Barrick Mining Corporation · TSX:ABX

Barrick Mining — Barrick Gold — Merger or Acquisition (September 2006)

14 slides from Barrick Mining's merger presentation, Sep 20, 2006

  1. Slide 1: Barrick's Offer for NovaGold: Myths and Realities

    Barrick’s Offer for NovaGold Myths and Realities (All figures expressed in US dollars unless otherwise indicated) 20 September 2006 1

  2. Slide 2: Important Information

    Important Information 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 th

  3. Slide 3: Barrick's Offer for NovaGold: Summary of the Offer

    Barrick’s Offer for NovaGold SUMMARY OF THE OFFER: Price ƒ $14.50 per Share in cash Expiry ƒ September 29, 2006 at 6:00 p.m. (Toronto time) ƒ No material adverse change in NovaGold or any of its assets ƒ Minimum tender condition of 50.1% Key Conditions ƒ No legal restraint challenging the Offer ƒ Sh

  4. Slide 4: Barrick's Offer for NovaGold: Reality

    Barrick’s Offer for NovaGold REALITY: ƒ All cash offer of $14.50 per share ƒ Significant premium to: — Price preceding the July 2006 bid ($11.67 / share) — February 2006 equity issue price ($11.75 / share) ƒ Mitigates significant permitting, development, operating, financing and commodity price risk

  5. Slide 5: Barrick will not meet its Donlin Creek earn-in obligations

    Barrick’s Offer for NovaGold MYTH: ƒ Barrick will not meet its contractual obligations to earn an additional 40% interest in Donlin Creek REALITY IS THAT BARRICK: ƒ Is the manager of the Donlin Creek Project ƒ Confident we will deliver a feasibility study by November 12, 2007 ƒ Will enforce its righ

  6. Slide 6: NovaGold's assertions in court

    Barrick’s Offer for NovaGold NovaGold’s assertions in court: ƒ Request for temporary restraining order X NOT GRANTED ƒ Injunction against Offer due to alleged Barrick X DENIED disclosure inaccuracies ƒ Expedited Hearing on Barrick right to 70% X DENIED in Donlin Creek ƒ Request for status conference

  7. Slide 7: Pioneer's property and Galore Creek

    Barrick’s Offer for NovaGold MYTH: ƒ NovaGold contends that Pioneer’s property is not essential to the timely development and value of Galore Creek REALITY IS THAT NOVAGOLD: ƒ Made a hostile bid for Pioneer ƒ Has commenced litigation to gain control of any Pioneer shares acquired by Barrick Barrick

  8. Slide 8: NovaGold's resource ounces and undervaluation claim

    Barrick’s Offer for NovaGold MYTH: ƒ NovaGold contends it has millions of resource ounces making it significantly undervalued REALITY: ƒ Currently, NovaGold has no reserves ƒ NovaGold’s latest estimate of resources used unsubstantiated assumptions ƒ NovaGold's recent calculations assume NovaGold ret

  9. Slide 9: Value per ounce relative to comparable transactions

    Barrick’s Offer for NovaGold MYTH: ƒ NovaGold contends it has millions of resource ounces making it significantly undervalued at $33/ounce of Total Enterprise Value (TEV) relative to recent comparable transactions1,2 REALITY: ƒ Barrick is paying over $100/ounce of measured and indicated resources NO

  10. Slide 10: Enterprise Value / Total Resources ($/oz)

    Barrick’s Offer for NovaGold REALITY (cont’d): ƒ Barrick is paying over $100/ounce1 of Total Enterprise Value (TEV), as opposed to the $33/oz number put forth by NovaGold2 Implied Offer Value (Total Enterprise Value / Resources) ($/oz) $120 Enterprise Value / Total Resources ($/oz) $102 $102 $99 $10

  11. Slide 11: Total Acquisition Cost ($/oz)

    Barrick’s Offer for NovaGold MYTH: ƒ NovaGold contends it has millions Total Acquisition Cost ($/oz) 3 of resource ounces making it Gallery Gold (IAMGold) $701 significantly undervalued at $33 Viceroy (Yamana) $524 NovaGold (Barrick) $517 per ounce of Total Enterprise Bolivar Gold (Gold Fields) $501

  12. Slide 12: NovaGold's unprecedented capital requirements

    Barrick’s Offer for NovaGold ƒ NovaGold’s capital requirements are unprecedented for a junior gold company of its size — NovaGold’s equity requirement could represent the largest treasury offering ever completed by a gold company and could exceed the total value of all junior gold financings complet

  13. Slide 13: NovaGold Share Price Performance

    Barrick’s Offer for NovaGold MYTH: ƒ NovaGold contends that Barrick's Offer is inadequate REALITY: ƒ Barrick's all-cash Offer represents fair value and a significant premium for NovaGold shareholders NovaGold Share Price Performance (AMEX) $18.00 $750 NovaGold Share Price Spot Gold Price $700 $16.00

  14. Slide 14: Barrick's Offer: Reality summary

    Barrick’s Offer for NovaGold REALITY: ƒ All cash offer of $14.50 per share ƒ Significant premium to: — Price preceding the July 2006 bid ($11.67 / share) — February 2006 equity issue price ($11.75 / share) — Historical share price at current gold price level ($11.01 / share) ƒ Mitigates significant

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