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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Dwight Taylor who wrote (285)	12/22/1997 10:17:00 AM
From: Ron Everest	Respond to of 3558

News Release - Queenstake/Barrick JV in Peru Date: Mon, 22 Dec 1997 05:38:51 -0800 Subject: Stockwatch: Barrick Gold Corp - News Release Queenstake/Barrick JV in Peru Barrick Gold Corp ABX Shares issued 372,817,172 Dec 19 close $25.35 Mon 22 Dec 97 News Release See Queenstake Resources Ltd (QTR) News Release Mr James Mancuso reports Queenstake announces that a definitive agreement has been signed with Barrick Gold, through one of its subsidiaries, for a joint venture on Queenstake's properties in the northern Ancash District, Peru. As previously announced, Barrick has an option to finance US$4,500,000, by May 31 2001, to earn a 51% interest in 63 of Queenstake's properties totalling 53,800 hectares near and along trend with Barrick's Pierina orebody. Barrick has begun its first phase exploration program on the properties. Following completion of Barrick's earn-in, each party will have the option to finance its share of ongoing programs or dilute its interest to 30%, where if the program continues, the diluting party will be carried by the non-diluting party through to a positive decision to mine. If Barrick holds the majority interest at the time a decision to mine is made, with respect to a project, then Queenstake will have 60 days to notify Barrick that it desires Barrick to loan Queenstake all, or a portion, of its share of the development financing on terms similar to Barrick's. If either party is diluted to an interest of less than 12.0% it shall exchange that interest for the equivalent of a 2% net smelter return royalty in the properties or project. Provisions in the joint venture agreement will allow both parties to continue to maintain their interest on selected projects within the properties without having to dilute its interest in all the properties. The agreement also provides Queenstake with the opportunity to manage and advance smaller projects under certain conditions. Queenstake is pleased to be involved in Peru with Barrick, one of the world's premier gold mining companies. Barrick's knowledge of the geology and exploration potential of the Ancash trend, plus its upcoming development and production at Pierina make it a valuable partner. Terms of the joint venture are favourable in that either party may participate at approximately 50/50 if a viable deposit is discovered, and in case of a major discovery, Queenstake can elect to be carried through to a decision to mine. Queenstake looks forward to a long and successful relationship with Barrick.