Last updated on April 17, 2014 at 21:23 EDT

Agreement-in-principle announced on amendments to Pueblo Viejo Special Lease Agreement

May 8, 2013

VANCOUVER, May 8, 2013 /PRNewswire/ – GOLDCORP INC. (TSX: G, NYSE: GG) — announced that Barrick Gold Corporation (“Barrick”) today reported
that Pueblo Viejo Dominicana Corporation (“PVDC”) has reached an
agreement in principle with the Government of the Dominican Republic
concerning amendments to the Pueblo Viejo Special Lease Agreement
(SLA). The Pueblo Viejo mine is operated by PVDC, which is jointly
owned by Goldcorp (40%) and Barrick (60%).

The agreement in principle comes after eight months of constructive
discussions between PVDC and the Government of the Dominican Republic.
The agreement in principle preserves the economic value of the Pueblo
Viejo mine, while also addressing the fiscal objectives of the country,
in a way that will provide stability for both parties moving forward.

PVDC is one of the largest foreign investors in the Dominican Republic
and it is in the company’s long-term interest to support the economic
stability and development of the country, where Pueblo Viejo will be
operating for the next three decades.

If the proposed amendments are implemented and entered into force,
revenues to the Government of the Dominican Republic will be increased
and brought forward via a number of proposed changes. To achieve this
objective, amendments to the SLA, which will be mutually agreed upon by
the parties, could include items such as the following:

      1. Elimination of a 10% return embedded in the initial capital
         investment for the purposes of the NPI;
      2. An extension to the period over which PVDC will recover its
         capital investment;
      3. A delay of application of NPI deductions; and
      4. A reduction in depreciation rates

A graduated minimum tax will be established. The tax will be adjusted up
or down based on metal prices. The annual minimum tax rate will be
reset every three years and will be equivalent to 90% of the taxes that
would have been payable to PVDC over the same period. The details for
the implementation of the minimum tax are to be mutually determined by
the parties.

Based on the proposed amendments, it is anticipated there will be an
approximate 50/50 split of the expected cash flows from the mine
between PVDC and the Government over the years 2013-2016. This would
result in tax revenues to the Government of approximately $2.2 billion
over this period at a gold price of $1,600 per ounce.

The economic benefit of these changes over the life of the mine to the
Government of the Dominican Republic is approximately $1.5 billion (net
present value at 5% discount rate and $1,600 gold price assumption).

The proposed agreement includes the following broad parameters
consistent with the SLA:

        --  Corporate income tax rate of 25 percent
        --  Net smelter royalty (NSR) of 3.2 percent
        --  Net profits tax (NPI) of 28.75 percent

The proposed amendments are subject to negotiation of a Definitive
Agreement, which will require the approval of the Boards of Directors
of Goldcorp and Barrick along with the project lenders.  The Definitive
Agreement will also be subject to approval by the Congress of the
Dominican Republic.  The SLA will continue in full force and effect
according to its present terms unless and until the Definitive
Agreement is fully executed and approved.

The Government of the Dominican Republic has also reiterated its
commitment to facilitating the timely granting of permits and other
requirements necessary for ongoing operations at Pueblo Viejo.

Pueblo Viejo is a world-class, low-cost mine and is expected to
contribute an average of between 415,000 to 450,000 ounces of gold per
year to Goldcorp’s account in its first full five years of production.
For 2013, gold production is expected to be between 330,000 to 435,000
ounces to Goldcorp’s account.

Goldcorp is one of the world’s fastest growing senior gold producers. 
Its low-cost gold production is located in safe jurisdictions in the
Americas and remains 100% unhedged.

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward-looking statements”, within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Goldcorp Inc. (“Goldcorp”). Forward-looking statements include, but are
not limited to, statements with respect to the future price of gold,
silver, copper, lead and zinc, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, hedging
practices, currency exchange rate fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, timing and
possible outcome of pending litigation, title disputes or claims and
limitations on insurance coverage.  Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as “plans”, “expects”, “is expected”,  “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, “believes” or
variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or “will be
taken”, “occur” or “be achieved” or the negative connotation thereof.

Forward-looking statements are made based upon certain assumptions and
other important factors that, if untrue, could cause the actual
results, performances or achievements of Goldcorp to be materially
different from future results, performances or achievements expressed
or implied by such statements.  Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Goldcorp will operate in the
future, including the price of gold, anticipated costs and ability to
achieve goals. Certain important factors that could cause actual
results, performances or achievements to differ materially from those
in the forward-looking statements include, among others, gold price
volatility, discrepancies between actual and estimated production,
mineral reserves and resources and metallurgical recoveries, mining
operational and development risks, litigation risks, regulatory
restrictions (including environmental regulatory restrictions and
liability), activities by governmental authorities (including changes
in taxation), currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements and defective title to mineral claims or property. 
Although Goldcorp has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended.

Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results, level of activity, performance or achievements of Goldcorp to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related
to the integration of acquisitions; risks related to international
operations, including economic and political instability in foreign
jurisdictions in which Goldcorp operates; risks related to current
global financial conditions; risks related to joint venture operations;
actual results of current exploration activities; environmental risks;
future prices of gold, silver, copper, lead and zinc; possible
variations in ore reserves, grade or recovery rates; mine development
and operating risks; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; risks related to indebtedness and the service of such
indebtedness, as well as those factors discussed in the section
entitled “Description of the Business – Risk Factors” in Goldcorp’s
annual information form for the year ended December 31, 2012 available at www.sedar.com.  Although Goldcorp has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended.  There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements.  Accordingly, readers should not place
undue reliance on forward-looking statements.  Forward-looking
statements are made as of the date hereof and accordingly are subject
to change after such date.  Except as otherwise indicated by Goldcorp,
these statements do not reflect the potential impact of any
non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations or
other transactions that may be announced or that may occur after the
date hereof.  Forward-looking statements are provided for the purpose
of providing information about management’s current expectations and
plans and allowing investors and others to get a better understanding
of our operating environment. Goldcorp does not undertake to update any
forward-looking statements that are included in this document, except
in accordance with applicable securities laws.

SOURCE Goldcorp Inc.

Source: PR Newswire