Barrick submits formal offer for oil company

Barrick Gold has submitted a binding all cash offer of $6.75 per share for a total cost of $410 million to the Board of Directors of Cadence Energy. Barrick’s offer to acquire Cadence is an innovative response to energy cost challenges facing the mining industry. Cadence’s production is expected to provide a long term economic hedge of about one-quarter of Barrick’s annual direct oil consumption and a considerable portion of its natural gas consumption.

The offer is open for acceptance by the Board of Directors of Cadence until 6:00 p.m. (Calgary time) on Monday, July 21, 2008. Pursuant to Cadence’s existing arrangement agreement with Daylight Resources Trust and Daylight Energy, Daylight has the right to match Barrick’s offer. In the event that the Board of Directors of Cadence accepts Barrick’s offer and notifies Daylight of its decision by the close of business today, Daylight’s right to match Barrick’s offer will expire at 5 p.m. (Calgary time) on Monday, July 21. If Daylight does not match the Barrick offer during the right to match period, Barrick anticipates that the arrangement agreement with Daylight will be terminated, Cadence and Barrick will enter into a support agreement in the form attached to Barrick’s offer and Barrick will proceed as expeditiously as possible thereafter to make a formal take-over bid to acquire the Cadence shares at $6.75 per share in cash, on the terms and conditions of the support agreement.

Barrick’s offer represents a premium of 17.4% over the implied value of the Daylight offer, based on Daylight’s closing price on July 16, 2008.