22nd October 2012

African Barrick Gold plc (the “Company” or “ABG”)

Final Condition for Acquisition of Aviva Mining Kenya Ltd Satisfied

Following the unanimous approval by Aviva shareholders on 11 September 2012, the Kenyan

Competition Commission has now formally approved the acquisition by ABG of Aviva Mining

(Kenya) Ltd (“AMKL”) from Aviva Corporation (“Aviva”). All conditions have now been satisfied and

the transaction will now be finalised.

Commenting on the acquisition, ABG’s CEO Greg Hawkins said, “With the final condition for the

acquisition of AMKL now satisfied we look forward to continuing the successful exploration programme on

this highly prospective land package. ABG has a proven track record of successfully developing early stage

prospects into large scale deposits and we are confident of further successes in Kenya.”

On completion of the acquisition of AMKL, we plan to continue systematic exploration programmes

throughout the licence areas testing for new gold targets and we are targeting advancing one or more

projects to resource category level during 2013. These exploration programmes will consist of mapping, soil

and rock chip sampling campaigns, auger and aircore drilling, and reverse circulation and core drilling. The

current core drilling programme is testing high priority regional targets in order to gain a better understanding

of the geology and key controls on the gold mineralisation encountered at each prospect and to allow

ranking of targets for future programmes.

Recent drill results, funded by ABG and released by Aviva, around the Kakamega Dome from the

Bushiangala, Kimingini, Dhahabu and Isulu prospects have delivered some high-grade gold intersections

within a greater than 30 kilometre structural corridor extending from the historic Rosterman gold mine

(approximately 250,000 ounces of gold at 13 grams per tonne) in the northwest to the Dhahabu prospect in

the east (Figure 1). Selected, previously announced, results from the Kakamega Dome gold camp have

included:

Bushiangala:

ASBSDD0001: 20m at 9.41g/t Au from 29m and 1m at 1205g/t Au from 101m

ASRC019: 7m at 8.29g/t Au from 98m

ASRC021: 17m at 7.20 g/t Au from 25m

ASBSDD006 6m at 5.02g/t Au from 38m and 16m at 5.91g/t Au from 58m

ASBSDD010: 11m at 3.96g/t Au from 49m and 2.93m at 7.77g/t Au from 97m

ASBSDD012: 9m at 13.05g/t Au from 6m

Kimingini:

ASRC025: 9m at 12.7g/t Au from 139m

ASKDD003: 3m at 5.31g/t Au from 228m

ASKDD004: 3m at 10.23g/t Au from 156m

Dhahabu:

CKIB01: 62m at 2.45g/t Au from 42m

KIB-01: 10m @ 5.9g/t Au from 43m

KIB-02: 7m @ 5.4g/t Au from 42m

KIB-03: 10m at 5.7g/t Au from 29m

We believe there is an opportunity to identify several significant scale projects in the structural corridors

around the Kakamega Dome, and ongoing drill programmes will target extensions to the known gold zones

between individual prospects to delineate sizeable mineral deposits.

Figure 1 – Kakamega Dome Camp, selected drill intersections, surface geochemistry and structural corridors

The Lake Zone Camp (Figure 2 - below) is located across the western half of the license areas and

is distinguished from the Kakamega Dome Camp based on its geological and structural setting. The

Lake Zone camp is characterised by mafic, intermediate and felsic volcanic units of the Archaean

(Nyanzian) system that have been intruded by numerous multi-phase felsic, intermediate and mafic

composition intrusions (granite, dacite, granodiorite, diorite, and gabbro). Distinct bands of Kavirondian age

sedimentary units (predominantly conglomerate) are interpreted to lie adjacent to large-scale east-west

trending structures.

A large number of the gold occurrences identified in the Lake Zone camp are associated with multiphase

intrusions and gold mineralisation tends to occur as broad disseminated systems, with stock-work higher

grade veining or extensional vein systems.

As with the Kakamega Dome, ABG believes the Lake Zone gold camp has the potential to host very large

gold systems and the limited effective drilling to date has confirmed that potential. This is supported by

historical and recent exploration, including soil sampling, rock chip sampling and drilling programmes that have

delineated several kilometre-scale gold anomalies.

Figure 2 – Lake Zone Camp – Geology, historical workings and prospects and high priority targets

Geology

The licence areas cover the Ndori Greenstone Belt, one of several greenstone belts in Kenya. The Ndori

Greenstone Belt displays a similar stratigraphy to the Lake Victoria Greenstone belts in Tanzania and other

greenstones belts globally (e.g. Abitibi in Canada) with volcanic, intrusive and sedimentary rocks of the

Archaean (Nyanzian) system, Kavirondian sediments, and younger felsic to intermediate intrusions varying in

composition (granite, dacite, granodiorite, diorite) and often multiphase. Local lithologies include iron-rich

basalts and gabbros, andesite, felsic volcanic, BIF-chert-tuff chemical and pyroclastic-sedimentary

sequences, as well as late Archaean volcano-sedimentary lithologies within a broad greenstone belt. Over

twenty gold prospects worthy of further work have been identified across the project to date. In addition,

Bumbo, a stratabound Copper-Zinc-Gold deposit, is currently interpreted to occur within sediments of the

Kakamega Dome gold camp.

Figure 3 – AMKL License Areas - Regional Geology, Gold Camps, Historic Workings, and Key Prospects

Background

Through the acquisition of AMKL, ABG will now own AMKL’s 51% interest (with the potential to move to

75%) in a joint venture (“Lonmin JV”) with Lonmin plc (“Lonmin”, LSE:LMI), and AMKL’s right to earn up to a

75% interest in a second joint venture (“Advance JV”) with Advance Gold Corporation ("Advance",

TSXV:AAX). The exploration properties subject to the Lonmin JV and the Advance JV are referred to herein

as the “Properties”. In addition to the initial cash consideration of A$20 million, ABG has agreed to make a

further cash payment of A$10 million to Aviva upon declaration by ABG of an National Instrument 43-101

(“NI 43-101”) compliant Indicated resource of 3 million ounces of gold on the Properties.

The principal assets of the Lonmin JV are two Special Licenses in West Kenya (SL123 Ndori and SL213

Siaya, the “Lonmin JV Licenses”). Lonmin, through its subsidiary AfriOre International (Barbados) Limited

(“AfriOre”), holds the remaining 49% interest in the Lonmin JV. Under the terms of the agreement governing

the Lonmin JV (“Lonmin JV Agreement”), AMKL would be entitled to increase its interest in the Lonmin JV

from 51% to 75% by meeting certain conditions which include advancing the project through the pre-

feasibility stage. The terms of the Lonmin JV Agreement will remain unchanged following the acquisition of

AMKL.

The principal assets of the Advance JV are three Special Licenses in West Kenya (SL265 Bukura, SL266

Sigalagala and SL267 Rosterman, together, the “Advance JV Licenses”). Under the terms of the agreement

governing the Advance JV (“Advance JV Agreement”), AMKL would be entitled to acquire up to a 75%

interest in the Advance JV from Gold Rim Exploration Kenya Limited (“Gold Rim”), a subsidiary of Advance,

by meeting certain conditions which include making pre-defined exploration expenditures as set out in the

Advance JV Agreement. The terms of the Advance JV Agreement will remain unchanged following the

acquisition of AMKL.

The Properties, which have only seen limited previous exploration, contain multiple large gold anomalies and

cover five contiguous licenses over a land package in excess of 2,800km2 of the highly prospective Ndori

Greenstone Belt in Kenya, which forms part of the Tanzanian Archaean Craton. Sporadic, historic and

current exploration activities have identified a large number of targets that justify extensive follow-up, and

ABG intends to implement a systematic and focused gold exploration programme. These targets represent a

significant addition to the grassroots and target delineation segments of our exploration pipeline.

Transaction Description and License Details

ABG has agreed to pay initial cash consideration of A$20 million, plus an amount equal to the completion

working capital of AMKL to Aviva to acquire all of the outstanding share capital of AMKL, with a further

potential cash payment of A$10 million to Aviva upon declaration by ABG of an NI 43-101 compliant

Indicated resource of 3 million ounces of gold on the Properties. The cash consideration will be satisfied by

cash on hand.

Asset Location

The Properties are located in the southwest corner of Kenya, approximately 300km northwest of Nairobi,

near the border of Uganda and on the shores of Lake Victoria. The license area is 30km from Kisumu, which

is the third largest city in Kenya, and is serviced by air (with a daily flight from Nairobi), road, power, and

telecommunication networks. Tenements are cut by a bitumen dual carriageway and a system of local

unpaved roads and are inhabited by mainly small scale subsistence farmers. There is a 750km rail

connection to the port of Mombasa, where ABG has an existing supply chain as a result of 90% of North

Mara’s goods and major equipment for all of ABG’s sites coming through the port.

In addition to the special licenses, the acquisition of AMKL will bring ABG a strong Kenyan based exploration

team and continuity of project history and knowledge, as well as existing local and country Government and

Ministry relationships.

ENQUIRIES

For further information contact:

African Barrick Gold plc +44 (0)207 129 7150

Andrew Wray, Head of Corporate Development & Investor Relations

Giles Blackham, Investor Relations Manager

RLM Finsbury +44 (0)207 251 3801

Charles Chichester

About ABG

ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa. We have four

producing mines, all located in northwest Tanzania, and several exploration projects at various stages of

development. We have a high-quality asset base, solid growth opportunities and a clear strategy.

The key pillars to our strategy are:

driving operating efficiencies to optimise production from our existing asset base;

growing through near mine expansion and development of advanced-stage projects; and

organic greenfield growth and acquisitions in Africa.

Maintaining our licence to operate through acting responsibly in relation to our people, the environment and

the communities in which we operate is central to achieving our objectives.

ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the

London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock

Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian

gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. ABG reports in US

dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this

announcement.

Forward-looking statements

This announcement is for information purposes only and does not constitute an invitation or offer to

underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction.

This announcement includes “forward-looking statements” that express or imply expectations of future

events or results. Forward-looking statements are statements that are not historical facts. These statements

include, without limitation, financial projections and estimates and their underlying assumptions, statements

regarding plans, objectives and expectations with respect to future production, operations, costs, products

and services, and statements regarding future performance. Forward-looking statements are generally

identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” “estimates” and other similar

expressions.

All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are

beyond the control of ABG, which could cause actual results and developments to differ materially from

those expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to

differences between the actual results, performance and achievements of ABG include, but are not limited to,

changes or developments in political, economic or business conditions or national or local legislation in

countries in which ABG conducts or may in the future conduct business, future industry trends, competition,

fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation,

currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling

exchange rates), ABG’s ability to successfully integrate this and future acquisitions, ABG’s ability to recover

its reserves or develop new reserves, including its ability to convert its resources into reserves and its

mineral potential into resources or reserves, and successfully and in a timely manner process its mineral

reserves, risk of trespass, theft and vandalism, changes in its business strategy as well as risks and hazards

associated with the business of mineral exploration, development, mining and production. Although ABG’s

management believes that the expectations reflected in such forward-looking statements are reasonable,

ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not

place reliance on forward looking statements in this announcement. Any forward-looking statements in this

announcement only reflect information available at the time of preparation. Subject to the requirements of the

Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any

obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in

this announcement that may occur due to any change in ABG’s expectations or to reflect events or

circumstances after the date of this announcement. Nothing in this announcement should be construed as a

profit forecast or estimate.