Peru

Economic Investments Report | 2016

Advancing. Together.

The Mining Context in Peru

~59%

Share of Peru’s exports from the

mining sector(2016)

Source: EY

2,800Tons of gold

reserves estimated to be

found in Peru (2015)

25%

Share of Peru’s total foreign

direct investment is in the mining

sector (2016)

$46B

Estimated value of mining

projects pending development in

Peru(2016)

Note: All figures in USD

Barrick in Peru

Lagunas Norte

▪ Operational since 2002

▪ Produced 435,000 ounces of gold in 2016

▪ Accounted for 7.9% of Barrick’s total gold production (2016)

▪ ISO 14001 and Cyanide Code certified

Pierina

▪ Began operations in 1996

▪ Currently in closure

▪ ISO 14001 and Cyanide Code certified

Barrick’s Economic Investment in Peru

98% of Barrick’s expenditures stayed in Peru in 2016 ($502M)

EXPENDITURES

$297M

$7M

$80M

$118M

In Peru, where does this money go?

Communityinvestments

Employee wages & benefits

Taxes & royalties to the Peruvian

government

Purchasesfrom Peruvian

businesses

$502M

In-country

Out-of-country

$502 M

$9 M

$511 MTotal in 2016

Investing in Peruvian Business

Purchases from Peruvian

businesses

$297M

Barrick increased its purchases from local

businesses by ~50% in the past three years.

97% $1.4BAmount Barrick has

purchased from Peruvian businesses since 2012.

Percentage of Barrick’s purchases that went to

Peruvian businesses in 2016.

$9.8 $9.4

$12

$14

$0

$2$4$6

$8$10

$12

$14

$16

2013 2014 2015 2016

Mill

ions

LOCAL1 PURCHASES (2013-2016)

1 For Pierina, local includes 11 population centers and rural communities (Huanja, Mataquita; Atupa, Antahurán, San Miguel de Tinyash, Mareniyoc and Chaquecyaco, San Isidro de Pacollón, Ramón Castilla, Miguel Grau de Shecta and Andres Avelino Cáceres de Cuncashc).For Lagunas Norte, local includes 14 population centers (El Sauco, Chuyugual, Cushuro, Pampa Verde, Corral Grande, Los Loros, Totoras, San Pedro, Yanivilca, La Victoria, Santos Genoveva, Canibamba Alto, Quesquenda and Quiruvilca).

Taxes and Royalties in Peru

Taxes, royalties to the Peruvian

government

$118M$1B

Taxes and royalties Barrick has contributed to Peru

since 2012.

An EITI member country since 2012, each year all extractive companies in Peru publicly report their payments

to the government.

1. Source: EY

In 2016, local and regional governments

spent 83% of income from mining levies and

royalties on infrastructure.1

$397

$186 $202

$125 $118

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

2012 2013 2014 2015 2016

Mill

ions

TAXES AND ROYALTIES (2012-2016)

Taxes and royalties decrease as price of gold falls and the Pierina mine enters closure

Our Employees in Peru

Employee wages & benefits

$80M$515MAmount Barrick has paid in

wages and related expenditure since 2012.

The Pierina mine uses a rotational work schedule for

remediation work to maximize local employment.

11%

27%

62%

0.39%

EMPLOYMENT IN PERU (2016)

Local Communities

Host Region

National

Foreign National

1 Source: KPMG2 For Pierina, local includes 11 population centers and rural communities (Huanja, Mataquita; Atupa, Antahurán, San Miguel de Tinyash, Mareniyoc and Chaquecyaco, San Isidro de Pacollón, Ramón Castilla, Miguel Grau de Shecta and Andres Avelino Cáceres de Cuncashc). For Lagunas Norte, local includes 14 population centers (El Sauco, Chuyugual, Cushuro, Pampa Verde, Corral Grande, Los Loros, Totoras, San Pedro, Yanivilca, La Victoria, Santos Genoveva, Canibamba Alto, Quesquenda and Quiruvilca).3 For Pierina, regional includes the rest of the district of Jangas and Independencia, the Province of Huaraz, and the Region of Ancash. For Lagunas Norte, regional includes the rest of the districts of Quiruvilca, Sanagoran and Usquil; the Provinces of Santiago de Chuco, Sanchez Carrion and Otuzco; and the Region of La Libertad.

2

3

As of February 2015, more than 190,000 people in Peru were employed by

the mining industry.1

Investing in Peruvian Communities

Community Investments

$7M$61MBarrick’s investment in

community projects in Peru since 2012.

Barrick has invested more than $6.7 million in educational

programs since 2012.

As the Pierina mine closes, the site works closely with local suppliers to further enhance

their skills. As part of this program, 84% of leaders from 19 local companies have been trained in production, finance,

and sales.

$3.11M

$580K

$1.03M

$230K$50 K

$30K

COMMUNITY INVESTMENTS (2016)

Economic Development

Infrastructure

Other Activities

Education

Community Engagement

Environment

Health

$1.6M

Peru

Economic Investments Report | 2016

Advancing. Together.