Record earnings for Newmont in 2006 (February 22, 2007)

Vancouver – The worlds number two gold producer Newmont Mining (NMC-T, NEM-N) posted record net income of US$791 million (US$1.76 per share) in 2006 to top its previous years performance of US$322 million (US72 per share) by 146% despite seeing lower bullion sales.

Consolidated gold sales of 7.36 million oz. (5.9 million equity oz.) last year were almost 13% below that of 2005 but were offset by significantly higher prices for the yellow metal realized in 2006. The company saw an average gold sale price of US$599 per oz. in 2006, up more than 35% from the US$441 per oz. booked in 2005.

Like most other major miners, Newmont incurred a significant increase in operating costs over the year to average US$304 per oz. of gold versus US$237 per oz. in the prior 12 months.

During 2006, we brought the Phoenix and Leeville mines in Nevada and the Ahafo mine in Ghana into commercial production, boasted company chairman and CEO Wayne Murdy. We also continued development of the Boddington project in Australia, the power plant in Nevada and the gold mill at Yanacocha in Peru.

Despite commissioning of the new mines a near-term production drop is anticipated for the gold giant. For 2007, we expect equity gold sales to temporarily decline to between 5.2 and 5.6 million equity oz. before we begin to fully realize the benefits of our investments in Nevada, Ghana and Australia, forecasted Murdy.

Fighting the industry battle of declining grades and escalating costs, Newmont boosted its reserve base for a fifth straight year with 11.6 million oz. of gold moved to the reserve category last year by both exploration and acquisition. Proven and probable equity gold reserves stood at 93.9 million oz. at the end of 2006 at an average grade of about 1.2 grams gold per tonne. A US$500 per oz. gold price was used in last years reserve calculation, up from the US$400 per oz. factored in 2005.

With a majority of its mines open pit operations, the companys global average strip ratio inched up from 1.93-to-1 in 2005 to 2.08-to-1 last year.

Buoyed by its new Phoenix and Leeville mines, the companys flagship Nevada gold operations contributed over 2.4 million equity oz. to last years sales, up slightly from 2005s 2.3 million oz. Average annual operating costs in 2006 came in at US$403 per oz., a 21% increase over the previous years US$333 per oz.

The company also reports greater underground production from its Twin Creeks mine as well as increased access to additional open pit ore. Additionally, mining was completed at its Lone Tree operation in 2006.

Total gold sales from Newmonts 51.35%-owned Yanacocha operations in northern Peru fell by 756,000 oz. in 2006, about 23%, to 2.57 million oz. from the 3.39 million oz. sold in 2005. Latest annual operating costs increased 31% to US$193 per oz. from US$147 per oz. in the prior year.

As anticipated in the mining plan, average ore grade at the giant South American mining complex fell about 46% last year while ore mined and placed on the leach pads decreased 33%. The stripping ratio increased from 0.5-to-1 in late 2005 to 1.2-to-1 at the end of last year.

Newmonts Australia-New Zealand operations (the Tanami, Kalgoorlie, Jundee, Pajingo and Martha mines) saw gold output slip almost 16% in 2006 to 1.35 million oz. from 1.6 million oz. the previous year. A drop in ore mined led to decreased mill throughput with total operating costs of US$384 per oz. lodged last year, up from US$317 per oz. in 2005.

At the 45%-owned Batu Hijau mine in Indonesia (a joint venture with a Sumitomo subsidiary and the Indonesian company PT Pukuafu Indah) copper and gold sales declined 24% and 40% respectively. Copper output was slightly buoyed by higher mill throughput and increased grades in the fourth quarter however average gold grades dropped compared to the prior year.

Last years mining activities at the large copper-gold porphyry deposit generated metal sales of 425 million lbs. of copper (230 million equity lbs. to Newmont) and 435,300 oz. of gold (230,200 equity oz.) at operating costs of US71 per lb. and US$209 per oz. respectively.

With a production launch in mid-2006 at the Ahafo mine in Ghana, gold sales of 202,100 oz. were realized for the year at an operating cost of US$297 per oz. Country-wide power shortages due to low water levels at hydro-electric facilities negatively effected production prompting Newmont to install diesel generating units at the operation.

Metal output from the companys other operations (Kori Kollo in Bolivia, La Herradura in Mexico and Golden Giant in Canada) contributed to equity gold sales of 252,000 oz. in 2006, off from 325,000 oz. the year prior. Mining at Golden Giant was completed at the end of 2005 while the strip ratio at Kori Kollo increased over the year resulting in less ore placed on the leach pads.

Newmont realized a pre-tax net gain of about US$296 million in 2006 from the sale of its heavy oil project in northern Alberta and the Martabe project in Indonesia. Additionally, the gold major took to diversifying into the diamond sector with a US$152-million investment to acquire 40% interest in Shore Golds (SGF-T, SHGDF-O) Fort a la Corne joint venture in Saskatchewan.

The year also saw the Republic of Uzbekistan expropriate the companys 50% interest in the Zarafshan joint venture prompting a US$101 million pre-tax write off. Newmont is seeking compensation through international arbitration.

Construction of a 200 megawatt coal-fired power plant in Nevada was reported 37% complete at 2006 year-end. The project is estimated to have a capital cost of about US$630 million but is expected reduce operating costs for the companys operations in the state by about US$25 per oz.

Newmont also commenced construction of a gold mill at Yanacocha during the year expected to cost about US$260 million.

Development of its 66.7%-owned Boddington mine in Western Australia, with joint venture partner AngloGold Ashanti (AU-N, AGD-L, ANG-J) holding 33.3%, was on schedule at year-end at about one-fifth complete. Newmont expects its share of capital costs to come in at around US$1 billion for the operation anticipated to produce about one million oz. annually in its initial five years. The mine is projected to produce about 850,000 oz. per year over a more than 15-year mine life and will also produce significant by-product copper.

The company also expects a development decision for its Akyem project in Ghana by the end of 2007. The deposit hosts reserves of about 7.7 million contained equity oz. attributable to Newmont.

The quest to boost reserves saw exploration expenditures of US$170 million lodged in 2006, up from the US$147 million spent in 2005.

Shares of the gold major recently close around the US$47.70-level in New York Stock Exchange trading, about mid-point of its 52-week range of US$39.74-to-US$59.70.