THE FUTURE

Leadership is also about setting the right goals and putting the right people in place to achieve those goals. The status quo is not acceptable. We must continue to grow profitable production in order to deliver the performance and benefits our stakeholders expect.

We are confident in our future, but if we want to maintain our leadership position, we must continue to attract, develop, motivate and reward the best people. Over the next three years, we are building new mines in Nevada and Ghana that will have a combined output of over 1.7 million equity ounces of gold per year. Capital costs for these projects are expected to be in the $1.2 billion to $1.3 billion range. The challenges of building and operating mines in West Africa, South America, Asia, Australia and North America are significant, but the opportunities are tremendous. Therefore, in order to continue to succeed and grow, we must continue to increase our capabilities. We introduced a successful global cross-training program to develop the technical skills of local employees and share best practices across the organization, and we also augmented our college recruiting and internship programs.

Pierre Lassonde, President, on the far right, visits an exploration project in Suriname. From left to right are employees Daven Mashburn, Russell Evans, Stephen Enders and Chris Anderson.

RECOGNITION

Finally, leadership is about being able to give credit where credit is due. To our fellow employees, we would like to recognize and thank you for your unwavering support, dedication and commitment to building a great Company. Your commitment to excellence led to the receipt of several noteworthy awards and distinctions during 2004, including the Gold Company of the Year awarded by the Australian Gold Council.

To our suppliers worldwide, we value your dedication. To our investors, who believe that gold is the ultimate reserve currency and believe in our Company’s ability to “Create Value With Every Ounce,” we appreciate your continuing support. Finally, we thank our directors who have, over the years, provided sound guidance on, and leadership in, corporate governance.

Sincerely,

Wayne W. Murdy Chairman and Chief Executive Officer March 15, 2005	Pierre Lassonde President