Abbot Group Plc : ABG Q4 Production Report

AFRICAN BARRICK GOLD

LSE: ABG

Fourth Quarter Report for the three months ended 31 December 2011

Based on IFRS and expressed in US Dollars

African Barrick Gold plc ("ABG'') reports fourth quarter production results

â†' Gold production of 688,278 ounces for the full year and 160,020 ounces in the quarter

Highlights

* Q4 gold production of 160,020 ounces and sales of 158,869 ounces * Attributable gold production for the full year was 688,278 ounces (Group production of 713,508 ounces1) 2% lower than 2010 * Attributable gold sales for the full year was 699,539 ounces (Group sales of 724,574 ounces1) 2% above production * Increase in full year production at Bulyanhulu, Buzwagi and Tulawaka, with lower production at North Mara due to the expected focus on waste stripping * Full year total cash costs2 are expected to be in line with guidance of $675 - $700 per ounce * The increased average realised gold price2 of $1,655 per ounce over the quarter and $1,587 per ounce for the full year had a positive impact on cash flow and earnings, with a year-end cash position of approximately $584 million * Installation of a further 16MW of diesel back-up power at Buzwagi providing full power redundancy to the site * Continued exploration success at the Nyanzaga Project with an updated resource expected in Q1 2012 African Barrick Gold plc Three months ended Twelve months ended 31 December 31 December (Unaudited) 2011 2010 % 2011 2010 % change change Operating results Tonnes mined (thousands of 10,546 9,794 8% 45,053 40,016 13% tonnes)

Ore tonnes processed (thousands 1,729 2,023 -15% 7,409 7,706 -4% of tonnes)

Recovery rate (percent) 87.3% 87.0% 0% 87.7% 86.1% 2%

Average grade (grams per tonne) 3.3 3.2 3% 3.3 3.3 0%

Attributable gold production 160,020 179,730 -11% 688,278 700,934 -2% (ounces)1

Attributable gold sold (ounces) 158,869 201,298 -21% 699,539 724,083 -3% 1

Average realised gold price per 1,655 1,394 19% 1,587 1,240 28% ounce sold ($)2

Copper production (thousands of 2,889 3,760 -23% 14,875 14,093 6% pounds)

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

2 Cash cost and average realised gold price per ounce sold are non-IFRS financial performance measures with no standard meaning under IFRS. Refer to "Non-IFRS measures" on page 7 for each definition.

Commenting on the results, CEO Greg Hawkins said: "The underlying performance of each of our assets has improved over the year with three of the four mines achieving production increases, and we are especially pleased with the performance from Tulawaka in 2011. During the quarter our output was impacted by the power situation in Tanzania, but as we go into 2012, we will benefit from our investment in additional back-up power generation and are well positioned to continue delivering on our potential and generating significant cash flows from our assets."

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

African Barrick Gold [phone] plc

Greg Hawkins, CEO

Andrew Wray, Head of Corporate Development & Investor Relations

Giles Blackham, Investor Relations Manager

Finsbury [phone] 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. With a high-quality asset base, solid growth opportunities and a clear strategy, we have the objective of increasing our existing production to one million ounces per year by 2014.

We aim to achieve this by:

* driving operating efficiencies to optimise production from our existing asset base; * growing through near mine expansion and development of advanced-stage projects; and * organic greenfield growth and acquisitions in Africa.

Maintaining our licence to operate through acting responsibly in relation to our people, the environment and the communities in which we operate is central to achieving our objectives.

ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. ABG reports in US dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this report.

Conference call

A conference call will be held for analysts and investors on 18 January 2012 at 13:00 London time. A dial in facility will be available as follows:

Participant dial in: [phone] / [phone]

Password: ABG Q4

There will be a replay facility available until 25 January 2012. Access details are as follows:

Replay number: [phone]

Replay PIN:3031525#

FORWARD LOOKING STATEMENT

This report includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words `plans,' `expects,' `anticipates,' `believes,' `intends,' `estimates' and other similar expressions.

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

The forward-looking statements in this report reflect information available at the time of preparing this report. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this report that may occur due to any change in ABG's expectations or to reflect events or circumstances after the date of this report. No statements made in this report regarding expectations of future profits are profit forecasts or estimates, and no statements made in this report should be interpreted to mean that ABG's profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG or any other level.

Operating update for the three months ended 31 December 2011

Attributable gold production for the quarter totalled 160,020 ounces, an 11% decrease compared to 179,730 ounces in the corresponding quarter of 2010 due to power disruptions and planned lower production at North Mara as it continued to process lower grade stockpiles as a result of its ongoing waste stripping programme. Continual power disruptions adversely impacted production at three of the four sites resulting in additional plant downtime and maintenance shutdowns from excessive wear on critical components. Buzwagi and Bulyanhulu have been the most severely impacted and we estimate an overall combined production loss of 20,000 ounces for the quarter against plan, within overall estimated production losses for the year from power related issues of 35-40,000 ounces. At Buzwagi, we commissioned a further 16MW of diesel back-up power, which when combined with the 5MW of spinning diesel installed in July, provides full back-up power to the operation and at Bulyanhulu we continue to upgrade our back-up power facilities. Tulawaka performed above both expectations and the prior year as a result of the higher mine grade from underground operations.

Gold ounces sold for the quarter were 158,869 ounces, 1% lower than the production figure and a decrease of 21% compared to 201,298 ounces in the corresponding quarter of 2010, where the delayed sale of concentrate at Bulyanhulu from the previous quarter lifted sales.

Tonnes mined for the quarter were 10.5 million compared to 9.8 million in the corresponding quarter of 2010. The increase was primarily driven by higher waste stripping at Buzwagi and Tulawaka. The increase at Buzwagi was driven by Stage 2 waste stripping, whilst Tulawaka ramped up pre-stripping of the West extension of the open pit in order to provide supplemental mill feed. Waste stripping at North Mara was impacted by constraints at the potentially acid forming (PAF) waste dumps.

Tonnes processed for the quarter of 1.7 million were 15% below the corresponding quarter of 2010 of 2.0 million tonnes. The decrease in tonnes milled was predominantly as a result of power interruptions and resulting plant downtime at Buzwagi.

The average grade processed for the quarter was 3.3 grams per tonne which was 3% higher than the prior year period of 3.2 grams per tonne. The increases in grade at Tulawaka and Bulyanhulu were partially offset by the planned processing of lower grade stockpiles at North Mara.

Copper production for the quarter was 2.9 million pounds, 23% lower than the prior year period of 3.8 million pounds, mainly driven by the decrease in production at Buzwagi and Bulyanhulu when compared to Q4 2010.

For the full year, production of 688,278 ounces represented a 2% decline on the prior year period. Gold sales for the full year exceeded production by 11,261 ounces at 699,539 ounces with our continued focus on reducing our concentrate inventories and receivables before the year-end driving the net cash position to approximately $584 million as at 31 December 2011.

EXPLORATION AND DEVELOPMENT UPDATE

Exploration and development during the fourth quarter of 2011 continued to focus on ABG's strategy of organic growth through near-mine exploration, resource expansion, optimisation of existing assets through identification and delineation of higher grade satellite deposits, regional exploration for new discoveries and evaluation of acquisition opportunities throughout Africa. The exploration teams were principally focused on advancing the Nyanzaga, Tulawaka and North Mara regional and mine site exploration programmes, as well as organic growth feasibility projects around the current Tanzanian operations. Significant progress has been made on all of these projects.

Nyanzaga Project

Reverse circulation and diamond drilling recommenced during the quarter with 12,989 metres completed, with drilling for the full year amounting to 65,247 metres. Infill drilling on the Tusker resource is now complete, and it is anticipated that the new "in-pit" resource will be reported during Q1 2012. Additionally, the majority of assays have now been received for the Kilimani resource area and it is anticipated that Kilimani, once resource modelling is completed, will provide additional near surface ounces to the Nyanzaga Project resource base.

The results of infill drilling received during the quarter for both the Tusker and Kilimani resource areas continued to confirm the geological and resource model interpretations.

The principal objectives for the 2012 exploration drill programmes will be to confirm the economically mineable resource and to expand the global resource through delineating strike and down-dip extensions to the Tusker and Kilimani mineralised systems. One of the priorities will be to further advance the testing of down-dip extensions of the high-grade zones delineated in 2011 that may be amenable to underground mining scenarios.

North Mara Project

Gokona-Nyabigena Underground Extensions

The significant resource drill-out programme beneath the planned final Gokona open pit continued during the quarter with 27 holes completed for a total of 13,178 metres, bringing the programme total for 2011 to 61 holes completed for 26,217 metres. This programme is aimed at increasing the initial Indicated resource of 370Koz declared in late 2010 into an Indicated resource in excess of 1Moz, thereby improving the potential to significantly extend the mine life and production profile at North Mara. The infill drill programme is 50% completed, and is expected to be finalised by the end of Q1 2012. Drilling to date has confirmed the geological and resource model interpretations with multiple high grade zones intersected. A further update on project timing will be provided at the time of our preliminary results.

In conjunction with the drilling on Gokona Deeps, advanced grade control drilling was undertaken on the Nyabigena East open pit resource where the current open pit optimisations indicate the reserves are likely to be greater than 150Koz. This work will be finalised during Q1 once all assay results are received.

Nyabirama Deeps

The significant resource drill-out programme beneath the planned final Nyabirama open pit continued during the quarter with 20 holes completed for a total of 5,424 metres, bringing the programme total for 2011 to 83 holes completed for 28,451 metres, or approximately 80% of the planned programme. Results received to date continue to confirm the resource interpretation, with multiple narrow high grade zones intersected in each drill hole. It is anticipated the programme will be completed in Q1 2012 after which a desktop scoping level study will be completed to assess options for future mining.

Tulawaka

East Zone Underground Extensions

Diamond drilling continues to test depth, plunge and strike extensions to the mineralised lodes below current reserves throughout the East Zone. Limited drilling was undertaken during the quarter as new underground drill platforms were being established to allow testing of Zone 550 below Level 11 in the central eastern areas of the underground. By quarter-end, three holes had been completed in Zone 550, with all holes having visible gold observed in the core and, as a result, there is good potential for the high grade shoot in this zone to extend significantly below Level 11.

Mojamoja - West Zone "Gap" - Surface drilling

A total of 86 RC holes for 10,385 metres were drilled during the quarter as part of the infill programme between the West Zone and Mojamoja prospects, in the "Gap" area. The Mojamoja and West Zone prospects lie approximately 4km northwest of the Tulawaka plant, and ABG is looking at the potential to delineate further open pit resources to be trucked to this plant. The current infill programme is aimed at delineating additional resources between the two previously drilled areas and it is anticipated it will completed in January 2012.

OTHER DEVELOPMENTS DSE Listing (DSE: ABG)

In December, ABG completed the secondary listing of its ordinary shares on the Dar es Salaam Stock Exchange. This represents an important step in promoting the broader liquidity and ownership of our shares in Tanzania as part of our longer term commitment to the country.

Agreement with Liontown Resources Limited

ABG entered into an agreement during the quarter which allows Liontown the opportunity to explore for iron ore deposits on certain ABG exploration tenements in Tanzania. This agreement provides ABG with the upside from potential iron ore mineralisation on these exploration tenements, while also ensuring that Liontown samples and assays for gold, the rights for which are retained by ABG. Mine site summary Bulyanhulu Three months ended Twelve months ended 31 December 31 December (Unaudited) 2011 2010 2011 2010 Underground ore tonnes Kt 254 275 1,048 958 hoisted Ore milled Kt 241 271 1,056 954 Head grade g/t 9.1 8.6 8.5 9.2 Mill recovery % 91.5% 91.7% 91.2% 92.2% Ounces produced oz 64,433 68,619 262,034 259,873 Ounces sold oz 65,132 84,785 269,981 262,442 Copper production `000lbs 1,617 2,100 7,675 7,958 Copper sold `000lbs 1,786 2,799 7,716 7,896

Gold production at Bulyanhulu for the quarter was 64,433 ounces, 6% lower than the prior year period. Lower underground ore tonnes hoisted and lower plant utilisation from power disruptions were partly offset by the higher grade ore presented to the mill. Gold ounces sold for the quarter were 65,132 which was 1% higher than the production figure.

Production for the full year at Bulyanhulu improved by 1% over the prior year, driven by increased ore tonnes hoisted and improved mill throughput compared with the prior year. The lower head grade resulted from a higher proportion of mining from lower grade long hole stopes and lower alimak grades as blockages in the paste fill lines resulted in delayed access to the high grade areas. The lower mine grade, combined with lower recoveries in the CIL circuit, led to a lower recovery rate.

Gold ounces sold for the year of 269,981 ounces were 3% above the production of 262,034 ounces, and were also 3% higher than the figure for 2010. During 2011, ABG has successfully finalised long term smelter contracts for gold concentrate following a strategy to geographically diversify signing multiple year contracts.

Copper production for the quarter of 1.6 million pounds was 23% lower than that of the same period in 2010. This was mainly due to lower tonnes milled and lower recoveries as the result of operational issues experienced in the flotation plant. For the full year, copper production of 7.7 million pounds was slightly lower than the prior year amount of 8.0 million.

North Mara Three months ended Twelve months ended 31 December 31 December (Unaudited) 2011 2010 2011 2010 Tonnes mined Kt 3,591 4,969 21,808 20,106 Ore tonnes mined Kt 549 610 2,254 2,624 Ore milled Kt 773 765 3,070 2,860 Head grade g/t 2.1 2.6 2.1 2.8 Mill recovery % 78.9% 84.7% 80.6% 82.9% Ounces produced oz 41,704 54,973 170,832 212,947 Ounces sold oz 40,000 57,300 170,625 218,684

Gold production for the quarter at North Mara of 41,704 ounces was 24% below the prior year period production of 54,973 ounces as a result of the ongoing focus on waste stripping in the Gokona and Nyabirama pits. The waste strip is expected to continue until mid 2012 after which we will be able to access the higher grade material. The waste stripping led to a decrease in ore tonnes mined and mine grade during the quarter, resulting in the processing of a higher proportion of lower grade stockpile material which impacted both head grade and mill recovery compared to the prior year. Tonnes mined were lower than in the corresponding period in 2010 as a result of PAF waste dumping constraints. Provisional permits have now been granted and construction of further PAF dumps is underway to alleviate the constraint.

Gold ounces sold for the quarter were 40,000 ounces, 4% below the production of 41,704 ounces and 30% lower than the prior year period ounces sold of 57,300 ounces.

Production for the full year 2011 of 170,832 ounces was 20% below the prior year production of 212,947 ounces but in line with expectations. Head grade and mill recovery were impacted by a higher proportion of lower grade stockpile material processed which was partially offset by improved plant availability and utilisation resulting in a 7% increase in mill throughput.

Gold ounces sold of 170,625 ounces were 22% below the figure for the prior year due to the lower production base.

Buzwagi Three months ended Twelve months ended 31 December 31 December (Unaudited) 2011 2010 2011 2010 Tonnes mined Kt 6,205 4,510 21,534 18,848 Ore tonnes mined Kt 797 1,167 3,545 4,285 Ore milled Kt 642 904 2,993 3,553 Head grade g/t 2.1 1.9 2.3 2.0 Mill recovery % 87.4% 81.6% 88.0% 81.0% Ounces produced oz 37,916 44,257 196,541 186,019 Ounces sold oz 38,547 45,706 200,518 198,221 Copper production `000lbs 1,272 1,660 7,201 6,135 Copper sold `000lbs 1,438 1,804 7,353 5,473

Gold production at Buzwagi for the quarter was 37,916 ounces compared to 44,257 ounces in the prior year period. The lower production for the quarter was primarily driven by the decrease in ore tonnes milled for the period as a result of plant downtime due to increased power disruptions and resulting unplanned maintenance and critical component replacement. We estimate these power disruptions led to a loss of c.15,000 ounces during the quarter over and above the anticipated impact from ongoing power disruptions. To address these issues, full back-up power was commissioned in December which should provide a stable base for 2012.

The increase in tonnes mined was a combination of the commencement of the Stage 2 waste stripping programme and changes to mine sequencing to take advantage of plant downtime. The improvements in recovery and grade compared to the previous year reflect operational improvements in the mill during 2011.

Gold ounces sold during the quarter amounted to 38,547 ounces, 2% above production and 16% lower than the prior year period reflecting the lower production base. Gold production for the full year 2011 of 196,541 was 6% above the prior year period of 186,019 ounces as a result of grade and recovery improvements. Gold ounces sold for the year amounted to 200,518 ounces, 1% above that of the prior year period of 198,221 ounces.

Tulawaka (reflected as Three months ended Twelve months ended 70%) 31 December 31 December (Unaudited) 2011 2010 2011 2010 Underground ore tonnes Kt 38 39 144 103 hoisted Open pit ore tonnes mined Kt 20 - 22 - Open pit waste tonnes Kt 437 - 497 - mined Ore milled Kt 73 82 291 340 Head grade g/t 7.1 4.8 6.6 4.1 Mill recovery % 95.7% 93.2% 95.1% 93.2% Ounces produced oz 15,967 11,881 58,871 42,094 Ounces sold oz 15,190 13,507 58,415 44,736

Attributable gold production at Tulawaka for the quarter was 15,967 ounces compared to the prior period of 11,881 ounces. The increased gold production during the quarter compared to the prior year period was the result of mining higher grade underground stopes supported by improved mine equipment availability.

In tandem with the underground mining, surface activity during the quarter continued to focus on preparing the West Pit extension of the open pit in order to provide incremental mill feed in place of the existing low grade stockpiles to supplement production from the underground operation. In Q4 2011, 20,000 tonnes of ore were mined from the open pit, with 437,000 tonnes of waste material mined.

Gold ounces sold amounted to 15,190 ounces for the quarter, 5% below production due to the timing of sales, but an increase of 12% compared to Q4 2010, reflecting the higher production.

Gold production for the full year 2011 of 58,871 was 40% higher than the prior year period of 42,094 as a result of a 41% increase in underground ore tonnes hoisted resulting in higher mill recoveries and head grade. Gold sales for the year amounted to 58,415 ounces, which were 1% below production and 31% above the prior year period driven by the increase in production.

Non-IFRS financial measures

ABG has identified certain non-IFRS financial measures in this report. Non-IFRS financial measures disclosed by management in this report are provided as additional information to investors in order to provide them with an alternative method for assessing ABG's financial performance and operating results. These measures are not in accordance with, or a substitute for, IFRS, and may be different from or inconsistent with non-IFRS financial measures used by other companies. These measures are explained further below.

Average realised price per ounce sold is a non-IFRS financial measure which excludes from sales:

-Unrealised gains and losses on non hedge derivative contracts

-Unrealised mark to market gains and losses on provisional pricing from copper and gold sales contracts; and

-Export duties

Cash costs per ounce sold is a non-IFRS financial measure. Cash costs include all costs absorbed into inventory, as well as royalties, by-product credits, and production taxes, and exclude capitalised production stripping costs, inventory purchase accounting adjustments, unrealised gains/losses from non hedge currency and commodity contracts, depreciation and amortisation. The presentation of these statistics in this manner allows ABG to monitor and manage those factors that impact production costs on a monthly basis. ABG calculates cash costs based on its equity interest in production from its mines. Cash costs per ounce sold are calculated by dividing the aggregate of these costs by gold ounces sold. Cash costs and cash costs per ounce sold are calculated on a consistent basis for the periods presented.

Mining statistical information

The following describes certain line items used in the ABG Group's discussion of key performance indicators:

* Open pit material mined - measures in tonnes the total amount of open pit ore and waste mined. * Underground ore tonnes hoisted - measures in tonnes the total amount of underground ore mined and hoisted. * Total tonnes mined include open pit material plus underground ore tonnes hoisted. * Strip ratio - measures the ratio waste-to-ore for open pit material mined. * Ore milled - measures in tonnes the amount of ore material processed through the mill. * Head grade - measures the metal content of mined ore going into a mill for processing. * Milled recovery - measures the proportion of valuable metal physically recovered in the processing of ore. It is generally stated as a percentage of the metal recovered compared to the total metal originally present.

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