Form 51-102F3
MATERIAL CHANGE REPORT
Section 7.1 of National Instrument 51-102
Continuous Disclosure Obligations
ITEM 1: REPORTING ISSUER
Barrick Gold Corporation
BCE Place
Canada Trust Tower
161 Bay Street, Suite 3700
P.O. Box 212
Toronto, ON M5J 2S1
ITEM 2: DATE OF MATERIAL CHANGE
January 18, 2005
ITEM 3: PRESS RELEASE
A press release was issued by Barrick Gold Corporation ("Barrick") on
January 18, 2005. A copy of the press release is attached hereto.
ITEM 4: SUMMARY OF MATERIAL CHANGE
On January 18, 2005, Barrick received confirmation from the Peruvian
tax authority, SUNAT, that it would not be appealing the Tax Court's decision in
favour of Barrick regarding SUNAT's tax assessment of Barrick's Pierina Mine for
the 1999 and 2000 fiscal years. As a result of SUNAT's confirmation, Barrick
recognized a US$141 million reduction in current and deferred tax liabilities
and a US$21 million reduction of other costs. The effect of this gain was
recorded in Barrick's fourth quarter, 2004 financial results.
ITEM 5: FULL DESCRIPTION OF MATERIAL CHANGE
On December 27, 2002, Minera Barrick Misquichilca S.A. ("MBM"), an
indirect, wholly-owned subsidiary of Barrick, received an income tax assessment
of US$41 million from the Peruvian tax authority SUNAT. On July 9, 2003, the
assessment was reduced to US$32 million, excluding interest and penalties, upon
SUNAT's acceptance of part of the claim submitted by MBM. The tax assessment
related to a tax audit of Barrick's Pierina Mine for the 1999 and 2000 fiscal
years. The assessment mainly related to the revaluation of the Pierina mining
concession for the purpose of determining its tax basis. Under the valuation
proposed by SUNAT, the tax basis of the Pierina assets would change from what
was previously assumed, with a resulting increase in current and deferred income
taxes. The full life of mine effect on
-2-
Barrick's current and deferred income tax liabilities of US$141 million was
fully recorded at December 31, 2002, as were other related payments of
approximately US$21 million due for periods through 2003.
On September 30, 2004, the Tax Court notified Barrick of its decision
on the matter in Barrick's favour. On January 18, 2005, Barrick received
confirmation from SUNAT that it would not be appealing the Tax Court's decision.
As a result of SUNAT's confirmation, Barrick recognized a US$141 million
reduction in current and deferred tax liabilities and a US$21 million reduction
of other costs. The effect of this gain was recorded in Barrick's fourth
quarter, 2004 financial results.
ITEM 6: RELIANCE ON SUBSECTION 7.1(2) or (3) of NATIONAL
INSTRUMENT 51-102
Not applicable.
ITEM 7: OMITTED INFORMATION
Not applicable.
ITEM 8: SENIOR OFFICER
The following senior officer of Barrick is knowledgeable about the
material change and this report:
Andre R. Falzon
Vice-President and Controller
(416) 861-9911
ITEM 9: STATEMENT OF SENIOR OFFICER
The foregoing accurately discloses the material change referred to
herein.
DATED at Toronto, Ontario this 28th day of January, 2005.
by /s/ Andre R. Falzon
------------------------------
Andre R. Falzon
Vice-President and Controller
[BARRICK LOGO]
PRESS RELEASE - TORONTO, JANUARY 18, 2005
For Immediate Release
Barrick Receives Confirmation in Peruvian Tax Matter
Barrick Gold Corporation announced today that it has received confirmation from
SUNAT, the Peruvian tax agency, that SUNAT will not be appealing the September
30, 2004, Tax Court decision. (Information related to this matter can be found
in Barrick's Third Quarter 2004 Report under Note 8 to the financial
statements.)
Barrick shares are traded on the Toronto, New York, London and Swiss stock
exchanges and the Paris Bourse.
INVESTOR CONTACT: MEDIA CONTACT:
Darren Blasutti Vincent Borg
Vice President, Vice President,
Investor Relations Corporate Communications
Tel: (416) 307-7341 Tel: (416) 307-7477
Email: dblasutti@barrick.com Email: vborg@barrick.com