DBRS Assigns “A” Rating - Under Review Negative Rating to $4.0 Billion of New Barrick Notes

DBRS has today finalized its rating of “A”, which is Under Review with Negative Implications, on (1) $700 million of 1.75% senior unsecured notes maturing May 30, 2014; (2) $1,100 million of 2.90% senior unsecured notes maturing May 30, 2016 to be issued by Barrick Gold Corporation (Barrick or the Company) (collectively, new Barrick Notes); (3) $1,350 million of 4.40% senior unsecured notes maturing May 30, 2021; and (4) $850 million of 5.70% senior unsecured notes maturing May 30, 2041 to be issued by Barrick North America Finance LLC (Barrick NA Finance) and unconditionally guaranteed by Barrick (collectively, new Barrick NA Finance Notes), following the pricing and our review of the finalized prospectus supplement for the issuance of the notes. DBRS assigned a provisional rating of “A”, Under Review with Negative Implications, to the new Barrick Notes and the new Barrick NA Finance Notes on May 24, 2011 (see related news release). DBRS views the issuance of the $4.0 billion of notes as a prudent step by the Company as it pursues its approximately CAD7.3 billion, all-cash offer for copper producer Equinox Minerals Limited (Equinox).

The proceeds from the issuance will be used to acquire Equinox or for general corporate purposes. If Barrick does not acquire at least a majority interest in Equinox on or prior to January 24, 2012, or if Barrick’s offer for Equinox expires or is withdrawn prior to January 24, 2012, Barrick and Barrick NA Finance will be obligated to redeem $3,300 million of the new notes (excluding Barrick’s issue of $700 million of senior unsecured notes maturing May 2014) at a redemption price equal to 101% of their principal amount plus accrued and unpaid interest to, but not including, the date of redemption.

DBRS placed the senior unsecured debt ratings of Barrick and its subsidiaries Under Review with Negative Implications on April 25, 2011, following the Company’s announcement that it will make an approximately CAD7.3 billion, all-cash offer for copper producer Equinox. DBRS intends to resolve the review status of the new notes to be issued by Barrick and Barrick NA Finance and Barrick’s other long-term ratings once it can clarify the ultimate cost of the Equinox acquisition, the potential long-term value of the deal to Barrick, the financing structure of the deal and the impact of a successful transaction on Barrick’s business profile and financial metrics.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Mining, which can be found on our website under Methodologies.