Pangea Accepts Offer from Barrick

July 28, 2000

Pangea Accepts Offer from Barrick

Barrick Gold Corp. announced it successfully acquired more than 90% of Pangea Goldfields Inc. stock. Barrick, the second-largest gold producer in North America, made a $138 million cash offer for Pangea last month.

"We are pleased that Pangea shareholders have chosen so overwhelmingly to accept our offer," Randall Oliphant, president and CEO of Barrick, told Reuters. "The strategic acquisition of Pangea fits into our District Development Programme that is well underway in Tanzania." The acquisition of Pangea strengthens Barrick's position in Tanzania, where Pangea produces more than 3 million ounces of gold per year. Much of its operation in Tanzania is adjacent to Barrick's promising Bulyanhulu property, which will be in full production by mid-2001 and will produce more than 400,000 ounces of gold annually.

Barrick's cash offer for Pangea was (Canadian) $7 per Pangea share, which represents a 52% premium based on the June 27, 2000 closing price of C$4.60 on the Toronto Stock Exchange. The Pangea Board of Directors unanimously approved the Barrick offer in June.

- by Julia M. Duncan