result of this assessment, we recorded an impairment loss of $5.0 billion, related to the carrying value of the non-current assets at Lumwana in the fourth quarter of 2012.

In fourth quarter 2012, we also recorded the following impairment losses: $31 million in PP&E impairment losses related to Tulawaka in our ABG segment, primarily as a result of a decrease in the expected remaining mine life in its most recent LOM plan; $120 million related to our equity method investment in Tethyan Copper Company, which holds our interest in the Reko Diq project; and a $46 million write-down of power-related assets at our Pueblo Viejo project, based on new information with respect to the recoverable amount of these assets received in fourth quarter 2012.

Other impairment losses recorded in 2012 included: $165 million related to exploration properties, included in intangible assets, in Papua New Guinea and Saudi Arabia as a result of our decision to cease exploration activities ($141 million in Papua New Guinea in third quarter 2012 and $24 million in Saudi Arabia in fourth quarter 2012); and $84 million related to our equity method investment in Highland Gold as a result of the disposition of our equity interest in first quarter 2012.

After reflecting the above non-current asset losses, we conducted our goodwill impairment tests and determined that the carrying value of our copper segment exceeded its FVLCD, and therefore we recorded a goodwill impairment loss of $798 million. The FVLCD of our copper segment was impacted by increases in expected future operating and capital costs.

BARRICK YEAR END 2013 |  | 119 |  | NOTES TO FINANCIAL STATEMENTS

Key assumptions

The key assumptions and estimates used in determining the FVLCD are related to commodity prices, discount rates, NAV multiples for gold assets, operating costs, exchange rates and capital expenditures. In addition, assumptions related to comparable entities, market values per ounce and per pound and the inclusion of reserves and resources in market multiples calculations are used.

Gold

For the gold segments, excluding Pascua-Lama, FVLCD for each of the CGUs was determined by calculating the net present value (“NPV”) of the future cash flows expected to be generated by the mines and projects within the segments. The estimates of future cash flows were derived from the most recent LOM plans and, where the LOM plans excludes a material portion of total reserves and resources, we assign value to resources not considered in these base models. These values are then aggregated to the segment level, the level at which goodwill is tested. Based on observable market or publicly available data, including spot and forward prices and equity sell-side analyst forecasts, we make an assumption of future gold and silver prices to estimate future revenues. The future cash flows for each gold mine are discounted using a real weighted average cost of capital (“WACC”), which reflects specific market risk factors for each mine. Some gold companies trade at a market capitalization greater than the NPV of their expected cash flows. Market participants describe this as a “NAV multiple”, which represents the multiple applied to the NPV to arrive at the trading price. The NAV multiple is generally understood to take account of a variety of additional value factors such as the exploration potential of the mineral property, namely the ability to find and produce more metal than what is currently included in the LOM plan or reserve and resource estimates, and the benefit of gold price optionality. As a result, we applied a specific NAV multiple to the NPV of each CGU within each gold segment based on the NAV multiples observed in the market in recent periods and that we judged to be appropriate to the CGU.

Pascua-Lama

The fair value for Pascua-Lama was determined by considering both the NPV, determined consistent with our gold CGUs, as well as market multiples expressed as dollar per ounce of proven and probable reserves based on observed market metrics for comparable assets. Both these approaches were used, with the market approach being the primary method as the LOM for Pascua-Lama has uncertainty due to adjustments to reflect the updated estimated timeline for the project that existed at the time of the testing. The observable market multiples were adjusted, where appropriate, for country risk if the comparable asset was in a different country and any change in metal prices since the valuation date of the comparable asset.

Copper

For our Copper segment, the FVLCD for each of the CGUs was determined based on the NPV of future cash flows expected to be generated using the most recent LOM plans aggregated to the segment level. Based on observable market or publicly available data including spot and forward prices and equity sell-side analyst consensus, we make an assumption of future copper prices to estimate future revenues. The future cash flows for each copper mine were discounted using a WACC depending on the location and market risk factors for each mine. Fair value for Lumwana was also estimated by considering market multiples expressed as dollar per pound based primarily on the observed valuation metrics for comparable assets. Both these approaches were used as the LOM for Lumwana has uncertainty due to the on-going optimization program to generate additional value from the LOM. The observable market multiples were adjusted where appropriate for country risk if the comparable asset was in a different country and any change in metal prices since the valuation date of the comparable asset.

BARRICK YEAR END 2013 |  | 120 |  | NOTES TO FINANCIAL STATEMENTS

The key assumptions used in our impairment testing are summarized in the table below:

|  | Fourth Quarter 2013 |  |  | Fourth Quarter 2012 |
Gold price per oz |  |  | $1,300 |  |  |  | $1,700 |
Silver price per oz |  |  | $23 |  |  |  | $32 |
Copper price per lb |  |  | $3.25 |  |  |  | $3.65 |
WACC – gold (range) |  |  | 2% – 7% |  |  |  | 3% – 8% |
WACC – gold (avg) |  |  | 5% |  |  |  | 5% |
WACC – copper (range) |  |  | 7% – 9% |  |  |  | 6% – 8% |
WACC – copper (avg) |  |  | 7% |  |  |  | 7% |
NAV multiple – gold (avg) |  |  | 1.1 |  |  |  | 1.2 |
LOM years – gold (range) |  |  | 3 – 29 |  |  |  | 2 – 32 |
LOM years – gold (avg) |  |  | 13 |  |  |  | 14 |
LOM years – copper (range) |  |  | 14 – 24 |  |  |  | 13 – 33 |
LOM years – copper (avg) |  |  | 18 |  |  |  | 21 |
Reserves – gold price per oz1 |  |  | $1,100 |  |  |  | $1,500 |
Reserves – silver price per oz |  |  | $21 |  |  |  | $28 |
Reserves – copper price per lb |  |  | $3.00 |  |  |  | $3.00 |
ARS:USD exchange rate |  |  | 8.5 – 10.0 |  |  |  | 5.0 – 5.5 |

1 | In our LOM plans we used $1,100/oz for the first 5 years and $1,300/oz thereafter.

Sensitivities

We performed a sensitivity analysis on commodity price, which is the key assumption that impacts the impairment calculations. We assumed a negative 10% change for the assumption, taking sales price from $1,300 per ounce down to $1,170 per ounce for gold, $3.25 per pound down to $2.93 per pound for copper and $23 per ounce to $20.70 per ounce for silver, while holding all other assumptions constant. We note that this sensitivity identifies the key assets where the decrease in the sales price, in isolation, could cause the carrying value of our operating segments to exceed its recoverable amount for the purposes of the goodwill impairment test or the carrying value of any of our CGUs to exceed its recoverable amount for the purposes of the non-current asset impairment test where an indicator of impairment for the non-current asset was identified.

Should there be a significant decline in commodity prices, we would take actions to assess the implications on our life of mine plans, including the determination of reserves and resources, and the appropriate cost structure for the operating segments. The recoverable amount of the operating segments and CGUs would also be impacted by other market factors such as changes in net asset value multiples and the value per ounce/pound of comparable market entities. Based on the results of the impairment testing performed in fourth quarter 2013, the carrying value of the operating segments and CGUs that are most sensitive to the change in sales prices used in the test are:

As at December 31, 2013 |  | Carrying value |  |  | Decrease in fair value with a 10% decrease in sales price |
Copper segment1 |  |  | $ 5,299 |  |  |  | $ 1,700 |
Australia Pacific segment1 |  |  | 1,488 |  |  |  | 850 |
Cerro Casale |  |  | 1,514 |  |  |  | 1,200 |
Veladero1 |  |  | 1,009 |  |  |  | 600 |
Lumwana1 |  |  | 1,008 |  |  |  | 850 |
Jabal Sayid1 |  |  | 711 |  |  |  | 80 |
Porgera1 |  |  | 393 |  |  |  | 390 |
North Mara1 |  |  | 369 |  |  |  | 130 |
Round Mountain1 |  |  | 166 |  |  |  | 150 |

1 | These operating segments/CGUs have been impaired in either 2012 or 2013 and therefore their fair value approximates carrying value.

In addition, for our Pascua-Lama project, we have determined our valuation primarily based on a market approach. The key assumption that impacts the impairment calculations, should there be an indication of impairment for this CGU, is the value per ounce of gold and silver based on an analysis of comparable companies. We assumed a negative 10% change for the assumption of gold and silver value per ounce, while holding all other assumptions constant and, based on the results of the impairment testing performed in fourth quarter 2013 for Pascua-Lama, the fair value of the CGU would have been reduced from $1.2 billion to $1.1 billion (December 31, 2013 carrying value: $1.2 billion). We note that this sensitivity identifies the decrease in the value that, in isolation, would cause the carrying value of the CGU to exceed its recoverable amount. For Pascua-Lama, this value decrease is linear to the decrease in value per ounce.

BARRICK YEAR END 2013 |  | 121 |  | NOTES TO FINANCIAL STATEMENTS

21 > OTHER ASSETS

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | As at Jan. 1, 2012 |
Derivative assets (note 24f) |  |  | $ 10 |  |  |  | $ 183 |  |  |  | $ 455 |
Goods and services taxes recoverable1 |  |  | 618 |  |  |  | 514 |  |  |  | 272 |
Notes receivable |  |  | 112 |  |  |  | 149 |  |  |  | 121 |
Other |  |  | 326 |  |  |  | 218 |  |  |  | 154 |
|  |  | $ 1,066 |  |  |  | $ 1,064 |  |  |  | $ 1,002 |

1 | Includes VAT and fuel tax receivables of $519 million in Argentina, $54 million in Tanzania and $45 million in Chile (Dec. 31, 2012: $397 million, $72 million and $45 million, Jan. 1, 2012: $177 million, $63 million and $32 million). The VAT in Argentina is currently estimated to be recoverable once Pascua-Lama has entered production.

22 > ACCOUNTS PAYABLE

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 (restated) |
Accounts payable1 |  |  | $ 1,058 |  |  |  | $ 1,020 |  |  |  | $ 965 |
Accruals |  |  | 1,107 |  |  |  | 1,247 |  |  |  | 1,120 |
|  |  | $ 2,165 |  |  |  | $ 2,267 |  |  |  | $ 2,085 |

1 | Includes $171 million related to severance and demobilization costs at Pascua-Lama, which arose as a result of our decision to suspend construction of our Pascua-Lama project. We incurred various costs to demobilize our contractors and employees from the project.

23 > OTHER CURRENT LIABILITIES

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | As at Jan. 1, 2012 |
Provision for environmental rehabilitation (note 26) |  |  | $ 105 |  |  |  | $ 74 |  |  |  | $ 79 |
Derivative liabilities (note 24f) |  |  | 31 |  |  |  | 10 |  |  |  | 22 |
Post-retirement benefits (note 34) |  |  | - |  |  |  | 5 |  |  |  | 14 |
Restricted stock units (note 33b) |  |  | 19 |  |  |  | 28 |  |  |  | 27 |
Contingent purchase consideration |  |  | - |  |  |  | - |  |  |  | 50 |
Other |  |  | 148 |  |  |  | 144 |  |  |  | 134 |
|  |  | $ 303 |  |  |  | $ 261 |  |  |  | $ 326 |

24 > FINANCIAL INSTRUMENTS

Financial instruments include cash; evidence of ownership in an entity; or a contract that imposes an obligation on one party and conveys a right to a second entity to deliver/receive cash or another financial instrument. Information on certain types of financial instruments is included elsewhere in these consolidated financial statements as follows: accounts receivable (note 17); investments (note 15); restricted share units (note 33b).

A Cash and Equivalents

Cash and equivalents include cash, term deposits, treasury bills and money market investments with original maturities of less than 90 days.

Cash and Equivalents

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 (restated) |
Cash deposits |  |  | $ 648 |  |  |  | $ 1,155 |  |  |  | $ 1,013 |
Term deposits |  |  | 235 |  |  |  | 184 |  |  |  | 278 |
Money market investments |  |  | 1,521 |  |  |  | 758 |  |  |  | 1,458 |
|  |  | $ 2,404 |  |  |  | $ 2,097 |  |  |  | $ 2,749 |

BARRICK YEAR END 2013 |  | 122 |  | NOTES TO FINANCIAL STATEMENTS

Of total cash and cash equivalents as of December 31, 2013, $305 million (2012: $434 million and January 1, 2012: $616 million) was held in subsidiaries which have regulatory regulations, contractual restrictions or operate in countries where exchange controls and other legal restrictions apply and are therefore not available for general use by the Company. In addition, $936 million (2012: $1,081 and January 1, 2012: $1,904 million) of cash and equivalents is held in subsidiaries where we have determined the cash is reinvested, for the foreseeable future for the calculation of deferred income tax.

B Long-Term Debt1

|  | 2013 |
|  | At Dec. 31 |  |  | Proceeds |  |  | Repayments |  |  | Amortization and Other2 |  |  | At Jan. 1 |
1.75%/2.9%/4.4%/5.7% notes3 |  |  | $ 2,406 |  |  |  | $ - |  |  |  | $ 1,571 |  |  |  | $ 6 |  |  |  | $ 3,971 |
3.85%/5.25% notes |  |  | 1,983 |  |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | 1,981 |
4.875%/5.80% notes |  |  | 395 |  |  |  | - |  |  |  | 350 |  |  |  | 1 |  |  |  | 744 |
5.75%/6.35% notes |  |  | 855 |  |  |  | - |  |  |  | 136 |  |  |  | 1 |  |  |  | 990 |
Other fixed rate notes4 |  |  | 2,712 |  |  |  | - |  |  |  | 500 |  |  |  | 4 |  |  |  | 3,208 |
Project financing |  |  | 941 |  |  |  | 94 |  |  |  | 45 |  |  |  | 2 |  |  |  | 890 |
Capital leases |  |  | 240 |  |  |  | - |  |  |  | 93 |  |  |  | 148 |  |  |  | 185 |
Other debt obligations |  |  | 829 |  |  |  | 178 |  |  |  | 119 |  |  |  | (4) |  |  |  | 774 |
Credit facility |  |  | - |  |  |  | - |  |  |  | 1,200 |  |  |  | - |  |  |  | 1,200 |
2012 Credit facility |  |  | - |  |  |  | 2,000 |  |  |  | 2,000 |  |  |  | - |  |  |  | - |
2.5%/4.10%/5.75% notes5 |  |  | 2,577 |  |  |  | 3,000 |  |  |  | 398 |  |  |  | (25) |  |  |  | - |
ABG Credit facility6 |  |  | 142 |  |  |  | 142 |  |  |  | - |  |  |  | - |  |  |  | - |
|  |  | $ 13,080 |  |  |  | $ 5,414 |  |  |  | $ 6,412 |  |  |  | $ 135 |  |  |  | $ 13,943 |
Less: current portion7 |  |  | (179) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,848) |
|  |  | $12,901 |  |  |  | $ 5,414 |  |  |  | $ 6,412 |  |  |  | $ 135 |  |  |  | $ 12,095 |
|  | 2012 |
|  | At Dec. 31 |  |  | Proceeds |  |  | Repayments |  |  | Amortization and Other2 |  |  | At Jan. 1 |
1.75%/2.9%/4.4%/5.7% notes3 |  |  | $ 3,971 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ (1) |  |  |  | $ 3,972 |
3.85%/5.25% notes |  |  | 1,981 |  |  |  | 2,000 |  |  |  | - |  |  |  | (19) |  |  |  | - |
4.875%/5.80% notes |  |  | 744 |  |  |  | - |  |  |  | - |  |  |  | (6) |  |  |  | 750 |
5.75%/6.35% notes |  |  | 990 |  |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | 988 |
Other fixed rate notes4 |  |  | 3,208 |  |  |  | - |  |  |  | - |  |  |  | 18 |  |  |  | 3,190 |
Project financing |  |  | 890 |  |  |  | - |  |  |  | - |  |  |  | 17 |  |  |  | 873 |
Capital leases |  |  | 185 |  |  |  | - |  |  |  | 44 |  |  |  | 26 |  |  |  | 203 |
Other debt obligations |  |  | 774 |  |  |  | - |  |  |  | 118 |  |  |  | (7) |  |  |  | 899 |
Equinox credit facility |  |  | - |  |  |  | - |  |  |  | 1,000 |  |  |  | 6 |  |  |  | 994 |
Credit facility |  |  | 1,200 |  |  |  | - |  |  |  | 300 |  |  |  | - |  |  |  | 1,500 |
|  |  | $ 13,943 |  |  |  | $ 2,000 |  |  |  | $ 1,462 |  |  |  | $ 36 |  |  |  | $ 13,369 |
Less: current portion7 |  |  | (1,848) |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (196) |
|  |  | $12,095 |  |  |  | $ 2,000 |  |  |  | $ 1,462 |  |  |  | $ 36 |  |  |  | $ 13,173 |

1 | The agreements that govern our long-term debt each contain various provisions which are not summarized herein. These provisions allow Barrick to, at its option, redeem indebtedness prior to maturity at specified prices and also may permit redemption of debt by Barrick upon the occurrence of certain specified changes in tax legislation.

2 | Amortization of debt premium/discount and increases in capital leases.

3 | Consists of $2.4 billion through our wholly-owned subsidiary Barrick North America Finance LLC (“BNAF Notes”), $229 million that matures in 2016, $1.35 billion that matures in 2021 and $850 million that matures in 2041. We provide an unconditional and irrevocable guarantee on all BNAF Notes and generally provide such guarantees on all BNAF notes issued, which will rank equally with our other unsecured and unsubordinated obligations.

4 | Consists of $1.25 billion through our wholly-owned indirect subsidiary Barrick (PD) Australia Finance Pty Ltd. (“BPDAF”), of which $850 million that matures in 2039 and $400 million that matures in 2020. We provide an unconditional and irrevocable guarantee of all BPDAF debt and generally provide such guarantees on all BPDAF notes issued, which will rank equally with our other unsecured and unsubordinated obligations. Also consists of $750 million in notes that matures in 2019, $500 million in notes that mature in 2018 and $250 million in notes that mature in 2038.

5 | Consists of $2.6 billion in conjunction with our wholly-owned subsidiary Barrick North America Finance LLC (“BNAF”). This consists of $252 million of 2.50% notes due 2018 (the “2018 Notes”) and $1.5 billion of 4.10% notes due 2023 (the “2023 Notes”) of Barrick as well as $850 million of 5.75% notes due 2043 (the “2043 Notes”) of BNAF. We provide an unconditional and irrevocable guarantee on all BNAF Notes and generally provide such guarantees on all BNAF notes issued, which will rank equally with our other unsecured and unsubordinated obligations.

6 | Consists of an export credit backed term loan facility.

7 | The current portion of long-term debt consists of project financing ($102 million; 2012: $45 million), other debt obligations ($39 million, 2012: $65 million), and capital leases ($38 million, 2012: $38 million). The current portion of long-term debt for 2012 also includes credit facility ($1,200 million) and other fixed rate notes ($500 million).

BARRICK YEAR END 2013 |  | 123 |  | NOTES TO FINANCIAL STATEMENTS

1.75%/2.9%/4.4%/5.7% notes

In June 2011, Barrick, and our wholly-owned subsidiary Barrick North America Finance LLC (“BNAF”), issued an aggregate of $4.0 billion in debt securities comprised of: $700 million of 1.75% notes that had an original maturity date in 2014 and $1.1 billion of 2.90% notes that had an original maturity date mature in 2016 issued by Barrick (collectively, the “Barrick Notes”) as well as $1.35 billion of 4.40% notes that mature in 2021 and $850 million of 5.70% notes that mature in 2041 issued by BNAF (collectively, the “BNAF Notes”). Barrick provides an unconditional and irrevocable guarantee of the BNAF Notes. The Barrick Notes and the guarantee in respect of the BNAF Notes will rank equally with Barrick’s other unsecured and unsubordinated obligations.

During the year, the entire balance ($700 million) of the 1.75% notes was repaid along with $871 million out of the $1.1 billion of 2.9% notes.

3.85 and 5.25 Notes

On April 3, 2012, we issued an aggregate of $2 billion in debt securities comprised of $1.25 billion of 3.85% notes that mature in 2022 and $750 million of 5.25% notes that mature in 2042. $1.0 billion of the net proceeds from this offering were used to repay the existing indebtedness under the 2012 Credit Facility.

Other Fixed Rate Notes

On October 16, 2009, we issued two tranches of debentures totaling $1.25 billion through our wholly-owned indirect subsidiary Barrick (PD) Australia Finance Pty Ltd. (“BPDAF”) consisting of $850 million of 30-year notes with a coupon rate of 5.95%, and $400 million of 10-year notes with a coupon rate of 4.95% (collectively the “Notes”). BPDAF used the proceeds to provide loans to us for settling the Gold Hedges1 and some of the Floating Contracts1. In exchange, we provide sufficient funds to BPDAF to meet the principal and interest obligations on the notes. We also provided an unconditional and irrevocable guarantee of these payments, which will rank equally with our other unsecured and unsubordinated obligations.

1 | Gold Hedges were fixed price (non-participating) gold contracts and the Floating Contracts were spot-price (fully-participating) gold contracts.

On March 19, 2009, we issued an aggregate of $750 million of 10-year notes with a coupon rate of 6.95% for general corporate purposes. The notes are unsecured, unsubordinated obligations and will rank equally with our other unsecured, unsubordinated obligations.

In September 2008, we issued an aggregate of $1.25 billion of notes through our wholly-owned indirect subsidiaries Barrick North America Finance LLC and Barrick Gold Financeco LLC (collectively the “LLCs”) consisting of $500 million of 5-year notes with a coupon rate of 6.125%, $500 million of 10-year notes with a coupon rate of 6.8%, and $250 million of 30-year notes with a coupon rate of 7.5% (collectively the “Notes”). The LLCs used the proceeds to provide loans to us. We provide sufficient funds to the LLCs to meet the principal and interest obligations on the Notes. We also provided an unconditional and irrevocable guarantee of these payments, which will rank equally with our other unsecured and unsubordinated obligations.

During the year, the entire balance ($500 million) of the 5-year notes with coupon rate of 6.125% that was due in September 2013 was repaid.

Pueblo Viejo Project Financing Agreement

In April 2010, Barrick and Goldcorp finalized terms for $1.035 billion (100% basis) in project financing for Pueblo Viejo. The project financing is non-recourse subject to guarantees provided by Barrick and Goldcorp for their proportionate share which will terminate upon Pueblo Viejo meeting certain operating completion tests and are subject to an exclusion for certain political risk events. The lending syndicate is comprised of international financial institutions including export development agencies and commercial banks. The amount is divided into three tranches of $400 million, $375 million and $260 million with tenors of 15, 15 and 12 years, respectively. The $400 million tranche bears a coupon of LIBOR+3.25% pre-completion and scales gradually to LIBOR+5.10% (inclusive of political risk insurance premium) for years 13-15. The $375 million tranche bears a fixed coupon of 3.86% for the entire 15 years. The $260 million tranche bears a coupon of LIBOR+3.25% pre-completion and scales gradually to LIBOR+4.85% (inclusive of political risk insurance premium) for years 11-12.

We have drawn the entire $1.035 billion to date. During the year, $45 million of loans was repaid. The remaining principal balance under the Pueblo Viejo Financing Agreement is $990 million.

BARRICK YEAR END 2013 |  | 124 |  | NOTES TO FINANCIAL STATEMENTS

Credit Facility

We had a credit and guarantee agreement (the “Credit Facility”) with certain Lenders which required such lenders to make available to us a credit facility of up to $1.45 billion ($1.5 billion prior to second quarter 2012) or the equivalent amount in Canadian dollars. We drew $1.5 billion on the Credit Facility in 2011 to finance a portion of the Equinox acquisition, including the payment of related fees and expenses. The Credit Facility, which was unsecured, had an interest rate of LIBOR plus 0.25% to 0.35% on drawn down amounts, and a commitment rate of 0.07% to 0.08% on undrawn amounts. $50 million matured in the second quarter of 2012 and an additional $250 million was repaid during the second quarter of 2012. The remaining $1.2 billion was repaid in 2013. Subsequent to the repayment, we terminated the Credit Facility.

Refinancing of the Credit Facility

In January 2012, we finalized a credit and guarantee agreement (the “2012 Credit Facility”) with certain Lenders, which requires such Lenders to make available to us a credit facility of $4.0 billion or the equivalent amount in Canadian dollars. The 2012 Credit Facility, which is unsecured, currently has an interest rate of LIBOR plus 1.50% on drawn amounts, and a commitment rate of 0.25% on undrawn amounts. The $4.0 billion facility matures in 2019. In first quarter 2013, we drew $2.0 billion on our $4.0 billion revolving credit facility (“2012 Credit Facility”), using the proceeds to repay $1.2 billion on our $1.45 billion credit facility, which expired in April 2013. In second quarter 2013, we issued $3.0 billion of debt, using $2.0 billion of the net proceeds to repay the outstanding balance on the 2012 Credit Facility. The 2012 Credit Facility is undrawn as at December 31, 2013.

2.50%/4.10%/5.75% notes

On May 2, 2013, we issued an aggregate of $3 billion in notes through our wholly-owned indirect subsidiary Barrick

North America Finance LLC consisting of $650 million of 2.50% notes that mature in 2018, $1.5 billion of 4.10% notes that mature in 2023 and $850 million of 5.75% notes that mature in 2043. $2.0 billion of the net proceeds from this offering were used to repay existing indebtedness under our $4 billion revolving credit facility which matures in 2019. We provided an unconditional and irrevocable guarantee of these payments, which will rank equally with our other unsecured and unsubordinated obligations.

During the year, $398 million of the $650 million 2.50% notes were repaid.

ABG Credit Facility

In January 2013, ABG concluded negotiations with a group of commercial banks for the provision of an export credit backed term loan facility (“Facility”) for the amount of US$142 million. The Facility has been put in place to fund a substantial portion of the construction costs of the new CIL circuit at the process plant at the Bulyanhulu Project (“Project”). The Facility is collateralized by the Project, has a term of seven years and, when drawn, the spread over Libor will be 250 basis points. The Facility is repayable in equal installments over the term of the Facility, after a two year repayment holiday period. The interest rate has been fixed at an effective rate of 3.6% through the use of an interest rate swap. At December 31, 2013, the full value of the Facility has been drawn.

Debt Issue Costs

In 2013, a total of $30 million of debt issue costs arose from debt issued during the year. In 2012, a total of $15 million of debt issue costs arose from debt issued during the year.

BARRICK YEAR END 2013 |  | 125 |  | NOTES TO FINANCIAL STATEMENTS

Interest

|  | 2013 |  |  |  |  | 2012 |
For the years ended December 31 |  | Interest cost |  |  | Effective rate1 |  |  |  |  | Interest cost |  |  | Effective rate1 |
1.75%/2.9%/4.4%/5.7% notes |  |  | $ 153 |  |  |  | 3.97% |  |  |  |  |  | $ 154 |  |  |  | 3.84% |
3.85%/5.2% notes |  |  | 87 |  |  |  | 4.34% |  |  |  |  |  | 66 |  |  |  | 4.42% |
4.875%/5.80% notes |  |  | 40 |  |  |  | 5.58% |  |  |  |  |  | 41 |  |  |  | 5.43% |
5.75%/6.35% notes |  |  | 60 |  |  |  | 6.11% |  |  |  |  |  | 62 |  |  |  | 6.20% |
Other fixed rate notes |  |  | 202 |  |  |  | 6.53% |  |  |  |  |  | 213 |  |  |  | 6.53% |
Project financing |  |  | 46 |  |  |  | 4.77% |  |  |  |  |  | 33 |  |  |  | 3.72% |
Capital leases |  |  | 6 |  |  |  | 3.20% |  |  |  |  |  | 7 |  |  |  | 3.89% |
Other debt obligations |  |  | 42 |  |  |  | 5.12% |  |  |  |  |  | 43 |  |  |  | 5.52% |
Equinox credit facility |  |  | - |  |  |  | - |  |  |  |  |  | 4 |  |  |  | 1.73% |
Credit facility |  |  | 2 |  |  |  | 0.88% |  |  |  |  |  | 12 |  |  |  | 0.89% |
2012 Credit facility |  |  | 5 |  |  |  | 1.47% |  |  |  |  |  | - |  |  |  | - |
2.5%/4.10%/5.75% notes |  |  | 85 |  |  |  | 4.30% |  |  |  |  |  | - |  |  |  | - |
ABG credit facility |  |  | 2 |  |  |  | 2.80% |  |  |  |  |  | - |  |  |  | - |
Deposits on silver contracts (note 28) |  |  | 55 |  |  |  | 8.59% |  |  |  |  |  | 46 |  |  |  | 8.59% |
Accretion |  |  | 68 |  |  |  |  |  |  |  |  |  | 53 |  |  |  |  |
Other interest |  |  | 11 |  |  |  |  |  |  |  |  |  | 7 |  |  |  |  |
Debt extinguishment fees |  |  | 90 |  |  |  |  |  |  |  |  |  | - |  |  |  |  |
|  |  | $ 954 |  |  |  |  |  |  |  |  |  | $ 741 |  |  |  |  |
Less: interest capitalized |  |  | (297) |  |  |  |  |  |  |  |  |  | (567) |  |  |  |  |
|  |  | $ 657 |  |  |  |  |  |  |  |  |  | $ 174 |  |  |  |  |
Cash interest paid |  |  | $ 1,056 |  |  |  |  |  |  |  |  |  | $ 665 |  |  |  |  |
Amortization of debt issue costs |  |  | 22 |  |  |  |  |  |  |  |  |  | 17 |  |  |  |  |
(Gain) on interest rate hedges |  |  | (1) |  |  |  |  |  |  |  |  |  | (4) |  |  |  |  |
(Decrease) Increase in interest accruals |  |  | (281) |  |  |  |  |  |  |  |  |  | 10 |  |  |  |  |
Accretion |  |  | 68 |  |  |  |  |  |  |  |  |  | 53 |  |  |  |  |
Debt extinguishment fees |  |  | 90 |  |  |  |  |  |  |  |  |  | - |  |  |  |  |
Interest cost |  |  | $ 954 |  |  |  |  |  |  |  |  |  | $ 741 |  |  |  |  |

1 | The effective rate includes the stated interest rate under the debt agreement, amortization of debt issue costs and debt discount/premium and the impact of interest rate contracts designated in a hedging relationship with debt.

Scheduled Debt Repayments1

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2019 and |  |  |  |
|  | 2014 |  |  | 2015 |  |  | 2016 |  |  | 2017 |  |  | 2018 |  |  | thereafter |  |  | Total |
1.75%/2.9%/4.4%/5.7% notes |  |  | $ - |  |  |  | $ - |  |  |  | $ 229 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,200 |  |  |  | $ 2,429 |
3.85%/5.2% notes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,000 |  |  |  | 2,000 |
4.875%/5.80% notes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 400 |  |  |  | 400 |
5.75%/6.35% notes |  |  | - |  |  |  | - |  |  |  | 264 |  |  |  | - |  |  |  | - |  |  |  | 600 |  |  |  | 864 |
Other fixed rate notes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 500 |  |  |  | 2,250 |  |  |  | 2,750 |
Project financing |  |  | 102 |  |  |  | 98 |  |  |  | 98 |  |  |  | 99 |  |  |  | 98 |  |  |  | 495 |  |  |  | 990 |
Other debt obligations |  |  | 39 |  |  |  | 145 |  |  |  | 41 |  |  |  | - |  |  |  | - |  |  |  | 566 |  |  |  | 791 |
2.5%/4.10%/5.75% notes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 252 |  |  |  | 2,350 |  |  |  | 2,602 |
ABG credit facility |  |  | - |  |  |  | 14 |  |  |  | 29 |  |  |  | 28 |  |  |  | 28 |  |  |  | 43 |  |  |  | 142 |
|  |  | $141 |  |  |  | $ 257 |  |  |  | $ 661 |  |  |  | $ 127 |  |  |  | $ 878 |  |  |  | $ 10,904 |  |  |  | $ 12,968 |
Minimum annual payments under capital leases |  |  | $ 38 |  |  |  | $ 45 |  |  |  | $ 39 |  |  |  | $ 35 |  |  |  | $ 28 |  |  |  | $ 54 |  |  |  | $ 239 |

1 | This table illustrates the contractual undiscounted cash flows, and may not agree with the amounts disclosed in the consolidated balance sheet.

BARRICK YEAR END 2013 |  | 126 |  | NOTES TO FINANCIAL STATEMENTS

C Derivative Instruments (“Derivatives”)

In the normal course of business, our assets, liabilities and forecasted transactions, as reported in US dollars, are impacted by various market risks including, but not limited to:

Item |  | Impacted by
Ÿ Sales |  | Ÿ Prices of gold, silver and copper
¡ By-product credits |  | ¡ Prices of silver, copper and gold
Ÿ Cost of sales |  |
¡ Consumption of diesel fuel, propane, natural gas, and electricity |  | ¡ Prices of diesel fuel, propane, natural gas, and electricity
¡ Non-US dollar expenditures |  | ¡ Currency exchange rates – US dollar versus A$, ARS, C$, CLP, EUR, JPY, PGK, TZS, ZAR, and ZMW
Ÿ Corporate and operating segment administration, exploration and evaluation costs |  | Ÿ Currency exchange rates – US dollar versus A$, ARS, C$, CLP, GBP, JPY, PGK, TZS and ZAR
Ÿ Capital expenditures |  |
¡ Non-US dollar capital expenditures |  | ¡ Currency exchange rates – US dollar versus A$, ARS, C$, CLP, EUR, GBP, PGK and ZAR
¡ Consumption of steel |  | ¡ Price of steel
Ÿ Interest earned on cash and equivalents |  | Ÿ US dollar interest rates
Ÿ Interest paid on fixed-rate borrowings |  | Ÿ US dollar interest rates

The time frame and manner in which we manage those risks varies for each item based upon our assessment of the risk and available alternatives for mitigating risk. For these particular risks, we believe that derivatives are an appropriate way of managing the risk.

We use derivatives as part of our risk management program to mitigate variability associated with changing market values related to the hedged item. Many of the derivatives we use meet the hedge effectiveness criteria and are designated in a hedge accounting relationship.

Certain derivatives are designated as either hedges of the fair value of recognized assets or liabilities or of firm commitments (“fair value hedges”) or hedges of highly probable forecasted transactions (“cash flow hedges”), collectively known as “accounting hedges”. Hedges that are expected to be highly effective in achieving offsetting changes in fair value or cash flows are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. Some of the derivative instruments we use are effective in achieving our risk management objectives, but they do not meet the strict hedge accounting criteria. These derivatives are considered to be “non-hedge derivatives”. We also enter into derivative instruments with the objective of realizing trading gains to increase our reported net income. These derivatives are also considered to be “non-hedge derivatives”.

BARRICK YEAR END 2013 |  | 127 |  | NOTES TO FINANCIAL STATEMENTS

D Summary of Derivatives at December 31, 2013

|  | Notional Amount by Term to Maturity |  |  |  |  | Accounting Classification by Notional Amount |  |  |  |
|  | Within 1 year |  |  | 2 to 3 years |  |  | 4 to 5 years |  |  | Total |  |  |  |  | Cash flow hedge |  |  | Fair value hedge |  |  | Non- Hedge |  |  | Fair value (USD) |
US dollar interest rate contracts (US$ millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total receive - float swap positions |  |  | $ - |  |  |  | $ 43 |  |  |  | $ 99 |  |  |  | $ 142 |  |  |  |  |  | $ 142 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2 |
Total receive - fixed swap positions |  |  | 100 |  |  |  | - |  |  |  | 200 |  |  |  | 300 |  |  |  |  |  | - |  |  |  | 200 |  |  |  | 100 |  |  |  | 5 |
Currency contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
A$:US$ contracts (A$ millions) |  |  | 183 |  |  |  | 455 |  |  |  | - |  |  |  | 638 |  |  |  |  |  | 585 |  |  |  | - |  |  |  | 53 |  |  |  | (71) |
C$:US$ contracts (C$ millions) |  |  | 295 |  |  |  | 120 |  |  |  | - |  |  |  | 415 |  |  |  |  |  | 415 |  |  |  | - |  |  |  | - |  |  |  | (2) |
CLP:US$ contracts (CLP millions) |  |  | 81,750 |  |  |  | 78,000 |  |  |  | - |  |  |  | 159,750 |  |  |  |  |  | 88,970 |  |  |  | - |  |  |  | 70,780 |  |  |  | (4) |
PGK:US$ contracts (PGK millions) |  |  | 32 |  |  |  | - |  |  |  | - |  |  |  | 32 |  |  |  |  |  | - |  |  |  | - |  |  |  | 32 |  |  |  | (1) |
ZAR:US$ contracts (ZAR millions) |  |  | 908 |  |  |  | 440 |  |  |  | - |  |  |  | 1,348 |  |  |  |  |  | 171 |  |  |  | - |  |  |  | 1,177 |  |  |  | (4) |
Commodity contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Copper collar sell contracts (millions of pounds) |  |  | 260 |  |  |  | - |  |  |  | - |  |  |  | 260 |  |  |  |  |  | 232 |  |  |  | - |  |  |  | 28 |  |  |  | 12 |
Diesel contracts (thousands of barrels)1 |  |  | 1,177 |  |  |  | 4,227 |  |  |  | 2,240 |  |  |  | 7,644 |  |  |  |  |  | - |  |  |  | - |  |  |  | 7,644 |  |  |  | 4 |

1 | Diesel commodity contracts represent a combination of WTI, BRENT, and BRENT/WTI spread swaps. These derivatives hedge physical supply contracts based on the price of ULSD, WTB, MOPS and JET, respectively, plus a spread. WTI represents West Texas Intermediate, BRENT represents Brent Crude Oil, and MOPS represents Mean of Platts Singapore.

Fair Values of Derivative Instruments

|  | Asset Derivatives |  |  | Liability Derivatives |
|  | Balance Sheet Classification |  |  | Fair Value as at Dec. 31, 2013 |  |  | Fair Value as at Dec. 31, 2012 |  |  | Fair Value at January 1, 2012 |  |  | Balance Sheet Classification |  |  | Fair Value as at Dec. 31, 2013 |  |  | Fair Value as at Dec. 31, 2012 |  |  | Fair Value at January 1, 2012 |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US dollar interest rate contracts |  |  | Other assets |  |  |  | $ 6 |  |  |  | $ 6 |  |  |  | $ 7 |  |  |  | Other liabilities |  |  |  | $ 1 |  |  |  | $ - |  |  |  | $ - |
Currency contracts |  |  | Other assets |  |  |  | - |  |  |  | 133 |  |  |  | 629 |  |  |  | Other liabilities |  |  |  | 55 |  |  |  | - |  |  |  | 26 |
Commodity contracts |  |  | Other assets |  |  |  | 7 |  |  |  | 81 |  |  |  | 312 |  |  |  | Other liabilities |  |  |  | - |  |  |  | 11 |  |  |  | 6 |
Total derivatives classified as hedging instruments |  |  |  |  |  |  | $ 13 |  |  |  | $ 220 |  |  |  | $ 948 |  |  |  |  |  |  |  | $ 56 |  |  |  | $ 11 |  |  |  | $ 32 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US dollar interest rate contracts |  |  | Other assets |  |  |  | $ 2 |  |  |  | $ - |  |  |  | $ - |  |  |  | Other liabilities |  |  |  | $ - |  |  |  | $ - |  |  |  | $ - |
Currency contracts |  |  | Other assets |  |  |  | 12 |  |  |  | 48 |  |  |  | 4 |  |  |  | Other liabilities |  |  |  | 39 |  |  |  | 9 |  |  |  | 26 |
Commodity contracts |  |  | Other assets |  |  |  | 20 |  |  |  | 39 |  |  |  | 10 |  |  |  | Other liabilities |  |  |  | 11 |  |  |  | 9 |  |  |  | 6 |
Total derivatives not designated as hedging instruments |  |  |  |  |  |  | $ 34 |  |  |  | $ 87 |  |  |  | $ 14 |  |  |  |  |  |  |  | $ 50 |  |  |  | $ 18 |  |  |  | $ 32 |
Total derivatives |  |  |  |  |  |  | $ 47 |  |  |  | $ 307 |  |  |  | $ 962 |  |  |  |  |  |  |  | $ 106 |  |  |  | $ 29 |  |  |  | $ 64 |

BARRICK YEAR END 2013 |  | 128 |  | NOTES TO FINANCIAL STATEMENTS

As of December 31, 2013, we had 22 counterparties to our derivative positions. We proactively manage our exposure to individual counterparties in order to mitigate both credit and liquidity risks. For those counterparties with which we hold a net asset position (total balance attributable to the counterparties is $19 million), six hold greater than 10% of our mark-to-market asset position, with the largest counterparty holding 30%. We have 15 counterparties with which we are in a net liability position, for a total net liability of $78 million. On an ongoing basis, we monitor our exposures and ensure that none of the counterparties with which we hold outstanding contracts has declared insolvency.

US Dollar Interest Rate Contracts

Fair Value Hedges

We have $200 million of pay-variable receive-fixed swap positions outstanding that are used to hedge changes in the fair value of a portion of our long-term fixed-rate debt. The effective portion of changes in the fair value of the swap contracts is recorded in interest expense. Gains and losses from hedge ineffectiveness are recognized in current earnings, classified in the consolidated statement of income as gains/losses) on non-hedge derivatives.

Cash Flow Hedges

During the year, ABG entered into pay-fixed receive-float interest rate swaps to hedge the floating rate debt associated with the Bulyanhulu plant expansion. These contracts, designated as cash flow hedges, convert the floating rate debt as it is drawn against the financing agreement. At December 31, 2013, we had $142 million in positions outstanding.

Currency Contracts

Cash Flow Hedges

During the year, currency contracts totaling A$ 65 million, C$ 319 million, CLP 16 billion, and ZAR 171 million have been designated against forecasted non-US dollar denominated expenditures, some of which are hedges which matured within the year. In total, we have A$ 585 million, C$ 415 million, CLP 89 billion and ZAR 171 million designated as cash flow hedges of our anticipated operating, administrative and sustaining capital spend. The outstanding contracts hedge the variability of the US dollar amount of those expenditures caused by changes in currency exchange rates over the next five years. The effective portion of changes in fair value of the currency contracts is recorded in OCI until the forecasted expenditure impacts earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings classified in the consolidated statement of income as gains (losses) on non-hedge derivatives.

During the year, we sold back and effectively closed out approximately A$990 million of our Australian dollar forward contracts as a loss mitigation strategy. No cash settlement occurred and payments will net at maturity (2013 – 2016). We crystallized losses of approximately $25 million, which will be recognized in the consolidated statement of income based on the original hedge contract maturity dates. At December 31, 2013, $19 million of these losses remain crystallized in OCI. Including Australian dollar contracts closed out in the previous year, $87 million of gains remain crystallized in OCI at December 31, 2013.

During the year, we also unwound approximately CLP 500 billion of our Chilean peso hedges. We realized net cash proceeds of approximately $50 million with $18 million being crystallized in OCI. Any unrealized change and realized gain/losses on ineffective amounts or time value have been recognized in the consolidated statement of income as gains on non-hedge derivatives. At December 31, 2013, $9 million of gains remains crystallized in OCI.

Non-hedge Derivatives

We concluded that CLP 71 billion of derivatives contracts do not meet the strict hedge effectiveness criteria. These contracts represent an economic hedge of operating and administrative expenses at various South American locations, including operating mines and projects. Also, ZAR 1,177 million represents an economic hedge of ABG’s anticipated operating, capital and administrative spending at various locations in Africa. Although not qualifying as accounting hedges, the contracts provide protection against the variability of CLP and ZAR to the US dollar. The remaining non-hedge currency contracts are used to mitigate the variability of the US dollar amount of non-US dollar denominated exposures that do not meet the strict hedge effectiveness criteria. Changes in the fair value of the non-hedge currency contracts are recorded in the consolidated statement of income as gains (losses) on non-hedge derivatives.

During the year, we wrote AUD and CAD options with no outstanding notional amount at December 31, 2013. As a result of these activities we earned $2 million in premium income during the year, which is recognized in the consolidated statement of income as gains on non-hedge derivatives.

Commodity Contracts

Diesel/Propane/Electricity/Natural Gas

Non-hedge Derivatives

During the year, we entered into 5,400 thousand barrels of WTI, 480 thousand barrels of sold Brent-WTI swaps, and 144 thousand barrels of Brent to economically hedge our

BARRICK YEAR END 2013 |  | 129 |  | NOTES TO FINANCIAL STATEMENTS

exposure to forecasted fuel purchases for expected consumption at our mines. In total, on a combined basis we have 7,644 thousand barrels of WTI and Brent swaps outstanding that economically hedge our exposure to forecasted fuel purchases at our mines.

Metals Contracts

Cash Flow Hedges

During the year, we purchased 148 million pounds of copper collar contracts to designate as hedges against copper cathode sales at our Zaldivar mine for 2013. These contracts contained purchased put and sold call options with weighted average strike prices of $3.50/lb and $4.25/lb, respectively. We also purchased 251 million pounds of copper collars for 2014 which mature evenly through 2014. These contracts contain purchased put and sold call options with weighted average strike prices of $3.00/lb and $3.75/lb respectively. At December 31, 2013, 232 million pounds are classified as cash flow hedges with the remainder serving as economic hedges of our Lumwana mine. These contracts were designated as cash flow hedges, with the effective portion of the hedge recognized in OCI and the ineffective portion, together with the changes in time value, recognized in non-hedge derivative gains (losses). Provided that spot copper price remains within the collar band, any unrealized gain (loss) on the collar will be attributable to time value.

During the year, we early terminated 65 million ounces of silver hedges. We realized net cash proceeds of approximately $190 million with $21 million remaining crystallized in OCI to be recognized in revenue as the exposure occurs. Any unrealized changes and realized gains/losses on ineffective amounts or time value have been recognized in the consolidated statements of income as gains on non-hedge derivatives.

During the year, we recorded unrealized losses on our copper collars and silver collars of $17 million and $36 million, respectively, due to changes in time value. This was included in current period earnings as gains on non-hedge derivative activities. Gains and losses from hedge ineffectiveness and time value of options, which are generally excluded, are recognized in the consolidated statement of income as gains on non-hedge derivatives.

Non-Hedge Derivatives

We enter into purchased and written contracts with the primary objective of increasing the realized price on some of our gold sales. During the year, we wrote gold put and call options with an average outstanding notional of 16 thousand ounces. As a result of these activities, we recorded $1 million in the consolidated statement of income as gains on non-hedge derivatives. There are no outstanding gold positions at December 31, 2013.

BARRICK YEAR END 2013 |  | 130 |  | NOTES TO FINANCIAL STATEMENTS

Cash Flow Hedge Gains (Losses) in Accumulated Other Comprehensive Income (“AOCI”)

|  | Commodity price hedges |  |  |  |  | Currency hedges |  |  |  |  | Interest rate hedges |  |  |  |  |  |
|  | Gold/Silver1 |  |  | Copper |  |  | Fuel |  |  |  |  | Operating costs |  |  | General and administrative costs |  |  | Capital expenditures |  |  |  |  | Long- term debt |  |  |  |  | Total |
At January 1, 2012 |  |  | $ 44 |  |  |  | $ 82 |  |  |  | $ 29 |  |  |  |  |  | $ 572 |  |  |  | $ 19 |  |  |  | $ 18 |  |  |  |  |  | $ (31) |  |  |  |  |  | $ 733 |
Effective portion of change in fair value of hedging instruments |  |  | (34) |  |  |  | (45) |  |  |  | 2 |  |  |  |  |  | 220 |  |  |  | 26 |  |  |  | 21 |  |  |  |  |  | (3) |  |  |  |  |  | 187 |
Transfers to earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
On recording hedged items in earnings/PP&E1 |  |  | - |  |  |  | (37) |  |  |  | (24) |  |  |  |  |  | (336) |  |  |  | (20) |  |  |  | (13) |  |  |  |  |  | 3 |  |  |  |  |  | (427) |
Hedge ineffectiveness due to changes in original forecasted transaction |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  |  |  | - |
At December 31, 2012 |  |  | $ 10 |  |  |  | $ - |  |  |  | $ 7 |  |  |  |  |  | $ 456 |  |  |  | $ 25 |  |  |  | $ 26 |  |  |  |  |  | $ (31) |  |  |  |  |  | $ 493 |
Effective portion of change in fair value of hedging instruments |  |  | 55 |  |  |  | 57 |  |  |  | (2) |  |  |  |  |  | (140) |  |  |  | (16) |  |  |  | (12) |  |  |  |  |  | 2 |  |  |  |  |  | (56) |
Transfers to earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
On recording hedged items in earnings/PP&E1 |  |  | (1) |  |  |  | (57) |  |  |  | (9) |  |  |  |  |  | (268) |  |  |  | (11) |  |  |  | (14) |  |  |  |  |  | 3 |  |  |  |  |  | (357) |
Hedge ineffectiveness due to changes in original forecasted transaction |  |  | (46) |  |  |  | - |  |  |  | - |  |  |  |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  |  |  | (41) |
At December 31, 2013 |  |  | $ 18 |  |  |  | $ - |  |  |  | $ (4) |  |  |  |  |  | $ 53 |  |  |  | $ (2) |  |  |  | $ - |  |  |  |  |  | $ (26) |  |  |  |  |  | $ 39 |

Hedge gains/losses classified within |  | Gold/Silver sales |  |  | Copper sales |  |  | Cost of sales |  |  | Cost of sales |  |  | General and administrative costs |  |  | Property, plant, and equipment |  |  | Interest expense |  |  | Total |
Portion of hedge gain (loss) expected to affect 2014 earnings2 |  |  | $ (1) |  |  |  | $ - |  |  |  | $ (4) |  |  |  | $ 105 |  |  |  | $ (2) |  |  |  | $ - |  |  |  | $ (5) |  |  |  | $ 93 |

1 | Realized gains (losses) on qualifying currency hedges of capital expenditures are transferred from OCI to PP&E on settlement.

2 | Based on the fair value of hedge contracts at December 31, 2013.

Cash Flow Hedge Gains (Losses) at December 31

Derivatives in cash flow hedging relationships |  | Amount of gain (loss) recognized in OCI |  |  | Location of gain (loss) transferred from OCI into income/PP&E (effective portion) |  | Amount of gain (loss) transferred from OCI into income (effective portion) |  |  | Location of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) |  | Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) |
|  | 2013 |  |  | 2012 |  |  |  |  | 2013 |  |  | 2012 |  |  |  |  | 2013 |  |  | 2012 |
Interest rate contracts |  |  | $ 2 |  |  |  | $ (3) |  |  | Finance income/finance costs |  |  | $ (3) |  |  |  | $ (3) |  |  | Gain (loss) on non-hedge derivatives |  |  | $ - |  |  |  | $ - |
Foreign exchange contracts |  |  | (168) |  |  |  | 267 |  |  | General and administrative costs |  |  | 293 |  |  |  | 369 |  |  | Gain (loss) on non-hedge derivatives |  |  | (18) |  |  |  | 7 |
Commodity contracts |  |  | 110 |  |  |  | (77) |  |  | Revenue/cost of sales |  |  | 67 |  |  |  | 61 |  |  | Gain (loss) on non-hedge derivatives |  |  | (7) |  |  |  | (95) |
Total |  |  | $ (56) |  |  |  | $ 187 |  |  |  |  |  | $ 357 |  |  |  | $ 427 |  |  |  |  |  | $ (25) |  |  |  | $ (88) |

Fair Value Hedge Gains at December 31

|  | Location of loss recognized |  | Amount of loss recognized in |
Derivatives in fair value hedging relationships |  | in income on derivatives |  | income on derivatives |
|  |  |  | 2013 |  |  | 2012 |
Interest rate contracts |  | Interest income/expense |  |  | $ (2) |  |  |  | $ (2) |

BARRICK YEAR END 2013 |  | 131 |  | NOTES TO FINANCIAL STATEMENTS

E Gains (Losses) on Non-hedge Derivatives

For the years ended December 31 |  | 2013 |  |  | 2012 |
Commodity contracts |  |  |  |  |  |  |  |
Gold |  |  | $ 1 |  |  |  | $ - |
Silver |  |  | 104 |  |  |  | 12 |
Copper |  |  | (9) |  |  |  | (5) |
Fuel |  |  | 12 |  |  |  | 6 |
Currency contracts |  |  | (8) |  |  |  | 107 |
Interest rate contracts |  |  | 1 |  |  |  | (1) |
|  |  | $ 101 |  |  |  | $ 119 |
Gains (losses) attributable to silver option collar hedges1 |  |  | $ (36) |  |  |  | $ (48) |
Gains (losses) attributable to copper option collar hedges1 |  |  | (17) |  |  |  | (46) |
Gains (losses) attributable to currency option collar hedges1 |  |  | (13) |  |  |  | 7 |
Hedge ineffectiveness |  |  | 41 |  |  |  | (1) |
|  |  | $ (25) |  |  |  | $ (88) |
|  |  | $ 76 |  |  |  | $ 31 |

1 | Represents unrealized gains (losses) attributable to changes in time value of the collars, which are excluded from the hedge effectiveness assessment.

F Derivative Assets and Liabilities

|  | 2013 |  |  | 2012 |
At January 1 |  |  | $ 278 |  |  |  | $ 898 |
Derivatives cash (inflow) outflow |  |  |  |  |  |  |  |
Operating activities |  |  | (71) |  |  |  | (373) |
Financing activities |  |  | (4) |  |  |  | 3 |
Early settlement of derivates |  |  | (239) |  |  |  | (466) |
Change in fair value of: |  |  |  |  |  |  |  |
Non-hedge derivatives |  |  | 101 |  |  |  | 119 |
Cash flow hedges: |  |  |  |  |  |  |  |
Effective portion |  |  | (56) |  |  |  | 187 |
Ineffective portion |  |  | (41) |  |  |  | - |
Fair value hedges |  |  | (2) |  |  |  | (2) |
Excluded from effectiveness changes |  |  | (25) |  |  |  | (88) |
At December 31 |  |  | $ (59) |  |  |  | $ 278 |
Classification: |  |  |  |  |  |  |  |
Other current assets |  |  | $ 37 |  |  |  | $ 124 |
Other long-term assets |  |  | 10 |  |  |  | 183 |
Other current liabilities |  |  | (31) |  |  |  | (10) |
Other long-term obligations |  |  | (75) |  |  |  | (19) |
|  |  | $ (59) |  |  |  | $ 278 |

BARRICK YEAR END 2013 |  | 132 |  | NOTES TO FINANCIAL STATEMENTS

25 > FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted

prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

A Assets and Liabilities Measured at Fair Value on a Recurring Basis

Fair Value Measurements

|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |  |  | Aggregate Fair |
At December 31, 2013 |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Value |
Cash and equivalents |  |  | $ 2,404 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,404 |
Available-for-sale securities |  |  | 120 |  |  |  | - |  |  |  | - |  |  |  | 120 |
Derivatives |  |  | - |  |  |  | (59) |  |  |  | - |  |  |  | (59) |
Receivables from provisional copper and gold sales |  |  | - |  |  |  | 246 |  |  |  | - |  |  |  | 246 |
|  |  | $ 2,524 |  |  |  | $ 187 |  |  |  | $ - |  |  |  | $ 2,711 |
Fair Value Measurements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |  |  | Aggregate Fair |
At December 31, 2012 (restated) |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Value |
Cash and equivalents |  |  | $ 2,097 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,097 |
Available-for-sale securities |  |  | 78 |  |  |  | - |  |  |  | - |  |  |  | 78 |
Derivatives |  |  | - |  |  |  | 278 |  |  |  | - |  |  |  | 278 |
Receivables from provisional copper and gold sales |  |  | - |  |  |  | 261 |  |  |  | - |  |  |  | 261 |
|  |  | $ 2,175 |  |  |  | $ 539 |  |  |  | $ - |  |  |  | $ 2,714 |
Fair Value Measurements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |  |  | Aggregate Fair |
At January 1, 2012 (restated) |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Value |
Cash and equivalents |  |  | $ 2,749 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,749 |
Available-for-sale securities |  |  | 161 |  |  |  | - |  |  |  | - |  |  |  | 161 |
Derivatives |  |  | - |  |  |  | 898 |  |  |  | - |  |  |  | 898 |
Receivables from provisional copper and gold sales |  |  | - |  |  |  | 206 |  |  |  | - |  |  |  | 206 |
|  |  | $ 2,910 |  |  |  | $ 1,104 |  |  |  | $ - |  |  |  | $ 4,014 |

BARRICK YEAR END 2013 |  | 133 |  | NOTES TO FINANCIAL STATEMENTS

B Fair Values of Financial Assets and Liabilities1

|  | At Dec. 31, 2013 |  |  | At Dec. 31, 2012 (restated) |  |  | At Jan. 1, 2012 (restated) |
|  | Carrying amount |  |  | Estimated fair value |  |  | Carrying amount |  |  | Estimated fair value |  |  | Carrying amount |  |  | Estimated fair value |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other receivables |  |  | 167 |  |  |  | 167 |  |  |  | 156 |  |  |  | 156 |  |  |  | 138 |  |  |  | 138 |
Available-for-sale securities2 |  |  | 120 |  |  |  | 120 |  |  |  | 78 |  |  |  | 78 |  |  |  | 161 |  |  |  | 161 |
Derivative assets |  |  | 47 |  |  |  | 47 |  |  |  | 307 |  |  |  | 307 |  |  |  | 962 |  |  |  | 962 |
|  |  | $ 334 |  |  |  | $ 334 |  |  |  | $ 541 |  |  |  | $ 541 |  |  |  | $ 1,261 |  |  |  | $ 1,261 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt3 |  |  | 13,080 |  |  |  | 12,525 |  |  |  | 13,943 |  |  |  | 15,502 |  |  |  | 13,369 |  |  |  | 14,374 |
Derivative liabilities |  |  | 106 |  |  |  | 106 |  |  |  | 29 |  |  |  | 29 |  |  |  | 64 |  |  |  | 64 |
Other liabilities |  |  | 355 |  |  |  | 355 |  |  |  | 323 |  |  |  | 323 |  |  |  | 202 |  |  |  | 202 |
|  |  | $ 13,541 |  |  |  | $ 12,986 |  |  |  | $ 14,295 |  |  |  | $ 15,854 |  |  |  | $ 13,635 |  |  |  | $ 14,640 |

1 | The fair values of accounts receivable and accounts payable approximate their carrying values due to their short-term nature.

2 | Recorded at fair value. Quoted market prices are used to determine fair value.

3 | Debt is generally recorded at amortized cost except for obligations that are designated in a fair-value hedge relationship, in which case the carrying amount is adjusted for changes in fair value of the hedging instrument in periods when a hedge relationship exists. The fair value of debt is primarily determined using quoted market prices. Balance includes both current and long-term portions of debt.

We do not offset financial assets with financial liabilities.

C Assets Measured at Fair Value on a Non-Recurring Basis

|  | Quoted prices in active markets for identical assets (Level 1) |  |  | Significant other observable inputs (Level 2) |  |  | Significant unobservable inputs (Level 3) |  |  | Aggregate fair value |
Other assets1 |  |  | $ - |  |  |  | $ - |  |  |  | $ 305 |  |  |  | $ 305 |
Property, plant and equipment2 |  |  | - |  |  |  | - |  |  |  | 4,674 |  |  |  | 4,674 |
Intangible assets3 |  |  | - |  |  |  | - |  |  |  | 65 |  |  |  | 65 |
Goodwill4 |  |  | - |  |  |  | - |  |  |  | 2,624 |  |  |  | 2,624 |

1 | Other assets were written down by $139 million which was included in earnings this period, to their fair value of $305 million.

2 | Property, plant and equipment were written down by $9,595 million which was included in earnings in this period, to their fair value less costs of disposal of $4,674 million. Includes assets and liabilities classified as held for sale.

3 | Intangible assets were written down by $112 million which was included in earnings in this period, to their fair value less costs of disposal of $65 million.

4 | Goodwill was written down by $2,815 million which was included in earnings in this period.

Valuation Techniques

Cash Equivalents

The fair value of our cash equivalents is classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. Our cash equivalents are comprised of U.S. Treasury bills and money market securities that are invested primarily in U.S. Treasury bills.

Available-for-Sale Securities

The fair value of available-for-sale securities is determined based on the closing price of each security at the balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security, and therefore available-

for-sale securities are classified within Level 1 of the fair value hierarchy.

Derivative Instruments

The fair value of derivative instruments is determined using either present value techniques or option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs. The fair value of all our derivative contracts includes an adjustment for credit risk. For counterparties in a net asset position, credit risk is based upon the observed credit default swap spread for each particular counterparty, as appropriate. For counterparties in a net liability position, credit risk is based upon Barrick’s observed credit default swap spread. The fair value of US dollar interest rate and currency swap contracts is determined by

BARRICK YEAR END 2013 |  | 134 |  | NOTES TO FINANCIAL STATEMENTS

discounting contracted cash flows using a discount rate derived from observed LIBOR and swap rate curves and CDS rates. In the case of currency contracts, we convert non-US dollar cash flows into US dollars using an exchange rate derived from currency swap curves and CDS rates. The fair value of commodity forward contracts is determined by discounting contractual cash flows using a discount rate derived from observed LIBOR and swap rate curves and CDS rates. Contractual cash flows are calculated using a forward pricing curve derived from observed forward prices for each commodity. Derivative instruments are classified within Level 2 of the fair value hierarchy.

Receivables from Provisional Copper and Gold Sales

The fair value of receivables arising from copper and gold sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted forward price from the exchange that is the principal active market for the particular metal. As such, these receivables, which meet the definition of an embedded derivative, are classified within Level 2 of the fair value hierarchy.

Property, Plant and Equipment, Goodwill and intangibles

The fair value of property, plant and equipment, goodwill and intangibles is determined primarily using an income approach based on unobservable cash flows and a market multiples approach where applicable, and as a result is classified within Level 3 of the fair value hierarchy. Refer to note 20 for disclosure of inputs used to develop these measures.

26 > PROVISIONS

A Provisions

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | As at Jan. 1, 2012 |
Environmental rehabilitation (“PER”) |  |  | $ 2,254 |  |  |  | $ 2,589 |  |  |  | $ 2,080 |
Post-retirement benefits |  |  | 83 |  |  |  | 125 |  |  |  | 146 |
RSUs |  |  | 11 |  |  |  | 26 |  |  |  | 22 |
Other |  |  | 80 |  |  |  | 72 |  |  |  | 78 |
|  |  | $ 2,428 |  |  |  | $ 2,812 |  |  |  | $ 2,326 |

B Environmental Rehabilitation

|  | 2013 |  |  | 2012 |
At January 1 |  |  | $ 2,663 |  |  |  | $ 2,159 |
PERs acquired (divested) during the year |  |  | (164) |  |  |  | (3) |
PERs arising (decreasing) in the year |  |  | (145) |  |  |  | 466 |
Impact of revisions to expected cash flows recorded in earnings |  |  | 91 |  |  |  | 40 |
Settlements |  |  |  |  |  |  |  |
Cash payments relating to continuing operations |  |  | (56) |  |  |  | (48) |
Cash payments relating to discontinued operations |  |  | (1) |  |  |  | (3) |
Settlement gains |  |  | (2) |  |  |  | (2) |
Accretion |  |  | 69 |  |  |  | 54 |
Assets held for sale |  |  | (96) |  |  |  | - |
At December 31 |  |  | $ 2,359 |  |  |  | $ 2,663 |
Current portion (note 23) |  |  | (105) |  |  |  | (74) |
|  |  | $ 2,254 |  |  |  | $ 2,589 |

The eventual settlement of all PERs is expected to take place between 2014 and 2054.

The PER has increased from third quarter 2013 by $316 million primarily due to changes in cost estimates, partially offset by changes in discount rates. For the full year ended December 31, 2013, our PER balance decreased by $304 million, primarily due to an increase in the discount rate used to calculate the PER and due to the divestiture of various sites as well as our oil and gas business that occurred in 2013. The offset was recorded as an increase in PP&E for our operations and other expense at our closed sites. A 1% increase in the discount rate would result in a decrease of PER by $266 million and a 1% decrease in the discount rate would result in an increase in PER by $332 million, while holding the other assumptions constant.

BARRICK YEAR END 2013 |  | 135 |  | NOTES TO FINANCIAL STATEMENTS

27 > FINANCIAL RISK MANAGEMENT

Our financial instruments are comprised of financial liabilities and financial assets. Our principal financial liabilities, other than derivatives, comprise accounts payable and debt. The main purpose of these financial instruments is to manage short-term cash flow and raise funds for our capital expenditure program. Our principal financial assets, other than derivative instruments, are cash and equivalents and accounts receivable, which arise directly from our operations. In the normal course of business, we use derivative instruments to mitigate exposure to various financial risks.

We manage our exposure to key financial risks in accordance with our financial risk management policy. The objective of the policy is to support the delivery of our financial targets while protecting future financial security. The main risks that could adversely affect our financial assets, liabilities or future cash flows are as follows:

a) | Market risk, including commodity price risk, foreign currency and interest rate risk;

b) | Credit risk;

c) | Liquidity risk; and

d) | Capital risk management.

Management designs strategies for managing each of these risks, which are summarized below. Our senior management oversees the management of financial risks. Our senior management ensures that our financial risk-taking activities are governed by policies and procedures and that financial risks are identified, measured and managed in accordance with our policies and our risk appetite. All derivative activities for risk management purposes are carried out by the appropriate functions.

a) Market Risk

Market risk is the risk that changes in market factors, such as commodity prices, foreign exchange rates or interest rates, will affect the value of our financial instruments. We manage market risk by either accepting it or mitigating it through the use of derivatives and other economic hedging strategies.

Commodity Price Risk

Gold and Copper

We sell our gold and copper production in the world market. The market prices of gold and copper are the primary drivers of our profitability and ability to generate both operating and free cash flow. All of our future gold production is unhedged in order to provide our shareholders with full exposure to changes in the market gold price. Our corporate treasury function implements hedging strategies on an opportunistic basis to protect us from downside price risk on our copper production. We have put in place floor protection on approximately half of our expected copper production for 2014 at an average floor price of $3.00 per pound. In addition, we have sold an equal amount of call options at an average price of $3.75 per pound. Our remaining copper production is subject to market prices.

Silver

During the year, we terminated all of our silver hedges and as a result, changes in the expected long-term price of silver have a significant impact on the estimated fair value of the Pascua-Lama project.

Fuel

On average we consume approximately 5 million barrels of diesel fuel annually across all our mines. Diesel fuel is refined from crude oil and is therefore subject to the same price volatility affecting crude oil prices. Therefore, volatility in crude oil prices has a significant direct and indirect impact on our production costs. To mitigate this volatility, we employ a strategy of using financial contracts to hedge our exposure to oil prices.

The table below summarizes the impact of changes in the market price on gold, copper, silver and oil. The impact is expressed in terms of the resulting change in our net earnings for the year or, where applicable, the change in equity. The sensitivities are based on the assumption that the market price changes by 10% with all other variables held constant.

BARRICK YEAR END 2013 |  | 136 |  | NOTES TO FINANCIAL STATEMENTS

Impact of a 10% change from year-end price

|  | Effect on Earnings |  |  | Effect on Equity |
Products |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
10% increase in gold price |  |  | $ 619 |  |  |  | $ 799 |  |  |  | $ 619 |  |  |  | $ 799 |
10% increase in copper price |  |  | 128 |  |  |  | 103 |  |  |  | 128 |  |  |  | 115 |
10% increase in silver price1 |  |  | 1 |  |  |  | (33) |  |  |  | 1 |  |  |  | (37) |
10% increase in oil price |  |  | 26 |  |  |  | 9 |  |  |  | (21) |  |  |  | 10 |
|  | Effect on Earnings |  |  | Effect on Equity |
Products |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
10% decrease in gold price |  |  | $ (619) |  |  |  | $ (799) |  |  |  | $ (619) |  |  |  | $ (799) |
10% decrease in copper price |  |  | (27) |  |  |  | (67) |  |  |  | (50) |  |  |  | (9) |
10% decrease in silver price1 |  |  | (1) |  |  |  | 18 |  |  |  | (1) |  |  |  | 52 |
10% decrease in oil price |  |  | (25) |  |  |  | (9) |  |  |  | 21 |  |  |  | (9) |

1 | Represents unrealized gains (losses) attributable to changes in fair value of the silver collars.

Foreign Currency Risk

The functional and reporting currency for our gold and copper segments and Pascua-Lama is the US dollar and we report our results using the US dollar. The majority of our operating and capital expenditures are denominated and settled in US dollars. We have exposure to the Australian dollar and Canadian dollar through a combination of mine operating costs and corporate administration costs; and to the Papua New Guinea kina, Peruvian sol, Chilean peso, Argentinean peso, Dominican Republic peso and Zambian kwacha through mine operating costs. Consequently, fluctuations in the US dollar exchange rate against these currencies increase the volatility of cost of sales, corporate administration costs and overall net earnings, when translated into US dollars. To mitigate these inherent risks and provide greater certainty over our costs, we have foreign currency hedges in place for some of our Australian and Canadian dollar exposures as well as a portion of our Chilean peso exposures. In second quarter 2013, the Company unwound approximately CLP 500 billion of our Chilean peso hedges. In third quarter 2012, the Company unwound approximately $2.6 billion of our Australian dollar hedges and, in 2013, the Company unwound a further $990 million of our Australian dollar forward contracts. As a result, we now have greater exposure to fluctuations in the value of the Chilean pesos and Australian dollars compared to the US dollar.

The following table shows gains (losses) associated with a 10% change in exchange rate of the Australian dollar:

Impact of a 10% change in exchange rate of Australian dollar

|  | Average Exchange Rate |  |  | Effect on Net Earnings |  |  | Effect on Equity |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
10% strengthening |  |  | $ 0.89 |  |  |  | $ 1.03 |  |  |  | $ (91) |  |  |  | $ (26) |  |  |  | $ (91) |  |  |  | $ (26) |
10% weakening |  |  | 0.89 |  |  |  | 1.03 |  |  |  | 91 |  |  |  | 26 |  |  |  | 91 |  |  |  | 26 |

Interest Rate Risk

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instruments will fluctuate due to changes in market interest rates. Currently, our interest rate exposure mainly relates to interest receipts on our cash balances ($2.4 billion at the end of the year); the mark-to-market value of derivative instruments; the fair value and ongoing payments under US dollar interest-rate swaps; and to the interest payments on our variable-rate debt ($1.2 billion at December 31, 2013).

The following table shows the approximate interest rate sensitivities of our financial assets and liabilities as at December 31:

Impact of a 1% change in interest rate

|  | Effect on Net Earnings |  |  | Effect on Equity |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
1% increase |  |  | $ 6 |  |  |  | $ (2) |  |  |  | $ 6 |  |  |  | $ (2) |
1% decrease |  |  | (6) |  |  |  | 2 |  |  |  | (6) |  |  |  | 2 |

b) Credit Risk

Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. Credit risk arises from cash and equivalents, trade and other receivables as well as derivative assets.

BARRICK YEAR END 2013 |  | 137 |  | NOTES TO FINANCIAL STATEMENTS

For cash and equivalents and trade and other receivables, credit risk exposure equals the carrying amount on the balance sheet, net of any overdraft positions. To mitigate our inherent exposure to credit risk we maintain policies to limit the concentration of credit risk, review counterparty creditworthiness on a monthly basis, and ensure liquidity of available funds. We also invest our cash and equivalents in highly rated financial institutions, primarily within the United States and other investment grade countries1. Furthermore, we sell our gold and copper production into the world market and to private customers with strong credit ratings. Historically customer defaults have not had a significant impact on our operating results or financial position.

For derivatives with a positive fair value, we are exposed to credit risk equal to the carrying value. When the fair value of a derivative is negative, we assume no credit risk. We mitigate credit risk on derivatives by:

— |  | Entering into derivatives with high credit-quality counterparties;

— |  | Limiting the amount of net exposure with each counterparty; and

— |  | Monitoring the financial condition of counterparties on a regular basis.

The company’s maximum exposure to credit risk at the reporting date is the carrying value of each of the financial assets disclosed as follows:

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 (restated) |
Cash and equivalents |  |  | $ 2,404 |  |  |  | $ 2,097 |  |  |  | $ 2,749 |
Accounts receivable |  |  | 385 |  |  |  | 449 |  |  |  | 426 |
Net derivative assets by counterparty |  |  | 19 |  |  |  | 282 |  |  |  | 901 |
|  |  | $ 2,808 |  |  |  | $ 2,828 |  |  |  | $ 4,076 |

1 | Investment grade countries include Canada, Chile, Australia, and Peru. Investment grade countries are defined as being rated BBB- or higher by S&P.

c) Liquidity Risk

Liquidity risk is the risk of loss from not having access to sufficient funds to meet both expected and unexpected cash demands. We manage our exposure to liquidity risk by maintaining cash reserves, access to undrawn credit facilities and access to public debt markets, by staggering the maturities of outstanding debt instruments to mitigate refinancing risk and by monitoring of forecast and actual cash flows. Details of the undrawn credit facility are included in Note 24.

Our capital structure comprises a mix of debt and shareholders’ equity. As at December 31, 2013, our total debt was $13.1 billion (debt net of cash and equivalents was $10.7 billion) compared to total debt as at December 31, 2012 of $13.9 billion (debt net of cash and equivalents was $11.8 billion) and at January 1, 2012 of $13.4 billion (debt net of cash and equivalents was $10.6 billion).

In 2013, we made a number of changes to our capital structure. In first quarter 2013, we drew $2.0 billion on our $4.0 billion revolving credit facility (“2012 Credit Facility”), using the proceeds to repay $1.2 billion on our $1.45 billion credit facility, which expired in April 2013. In second quarter 2013, we issued $3.0 billion of debt, using $2.0 billion of the net proceeds to repay the outstanding balance on the 2012 Credit Facility. In fourth quarter 2013, we issued new equity for net proceeds of $2.9 billion, using $2.6 billion of those proceeds to redeem outstanding debt with near-term maturities. The net effect of these transactions was to repay all amounts outstanding under our credit facilities and significantly reduce other near term debt maturities with approximately $300 million maturing in the next two years and a total of approximately $1 billion due in the next 4 years (refer to note 24 for further details). The $4.0 billion credit facility was fully undrawn at year end and the termination date has been extended by one year such that the facility now expires in January 2019.

As part of our disciplined capital allocation strategy, we are constantly evaluating our capital expenditures and making reductions where the risk-adjusted returns do not justify the investment. Since the beginning of 2013, we have also made divestments of non-core assets and assets that do not meet our investment criteria, such as the sale of our oil & gas business and certain of our Australian assets for total cash proceeds of approximately $565 million and we are anticipating receiving aggregate cash proceeds of approximately $153 million in connection with our announced sales of Kanowna and Marigold. In July 2013, the Company’s Board of Directors authorized reducing the quarterly dividend to $0.05 per share as a further prudent step to improve liquidity (The declaration and payment of dividends is at the discretion of the Board of Directors and will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board).

Our primary source of liquidity is our operating cash flow. Other options to enhance liquidity include drawing the $4.0 billion available under our 2012 Credit Facility (subject to compliance with covenants and the making of certain representations and warranties, this facility is available for

BARRICK YEAR END 2013 |  | 138 |  | NOTES TO FINANCIAL STATEMENTS

drawdown as a source of financing), further asset sales and issuances of debt or equity securities in the public markets or to private investors, which could be undertaken for liquidity enhancement and/or in connection with establishing a strategic partnership. Many factors, including, but not limited to, general market conditions and then prevailing metals prices could impact our ability to issue securities on acceptable terms, as could our credit ratings. Moody’s and S&P rate our long-term debt Baa2 and BBB, respectively. Changes in our ratings could affect the trading prices of our securities and our cost of capital. If we were to borrow under our 2012 Credit Facility, the applicable interest rate on the amounts borrowed would be based, in part, on our credit ratings at the time. The key financial covenant in the 2012 Credit Facility (undrawn as at December 31, 2013) requires Barrick to maintain a consolidated tangible net

worth (“CTNW”) of at least $3.0 billion (Barrick’s CTNW was $7.1 billion as at December 31, 2013).

The following table outlines the expected maturity of our significant financial assets and liabilities into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. As the amounts disclosed in the table are the contractual undiscounted cash flows, these balances may not agree with the amounts disclosed in the balance sheet.

As at December 31, 2013 (in $ millions) |  | Less than 1 year |  |  | 1 to 3 years |  |  | 3 to 5 years |  |  | Over 5 years |  |  | Total |
Cash and equivalents |  |  | $ 2,404 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,404 |
Accounts receivable |  |  | 385 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 385 |
Derivative assets |  |  | 34 |  |  |  | 7 |  |  |  | 5 |  |  |  | 1 |  |  |  | 47 |
Trade and other payables |  |  | 2,165 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,165 |
Debt |  |  | 179 |  |  |  | 1,002 |  |  |  | 1,068 |  |  |  | 10,958 |  |  |  | 13,207 |
Derivative liabilities |  |  | 32 |  |  |  | 72 |  |  |  | 2 |  |  |  | - |  |  |  | 106 |
Other liabilities |  |  | 111 |  |  |  | 145 |  |  |  | 41 |  |  |  | 58 |  |  |  | 355 |

As at December 31, 2012 (restated) (in $ millions) |  | Less than 1 year |  |  | 1 to 3 years |  |  | 3 to 5 years |  |  | Over 5 years |  |  | Total |
Cash and equivalents |  |  | $ 2,097 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,097 |
Accounts receivable |  |  | 449 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 449 |
Derivative assets |  |  | 124 |  |  |  | 119 |  |  |  | 51 |  |  |  | 13 |  |  |  | 307 |
Trade and other payables |  |  | 2,267 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,267 |
Debt |  |  | 1,848 |  |  |  | 1,401 |  |  |  | 1,727 |  |  |  | 9,080 |  |  |  | 14,056 |
Derivative liabilities |  |  | 10 |  |  |  | 13 |  |  |  | 6 |  |  |  | - |  |  |  | 29 |
Other liabilities |  |  | 117 |  |  |  | 123 |  |  |  | 36 |  |  |  | 47 |  |  |  | 323 |

As at January 1, 2012 (restated) (in $ millions) |  | Less than 1 year |  |  | 1 to 3 years |  |  | 3 to 5 years |  |  | Over 5 years |  |  | Total |
Cash and cash equivalents |  |  | $ 2,749 |  |  |  | $ - |  |  |  | $ - |  |  |  | $ - |  |  |  | $ 2,749 |
Accounts receivable |  |  | 426 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 426 |
Derivative assets |  |  | 504 |  |  |  | 369 |  |  |  | 56 |  |  |  | 33 |  |  |  | 962 |
Trade and other payables |  |  | 2,085 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,085 |
Debt |  |  | 196 |  |  |  | 3,257 |  |  |  | 2,820 |  |  |  | 7,161 |  |  |  | 13,434 |
Derivative liabilities |  |  | 22 |  |  |  | 30 |  |  |  | 12 |  |  |  | - |  |  |  | 64 |
Other liabilities |  |  | 12 |  |  |  | 140 |  |  |  | 18 |  |  |  | 32 |  |  |  | 202 |

BARRICK YEAR END 2013 |  | 139 |  | NOTES TO FINANCIAL STATEMENTS

d) Capital Risk Management

Our objective when managing capital is to provide value for shareholders by maintaining an optimal short-term and long-term capital structure in order to reduce the overall cost of capital while preserving our ability to continue as a going concern. Our capital management objectives are to safeguard our ability to support our operating requirements on an ongoing basis, continue the development and exploration of our mineral properties and support any expansion plans. Our objectives are also to ensure that we maintain a strong balance sheet and optimize the use of debt and equity to support our business and provide financial flexibility in order to maximize shareholder value. We define capital as total debt less cash and equivalents and it is managed by management subject to approved policies and limits by the Board of Directors. We have no significant financial covenants or capital requirements with our lenders or other parties other than what is discussed under liquidity risk section of note 27.

28 > OTHER NON-CURRENT LIABILITIES

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | As at Jan. 1, 2012 |
Deposit on silver sale agreement |  |  | $646 |  |  |  | $620 |  |  |  | $453 |
Derivative liabilities (note 24f) |  |  | 75 |  |  |  | 19 |  |  |  | 42 |
Provision for supply contract restructuring costs |  |  | 13 |  |  |  | 20 |  |  |  | 25 |
Provision for offsite remediation |  |  | 62 |  |  |  | 62 |  |  |  | 61 |
Other |  |  | 180 |  |  |  | 129 |  |  |  | 108 |
|  |  | $ 976 |  |  |  | $ 850 |  |  |  | $ 689 |

Silver Sale Agreement

On September 22, 2009, we entered into an agreement with Silver Wheaton Corp (“Silver Wheaton”). to sell the amount equal to 25% of the life of mine silver production from the Pascua-Lama project and 100% of silver production from the Lagunas Norte, Pierina and Veladero mines (“South American mines”) until the end of 2013. In return, we were entitled to an upfront cash payment of $625 million payable over three years from the date of the agreement, as well as ongoing payments in cash of the lesser of $3.90 (subject to an annual inflation adjustment of 1% starting three years after project completion at Pascua-Lama) and the prevailing market price for each ounce of silver delivered under the agreement.

During 2012 we received the final cash payment from the agreement of $137.5 million. An imputed interest expense is being recorded on the liability at the rate implicit in the agreement. The liability plus imputed interest will be

amortized based on the difference between the effective contract price for silver and the amount of the ongoing cash payment per ounce of silver delivered under the agreement.

We had provided Silver Wheaton with a completion guarantee, requiring us to complete Pascua-Lama to at least 75% design capacity by December 31, 2015. During 2014 and 2015, Silver Wheaton will be entitled to the silver production from the South American mines to the extent of any production shortfall at Pascua Lama, until we satisfy the completion guarantee. Per the terms of the original silver purchase agreement, if the requirements of the completion guarantee have not been satisfied by December 31, 2015, the agreement may be terminated by Silver Wheaton, in which case Silver Wheaton will be entitled to the return of the upfront cash consideration paid less a credit for silver delivered up to the date of that event.

In 2013, Silver Wheaton agreed to extend the completion date for Pascua-Lama to December 31, 2017 and will continue to receive silver production from the South American mines until December 31, 2016. At December 31, 2013, the cash obligation was $365 million.

29 > DEFERRED INCOME TAXES

Recognition and Measurement

We record deferred income tax assets and liabilities where temporary differences exist between the carrying amounts of assets and liabilities in our balance sheet and their tax bases. The measurement and recognition of deferred income tax assets and liabilities takes into account: substantively enacted rates that will apply when temporary differences reverse; interpretations of relevant tax legislation; estimates of the tax bases of assets and liabilities; and the deductibility of expenditures for income tax purposes. In addition the measurement and recognition of deferred tax assets takes into account tax planning strategies. We recognize the effect of changes in our assessment of these estimates and factors when they occur. Changes in deferred income tax assets and liabilities are allocated between net income, other comprehensive income, and goodwill based on the source of the change.

Current income taxes of $47 million have been provided on the undistributed earnings of certain foreign subsidiaries. Deferred income taxes have not been provided on the undistributed earnings of all other foreign subsidiaries for which we are able to control the timing of the remittance, and it is probable that there will be no remittance in the foreseeable future. These undistributed earnings amounted to $7,543 million as at December 31, 2013.

BARRICK YEAR END 2013 |  | 140 |  | NOTES TO FINANCIAL STATEMENTS

Sources of Deferred Income Tax Assets and Liabilities

|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 (restated) |  |  | As at Jan. 1, 2012 (restated) |
Deferred tax assets |  |  |  |  |  |  |  |  |  |  |  |
Tax loss carry forwards |  |  | $ 251 |  |  |  | $ 430 |  |  |  | $ 624 |
Alternative minimum tax (“AMT”) credits |  |  | 9 |  |  |  | 44 |  |  |  | 165 |
Environmental rehabilitation |  |  | 646 |  |  |  | 724 |  |  |  | 683 |
Property, plant and equipment |  |  | 4 |  |  |  | 46 |  |  |  | 26 |
Post-retirement benefit obligations |  |  | - |  |  |  | 34 |  |  |  | 16 |
Accrued interest payable |  |  | 33 |  |  |  | 72 |  |  |  | 45 |
Derivative instruments |  |  | 10 |  |  |  | - |  |  |  | - |
Other |  |  | 65 |  |  |  | 41 |  |  |  | 41 |
|  |  | $ 1,018 |  |  |  | $ 1,391 |  |  |  | $ 1,600 |
Deferred tax liabilities |  |  |  |  |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (2,367) |  |  |  | (3,348) |  |  |  | (5,067) |
Derivative instruments |  |  | - |  |  |  | (35) |  |  |  | (138) |
Inventory |  |  | (408) |  |  |  | (239) |  |  |  | (217) |
|  |  | $ (1,757) |  |  |  | $ (2,231) |  |  |  | $ (3,822) |
Classification: |  |  |  |  |  |  |  |  |  |  |  |
Non-current assets |  |  | $ 501 |  |  |  | $ 437 |  |  |  | $ 409 |
Non-current liabilities |  |  | (2,258) |  |  |  | (2,668) |  |  |  | (4,231) |
|  |  | $ (1,757) |  |  |  | $ (2,231) |  |  |  | $ (3,822) |

The deferred tax asset of $501 million includes $467 million expected to be realized in more than one year. The deferred tax liability of $2,258 million includes $2,253 million expected to be realized in more than one year.

Expiry Dates of Tax Losses and AMT Credits

|  | 2014 |  |  | 2015 |  |  | 2016 |  |  | 2017 |  |  | 2018+ |  |  | No expiry date |  |  | Total |
Non-capital tax losses1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | $2 |  |  |  | $5 |  |  |  | $ - |  |  |  | $ - |  |  |  | $979 |  |  |  | $ - |  |  |  | $986 |
Dominican Republic |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 170 |  |  |  | 170 |
Barbados |  |  | - |  |  |  | - |  |  |  | 620 |  |  |  | 148 |  |  |  | 5,909 |  |  |  | - |  |  |  | 6,677 |
Chile |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 282 |  |  |  | 282 |
Tanzania |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 156 |  |  |  | 156 |
Zambia |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 789 |  |  |  | - |  |  |  | 789 |
Other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 267 |  |  |  | 267 |
|  |  | $2 |  |  |  | $5 |  |  |  | $620 |  |  |  | $148 |  |  |  | $7,677 |  |  |  | $875 |  |  |  | $9,327 |
AMT credits2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $58 |  |  |  | $58 |

1 | Represents the gross amount of tax loss carry forwards translated at closing exchange rates at December 31, 2013.

2 | Represents the amounts deductible against future taxes payable in years when taxes payable exceed “minimum tax” as defined by United States tax legislation.

The non-capital tax losses include $7,726 million of losses which are not recognized in deferred tax assets. Of these, $2 million expire in 2014, $5 million expire in 2015, $620 million expire in 2016, $148 million expire in 2017, $6,262 million expire in 2018 or later, and $689 million have no expiry date.

The AMT credits include $48 million which are not recognized in deferred tax assets.

Recognition of Deferred Tax Assets

We recognize deferred tax assets taking into account the effects of local tax law. Deferred tax assets are fully recognized when we conclude that sufficient positive evidence exists to demonstrate that it is probable that a deferred tax asset will be realized. The main factors considered are:

— |  | Historic and expected future levels of taxable income;

— |  | Tax plans that affect whether tax assets can be realized; and

— |  | The nature, amount and expected timing of reversal of taxable temporary differences.

Levels of future income are mainly affected by: market gold, copper and silver prices; forecasted future costs and expenses to produce gold and copper reserves; quantities of proven and probable gold and copper reserves; market interest rates; and foreign currency exchange rates. If these factors or other circumstances change, we record an adjustment to the recognition of deferred assets to reflect our latest assessment of the amount of deferred tax assets that is probable will be realized.

A deferred income tax asset totaling $322 million has been recorded in Canada. This deferred tax asset primarily arose due to mark-to-market losses realized for acquired Placer Dome derivative instruments recognized on the acquisition in 2006. Projections of various sources of income support the conclusion that the realizability of this deferred tax asset is probable and consequently, we have fully recognized this deferred tax asset.

BARRICK YEAR END 2013 |  | 141 |  | NOTES TO FINANCIAL STATEMENTS

Deferred Tax Assets Not Recognized

|  | As at December 31, 2013 |  |  | As at December 31, 2012 |  |  | As at January 1, 2012 |
Australia and Papua New Guinea |  |  | $ 456 |  |  |  | $ 181 |  |  |  | $ 122 |
Canada |  |  | 139 |  |  |  | 88 |  |  |  | 76 |
US |  |  | 50 |  |  |  | 2 |  |  |  | - |
Chile |  |  | 471 |  |  |  | 3 |  |  |  | - |
Argentina |  |  | 928 |  |  |  | - |  |  |  | 35 |
Barbados |  |  | 71 |  |  |  | 73 |  |  |  | 73 |
Tanzania |  |  | 107 |  |  |  | 43 |  |  |  | 31 |
Zambia |  |  | 43 |  |  |  | 48 |  |  |  | - |
Other |  |  | 17 |  |  |  | 12 |  |  |  | 23 |
|  |  | $ 2,282 |  |  |  | $ 450 |  |  |  | $360 |

Deferred Tax Assets Not Recognized relate to: non-capital loss carry forwards of $334 million (2012: $271 million and January 1, 2012 $170 million), capital loss carry forwards with no expiry date of $200 million (2012: $126 million and January 1, 2012: $120 million), US AMT credits of $48 million (2012: nil and January 1, 2012 $nil) and other deductible temporary differences with no expiry date of $1,700 million (2012: $53 million and January 1, 2012 $70 million).

Source of Changes in Deferred Tax Balances

For the years ended December 31 |  | 2013 |  |  | 2012 (restated) |
Temporary differences |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | $ 938 |  |  |  | $ 1,739 |
Environmental rehabilitation |  |  | (78) |  |  |  | 41 |
Tax loss carry forwards |  |  | (179) |  |  |  | (194) |
AMT credits |  |  | (35) |  |  |  | (121) |
Inventory |  |  | (169) |  |  |  | (22) |
Derivatives |  |  | 45 |  |  |  | 103 |
Other |  |  | (48) |  |  |  | 45 |
|  |  | $ 474 |  |  |  | $ 1,591 |
Intraperiod allocation to: |  |  |  |  |  |  |  |
Loss from continuing operations before income taxes |  |  | $ 471 |  |  |  | $ 1,457 |
Loss from discontinued operations |  |  | 13 |  |  |  | 62 |
Barrick Energy disposition |  |  | (91) |  |  |  | - |
Acquisition of Aviva Corporation |  |  | - |  |  |  | (6) |
OCI |  |  | 56 |  |  |  | 79 |
Issuance of share capital |  |  | 24 |  |  |  | - |
Other |  |  | 1 |  |  |  | (1) |
|  |  | $ 474 |  |  |  | $ 1,591 |

Income Tax Related Contingent Liabilities

|  | 2013 |  |  | 2012 |
At January 1 |  |  | $ 64 |  |  |  | $ 64 |
Additions based on tax positions related to the current year |  |  | 1 |  |  |  | 1 |
Additions based on tax positions related to prior years |  |  | - |  |  |  | 9 |
Reductions for tax positions of prior years |  |  | (2) |  |  |  | (10) |
Reduction related to discontinued operations |  |  | (12) |  |  |  | - |
At December 31 1 |  |  | $ 51 |  |  |  | $ 64 |

1 If reversed, the total amount of $51 million would be recognized as a benefit to income taxes on the income statement, and therefore would impact the reported effective tax rate.

We anticipate the amount of income tax related contingent liabilities to decrease within 12 months of the reporting date by approximately $2 million to $3 million, related primarily to the expected settlement of income tax and mining tax assessments.

We further anticipate that it is reasonably possible for the amount of income tax related contingent liabilities to decrease within 12 months of the reporting date by approximately $46 million through a potential settlement with tax authorities that may result in a reduction of available tax pools.

Tax Years Still Under Examination

Canada |  | 2009-2013
United States |  | 2013
Dominican Republic |  | 2010-2013
Peru |  | 2009, 2011, 2012, 2013
Chile |  | 2010-2013
Argentina |  | 2006-2013
Australia |  | All years open
Papua New Guinea |  | 2004-2013
Saudi Arabia |  | 2007-2013
Tanzania |  | All years open
Zambia |  | 2010-2013

BARRICK YEAR END 2013 |  | 142 |  | NOTES TO FINANCIAL STATEMENTS

30 > CAPITAL STOCK

Authorized Capital Stock

Our authorized capital stock includes an unlimited number of common shares (issued 1,164,652,426 common shares); an unlimited number of first preferred shares issuable in series (the first series is designated as the “First Preferred Shares, Series A” and consists of 10,000,000 First preferred shares (issued nil); the second series is designated as the “First Preference Shares, Series B” and consists of 10,000,000 first preferred shares (issued nil); and the third series is designated as the “First Preferred Shares, Series C Special Voting Share” and consists of 1 Special Voting Share (issued nil)); and an unlimited number of second preferred shares issuable in series (the first series is designated as the “Second

Preferred Shares, Series A” and consists of 15,000,000 second preferred shares (issued nil). Our common shares have no par value.

Common Stock offering

On November 14, 2013, we issued 163.5 million shares of Barrick at a price of $18.35, for net proceeds of $2,910 million.

Dividends

In 2013, we declared and paid dividends in US dollars totaling $0.44 per share, $508 million (2012: $0.75 per share, $750 million).

31 > NON-CONTROLLING INTERESTS

A NON-CONTROLLING INTERESTS CONTINUITY

|  | Pueblo Viejo |  |  | ABG1 |  |  | Cerro Casale |  |  | Total |
NCI in subsidiary |  |  | 40% |  |  |  | 26.1% |  |  |  | 25% |  |  |  |  |
At January 1, 2012 (restated) |  |  | $ 937 |  |  |  | $ 752 |  |  |  | $ 502 |  |  |  | $ 2,191 |
Share of income (loss) |  |  | (19) |  |  |  | 16 |  |  |  | (8) |  |  |  | (11) |
Cash contributed |  |  | 487 |  |  |  | - |  |  |  | 18 |  |  |  | 505 |
Decrease of non-controlling interest2 |  |  | - |  |  |  | (21) |  |  |  | - |  |  |  | (21) |
At December 31, 2012 (restated) |  |  | $ 1,405 |  |  |  | $ 747 |  |  |  | $ 512 |  |  |  | $ 2,664 |
Share of loss |  |  | (21) |  |  |  | (211) |  |  |  | (5) |  |  |  | (237) |
Cash contributed |  |  | 48 |  |  |  | - |  |  |  | 7 |  |  |  | 55 |
Decrease in non-controlling interest2 |  |  | - |  |  |  | (14) |  |  |  | - |  |  |  | (14) |
At December 31, 2013 |  |  | $ 1,432 |  |  |  | $ 522 |  |  |  | $ 514 |  |  |  | $ 2,468 |

1 | The balance includes the non-controlling interest of 30% in our Tulawaka mine.

2 | Represents dividends received from African Barrick Gold.

BARRICK YEAR END 2013 |  | 143 |  | NOTES TO FINANCIAL STATEMENTS

B SUMMARIZED FINANCIAL INFORMATION ON SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS

Summarized Balance Sheets

|  | Pueblo Viejo |  |  | ABG |  |  | Cerro Casale |
|  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | Jan. 1, 2012 |  |  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | Jan. 1, 2012 |  |  | As at Dec. 31, 2013 |  |  | As at Dec. 31, 2012 |  |  | Jan. 1, 2012 |
Current assets |  |  | $ 473 |  |  |  | $ 226 |  |  |  | $ 109 |  |  |  | $ 675 |  |  |  | $ 837 |  |  |  | $ 968 |  |  |  | $ 5 |  |  |  | $ 9 |  |  |  | $ 16 |
Non-current assets |  |  | 5,252 |  |  |  | 4,817 |  |  |  | 3,657 |  |  |  | 1,624 |  |  |  | 2,597 |  |  |  | 2,396 |  |  |  | 2,040 |  |  |  | 1,956 |  |  |  | 1,839 |
Total assets |  |  | $ 5,725 |  |  |  | $ 5,043 |  |  |  | $ 3,766 |  |  |  | $ 2,299 |  |  |  | $ 3,434 |  |  |  | $ 3,364 |  |  |  | $ 2,045 |  |  |  | $ 1,965 |  |  |  | $ 1,855 |
Current liabilities |  |  | 1,487 |  |  |  | 1,535 |  |  |  | 925 |  |  |  | 152 |  |  |  | 160 |  |  |  | 136 |  |  |  | 433 |  |  |  | 32 |  |  |  | 79 |
Non-current liabilities |  |  | 744 |  |  |  | 1,022 |  |  |  | 980 |  |  |  | 322 |  |  |  | 383 |  |  |  | 331 |  |  |  | 526 |  |  |  | 524 |  |  |  | 523 |
|  |  | $ 2,231 |  |  |  | $ 2,557 |  |  |  | $ 1,905 |  |  |  | $ 474 |  |  |  | $ 543 |  |  |  | $ 467 |  |  |  | $ 959 |  |  |  | $ 556 |  |  |  | $ 602 |

Summarized Statements of Income

|  | Pueblo Viejo |  |  | ABG |  |  | Cerro Casale |
For the years ended December 31 |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Revenue |  |  | $ 979 |  |  |  | $ - |  |  |  | $ 936 |  |  |  | $ 1,081 |  |  |  | $ - |  |  |  | $ - |
Income (loss) from continuing operations after tax |  |  | 210 |  |  |  | (47) |  |  |  | (793) |  |  |  | 11 |  |  |  | (20) |  |  |  | (37) |
Other comprehensive income |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | - |
Total comprehensive income (loss) |  |  | $ 210 |  |  |  | $ (47) |  |  |  | $ (791) |  |  |  | $ 11 |  |  |  | $ (20) |  |  |  | $ (37) |
Dividends paid to NCI |  |  | $ - |  |  |  | $ - |  |  |  | $ 55 |  |  |  | $ 70 |  |  |  | $ - |  |  |  | $ - |
Summarized Statements of Cash Flows |
|  | Pueblo Viejo |  |  | ABG |  |  | Cerro Casale |
For the years ended December 31 |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Net cash provided by operating activities |  |  | $ 190 |  |  |  | $ 458 |  |  |  | $ 172 |  |  |  | $ 218 |  |  |  | $ 11 |  |  |  | $ 23 |
Net cash used in investing activities |  |  | (259) |  |  |  | (920) |  |  |  | (375) |  |  |  | (327) |  |  |  | (21) |  |  |  | (51) |
Net cash provided by (used in) financing activities |  |  | 96 |  |  |  | 486 |  |  |  | 84 |  |  |  | (74) |  |  |  | 8 |  |  |  | 18 |
Net increase (decrease) in cash and cash equivalents |  |  | $ 27 |  |  |  | $ 24 |  |  |  | $ (119) |  |  |  | $ (183) |  |  |  | $ (2) |  |  |  | $ (10) |

Under the terms of Pueblo Viejo’s project financing agreement described in note 24b, Pueblo Viejo Dominicana Corporation is prohibited from making cash payments to Barrick and Goldcorp in the form of dividends or certain shareholder loan interest and principal payments until Pueblo Viejo achieves specified requirements, including requirements relating to operational, social, and environmental matters.

The project financing agreement contains covenants which limit certain activities by Pueblo Viejo Dominicana, including Pueblo Viejo’s ability to sell assets and incur debt. Furthermore, Pueblo Viejo’s material tangible and intangible assets, including the proceeds from metal sales, are segregated and pledged for the benefit of the project lenders, thus restricting our access to those assets and our ability to use those assets to settle our liabilities to third parties.

BARRICK YEAR END 2013 |  | 144 |  | NOTES TO FINANCIAL STATEMENTS

32 > REMUNERATION OF KEY MANAGEMENT PERSONNEL

Key management personnel include the members of the Board of Directors and the Senior leadership team. Compensation for key management personnel (including Directors) was as follows:

For the years ended December 31 |  | 2013 |  |  | 2012 |
Salaries and short-term employee benefits1 |  |  | $ 22 |  |  |  | $ 39 |
Post-employment benefits2 |  |  | 3 |  |  |  | 3 |
Termination Benefits |  |  | 7 |  |  |  | 18 |
Share-based payments and other3 |  |  | 13 |  |  |  | 13 |
|  |  | $ 45 |  |  |  | $ 73 |

1 | Includes annual salary and annual short-term incentives/other bonuses earned in the year.

2 | Represents company contributions to retirement savings plans.

3 | Relates to stock option, RSU, and PRSU grants and other compensation.

33 > STOCK-BASED COMPENSATION

A Stock Options

Under Barrick’s stock option plan, certain officers and key employees of the Corporation may purchase common shares at an exercise price that is equal to the closing share price on the day before the grant of the option. The grant date is the date when the details of the award, including the number of options granted by individual and the exercise price, are approved. Stock options vest evenly over four years, beginning in the year after granting. Options granted in July 2004 and prior are exercisable over 10 years, whereas options granted since December 2004 are exercisable over seven years. At December 31, 2013, 6.5

million (2012: 6.9 million) common shares were available for granting options.

Compensation expense for stock options was $8 million in 2013 (2012: $16 million), and is presented as a component of corporate administration and operating segment administration, consistent with the classification of other elements of compensation expense for those employees who had stock options. The recognition of compensation expense for stock options reduced earnings per share for 2013 by $0.01 per share (2012: $0.02 per share).

Total intrinsic value relating to options exercised in 2013 was $nil million (2012: $8 million).

Employee Stock Option Activity (Number of Shares in Millions)

|  | 2013 |  |  | 2012 |
|  | Shares |  |  | Average Price |  |  | Shares |  |  | Average Price |
C$ options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1 |  |  | 0.6 |  |  |  | $ 28 |  |  |  | 1.1 |  |  |  | $ 27 |
Granted |  |  | 0.1 |  |  |  | 18 |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | (0.4) |  |  |  | 24 |
Cancelled/expired |  |  | (0.6) |  |  |  | 28 |  |  |  | (0.1) |  |  |  | 28 |
At December 31 |  |  | 0.1 |  |  |  | $ 19 |  |  |  | 0.6 |  |  |  | $ 28 |
US$ options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1 |  |  | 6.3 |  |  |  | $ 42 |  |  |  | 5.8 |  |  |  | $ 41 |
Granted |  |  | 1.1 |  |  |  | 32 |  |  |  | 1.1 |  |  |  | 44 |
Exercised |  |  | - |  |  |  | - |  |  |  | (0.2) |  |  |  | 30 |
Forfeited |  |  | (0.5) |  |  |  | 32 |  |  |  | (0.2) |  |  |  | 41 |
Cancelled/expired |  |  | (0.5) |  |  |  | 42 |  |  |  | (0.2) |  |  |  | 46 |
At December 31 |  |  | 6.4 |  |  |  | $ 41 |  |  |  | 6.3 |  |  |  | $ 42 |

BARRICK YEAR END 2013 |  | 145 |  | NOTES TO FINANCIAL STATEMENTS

Stock Options Outstanding (Number of Shares in Millions)

|  | Outstanding |  |  |  |  | Exercisable |
Range of exercise prices |  | Shares |  |  | Average price |  |  | Average life (years) |  |  | Intrinsic value1 ($ millions) |  |  |  |  | Shares |  |  | Average price |  |  | Intrinsic value1 ($ millions) |
C$ options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
$ 18 - $ 28 |  |  | 0.1 |  |  |  | $ 19 |  |  |  | 6.3 |  |  |  | $ - |  |  |  |  |  | - |  |  |  | $ - |  |  |  | $ - |
|  |  | 0.1 |  |  |  | $ 19 |  |  |  | 6.3 |  |  |  | $ - |  |  |  |  |  | - |  |  |  | $ - |  |  |  | $ - |
US$ options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
$ 20 - $ 27 |  |  | 0.6 |  |  |  | $ 26 |  |  |  | 1.8 |  |  |  | $ (5) |  |  |  |  |  | 0.6 |  |  |  | $ 26 |  |  |  | $ (5) |
$ 28 - $ 41 |  |  | 2.3 |  |  |  | 35 |  |  |  | 4.2 |  |  |  | (40) |  |  |  |  |  | 1.0 |  |  |  | 39 |  |  |  | (22) |
$ 42 - $ 55 |  |  | 3.5 |  |  |  | 47 |  |  |  | 3.5 |  |  |  | (106) |  |  |  |  |  | 2.6 |  |  |  | 46 |  |  |  | (74) |
|  |  | 6.4 |  |  |  | $ 41 |  |  |  | 3.6 |  |  |  | $ (151) |  |  |  |  |  | 4.2 |  |  |  | $ 42 |  |  |  | $ (101) |

1 | Based on the closing market share price on December 31, 2013 of C$ $18.71 and US$ $17.63.

Option Information

(per share and per option amounts in dollars) |  | Dec. 31, 2013 |  |  | Dec. 31, 2012 |  |  | Jan. 1, 2012 |
Valuation assumptions |  |  | Lattice1,2 |  |  |  | Lattice1,2 |  |  |  | Lattice1,2 |
Expected term (years) |  |  | 5.5 |  |  |  | 5.3 |  |  |  | 5.3 |
Expected volatility2 |  |  | 30%-35% |  |  |  | 33%-38% |  |  |  | 33%-38% |
Expected dividend yield |  |  | 2.02% |  |  |  | 1.22% |  |  |  | 1.22% |
Risk-free interest rate2 |  |  | 0.10%-1.91% |  |  |  | 0.04%-2.04% |  |  |  | 0.04%-2.04% |
Options granted (in millions) |  |  | 1.2 |  |  |  | 1.1 |  |  |  | 0.5 |
Weighted average fair value per option |  |  | $ 7 |  |  |  | $ 12 |  |  |  | $ 14 |

1 | Different assumptions were used for the multiple stock option grants during the year.

2 | The volatility and risk-free interest rate assumptions varied over the expected term of these stock option grants.

The expected volatility assumptions have been developed taking into consideration both historical and implied volatility of our US dollar share price. Forfeitures have also been factored in based on historical forfeiture rates. The risk-free rate for periods within the contractual life of the option is based on the US Treasury yield curve in effect at the time of the grant.

The expected term assumption is derived from the option valuation model and is in part based on historical data regarding the exercise behavior of option holders based on multiple share-price paths. The Lattice model also takes into consideration employee turnover and voluntary exercise patterns of option holders.

As at December 31, 2013, there was $8 million (2012: $11 million) of total unrecognized compensation cost relating to unvested stock options. We expect to recognize this cost over a weighted average period of 1 year (2012: 2 years).

B Restricted Share Units (RSUs) and Deferred Share Units (DSUs)

Under our RSU plan, selected employees are granted RSUs where each RSU has a value equal to one Barrick common share. RSUs vest at the end of a two-and-a-half-year period and are settled in cash on the two-and-a-half-year anniversary of the grant date. Additional RSUs are credited to reflect dividends paid on Barrick common shares over the vesting period.

Compensation expense for RSUs incorporates an expected forfeiture rate. The expected forfeiture rate is estimated based on historical forfeiture rates and expectations of future forfeiture rates. We make adjustments if the actual forfeiture rate differs from the expected rate. At December 31, 2013, the weighted average remaining contractual life of RSUs was 1.17 years (2012: 1.09 years).

Compensation expense for RSUs was a $1 million reversal in 2013 (2012: $29 million) and is presented as a component of corporate administration and operating segment administration, consistent with the classification of other elements of compensation expense for those employees who had RSUs.

Under our DSU plan, Directors must receive a specified portion of their basic annual retainer in the form of DSUs, with the option to elect to receive 100% of such retainer in DSUs. Each DSU has the same value as one Barrick common share. DSUs must be retained until the Director leaves the Board, at which time the cash value of the DSUs

BARRICK YEAR END 2013 |  | 146 |  | NOTES TO FINANCIAL STATEMENTS

will be paid out. Additional DSUs are credited to reflect dividends paid on Barrick common shares. DSUs are recorded at fair value on the grant date and are adjusted for changes in fair value. The fair value of amounts granted each period together with changes in fair value are expensed.

DSU and RSU Activity

|  | DSUs (thousands) |  |  | Fair value ($ millions) |  |  | RSUs (thousands) |  |  | Fair value ($ millions) |
At January 1, 2012 |  |  | 187 |  |  |  | $ 8.4 |  |  |  | 2,815 |  |  |  | $ 49.2 |
Settled for cash |  |  | (23) |  |  |  | (0.8) |  |  |  | (708) |  |  |  | (28.9) |
Forfeited |  |  | - |  |  |  | - |  |  |  | (57) |  |  |  | (2.4) |
Granted |  |  | 43 |  |  |  | 1.7 |  |  |  | 387 |  |  |  | 16.0 |
Credits for dividends |  |  | - |  |  |  | - |  |  |  | 52 |  |  |  | 2.1 |
Change in value |  |  | - |  |  |  | (2.3) |  |  |  | - |  |  |  | 18.1 |
At December 31, 2012 |  |  | 207 |  |  |  | $ 7.0 |  |  |  | 2,489 |  |  |  | $ 54.1 |
Settled for cash |  |  | (72) |  |  |  | (1.2) |  |  |  | (803) |  |  |  | (19.2) |
Forfeited |  |  | - |  |  |  | - |  |  |  | (764) |  |  |  | (15.8) |
Granted |  |  | 66 |  |  |  | 1.3 |  |  |  | 1,847 |  |  |  | 58.7 |
Credits for dividends |  |  | - |  |  |  | - |  |  |  | 81 |  |  |  | 1.8 |
Change in value |  |  | - |  |  |  | (2.4) |  |  |  | - |  |  |  | (49.8) |
At December 31, 2013 |  |  | 201 |  |  |  | $ 4.7 |  |  |  | 2,850 |  |  |  | $ 29.8 |

C Performance Restricted Share Units (PRSUs)

In 2008, Barrick launched a PRSU plan. Under this plan, selected employees are granted PRSUs, where each PRSU has a value equal to one Barrick common share. At December 31, 2013, 598 thousand units were outstanding (2012: 185 thousand units).

D Employee Share Purchase Plan (ESPP)

In 2008, Barrick launched an Employee Share Purchase Plan. This plan enables Barrick employees to purchase Company shares through payroll deduction. During 2013, Barrick contributed and expensed $0.8 million to this plan (2012: $0.8 million).

E ABG Stock Options

African Barrick Gold has a stock option plan for its directors and selected employees. The exercise price of the granted options is determined by the ABG Remuneration Committee before the grant of an option provided that this price cannot be less than the average of the middle-market quotation of ABG’s shares (as derived from the London Stock Exchange Daily Official List) for the three dealing days immediately preceding the date of grant. All options outstanding at the end of the year expire in 2017 and 2020. There were 0.7 million ABG options granted which were exercisable at December 31, 2013. Stock option expense of $0.5 million (2012: $1.5 million) is included as a component of operating segment administration.

34 > POST-RETIREMENT BENEFITS

Barrick operates various post-employment plans, including both defined benefit and defined contribution pension plans and other post-retirement plans. The table below outlines where the Company’s post employment amounts and activity are included in the financial statements:

For the years ended December 31 |  | 2013 |  |  | 2012 (restated) |
Balance sheet obligations for: |  |  |  |  |  |  |  |
Defined pension benefits |  |  | $ 77 |  |  |  | $ 121 |
Other post-retirement benefits |  |  | 6 |  |  |  | 8 |
Liability in the balance sheet |  |  | $ 83 |  |  |  | $ 129 |
Income statement charge included income statement for: |  |  |  |  |  |  |  |
Defined pension benefits |  |  | $ 3 |  |  |  | $ (3) |
Other post-retirement benefits |  |  | - |  |  |  | (14) |
|  |  | $ 3 |  |  |  | $ (17) |
Measurements for |  |  |  |  |  |  |  |
Defined pension benefits |  |  | $ 36 |  |  |  | $ (7) |
Other post-retirement benefits |  |  | 1 |  |  |  | - |
|  |  | $ 37 |  |  |  | $ (7) |

BARRICK YEAR END 2013 |  | 147 |  | NOTES TO FINANCIAL STATEMENTS

The amounts recognized in the balance sheet are determined as follows:

For the years ended December 31 |  | 2013 |  |  | 2012 (restated) |
Present value of funded obligations |  |  | $ 216 |  |  |  | $ 241 |
Fair value of plan assets |  |  | (216) |  |  |  | (207) |
(Surplus) deficit of funded plans |  |  | $ - |  |  |  | $ 34 |
Present value of unfunded obligations |  |  | 72 |  |  |  | 87 |
Total deficit of defined benefit pension plans |  |  | $ 72 |  |  |  | $ 121 |
Impact of minimum funding requirement/asset ceiling |  |  | 5 |  |  |  | - |
Liability in the balance sheet |  |  | $ 77 |  |  |  | $ 121 |

A Defined Benefit Pension Plans

We have qualified defined benefit pension plans that cover certain of our United States and Canadian employees and

provide benefits based on an employee’s years of service. The plans operate under similar regulatory framework and generally face similar risks. The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where the Company meets the benefit payment obligation as it falls due. Plan assets held in trust are governed by local regulations and practice in each country. Responsibility for governance of the plans – overseeing all aspects of the plans including investment decisions and contribution schedules – lies with the Company. We have set up pension committees to assist in the management of the plans and have also appointed experienced independent professional experts such as actuaries, custodians and trustees. In 2012, certain vested participants elected a lump sum to settle their obligations, resulting in a settlement gain of $7 million.

|  | Present value of obligation |  |  | Fair value of plan assets |  |  | Total |  |  | Impact of minimum funding requirement/asset ceiling |  |  | Total |
At January 1, 2012 (restated) |  |  | $ 361 |  |  |  | $ (227) |  |  |  | $ 134 |  |  |  | $ - |  |  |  | $ 134 |
Current service cost |  |  | 1 |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 1 |
Interest expense (income) |  |  | 14 |  |  |  | (11) |  |  |  | 3 |  |  |  | - |  |  |  | 3 |
Gains on settlements |  |  | (1) |  |  |  | (6) |  |  |  | (7) |  |  |  | - |  |  |  | (7) |
|  |  | $ 375 |  |  |  | $ (244) |  |  |  | $ 131 |  |  |  | $ - |  |  |  | $ 131 |
Remeasurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss from demographic assumptions |  |  | 3 |  |  |  | - |  |  |  | 3 |  |  |  | - |  |  |  | 3 |
Loss from financial assumptions |  |  | 23 |  |  |  | - |  |  |  | 23 |  |  |  | - |  |  |  | 23 |
Experience gains |  |  | (2) |  |  |  | (17) |  |  |  | (19) |  |  |  | - |  |  |  | (19) |
|  |  | $ 24 |  |  |  | $ (17) |  |  |  | $ 7 |  |  |  | $ - |  |  |  | $ 7 |
Contributions - employers |  |  | - |  |  |  | (17) |  |  |  | (17) |  |  |  | - |  |  |  | (17) |
Benefit payments |  |  | (32) |  |  |  | 32 |  |  |  | - |  |  |  | - |  |  |  | - |
Settlements |  |  | (39) |  |  |  | 39 |  |  |  | - |  |  |  | - |  |  |  | - |
At December 31, 2012 (restated) |  |  | $ 328 |  |  |  | $ (207) |  |  |  | $ 121 |  |  |  | $ - |  |  |  | $ 121 |
Current service cost |  |  | 1 |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 1 |
Interest expense (income) |  |  | 11 |  |  |  | (9) |  |  |  | 2 |  |  |  | - |  |  |  | 2 |
|  |  | $ 340 |  |  |  | $ (216) |  |  |  | $ 124 |  |  |  | $ - |  |  |  | $ 124 |
Remeasurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss from demographic assumptions |  |  | 6 |  |  |  | - |  |  |  | 6 |  |  |  | - |  |  |  | 6 |
Gain from financial assumptions |  |  | (25) |  |  |  | - |  |  |  | (25) |  |  |  | - |  |  |  | (25) |
Experience gains |  |  | (5) |  |  |  | (17) |  |  |  | (22) |  |  |  | - |  |  |  | (22) |
Change in asset ceiling |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | 5 |
|  |  | $ (24) |  |  |  | $ (17) |  |  |  | $ (41) |  |  |  | $ 5 |  |  |  | $ (36) |
Exchange differences |  |  | (4) |  |  |  | 1 |  |  |  | (3) |  |  |  | - |  |  |  | (3) |
Contributions - employers |  |  | - |  |  |  | (8) |  |  |  | (8) |  |  |  | - |  |  |  | (8) |
Benefit payments |  |  | (24) |  |  |  | 24 |  |  |  | - |  |  |  | - |  |  |  | - |
At December 31, 2013 |  |  | $ 288 |  |  |  | $ (216) |  |  |  | $ 72 |  |  |  | $ 5 |  |  |  | $ 77 |

BARRICK YEAR END 2013 |  | 148 |  | NOTES TO FINANCIAL STATEMENTS

The significant actuarial assumptions were as follows:

As at December 31 |  | Pension Plans 2013 |  |  | Other Post-Retirement Benefits 2013 |  |  | Pension Plans 2012 |  |  | Other Post-Retirement Benefits 2012 |
Discount rate |  |  | 2.15 - 4.90% |  |  |  | 3.90 - 4.10% |  |  |  | 1.75 - 4.55% |  |  |  | 2.95 - 3.10% |

The sensitivity of the defined benefit obligation to changes in assumptions is set out below. The effects on each plan of a change in an assumption are weighted proportionately to the total plan obligations to determine the total impact for each assumption presented.

|  | Impact on defined benefit obligation
|  | Change in assumption |  | Increase in assumption |  | Decrease in assumption
Discount rate |  | 0.50% |  | Decrease by 5% Increase by 1 year in assumption |  | Increase by 5% Decrease by 1 year in assumption
Life expectancy |  |  |  | Increase by 4% |  | Decrease by 4%

B Other Post-Retirement Benefits

We provide post-retirement medical, dental, and life insurance benefits to certain employees in the US. All of these plans are unfunded. In 2012, one of our health care plans was wound up, resulting in a settlement gain of $14 million.

The movement in the defined benefit liability over the year is as follows:

|  | Present value of obligation |  |  | Fair value of plan assets |  |  | Total |
At January 1, 2012 (restated) |  |  | $ 24 |  |  |  | $ - |  |  |  | $ 24 |
Settlements |  |  | (14) |  |  |  | - |  |  |  | (14) |
|  |  | $ 10 |  |  |  | $ - |  |  |  | $ 10 |
Remeasurements: |  |  |  |  |  |  |  |  |  |  |  |
Loss from financial assumptions |  |  | 1 |  |  |  | - |  |  |  | 1 |
Experience gains |  |  | (1) |  |  |  | - |  |  |  | (1) |
|  |  | $ - |  |  |  | $ - |  |  |  | $ - |
Contributions - employers |  |  | - |  |  |  | (2) |  |  |  | (2) |
Benefit payments |  |  | (2) |  |  |  | 2 |  |  |  | - |
At December 31, 2012 (restated) |  |  | $ 8 |  |  |  | $ - |  |  |  | $ 8 |
Current service cost |  |  | - |  |  |  | - |  |  |  | - |
|  |  | $ 8 |  |  |  | $ - |  |  |  | $ 8 |
Remeasurements: |  |  |  |  |  |  |  |  |  |  |  |
Experience gains |  |  | (1) |  |  |  | - |  |  |  | (1) |
|  |  | $ (1) |  |  |  | $ - |  |  |  | $ (1) |
Contributions - employers |  |  | - |  |  |  | (1) |  |  |  | (1) |
Benefit payments |  |  | (1) |  |  |  | 1 |  |  |  | - |
At December 31, 2013 |  |  | $ 6 |  |  |  | $ - |  |  |  | $ 6 |

The sensitivity of the defined benefit obligation to changes in assumptions is set out below. The effects on each plan of a change in an assumption are weighted proportionately to the total plan obligations to determine the total impact for each assumption presented.

BARRICK YEAR END 2013 |  | 149 |  | NOTES TO FINANCIAL STATEMENTS

|  | Impact on defined benefit obligation
|  | Change in assumption |  | Increase in assumption |  | Decrease in assumption
Discount rate |  | 0.50% |  | Decrease by 3.4% |  | Increase by 3.6%
Healthcare cost increase |  | 1% |  | Increase by 7.9% |  | Decrease by 7.0%
|  |  |  | Increase by 1 year in assumption |  | Decrease by 1 year in assumption
Life expectancy |  |  |  | Increase by 9% |  | Decrease by 8.7%

Plan assets, which are funding the Company’s defined pension plans are comprised as follows:

|  | 2013 |  |  | 2012 |
As at December 31 |  | in % |  |  | Total |  |  | in % |  |  | Total |
Composition of plan assets1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments |  |  | 53% |  |  |  | $ 116 |  |  |  | 52% |  |  |  | $ 108 |
Fixed income securities |  |  | 47% |  |  |  | 100 |  |  |  | 48% |  |  |  | 99 |
|  |  | 100% |  |  |  | $ 216 |  |  |  | 100% |  |  |  | $ 207 |

1 | Holdings in equity and fixed income securities consist of Level 1 and Level 2 assets within the fair value hierarchy

Through the defined benefit pension plans and other post-retirement benefit plans, we are exposed to a number of risks, most significant of which are detailed below:

Asset Volatility

The plan liabilities are calculated using discount rate that was developed by matching the cash flows underlying the pension obligation with a spot rate curve based on the actual returns available on high-quality (Moody’s Aa) US corporate bonds. If plan assets underperform this yield, this will create a deficit. Our plans hold a significant proportion of equities, which contribute certain degree of risk and volatility.

As the plans mature, we intend to reduce the level of investment risk by investing more in assets that better match the liabilities. However, we believe that due to the long-term nature of the plan liabilities, a level of continuing equity investment is an appropriate component of our long-term strategy to manage the plans efficiently.

Changes in bond yields

A decrease in corporate bond yields will increase plan liabilities, although this be would likely be partially offset by an increase in the value of the plan’s bond holdings.

Inflation risk

Most of the plan’s obligations are linked to inflation and higher inflation will lead to higher liabilities (although, in most cases, caps on the level of inflationary increases are in place to protect the plan against extreme inflation). The majority of the plan’s assets are either unaffected by (fixed interest bonds) or loosely correlated with (equities)

inflation, meaning that an increase in inflation will also increase the deficit.

Life expectancy

The majority of the plans’ obligations are to provide benefit for the life of the member, so increases in the life expectancy will result in an increase in the plan’s liabilities.

Each sensitivity analysis disclosed in this note is based on changing one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to variations in significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the project unit credit method at the end of the reporting period) has been applied as for calculating the liability recognized in the balance sheet.

In case of the funded plans, the Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the pension plans. Within this framework, the Company’s ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the pension obligations. The Company has not changed the processes used to manage its risks from previous periods. The Company does not currently use

BARRICK YEAR END 2013 |  | 150 |  | NOTES TO FINANCIAL STATEMENTS

derivatives to manage its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. All of the assets in 2013 consist of equities and fixed income securities. The Company believes that equities offer the best returns over the long-term with an acceptable level of risk. The majority of equities are in a globally diversified portfolio of international blue chip entities. The plans are not exposed to significant foreign currency risk.

The Company has fully funded pension plans (mostly in US) at December 31, 2013. The expected contribution to post-employment benefit plans for the year ending December 31, 2013 is $8 million (2012: $10 million).

The weighted average duration of the defined benefit obligation is 10 years (2012: 11 years).

|  | Less than a year |  |  | Between 1-2 years |  |  | Between 2-5 years |  |  | Over 5 years |  |  | Total |
Pension benefits |  |  | $ 22 |  |  |  | $ 22 |  |  |  | $ 64 |  |  |  | $ 405 |  |  |  | $ 513 |
Other post-retirement benefits |  |  | 2 |  |  |  | 1 |  |  |  | 1 |  |  |  | 6 |  |  |  | 10 |
At December 31, 2012 |  |  | $ 24 |  |  |  | $ 23 |  |  |  | $ 65 |  |  |  | $ 411 |  |  |  | $ 523 |
Pension benefits |  |  | 21 |  |  |  | 21 |  |  |  | 61 |  |  |  | 381 |  |  |  | 484 |
Other post-retirement benefits |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 6 |  |  |  | 9 |
At December 31, 2013 |  |  | $ 22 |  |  |  | $ 22 |  |  |  | $ 62 |  |  |  | $ 387 |  |  |  | $ 493 |

D Defined Contribution Pension Plans

Certain employees take part in defined contribution employee benefit plans and we also have a retirement plan for certain officers of the Company. Our share of contributions to these plans, which is expensed in the year it is earned by the employee, was $64 million in 2013 (2012: $66 million).

35 > CONTINGENCIES

Certain conditions may exist as of the date the financial statements are issued that may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The impact of any resulting loss from the matters noted below may be material.

A) Litigation and Claims

In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may

result in such proceedings, the Company with assistance from its legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.

Shareholder Class Action

On December 6, 2013, lead counsel and plaintiffs in the securities class action filed a consolidated amended complaint (the “Complaint”) in the U.S. District Court for the Southern District of New York (the “Court”), on behalf of anyone who purchased the common stock of the Company between May 7, 2009, and November 1, 2013. The Complaint asserts claims against the Company and individual defendants Jamie Sokalsky, Aaron Regent, Ammar Al-Joundi, Igor Gonzales, Peter Kinver, George Potter and Sybil Veenman (collectively, the “Defendants”). The Complaint alleges that the Defendants made false and misleading statements to the investing public relating (among other things) to the cost of the Pascua-Lama project (the “Project”), the amount of time it would take before production commenced at the Project, and the environmental risks of the Project, as well as alleged internal control failures. The Complaint seeks an unspecified amount of damages.

The Complaint largely tracks the legal theories advanced in three prior complaints filed on June 5, 2013, June 14, 2013 and August 2, 2013. The Court consolidated those complaints and appointed lead counsel and lead plaintiffs for the resulting consolidated action in September 2013.

The Defendants’ motion to dismiss will be filed on February 11, 2014, the opposition to the Defendants’ motion is due on March 14, 2014, and Defendants’ reply brief is due on April 11, 2014. The Company intends to vigorously defend this matter. No amounts have been recorded for any potential liability arising from this matter, as the Company cannot reasonably predict the outcome.

Pascua-Lama – Constitutional Protection Action

On July 15, 2013, the Court of Appeals of Copiapo, Chile issued a decision on the constitutional protection action filed in September 2012, ruling that Compania Minera Nevada (“CMN”), Barrick’s Chilean subsidiary that holds the Chilean portion of the Pascua-Lama project, must complete the Project’s water management system in compliance with the environmental permit to the satisfaction of Chile’s environmental regulator (the Superintendencia del Medio Ambiente or “SMA”) before resuming construction activities in Chile. This ruling was confirmed by the Chilean Supreme Court on September 25, 2013.

BARRICK YEAR END 2013 |  | 151 |  | NOTES TO FINANCIAL STATEMENTS

In September 2013, a new constitutional protection action was filed against CMN alleging that the company is conducting activities at the Project that are not authorized by the July 15, 2013 decision of the Court of Appeals of Copiapo or the May 2013 Resolution of the SMA (for more information on the SMA Resolution see “Pascua-Lama – Challenge to SMA Regulatory Sanction” below). The Court of Appeals of Antofagasta admitted the case for review but declined to issue the preliminary injunction requested by the plaintiff. The challenged activities include the Project’s environmental monitoring as well as the operation and maintenance of facilities in connection with the completion of the Project’s water management system. The plaintiff, a lawyer acting on her own behalf, alleges that these activities infringe her constitutional right to life and to live in an environment free of contamination. The relief sought in the action is the complete suspension of these activities and the adoption by the SMA of administrative measures to, among other things, inspect the works and commence sanction proceedings against CMN as appropriate. On October 22, 2013, the SMA informed the Court that CMN is authorized to perform all of the activities challenged by the plaintiff. The Company intends to vigorously defend this matter. No amounts have been recorded for any potential liability or asset impairment arising from this matter, as the Company cannot reasonably predict the outcome, but believes that the challenged activities are authorized.

Pascua-Lama – Challenge to SMA Regulatory Sanction

In May 2013, CMN received a Resolution (the “Resolution”) from the SMA that requires the company to complete the water management system for the Project in accordance with the Project’s environmental permit before resuming construction activities in Chile. The Resolution also required CMN to pay an administrative fine of approximately $16 million for deviations from certain requirements of the Project’s Chilean environmental approval, including a series of reporting requirements and instances of non-compliance related to the Project’s water management system. CMN paid the administrative fine in May 2013. In June 2013, a group of local farmers and indigenous communities challenged the Resolution. The challenge, which was brought in the Environmental Court of Santiago, Chile (the “Environmental Court”), claims that the fine was inadequate and requests more severe sanctions against CMN including the revocation of the Project’s environmental permit. The SMA presented its defense of the Resolution in July 2013. On August 2, 2013, CMN joined as a party to this proceeding and has vigorously defended the Resolution. The hearing was held before the Environmental Court on September 4, 2013. A court-ordered inspection of the Pascua-Lama Project site took place on December 5, 2013. CMN presented additional

environmental information to the Environmental Court on January 15, 2014, and the decision of the Court is pending. No amounts have been recorded for any potential liability or asset impairment arising from this matter, as the Company cannot reasonably predict the outcome or, in particular, the potential financial impact in the event that more severe sanctions are imposed.

Pascua-Lama – Environmental Damage Claim

In June 2013, a group of local farmers filed an environmental damage claim against CMN in the Environmental Court, alleging that CMN has damaged glaciers located in the Project area. The plaintiffs are seeking a court order requiring CMN to remedy the alleged damage and implement measures to prevent such environmental impact from continuing, including by halting construction of the Project in Chile. CMN presented its defense on October 9, 2013. A settlement and evidentiary hearing took place on January 8, 2014. Having failed to reach a settlement during that hearing, the parties proceeded to present documentary evidence and witness testimony to the Environmental Court. The hearing will resume in late February 2014. The Company intends to vigorously defend this matter. No amounts have been recorded for any potential liability or asset impairment arising from this matter, as the Company cannot reasonably predict the outcome.

Argentine Glacier Legislation and Constitutional Litigation

On September 30, 2010, the National Law on Minimum Requirements for the Protection of Glaciers was enacted in Argentina, and came into force in early November 2010. The federal law bans new mining exploration and exploitation activities on glaciers and in the “peri-glacial” environment, and subjects ongoing mining activities to an environmental audit. If such audit identifies significant impacts on glaciers and peri-glacial environment, the relevant authority is empowered to take action, which according to the legislation could include the suspension or relocation of the activity. In the case of the Veladero mine and the Pascua-Lama project, the competent authority is the Province of San Juan. In late January 2013, the Province announced that it had completed the required environmental audit, which concluded that Veladero and Pascua-Lama do not impact glaciers or peri-glaciers. The constitutionality of the federal glacier law is the subject of a challenge before the National Supreme Court of Argentina, which has not yet ruled on the issue. No amounts have been recorded for any potential liability or asset impairment under this matter, as the Company cannot reasonably predict the outcome and in any event the provincial audit concluded that the Company’s activities do not impact glaciers or peri-glaciers.

BARRICK YEAR END 2013 |  | 152 |  | NOTES TO FINANCIAL STATEMENTS

Marinduque Complaint

Placer Dome Inc. was named the sole defendant in a Complaint filed in October 2005 by the Provincial Government of Marinduque, an island province of the Philippines (“Province”), with the District Court in Clark County, Nevada (the “Court”). The complaint asserted that Placer Dome Inc. was responsible for alleged environmental degradation with consequent economic damages and impacts to the environment in the vicinity of the Marcopper mine that was owned and operated by Marcopper Mining Corporation (“Marcopper”). Placer Dome Inc. indirectly owned a minority shareholding of 39.9% in Marcopper until the divestiture of its shareholding in 1997. The Province sought “to recover damages for injuries to the natural, ecological and wildlife resources within its territory”. In addition, the Province sought compensation for the costs of restoring the environment, an order directing Placer Dome Inc. to undertake and complete “the remediation, environmental cleanup, and balancing of the ecology of the affected areas,” and payment of the costs of environmental monitoring. The Complaint addressed the discharge of mine tailings into Calancan Bay, the 1993 Maguila-guila dam breach, the 1996 Boac river tailings spill, and alleged past and continuing damage from acid rock drainage. In October 2010, the Court issued an order granting the Company’s motion to dismiss the action on the grounds of forum non conveniens. The Province has appealed the Court’s dismissal order to the Nevada Supreme Court. The Company intends to continue to defend the action vigorously. No amounts have been recorded for any potential liability under this complaint, as the Company cannot reasonably predict the outcome.

Perilla Complaint

In 2009, Barrick Gold Inc. and Placer Dome Inc. were purportedly served in Ontario with a complaint filed in November 2008 in the Regional Trial Court of Boac (the “Court”), on the Philippine island of Marinduque, on behalf of two named individuals and purportedly on behalf of the approximately 200,000 residents of Marinduque. The complaint alleges injury to the economy and the ecology of Marinduque as a result of the discharge of mine tailings from the Marcopper mine into Calancan Bay, the Boac River, and the Mogpog River. The plaintiffs are claiming for abatement of a public nuisance allegedly caused by the tailings discharge and for nominal damages for an alleged violation of their constitutional right to a balanced and healthful ecology. In June 2010, Barrick Gold Inc. and Placer Dome Inc. filed a motion to have the Court resolve their unresolved motions to dismiss before considering the plaintiffs’ motion to admit an amended complaint and also filed an opposition to the plaintiffs’ motion to admit on the same basis. It is not known when these motions or the outstanding motions to dismiss

will be decided by the Court. The Company intends to defend the action vigorously. No amounts have been recorded for any potential liability under this complaint, as the Company cannot reasonably predict the outcome.

Writ of Kalikasan

In February 2011, a Petition for the Issuance of a Writ of Kalikasan with Prayer for Temporary Environmental Protection Order was filed in the Supreme Court of the Republic of the Philippines (the “Supreme Court”) in Eliza M. Hernandez, Mamerto M. Lanete and Godofredo L. Manoy versus Placer Dome Inc. and Barrick Gold Corporation (the “Petition”). In March 2011, the Supreme Court issued an En Banc Resolution and Writ of Kalikasan, directed service of summons on Placer Dome Inc. and the Company, ordered Placer Dome Inc. and the Company to make a verified return of the Writ with ten (10) days of service and referred the case to the Court of Appeal for hearing. The Petition alleges that Placer Dome Inc. violated the petitioners’ constitutional right to a balanced and healthful ecology as a result of, among other things, the discharge of tailings into Calancan Bay, the 1993 Maguila-Guila dam break, the 1996 Boac river tailings spill and failure of Marcopper to properly decommission the Marcopper mine. The petitioners have pleaded that the Company is liable for the alleged actions and omissions of Placer Dome Inc., which was a minority indirect shareholder of Marcopper at all relevant times, and is seeking orders requiring the Company to environmentally remediate the areas in and around the mine site that are alleged to have sustained environmental impacts. The petitioners purported to serve the Company in March 2011, following which the Company filed an Urgent Motion For Ruling on Jurisdiction with the Supreme Court challenging the constitutionality of the Rules of Procedure in Environmental Cases (the “Environmental Rules”) pursuant to which the Petition was filed, as well as the jurisdiction of the Supreme Court over the Company. In November 2011, two local governments, or “baranguays” (Baranguay San Antonio and Baranguay Lobo) filed a motion with the Supreme Court seeking intervenor status with the intention of seeking a dismissal of the proceedings. No decision has as yet been issued with respect to the Urgent Motion for Ruling on Jurisdiction, the motion for intervention, or certain other matters before the Supreme Court. The Company intends to continue to defend the action vigorously. No amounts have been recorded for any potential liability under this matter, as the Company cannot reasonably predict the outcome.

Cortez Hills Complaint

In November 2008, the United States Bureau of Land Management (the “BLM”) issued a Record of Decision

BARRICK YEAR END 2013 |  | 153 |  | NOTES TO FINANCIAL STATEMENTS

approving the Cortez Hills Expansion Project, following which the TeMoak Shoshone Tribe, the East Fork Band Council of the TeMoak Shoshone Tribe and the Timbisha Shoshone Tribe, the Western Shoshone Defense Project, and Great Basin Resource Watch filed a lawsuit against the United States seeking to enjoin the majority of the activities comprising the Project on various grounds.

In December 2009, on appeal from a decision denying certain of the plaintiffs’ claims, the United States Court of Appeals for the Ninth Circuit (the “Court of Appeals”) issued an opinion in which it held that the plaintiffs were likely to succeed on two of their claims and ordered that a supplemental Environmental Impact Statement (“EIS”) be prepared by Barrick. In March 2011, the BLM issued its record of decision that approved the supplemental EIS. In January 2012, the District Court issued a decision granting summary judgment in favor of Barrick and the BLM on all remaining issues. The plaintiffs have appealed this decision to the Court of Appeals, which held oral arguments in September 2013. A decision of the Court of Appeals is pending. No amounts have been recorded for any potential liability or asset impairment arising from this matter, as the Company cannot reasonably predict the outcome.

B) Other Contingencies

Jabal Sayid

Since the Company acquired its interest in the Jabal Sayid project through its acquisition of Equinox Minerals in 2011, the Deputy Ministry for Mineral Resources (“DMMR”), which oversees the mining license, has questioned whether such change in the indirect ownership of the project, as well as previous changes in ownership, required the prior consent of the DMMR. In December 2012, the DMMR required the project to cease commissioning of the plant using stockpiled ore, citing alleged noncompliances with the mining investment law and the mining license, and in January 2013 required related companies to cease exploration activities, citing noncompliance with the law and the exploration licenses related to the ownership changes. The Company does not believe that such consent was required as a matter of law, but has responded to requests of the DMMR, including through the provision of additional guarantees and undertakings, and expressed its desire to fully satisfy any related requirements of the DMMR. Other regulatory agencies may decline to issue or renew licenses as a result of the position being taken by the DMMR. The Company is progressing discussions with the DMMR and is also evaluating alternatives such as further curtailing or suspending activities on site until a resolution is achieved, which could lead to further impairment losses on the value of the asset.

Veladero

Production at the Company’s Veladero mine in Argentina has been impacted by a build-up of ounces on the leach pad due to restrictions that affect the amount of solution that can be applied to the mine’s heap leaching process. The Company is in discussions with regulatory authorities with respect to permit amendments to reflect the current circumstances and to allow operation of the leach pad in alignment with permit requirements. The Company expects to receive the requested permit amendments pursuant to these discussions. However, failure to obtain the permit amendments in a timely manner would have an increasing impact on the Company’s 2014 production at Veladero and potentially on the relationship with the San Juan provincial mining authority (the Instituto Provincial de Exploraciones y Explotaciones Mineras or “IPEEM”) under the exploitation agreement governing the Company’s right to operate the Veladero mine.

BARRICK YEAR END 2013 |  | 154 |  | NOTES TO FINANCIAL STATEMENTS