Goldcorp Inc.

Goldcorp Inc.

May 12, 2006 10:18 ET

Goldcorp Completes Acquisition of Placer Assets From Barrick

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2006) - Goldcorp Inc. (TSX:G)(NYSE:GG) announced today that it has completed the acquisition of four Placer Dome mines and other agreed interests from Barrick Gold Corporation for approximately US$1.6 billion. The assets acquired include Placer Dome's former interests in the Campbell mine, the Porcupine and Musselwhite joint ventures in Ontario, as well as a 50% interest in the La Coipa gold/silver mine in Chile and a 40% interest in the Pueblo Viejo development project in the Dominican Republic. Goldcorp used a portion of its current cash balances and existing credit facilities to fund the acquisition.

The proceeds from the early exercise of Goldcorp's outstanding warrants (a maximum of approximately US$480 million if all warrants are exercised prior to June 9, 2006) will be used to repay credit facilities drawn down to fund the acquisition.

It is expected that this transaction will increase Goldcorp's 2006 annual gold production by approximately 50% and increase proven and probable gold reserves by 72%.

"We would like to welcome our new employees from the Campbell mine and the Musselwhite and Porcupine joint ventures in Canada, as well as those from the La Coipa mine in Chile. Over the past several months, we have worked closely with many of these people to ensure a successful transition from Placer," said Ian Telfer, President and CEO of Goldcorp. "We are a growing organization with talented people, great assets and many exciting opportunities to pursue."

Goldcorp is the world's lowest cost multi-million ounce gold producer. Annualized gold production in 2006 is expected to be approximately 2 million ounces at a cash cost of US$125 per ounce and the Company does not hedge its gold production.

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 each of Goldcorp Inc. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver and copper, 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, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, 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" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Goldcorp and Virginia, respectively, 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; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, silver and copper; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; 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, 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, 2005, available on, and Form 40-F for the year ended December 31, 2005 on file with the United States Securities and Exchange Commission in Washington, D.C. 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. Goldcorp does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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