AFRICAN BARRICK GOLD PLC - 3rd Quarter Results

AFRICAN BARRICK GOLD



23 October 2014

Results for the three months ended 30 September 2014 (Unaudited)

Based on IFRS and expressed in US Dollars (US$)



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

"We are pleased to announce production of 190,986 ounces in the quarter, up 16%
on Q3 2013, providing further evidence that the changes we are implementing at
our operations continue to improve performance", said Brad Gordon, CEO of
African Barrick Gold. "As a result we have delivered our eighth successive
quarterly reduction in all-in sustaining costs (AISC). During the quarter we
generated US$17 million in net cash flow and have now increased our cash
balance year to date, after returning US$14 million in dividends to our
shareholders and continuing to invest in growth. The optimisation of our assets
continues with good progress made during the quarter on the projects at both
Bulyanhulu and North Mara and we are looking forward to setting out our longer
term plan for the business at our Investor Day on 27 November."



Operational Highlights

Gold production of 190,986 ounces, up 16% on Q3 2013

Gold sales of 178,490 ounces, 11% higher than Q3 2013

AISC1,2 of US$1,098 per ounce sold, 14% lower than Q3 2013 and 1% lower than Q2
2014

Cash costs1,2 of US$679 per ounce sold, 7% lower than both Q3 2013 and Q2 2014

Bulyanhulu CIL Expansion produced 5,097 ounces, with commissioning due for
completion in Q4 2014

Bulyanhulu run of mine head grade increased to 8.8 grams per tonne as
underground development progressed well

Full year production guidance reiterated of upwards of 700,000 ounces with cost
guidance tightened to around US$740 and around US$1,100 per ounce sold, for
cash costs and AISC respectively (previously US$740-790 and US$1,100-1,175)



Financial Highlights

Cash position increased by US$17 million to stand at US$287 million at 30
September 2014

Revenue of US$241 million, 9% up on Q3 2013, as higher sales volumes more than
offset lower average realised gold prices

EBITDA1,3 of US$76 million, 17% higher than Q3 2013, due to increased revenue
and lower cash costs

Net earnings1,3 of US$28 million (US6.9 cents per share), 60% higher than Q3
2013

Operational cash flow of US$101 million (155% higher than Q3 2013), driven by
increased EBITDA and indirect tax refunds

Capital expenditure of US$81 million was in line with Q3 2013

Remain on track to exceed the planned US$185 million of cost savings as set out
in the Operational Review



                                                    Three months
                                                      ended 30       Nine months ended
                                                      September        30 September

(Unaudited)                                           2014   20132      2014     20132

Gold Production (ounces)                           190,986 164,429   537,567   471,627

Gold Sold (ounces)                                 178,490 161,061   509,437   475,430

Cash cost (US$/ounce)1                                 679     728       727       826

AISC (US$/ounce)1                                    1,098   1,270     1,111     1,411

Average realised gold price (US$/ounce)1             1,268   1,309     1,282     1,421

Revenue (US$'000)                                  240,878 220,042   686,387   707,402

EBITDA1,3 (US$'000)                                 75,835  64,769   207,456   195,541

Net earnings/(loss)3 (US$'000)                      28,444  17,830    69,266 (683,400)

Basic earnings/(loss) per share (EPS) (cents)3         6.9     4.3      16.9   (166.6)

Cash generated from operating activities (US$'000) 101,428  39,851   228,535   138,922

Capital expenditure4 (US$'000)                      81,251  81,291   195,995   246,100




1 These are non-IFRS measures. Refer to page 10 for definitions

2 2013 comparative amounts have been restated to exclude Tulawaka


    3 EBITDA and net earnings consist of earnings from both continuing and
discontinued operations

    4 Excludes non-cash reclamation asset adjustments and includes finance
lease purchases



Operational Review



Our continued delivery on the cost saving targets set out at the start of the
Operational Review is highlighted by a further reduction in Q3 2014 AISC versus
Q2 2014 and a 14% reduction from Q3 2013. In combination with a strong
production profile, we generated a further US$17 million of net cash during the
quarter and have now improved on our cash position from the beginning of the
year, notwithstanding our continuing investment in growth, dividends and in the
disposal of Tulawaka (together with its associated closure liabilities). We
remain on track to exceed the planned US$185 million of cost savings as set out
in the Operational Review by the end of 2014. Beyond this we continue to
anticipate a further reduction in our AISC as we see the benefits of further
business improvement initiatives being implemented throughout the business with
particular focus on mining and development efficiencies.



Board Changes



During the third quarter, Rick McCreary stepped down as Non-Executive Director
of the Company. The ABG Board now comprises ten Directors, including seven
Independent Non-Executive Directors, two Non-Executive Directors (nominees from
Barrick Gold Corporation) and one Executive Director.



Indirect Taxes



Further progress has been made with respect to the build-up of VAT, and the
Company received net refunds of US$14 million during the quarter. As a result,
as at 30 September 2014, the outstanding amount relating to the total indirect
tax receivable, not covered by the 2011 Memorandum of Settlement, stood at
US$51 million, roughly US$45 million lower than 31 December 2013.
Notwithstanding the significant progress made so far this year, we are
continuing discussions with the Tanzanian Government with respect to the
establishment of an appropriate mechanism to safeguard the recoverability of
VAT payments over the long term, specifically with respect to VAT paid on
domestic goods and services. We will provide feedback as these discussions
progress.



BulyanhuluCIL Expansion

During the quarter, we progressed the commissioning of the new CIL circuit at
Bulyanhulu and are nearing the completion of the commissioning stage. Some
initial issues were experienced with the elution circuit performance and
detoxification of the tailings, but these were largely resolved by the end of
the quarter.  At quarter end tonnes treated from the reclaimed tailings
reflected the designed levels. During the quarter, the new CIL circuit produced
5,097 ounces from 220,000 tonnes of reclaimed tailings.



GokonaUnderground



The study into the potential to transition the Gokona deposit at North Mara
from an open pit to an underground operation is advancing in line with
expectations. Progress to date underlines our confidence that the project will
generate positive returns and help sustain the current production profile of
the mine. During Q3 2014, work continued on the development of the exploration
portal with 48 metres of advancement achieved. Year to date we have spent
US$6.4 million of expansionary capital on the exploration portal out of the
previously communicated amount for the year of US$10 million.



Investor Day



ABG will be hosting an Investor Day in London, commencing at 09:00 GMT on 27
November 2014 to outline the Company's longer term strategy and outlook. The
day will be attended by ABG senior management and is primarily for research
analysts and institutional investors. Space at the event is limited; please
therefore register your interest in attending with Sarah Vethaak
[e-mail]. For those who cannot attend in person, the
presentations will be webcast through our website, with a recording available
after the event.



Outlook



As announced as part of the interim results, we continue to forecast production
for the year to be in excess of 700,000 ounces. We now anticipate full year
cash costs to be around US$740 per ounce sold (previously US$740-US790 per
ounce sold), and full year all-in sustaining costs around US$1,100 per ounce
sold (previously US$1,100-US$1,175 per ounce sold).



Key statistics - restated to reflect Tulawaka as a discontinued operation



                                             Three months
                                               ended 30       Nine months ended
                                               September        30 September

(Unaudited)                                    2014    20133     2014     20133

Tonnes mined (thousands of tonnes)           11,016   13,388   30,908    42,506

Ore tonnes mined (thousands of tonnes)        1,981    1,697    5,889     5,074

Ore tonnes processed (thousands of tonnes)    2,238    2,114    6,008     6,097

Process recovery rate (percent)               87.9%    88.3%    88.9%     88.7%

Head grade (grams per tonne)                    3.0      2.7      3.1       2.7

Gold production (ounces)                    190,986  164,429  537,567   471,627

Gold sold (ounces)                          178,490  161,061  509,437   475,430

Copper production (thousands of pounds)       4,531    2,838   10,961     8,422

Copper sold (thousands of pounds)             4,242    2,448    9,633     8,561

Cash cost per tonne milled (US$/t)¹              54       55       62        64

Per ounce data

     Average spot gold price2                 1,282    1,326    1,288     1,456

     Average realised gold price¹             1,268    1,309    1,282     1,421

     Total cash cost¹                           679      728      727       826

All-in sustaining cost¹                       1,098    1,270    1,111     1,411

Average realised copper price (US$/lb)         3.14     3.20     3.10      3.22




Financial results - restated to reflect Tulawaka as a discontinued operation

                                                      Three months ended     Nine months ended
                                                         30 September          30 September

(Unaudited, in US$'000 unless otherwise stated)            2014     20133        2014     20133

Continuing operations:

Revenue                                                 240,878   220,042     686,387   707,402

Cost of sales                                         (164,072) (157,303)   (496,546) (544,036)

Gross profit                                             76,806    62,739     189,841   163,366

Corporate administration                                (8,436)   (8,016)    (22,411)  (25,600)

Share based payments                                    (1,055)   (1,520)     (5,972)     2,341

Exploration and evaluation costs                        (2,958)   (3,232)    (13,953)  (10,948)

Corporate social responsibility expenses                (3,068)   (2,343)     (7,375)   (8,571)

Impairment charges                                            -         -           - (910,989)

Other charges4                                         (13,630)   (5,836)    (26,412)  (21,430)

Profit/(loss) before net finance expense and taxation    47,569    41,792     113,718 (811,831)

Finance income                                              309        77         939     1,072

Finance expense                                         (2,357)   (2,394)     (6,861)   (7,090)

Profit/(loss) before taxation                            45,611    39,475     107,796 (817,849)

Tax (expense)/credit                                   (17,167)  (15,921)    (39,883)   168,727

Net profit/(loss) from continuing operations             28,444    23,554      67,913 (649,122)

Discontinued operations:

Net (loss)/gain from discontinued operations                  -   (8,226)         886  (48,968)

Net profit/(loss) for the year                           28,444    15,328      68,799 (698,090)

Attributed to:

 Owners of the parent (net earnings)                     28,444    17,830      69,266 (683,400)

- Continuing operations                                  28,444    23,554      67,913 (649,122)

- Discontinued operations                                     -   (5,724)       1,353  (34,279)

 Non-controlling interests                                    -   (2,502)       (467)  (14,690)

- Discontinued operations                                     -   (2,502)       (467)  (14,690)




1 These are non-IFRS financial performance measures with no standard meaning
under IFRS. Refer to "Non IFRS measures"' on page 10 for definitions.

2 Reflect the London PM fix price.

3 Restated for the reclassification of Tulawaka as a discontinued operation.

4 Other charges is predominantly made up of US$4.5 million retrenchment costs,
US$3.5 million of non-cash net FX losses, US$2.5 million of non-cash derivative
losses and US$2.3 million of legal costs.



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



African Barrick Gold plc [phone]


Brad Gordon, Chief Executive Officer

Andrew Wray, Chief Financial Officer

Giles Blackham, Investor Relations Manager



Bell Pottinger [phone]


Daniel Thöle



About ABG

ABG is Tanzania's largest gold producer and one of the largest gold producers
in Africa. We have three producing mines, all located in Northwest Tanzania,
and several exploration projects at various stages of development in Tanzania
and Kenya. We have a high quality asset base, solid growth opportunities and a
clear strategy of optimising, expanding and growing our business.

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. Barrick Gold Corporation
remains 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 23 October 2014 at
09:30 London time.

The access details for the conference call are as follows:

Participant dial in:                [phone] / [phone]

Password:                             ABG

A recording of the conference call will be made available at
www.africanbarrickgold.com/investors/financial-reports/2014.aspx after the
call.



FORWARD- LOOKING STATEMENTS

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, projects, 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, many of which are beyond the control of ABG, which could cause
actual results and developments to differ materially from those expressed in,
or implied by, the forward-looking 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, changes or
developments in political, economic or business conditions or national or local
legislation or regulation in countries in which ABG conducts - or may in the
future conduct - business, industry trends, competition, fluctuations in the
spot and forward price of gold or certain other commodity prices (such as
copper and diesel), currency fluctuations (including the US dollar, South
African rand, Kenyan shilling and Tanzanian shilling exchange rates), ABG's
ability to successfully integrate acquisitions, 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 process its mineral reserves successfully and in a timely manner, ABG's
ability to complete land acquisitions required to support its mining
activities, operational or technical difficulties which may occur in the
context of mining activities, delays and technical challenges associated with
the completion of projects, risk of trespass, theft and vandalism, changes in
ABG's  business strategy including,  the ongoing implementation of Operational
Reviews, as well as risks and hazards associated with the business of mineral
exploration, development, mining and production and risks and factors affecting
the gold mining industry in general. Although ABG's management believes that
the expectations reflected in such forward-looking statements are reasonable,
ABG cannot give assurances that such statements will prove to be correct.
Accordingly, investors should not place reliance on forward-looking statements
contained in this report. Any forward-looking statements in this report only
reflect information available at the time of preparation. 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 update or revise any forward-looking statements in this report, whether as a
result of new information, future events or otherwise. Nothing in this report
should be construed as a profit forecast or estimate and no statement made
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.



Third Quarter Review

During the third quarter, we continued to see strong operational results, with
total production of 190,986 ounces, an increase of 16% on Q3 2013. Sales ounces
amounted to 178,490, 7% lower than production due to the timing of concentrate
and dore shipments at quarter end. We expect to sell these ounces in Q4 2014.

Bulyanhulu delivered a strong performance with production of 63,333 ounces, 21%
higher than Q3 2013 due to a 12% increase in head grade as a result of higher
mined grade given improved availability of high grade stopes. The new CIL plant
is in the final stages of commissioning and produced 5,097 ounces in Q3 2014.

At North Mara, gold production of 64,332 ounces was down 5% on Q3 2013 as
expected due to a lower mine grade. Throughput and recovery rates for Q3 2014
were in line with Q3 2013.

At Buzwagi, gold production for the quarter of 63,321 ounces was 43% higher
than in Q3 2013 driven by a 45% increase in head grade due to increased mine
grades from the main ore zone. Ore tonnes mined were 9% higher than in Q3 2013
due to previously communicated changes in the mine plan to focus on the main
ore zones. Recoveries increased significantly during the quarter to 94.8%
compared to 87.3% in the prior year period driven by the improved grade
together with process plant efficiencies.

Copper production for the quarter of 4.5 million pounds was 60% higher than in
Q3 2013 (2.8 million pounds), due to higher copper grades, mainly at
Bulyanhulu, and higher concentrate production, mainly at Buzwagi.

Total tonnes mined during the quarter amounted to 11.0 million tonnes, a
decrease of 18% on Q3 2013. Ore tonnes mined from open pits amounted to 1.7
million tonnes compared to 1.5 million in Q3 2013, driven by the increased
focus on mining ore at North Mara due to mine sequencing and at Buzwagi due to
the change in the mine plan.



Ore tonnes processed amounted to 2.2 million tonnes, an increase of 6% on Q3
2013 primarily driven by higher throughput at Bulyanhulu due to the
commissioning of the new CIL plant.

Head grade for the quarter of 3.0 grams per tonne (g/t) was 10% higher than in
Q3 2013 (2.7 g/t). This was due to the higher mined grade at Buzwagi as mining
focused on the main ore zone and at Bulyanhulu, due to improved availability of
high grade stopes.

Our cash costs for the quarter were 7% lower than in Q3 2013, and amounted to
US$679 per ounce sold. The decrease was primarily due to:

the impact of the increased production base (US$125/oz); and

the impact of a reduction in the international workforce (28% down on the same
period in 2013), slightly offset by some of these positions being filled by
national workers (US$17/oz).

This was partially offset by the following factors (US$95/oz):

increased maintenance costs driven by increased underground equipment
maintenance activity at Bulyanhulu;

increased contracted services at Bulyanhulu due to ore development work
performed by a contractor;

lower capitalised development costs at North Mara as a result of the revised
mine plan driving a lower strip ratio;

higher consumables costs at Bulyanhulu driven by increased mining and
processing activity.



AISC of US$1,098 per ounce sold for the quarter were 14% lower than Q3 2013,
predominantly due to lower cash costs as explained above, combined with lower
sustaining capital expenditure and capitalised development.



Capital expenditure for the quarter amounted to US$81.4 million compared to
US$81.3 million in Q3 2013. Capital expenditure mainly consisted of capitalised
development expenditure (US$41.8 million) relating to investment in the
Bulyanhulu CIL Expansion project (US$15.6 million), investments in tailings and
infrastructure (US$9.9 million), investment in the Gokona Underground project
at North Mara (US$5.4 million), investment in the Bulyanhulu Lower West project
(US$3.6 million) and component costs (US$3.5 million).

Cash flow from operations was US$101 million, compared to Q3 2013 of US$40
million. The increase primarily relates to increased EBITDA and favourable
working capital movements. The working capital inflow for Q3 2014 of US$23
million compared to an investment in working capital in Q3 2013 of US$36
million and was primarily driven by the timing of the settlement of payables
and a decrease in indirect tax receivables of US$14 million in Q3 2014.



The cash position increased during Q3 2014 by US$17 million to US$287 million
at 30 September 2014 (31 December 2013: $282 million), after the payment of
interim dividends of US$5.7 million and cash expansion capital expenditure of
US$25.7 million.



Mine Site Review

Bulyanhulu



Key statistics                             Three months
                                             ended 30        Nine months ended
Bulyanhulu                                   September          30 September

(Unaudited)                                   2014    2013       2014      2013

Key operational information:

Ounces produced                oz           63,333  52,126    168,753   145,100

Ounces sold                    oz           51,409  50,767    152,574   138,569

Cash cost per ounce sold       US$/oz          752     769        828       936

AISC per ounce sold            US$/oz        1,350   1,183      1,283     1,437

Copper production              Klbs          1,488   1,269      3,919     3,507

Copper sold                    Klbs          1,153   1,169      3,500     3,204

Underground ore tonnes hoisted Kt              236     232        664       650

Run-of-mine processing:

Ore milled                     Kt              236     228        661       642

Head grade                     g/t             8.8     7.8        8.6       7.7

Mill recovery                  %             87.1%   90.5%      89.9%     90.8%

Ounces produced                oz           58,236  52,126    163,383   145,100

Cash cost per tonne milled     US$/t           164     171        191       202

Reprocessed tailings:

Ore milled                     Kt              220       -        227         -

Head grade                     g/t             1.4       -        1.4         -

Mill recovery                  %             52.5%       -      53.8%         -

Ounces produced                oz            5,097       -      5,370         -

Capital Expenditure:

 - Sustaining capital          US$('000)     8,970   5,314     13,452    20,860

 - Capitalised development     US$('000)    17,527  10,576     45,941    34,678

 - Expansionary capital        US$('000)    15,907  20,910     41,738    73,331

                                            42,404  36,800    101,131   128,869

 - Non-cash reclamation asset
adjustments                    US$('000)   (2,399)   (831)      6,322  (10,039)

Total Capital Expenditure      US$('000)    40,005  35,969    107,453   118,830




Operating performance

Gold production of 63,333 ounces for the quarter was 21% higher than in Q3
2013, due to a 12% increase in head grade in the main plant driven by improved
availability of high grade stopes and the on-going commissioning of the CIL
plant which contributed 5,097 ounces. Gold ounces sold of 51,409 ounces were in
line with Q3 2013, but lower than production due to the timing of production at
the quarter end, impacting the timing of shipments. Recoveries were temporarily
lower during the quarter but returned to above 90% by the end of the quarter.
Copper production of 1.5 million pounds for the quarter was 17% higher than in
Q3 2013 due to higher throughput and a higher copper grade.

During the quarter, we progressed the commissioning of the new CIL circuit at
Bulyanhulu and are nearing the completion of the commissioning stage. Some
issues were experienced initially with the elution circuit performance and
detoxification of the tailings, but these have been largely resolved.  At
quarter end tonnes treated from the reclaimed tailings reflected the designed
levels.

During the quarter we incurred total development costs (expensed and
capitalised) at the Upper East and Lower West of US$1.3 million (US$6.0 million
YTD) and US$5.9 million (US$10.7 million YTD), respectively. In the Upper East
we commenced ore development as expected in August 2014 and in the Lower West
we continue to expect to access higher grade ore in Q4 2014. ABG expects that
the combined total development costs (expensed and capitalised) required to
develop the Upper East and Lower West in 2014 will be US$30 million, as
planned, which will be included in the Bulyanhulu and Group AISC figures.

Cash costs for the quarter of US$752 per ounce sold were 2% lower than the
prior year of US$769, and 18% lower than Q2 2014 due to the higher production
base and lower labour costs as a result of the 19% reduction in international
headcount. During the quarter, the mine commenced a right-sizing of the
workforce with a reduction of over 500 employees, predominantly through
voluntary severance packages. The cost benefits of this initiative will become
evident in Q4 2014.

AISC per ounce sold for the quarter of US$1,350 was 14% higher than in Q3 2013
(US$1,183) as a result of higher sustaining capital expenditure and capitalised
development as explained above.

Capital expenditure for the quarter of US$42.4 million was 15% higher than in
Q3 2013 of US$36.8 million. Capital expenditure consisted mainly of capitalised
underground development costs (US$17.5 million, inclusive of US$3.6 million of
Lower West spend) and expansionary capital investment relating to the CIL
circuit (US$15.6 million).

Buzwagi



Key statistics
                                      Three months ended 30     Nine months ended 30
Buzwagi                                     September                 September

(Unaudited)                                 2014         2013         2014        2013

Key operational
information:

Ounces produced            oz             63,321       44,408      165,665     130,154

Ounces sold                oz             65,641       40,599      158,083     136,966

Cash cost per ounce sold   US$/oz            645        1,012          782         946

AISC per ounce sold        US$/oz            950        1,436        1,078       1,582

Copper production          Klbs            3,043        1,569        7,042       4,915

Copper sold                Klbs            3,089        1,279        6,133       5,357

Mining information:

Tonnes mined               Kt              6,286        7,628       17,632      24,933

Ore tonnes mined           Kt              1,090        1,001        3,444       2,502

Processing information:

Ore milled                 Kt              1,054        1,165        3,034       3,455

Head grade                 g/t               2.0          1.4          1.8         1.3

Mill recovery              %               94.8%        87.3%        92.0%       87.9%

Cash cost per tonne milled US$/t              40           35           41          38

Capital Expenditure

 - Sustaining capital      US$('000)       2,816        6,623        8,592      27,280

 - Capitalised development US$('000)      13,441        7,986       28,598      49,324

                                          16,257       14,609       37,190      76,604

 - Non-cash reclamation
asset adjustments          US$('000)       (652)        (103)          187     (6,912)

Total Capital Expenditure  US$('000)      15,605       14,506       37,376      69,692




Operating performance

Gold production for the quarter of 63,321 ounces was 43% higher than in Q3
2013, driven by increased head grade as a result of mining at the main ore zone
at the end of the Stage 2 pit. Gold sold for the quarter amounted to 65,641
ounces, 62% above that of Q3 2013 due to the increased production base, and 4%
higher than production as a result of the sale of concentrate ounces on hand at
the end of Q2 2014.

Tonnes milled during the quarter were 10% lower than in Q3 2013 due to lower
throughput rates as a result of the timing of downtime relating to plant
maintenance. Recoveries increased by 9% over Q3 2013 as a result of increased
grade and business improvement initiatives providing improved blending and
management of the CIL plant's performance.

Total tonnes mined for the quarter of 6.3 million tonnes were 18% lower than in
Q3 2013 due to changes in the mine plan compared to 2013. Ore tonnes mined of
1.1 million tonnes were 9% higher than Q3 2013 for the same reason.

Copper production of 3.0 million pounds for the quarter was 94% higher than in
Q3 2013 driven by the increased concentrate production as a result of higher
copper grades processed.

Cash costs for the quarter of US$645 per ounce sold were 36% lower than in Q3
2013 (US$1,012). Cash costs were positively impacted by increased production
levels and resultant co-product revenue, savings in contracted services (lower
rates) and labour costs (47% reduction in the international workforce) and
increased capitalised development costs driven by a higher proportion of waste
material removed from Stages 2 and 3 of the open pit. This was partially offset
by higher maintenance costs due to increased maintenance activity and increased
sales related costs due to the higher sales volumes.

AISC per ounce sold for the quarter of US$950 was 34% lower than in Q3 2013
(US$1,436). This was driven by the lower cash cost base, higher production base
and lower sustaining capital.

Capital expenditure for the quarter of US$16.3 million was 11% higher than in
Q3 2013 (US$14.6 million). Key capital expenditure for the quarter included
capitalised stripping costs (US$13.4 million) as a result of the focus on waste
movement in Stage 3 of the pit, investments in tailings and infrastructure
(US$1.8 million) and component change out costs (US$0.7 million).



North Mara



Key statistics

                                      Three months ended 30     Nine months ended 30
North Mara                                  September                 September

(Unaudited)                                  2014        2013         2014        2013

Key operational
information:

Ounces produced            oz              64,332      67,895      203,148     196,373

Ounces sold                oz              61,440      69,695      198,780     199,895

Cash cost per ounce sold   US$/oz             655         532          606         667

AISC per ounce sold        US$/oz           1,015       1,199          961       1,274

Mining information:

Tonnes mined               Kt               4,494       5,528       12,612      16,923

Ore tonnes mined           Kt                 655         464        1,781       1,923

Processing information:

Ore milled                 Kt                 721         720        2,086       2,000

Head grade                 g/t                3.2         3.4          3.5         3.5

Mill recovery              %                87.2%       86.9%        87.3%       87.1%

Cash cost per tonne milled US$/t               56          52           58          67

Capital Expenditure:

 - Sustaining capital      US$('000)        4,994      10,862       13,082      34,824

 - Capitalised development US$('000)       10,834      23,026       36,226      51,943

 - Expansionary capital    US$('000)        6,544           -        7,522         504

                                           22,372      33,888       56,830      87,271

 - Non-cash reclamation
asset adjustments          US$('000)      (1,574)       (815)        3,784     (6,765)

Total Capital Expenditure  US$('000)       20,798      33,073       60,614      80,506




Operating performance



Production for the quarter of 64,332 ounces was 5% lower than in Q3 2013 due to
the lower head grade, as expected, reflecting the higher proportion of mining
from the Nyabirama pit at lower grades than the Gokona pit. Milled tonnes
exceeded mined tonnes as mined tonnes were blended with stockpiles. Gold ounces
sold for the quarter of 61,440 ounces were 4% lower than production due to the
timing of dore production at the quarter end impacting on the timing of sales.

Cash costs for the quarter of US$655 per ounce sold were 23% higher than in Q3
2013 (US$532). Cash costs were negatively impacted by lower production levels
and lower capitalisation of waste stripping costs, partly offset by the impact
of a 38% reduction in the international workforce, lower maintenance costs and
lower freight costs.

AISC per ounce sold for the quarter of US$1,015 was 15% lower than in Q3 2013
(US$1,199) due to lower sustaining capital and capitalised development
expenditure, partly offset by the higher cash costs and the lower production
base as outlined above.

Capital expenditure for the quarter of US$22.4 million was 34% lower than in Q3
2013 (US$33.9 million), due to lower capitalised stripping and lower sustaining
capital expenditure, slightly offset by increased expansionary expenditure. Key
capital expenditure included capitalised stripping costs (US$10.8 million),
investments in tailings and infrastructure (US$1.9 million) and component costs
(US$2.9 million). Expansion capital of US$6.5 million relates mainly to portal
development costs relating to the Gokona Underground feasibility study (US$5.4
million).

The study into the potential to transition the Gokona deposit at North Mara
from an open pit to an underground operation is advancing in line with
expectations. Progress to date underlines our confidence that the project will
generate positive returns and help sustain the current production profile of
the mine. During Q3 2014, work continued on the development of the exploration
portal with 48 metres of advancement achieved. Year to date we have spent
US$6.4 million of expansionary capital on the exploration portal out of the
previously communicated amount for the year of US$10 million.



Exploration Review



Bulyanhulu

During Q3 2014, a total of 2,218 metres of diamond core were drilled, which
completed this year's surface drilling programmes at Bulyanhulu. The drilling
was continuing to target potential resource extensions west of the currently
delineated resources on both Reef 1 and Reef 2 systems. Encouraging results
from the programme this quarter include the following significant
intersections:

BGMDD0054W5: 0.5m @ 13.5g/t Au from 1,839.5m - Reef 2 series

BGMDD0054W5: 0.5m @ 23.0g/t Au from 1,842.0m - Reef 2 series



BGMDD0054W6: 0.94m @ 14.3g/t Au from 355.6m - Reef 2 series

BGMDD0054W6: 0.50m @ 31.1g/t Au from 680.5m - Reef 2 series



BGMDD0056W2: 0.50m @ 15.9g/t Au from 892.5m - Reef 2 series

BGMDD0056W2: 2.25m @ 26.6g/t Au from 906.5m - Reef 2 series

BGMDD0056W2: 0.50m @ 26.3g/t Au from 944.0m - Reef 2 series

BGMDD0056W2: 0.70m @ 6.50g/t Au from 947.6m - Reef 2 series

BGMDD0056W2: 0.50m @ 16.7g/t Au from 1,168.1m - Reef 2 series

BGMDD0056W2: 1.25m @ 16.5g/t Au from 1,550.3m - Reef 1





The results from these holes demonstrate that gold mineralisation, particularly
on the Reef 2 vein system, continues up to 2 kilometres west of the currently
delineated mineable resources.  Therefore, there is potential to add further
resource ounces at Bulyanhulu on Reef 2, at relatively more shallow levels
(<1,000-1,600m) than Reef 1.

The intersection from Reef 1 has confirmed and extended the high-grade
mineralised zone that was intersected at the beginning of the drilling
programme.

The Bulyanhulu surface drilling programme has been completed with 9,721 metres
drilled year to date, with a programme total of 14,373 metres over 16 diamond
core holes.



West Kenya Joint Venture

Exploration activities in Kenya continue to focus on grassroots target
generation. The Aircore programme testing existing gold-in-soil anomalies along
the Liranda Corridor on the south side of the Kakamega Dome Camp was completed
with a total of 201 holes drilled for 6,948 metres during Q3 2014. Since 2013,
the total number of Aircore holes drilled along the Liranda Corridor is 1,209
holes for 46,595 metres. Better results during Q3 2014 included:



KDAC 0990: 27m @ 1.45 g/t Au from 12m Incl. 6m @ 3.72 g/t Au

KDAC 0998: 6m @ 3.20 g/t Au from 105m Incl. 3m @ 6.17 g/t Au

KDAC 1012: 3m @ 3.5 g/t Au from 30m

KDAC 1022: 21m @ 0.51 g/t Au from 18m Incl. 6m @ 1.15 g/t Au

KDAC 1331: 3m @ 2.66g/t Au from 15m



This Aircore program was highly successful with 363 holes returning anomalous
results (>0.1g/t Au), of which 106 holes intersected zones of >0.50g/t Au.

A programme of gradient and pole-dipole IP and resistivity across selected
gold-in-soil anomalies throughout the Lake Zone Camp in the central and western
areas of the project was completed. A total of 190 line kilometres of surveys
have now been completed. Thirteen pole-dipole IP targets showing distinct
resistivity and/or chargeability zones coincident with the gold-in-soil
anomalies have been delineated and will be considered as priority targets for
future drilling programmes.

A 5,000 metre diamond core drilling programme is planned for Q4 2014 to follow
up on the best significant Aircore intercepts in the Liranda Corridor. Two
diamond core holes are also planned for the Abimbo prospect, a high priority
anomaly in the Lake Zone camp with coincident IP, resistivity and
gold-in-soils.



Non-IFRS Measures



ABG has identified certain measures in this report that are not measures
defined under IFRS. Non-IFRS financial measures disclosed by management are
provided as additional information to investors in order to provide them with
an alternative method for assessing ABG's financial condition 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 gold price per ounce sold is a non-IFRS financial measure
which excludes from gold revenue:

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

Export duties.

Cash cost per ounce sold is a non-IFRS financial measure. Cash costs include
all costs absorbed into inventory, as well as royalties, 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 and corporate social
responsibility charges. Cash cost is calculated net of co-product revenue.

The presentation of these statistics in this manner allows ABG to monitor and
manage those factors that impact production costs on a monthly basis. Cash cost
per ounce sold is calculated by dividing the aggregate of these costs by gold
ounces sold. Cash costs and cash cost per ounce sold are calculated on a
consistent basis for the periods presented.

All-in sustaining cost (AISC) is a non-IFRS financial measure. The measure is
in accordance with the World Gold Council's guidance issued in June 2013. It is
calculated by taking cash cost per ounce sold and adding corporate
administration costs, reclamation and remediation costs for operating mines,
corporate social responsibility expenses, mine exploration and study costs,
capitalised stripping and underground development costs and sustaining capital
expenditure. This is then divided by the total ounces sold. A reconciliation
between cash cost per ounce sold and AISC is presented below:



(Unaudited)                 Three months ended 30 September 2014  Three months ended 30 September 2013

                                                      ABG Group                             ABG Group
                                       North           ongoing               North           ongoing
(US$/oz sold)               Bulyanhulu Mara  Buzwagi operations   Bulyanhulu Mara  Buzwagi operations

Cash cost per ounce sold           752   655     645         679         769   532   1,012         728

Corporate administration            62    44      39          47          57    31      47          50

Share based payments                 1   (0)       3           6           4     2       3           9

Rehabilitation                       9    20       4          11           6    22       9          14

Mine exploration                     6     3       1           3           3     8       2           5

CSR expenses                         5    22      11          17          11    22       3          15

Capitalised development            341   176     205         234         208   330     197         258

Sustaining capital                 174    95      43         101         125   252     163         190

Total continuing operations      1,350 1,015     950       1,098       1,183 1,199   1,436       1,270

Discontinued operations                                        -                                     5

Total                                                      1,098                                 1,275




(Unaudited)                 Nine months ended 30 September 2014  Nine months ended 30 September 2013

                                                     ABG Group                            ABG Group
                                       North          ongoing               North          ongoing
(US$/oz sold)               Bulyanhulu Mara  Buzwagi operations  Bulyanhulu Mara  Buzwagi operations

Cash cost per ounce sold           828   606     782        727         936   667     946        826

Corporate administration            48    37      38         44          74    38      54         54

Share based payments                 2     1       4         12         (0)   (1)     (1)        (5)

Rehabilitation                       8    19       6         12           8    30      18         20

Mine exploration                     3     2       1          2           4    13       2          7

CSR expenses                         5    17      12         14           7    27       4         18

Capitalised development            301   182     181        217         250   260     360        286

Sustaining capital                  88    97      54         83         158   240     199        205

Total continuing operations      1,283   961   1,078      1,111       1,437 1,274   1,582      1,411

Discontinued operations                                       -                                   18

Total                                                     1,111                                1,429




AISC is intended to provide additional information on the total sustaining cost
for each ounce sold, taking into account expenditure incurred in addition to
direct mining costs, depreciation and selling costs.

Cash cost per tonne milled 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 and
corporate social responsibility charges. Cash cost is calculated net of
co-product revenue. Cash cost per tonne milled is calculated by dividing the
aggregate of these costs by total tonnes milled.

EBITDA is a non-IFRS financial measure. ABG calculates EBITDA as net profit or
loss for the period excluding:

Income tax expense;

Finance expense;

Finance income;

Depreciation and amortisation;

Impairment charges of goodwill and other long-lived assets; and

Discontinued operations

EBITDA is intended to provide additional information to investors and analysts.
It does not have any standardised meaning prescribed by IFRS and should not be
considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS. EBITDA excludes the impact of cash costs of financing
activities and taxes, and the effects of changes in operating working capital
balances, and therefore is not necessarily indicative of operating profit or
cash flow from operations as determined under IFRS. Other companies may
calculate EBITDA differently.



EBIT is a non-IFRS financial measure and reflects EBITDA adjusted for
depreciation and amortisation and goodwill impairment charges.



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 includes open pit material plus underground ore tonnes
hoisted

Strip ratio - measures the ratio of 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

Run-of-mine processing - measures the ore tonnes processed from the main
underground mining activities at Bulyanhulu.

Reprocessed tailings - measures the tonnes processed through the new CIL
circuit from reclaimed tailing facilities at Bulyanhulu

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