Dave Elliott, Continuous Improvement DirectorTrevor Krawchyk, Learning Organization Manager

Barrick Gold Corporation

Lean Lessons Learned

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Today’s Presentation

• Barrick’s Lean Journey:• Why and how we started• Our implementation strategy• The critical success factors• Summary • Q&A

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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this presentation, including any information as to our future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets (such as the Canadian and Australian dollars versus the U.S. dollar); fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel and electricity); changes in U.S. dollar interest rates or gold lease rates that could impact the mark to market value of outstanding derivative instruments and ongoing payments/receipts under interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark to market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Dominican Republic, Australia, Papua New Guinea, Chile, Peru, Argentina, South Africa, Tanzania, Russia, Pakistan or Barbados or other countries in which we do or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions, operating or technical difficulties in connection with mining or development activities; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this presentation are qualified by these cautionary statements. Specific reference is made to Barrick’s most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.

We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

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About Barrick

•Gold Industry Leader

•20,000+ Employees

•27 Operating Mines

•One of Canada’s Largest Companies

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What we do…

Rock Moving Rock Processing

Our core “Value Stream”

Rock Breaking

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Background: Change needed?

“It is not necessary to change. Survival is not mandatory.”

Dr. Deming

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Barrick’s opportunity (need) for change!

2002 State:• Low gold prices• Tight margins• Rising costs• Poor equipment effectiveness (OEE)

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Background: Benchmarked The Best

Two common themes:

1. Formal CI System

2. CI Culture

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Dimensions of CI at Barrick

FOCUS ONVALUE

CREATION

CULTURE OFCONTINUOUSIMPROVEMENT

“Get results, change the culture along the way”

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Barrick’s CI Launch - 2002

• Top down support • Operations focused• Quick, high impact improvement at Goldstrike property• Expanded to all 9 sites (now 27)

“Get results, change the culture along the way”

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Barrick Vision and Values

To be the world’s best gold company by finding, acquiring, developing and producing quality reserves in

a safe, profitable and socially responsible manner.

BEHAVE LIKE AN OWNERACT WITH A SENSE OF URGENCYBE A TEAM PLAYERCONTINUOUSLY IMPROVEDELIVER RESULTS

Vision:

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Barrick CI Vision

““Everyone Engaged in Improvement Every DayEveryone Engaged in Improvement Every Day””

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Barrick CI – Critical Success Factors

1. Leadership2. Focus on Process3. Measurement4. People & Teamwork5. Communication and Visibility

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Barrick CI – Critical Success Factors

1. Leadership• Sustained Commitment from the Senior Leadership• Highly focused on long-term benefits• Included in Personal Performance Commitments• Full-time dedicated global CI Team of Certified Coaches

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Org. Effect. Ex VP

CI Director

Learning Org. Mgr

Process & Systems

Mgr

CI Coach

RegionalPresident

CI Mgr

MineGM

CI Leader

ProcessingSupt

MaintenanceSupt

MiningSupt

AdminSupt

OperationsDirector

ProcessingCI Coach

MaintenanceCI Coach

MiningCI Coach

AdminCI Coach

Corporate

Region

Site

Barrick CI Organizational Model

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Barrick CI – Critical Success Factors

2. Focus on Process:• Extensive use of all applicable lean tools• Operations Review Teams (ORT’s) embedded in business cycle

(PDR or PDCA)

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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Talent Review

ORT / Site gap analysis

Strategic Planning

Budget

Performance Commitments

Tactical Plan

Execution

PLAN

PLAN

PLAN

PLAN

REVIEW

REVIEW

Barrick Business Management Cycle

DO

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ORTs – A Key Business Process

1.Review(Assessment)

Objectives

• Current state• Opportunity

Identification

2. Plan(Site Visit)

Objectives

• Leadership support and commitment

• Design solutions

“Go to Gemba”

3. Do(Execute)

Objectives

• Develop & execute action plans

• Monthly Follow-up

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Barrick CI – Critical Success Factors

3. Measurement• Focus on Metrics and KPI’s • Track the value creation (waste reduction)• The Culture Scorecard – yes, you can measure culture

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Barrick CI Value Creation

2003 2004 2005 2006 2007

Valu

e C

reat

ion

Quality Cost Throughput Total

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Key improvements. . .

• Automated feed splitting

• Modified surge pocket/feed chutes

• Surge Pocket Increased

Crusher Throughput - Avg Tons/day

2001 2002 2003 2004 2005 2006 2007

21%

18% 2%2%

26,500

32,150

38,048 38,692 39,544 42,288 43,692

7%3%

65% Improvement!!!

Present: Value Creation Examples

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Present: Value Creation Examples

Before: After:

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Barrick Culture Scorecard

Elements Current Score

12 month Target Key Themes To Close Gaps

Vision & Values 1.8 2.5Business Strategy and Value Streams 2.0 2.3Standardized Processes 0.7 2.3Culture of CI 2.0 2.0Foundation Total 1.6 2.3Recruited for Fit 1.7 2.3Employee Performance and Development 1.4 2.4Talent Management 1.8 2.3People and Leadership Total 1.6 2.3Clear Targets and Goals 1.3 2.0Visual Workplace 1.0 2.0Regular Structured Reviews (Plan-Do-Review) 2.0 2.5Workplace Organization (5S) 1.0 3.0Organization Structured for Performance 1.3 2.0Business Performance Management Total 1.2 2.5Employee Involvement and Problem Solving 1.4 2.3Knowledge Sharing 1.0 2.0CI Resources/Support 1.0 3.0Learning & Knowledge Sharing Total 1.3 2.4Corporate Social Responsibility 0.8 1.8Sustainable Community Development 0.3 1.0Suppliers, Vendors, Contractors & Consultants 1.3 2.3External Relationship Management Total 0.8 1.7

Overall Score 1.3 2.2

Business Performance Management

Learning & Knowledge Sharing

External Relationship Management

Sections

Foundation

People & Leadership

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VISION & VALUES

Business Strategy & Value Streams

Standardized Processes and CI Culture

THE BEST GOLD COMPANY

THE BEST GOLD COMPANY

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VISION & VALUES

Business Strategy & Value Streams

Standardized Processes and CI Culture

THE BEST GOLD COMPANY

THE BEST GOLD COMPANY

THE BEST GOLD COMPANY

THE BEST GOLD COMPANY

Barrick Cultural Measurement Framework

Major gaps in basic planning and operating standards (CHAOS)

TimeStrong leaders making big, often tough, changes (PUSH)

Focused initiatives in structured process to deliver high impact (DEPENDENT)

Enterprise-wide CI culture (INDEPENDENT)

Results

S0

S1

S2

S3

Not happening

Getting started, limited results

Strong results in critical areas

Everyone Engaged In CI

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Barrick CI – Culture vs. Value Creation?

Higher the Culture Score = Greater the Value Creation

Value Creation and Culture

1.9

1.5

1.11.0

Region A Region B Region C Region D-

0.5

1.0

1.5

2.0

2.5

3.0

Cul

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Sco

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Target Actual Culture score

Valu

e C

reat

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Barrick CI – Critical Success Factors

4. People & Teamwork• Employee Engagement & Involvement• Employees given accountability for results• Willingness to take chances & challenge the status quo• “CI Awards” - Recognition and Reward

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Barrick CI Awards

Recognize and reward employees for improvements made during the year in the following 3 categories:1. Employee involvement and participation2. Idea generation / innovation3. Achievement of significant results

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Barrick CI – Critical Success Factors

5. Communication and Visibility• Create formal systems • Establish Best Practices• Share success

(it’s contagious!)Continuous Improvement

Pocket Guide

First Edition

Continuous Improvement Pocket Guide

First Edition

Continuous Improvement Pocket Guide

First Edition

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Results: supporting ‘real’ value creation

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Our Current Business Environment

• Volatile economic forces

• Fluctuating Gold Prices (+/- 25% in 1 month)

• Inflationary cost pressures

• Labour & commodity shortages

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Summary

– 2 Dimensions• Value Creation• Culture

– Critical Success Factors• Leadership Commitment • Focus on Process• Measurement• Communication and Visibility• People and Teamwork

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Questions

Thank You

Dave Elliott – delliott@barrick.comTrevor Krawchyk – tkrawchyk@barrick.com

Please return your completed session survey to the room host.

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