Placer Dome Inc.
TSX : PDG
NYSE : PDG
ASX : PDG

Placer Dome Inc.

February 23, 2005 19:29 ET

Placer Dome earns $284 million in 2004

(United States ("U.S.") dollars, in accordance with U.S. generally accepted accounting principles ("GAAP"))

VANCOUVER, Feb. 23 - Placer Dome Inc.(1) (NYSE, TSX, ASX: PDG)
today announces 24% growth in earnings in 2004 to $284 million, or $0.68 per
share, and 27% growth in cash from operations to $376 million, or $0.90 per
share. 2004 earnings were impacted by a number of tax items resulting in a net
tax recovery of $130 million.

Sales revenue increased 7% to $1.89 billion on gold production of
3.65 million ounces and copper production of 413 million pounds. Gold cash and
total costs were $240 and $298 per ounce, respectively, while copper cash and
total costs were $0.55 and $0.70 per pound, respectively. Mine operating
earnings increased 19% to $484 million.

For the fourth quarter, gold production totalled 927,000 ounces and
copper production was 93.4 million pounds. Sales revenue in the quarter was
$460 million, while mine operating earnings were $78 million. Net earnings
totalled $39 million, or $0.09 per share and cash from operations was
$44 million, or $0.10 per share. Cash and total costs in the fourth quarter
were $264 and $330 per ounce for gold and $0.64 and $0.82 per pound for
copper, respectively.

Both the fourth quarter and full-year 2004 earnings were impacted by
non-cash write-downs and tax items as described in the Detailed Review of
Financial Results section of this document.

Commenting on the results, President and CEO Peter Tomsett said, "The
operating results met our expectations. Overall, our assets continue to
perform well as we exceeded both our gold and copper production targets. Cost
pressures on the industry remain a reality. We have taken steps to mitigate
the impact on our business of further strengthening of the Canadian and
Australian dollars."

Under Placer Dome's precious metals sales program, the company realized
an average price of $391 per ounce of gold in 2004, $18 per ounce below the
average spot price during the year. In the fourth quarter the company realized
$398 per ounce compared to an average gold spot price of $434. During 2004,
Placer Dome reduced the maximum committed ounces under its gold sales program
by 1.5 million ounces to 9.0 million ounces or 15% of 2004 year-end gold
mineral reserves. To mitigate the impacts of strengthening currencies, the
company has protected approximately 50% of its 2005 Canadian and Australian
dollar cost exposures through a purchase call program that augmented existing
Australian dollar hedge positions.

-----------------------------
(1) Throughout this document, "Placer Dome" is defined to be collectively
Placer Dome Inc., its consolidated subsidiaries and its proportionate
share of unincorporated joint venture interests. "Placer Dome's
share" and "the Corporation's share" are defined to include the
proportionate share of results of incorporated joint ventures and
exclude minority shareholders' interests. "The Corporation" and "the
company" refer to Placer Dome Inc.

<<

Highlights -------------------------------------------
Fourth quarter Twelve months
-------------------------------------------
2004(2) 2003(2,3) 2004(2) 2003(2,3)
-------------------------------------------------------------------------
Sales ($millions) 460 492 1,888 1,763
Mine operating earnings
($millions) 78 128 484 406
Net earnings ($millions) 39 81 284 229
per share ($)(4) 0.09 0.20 0.68 0.56
Cash from operations ($millions) 44 29 376 297
per share ($) 0.10 0.06 0.90 0.73
-------------------------------------------------------------------------
Gold production (000s ozs) 927 1,039 3,652 3,861
Cash costs ($/oz)(4) 264 229 240 218
Total costs ($/oz)(4) 330 284 298 274
-------------------------------------------------------------------------
Copper production (millions lbs) 93 111 413 425
Cash costs ($/lb)(4) 0.64 0.53 0.55 0.52
Total costs ($/lb)(4) 0.82 0.67 0.70 0.67
-------------------------------------------------------------------------

Consistent with its strategy of optimizing assets, the company completed
development projects at a number of mines, including completion of the South
Deep shaft project, the North Mara mill expansion in Tanzania and the
Turquoise Ridge mine in Nevada. Additionally, production at the Golden
Sunlight and Bald Mountain mines will ramp up in the year as stripping
programs at each site are completed. In addition to the Pamour and Raleigh
developments in progress, the company approved the $40 million development of
the open pit Gokona deposit at the North Mara mine in Tanzania. The Gokona
deposit hosts approximately two million ounces of gold mineral reserves. Ore
from the deposit is expected to be delivered to the mill in November of this
year.

Mr. Tomsett said significant progress was made in 2004 on advancing the
company's development projects. "The Cortez Hills deposit in Nevada entered
the feasibility stage due to successful exploration results during the year.
The pre-feasibility study of the Pueblo Viejo project in the Dominican
Republic has been completed and we are moving ahead with a feasibility study
on the mine. The Cerro Casale project in Chile has advanced to a stage where
financeability is being considered. Subject to Placer Dome's internal approval
processes, we expect to make a decision on whether to develop each of these
projects by the end of 2005."

Placer Dome's estimated proven and probable mineral reserves at the end
of 2004 were 59.9 million ounces of gold (refer to the Mineral Reserves and
Mineral Resources tables for further details). The additions prior to
allowance for depletion during the year were primarily due to additional
mineral reserve discoveries and reclassification at Cortez, including Cortez
Hills, and increases at other mines, including Porgera, Porcupine, North Mara
and Bald Mountain. The mineral reserve increases were partially offset by
mineral reserve decreases at South Deep, Turquoise Ridge and Granny Smith
primarily due to increased costs and resulting higher cut-off grades and
remodeling. Gold reserves were estimated at a long-term price of $350 per
ounce. Proven and probable copper mineral reserves totalled 6.5 billion pounds
at the end of 2004.

-----------------------------
(2) During the second quarter of 2004, Placer Dome changed its accounting
policy, retroactive to January 1, 2004, with respect to deferred
stripping to exclude the recording of liabilities on the balance
sheet. The cumulative effect of this change through December 31,
2003, was to increase earnings on an after tax basis by $4 million
($0.01 per share).
(3) Also during the second quarter of 2004, Placer Dome changed its
accounting policy, prospectively from April 1, 2004, with respect to
mineral rights to reclassify them from intangible to tangible assets.
Due to this change in accounting policy, Placer Dome has ceased
amortization of the excess of the carrying value over the estimated
residual value of these assets and accounts for them according to its
accounting policy for property, plant and equipment. If this change
had been adopted January 1, 2003, it would have increased Placer
Dome's earnings on a pre and after tax basis in the following
periods: for 2003 by $10 million ($0.02 per share) and $7 million
($0.02 per share), respectively; for the fourth quarter of 2003 by
3 million ($0.01 per share) and 2 million ($nil per share),
respectively, and for the first quarter of 2004 by $3 million ($0.01
per share) and $2 million (nil per share), respectively.
(4) Cash from operations per share and cash and total production costs
per ounce and pound are non-GAAP measures that do not have any
standardized meaning as prescribed by GAAP and are therefore unlikely
to be comparable to similar measures presented by other entities.
Please refer to the Non-GAAP Measures section for further detail.

During the fourth quarter the company raised $452 million through a
successful equity offering. Placer Dome closed the year in a strong liquidity
position having over $1 billion in cash and short-term investments.

Exploration and Development Projects(5)

The Cortez Hills project on the 60% owned Cortez Joint Venture property
in Nevada encompasses a high-grade open pit exploration discovery made in
2003, combined with an adjacent lower grade deposit known as the Pediment
deposit.

Exploration activities continued throughout the year, with a feasibility
study on the project commencing in the third quarter of 2004. More than
150 holes were drilled in 2004 of which about 60% were targeted at resource
definition, 30% at resource expansion and 10% at condemnation drilling to
allow for planning of infrastructure sites. Exploration during the year was
successful in further defining a steeply dipping high-grade deposit amenable
to open pit mining and has identified a shallow dipping, high-grade mineral
resource that will be investigated for mining with underground techniques. The
open-pit portion of the deposit is sufficiently defined to allow for
feasibility study work to be completed on the deposit. The deposit remains
open at depth to the west.

At December 31, 2004 Placer Dome's share of the Cortez Hills proven and
probable gold mineral reserve was 4.4 million ounces consisting of 3.4 million
ounces proven (20.2 million tonnes at average grade of 5.25 g/t) and
1.0 million ounces probable (8.5 million tonnes at average grade of 3.50 g/t),
an increase of 1.2 million ounces from year-end 2003. The mineral reserve
estimate is reduced slightly from mid-year as geotechnical work has resulted
in a flattening of some of the pit wall angles leading to a shallower open
pit. A portion of the mineral reserves have been reclassified as mineral
resources. Geotechnical work will continue in the first half of 2005 and will
include assessing the potential for steepening pit walls. The potential to
extract pit bottom mineral resources from underground will also be assessed at
a later date.

The feasibility study on the deposit is scheduled for completion during
the second half of the year and is examining, among other issues, optimal
mining configurations, transportation of ore to the Pipeline mill and the
merits of expanding the Pipeline mill.

Development and condemnation drilling will continue as part of the Cortez
Hills/Pediment development. Limited exploration on the Cortez Hills deposit
will occur in 2005. Placer Dome has budgeted more than $8 million in 2005 for
continued feasibility study work on Cortez Hills/Pediment. As part of the
exploration of the overall deposit, the joint venture is examining the merits
of driving an exploration drift from a nearby existing Cortez open pit to
allow for more effective exploration of underground targets. A decision on
this issue is expected in the third quarter of 2005.

The Pueblo Viejo project is assessing the viability of mining a
15 million ounce refractory gold mineral resource from an historic mining area
in the Dominican Republic. Placer Dome acquired 100% of the project through an
agreement with the Dominican government in 2002.

Placer Dome has completed a pre-feasibility study on the Pueblo Viejo
property that contemplates a conventional open pit mining operation, sourcing
ore from the Monte Negro and the Moore deposits. The processing circuit
selected for the study consists of a standard crushing and grinding circuit
followed by whole ore pressure oxidation with a conventional carbon-in-leach
cyanide leach circuit to recover the gold. The processing plant capacity is
anticipated at approximately 15,000 tonnes per day. Capital costs for the mine
are estimated at between $800 million and $850 million, including a 15%
contingency of approximately $100 million.

Production from the mine is estimated at approximately 800,000 ounces of
gold annually over the first six years of the mine life, and between 600,000
and 650,000 ounces per year over a 17-year mine life. Cash costs are estimated
to average approximately $200 per ounce over the life of the mine, including
royalties payable to the Dominican government.

-----------------------------
(5) The qualified person responsible for scientific or technical
information concerning development projects is Alfred L. Hills,
P.Eng., Vice-President, Evaluations. Mineral resources that have not
been classified as mineral reserves do not have demonstrated economic
viability.

Cash costs are estimated to average approximately $200 per ounce over the
life of the mine, including royalties payable to the Dominican government.

Placer Dome is moving the project to feasibility study with completion
expected in the second half of 2005. Power supply is a key issue that remains
to be fully addressed during the feasibility study. Power costs used in the
pre-feasibility study were based on an owned coal-fired power plant being
constructed near existing power facilities on the south coast of the country.
The capital cost to build a 125 megawatt power plant is estimated at
$175 million to $200 million and is not included in the above capital cost
estimate. A number of owned and third party alternatives for power supply are
being studied.

The Cerro Casale project contemplates mining a large gold-copper porphyry
deposit in the Andean highlands in Chile. Cerro Casale is one of the world's
largest undeveloped gold and copper deposits, owned indirectly by Placer Dome
(51%), Bema Gold Corporation (24%) and Arizona Star Resource Corp. (25%).
Placer Dome acquired its interest in 1998 for a cash payment, funding of a
feasibility study and the commitment to fund up to $1.3 billion for
construction of the mine. Placer Dome completed a feasibility study on the
project in 2000. At the time the project was not economic. The feasibility
study was updated for then contemporary capital and operating cost estimates
in early 2004.

Placer Dome issued a certificate to its partners in late September 2004
indicating that it had commenced or is continuing to use reasonable efforts to
arrange financing for the project on commercially reasonable and customary
terms in accordance with the financing requirements of the shareholders'
agreement. Subject to the terms of the shareholders' agreement, Placer Dome
has until the end of 2005 to arrange such financing.

Since that time, the focus of efforts has been on the commercial
arrangements for the project. These specifically include the above referenced
financing, power supply contracts and off take arrangements. A technical
review of the project is also under way, examining optimization opportunities.
Additionally, the capital and operating costs for the project are being
reviewed to assess any impact of continued cost inflation.

Placer Dome's share of Cerro Casale's estimated measured and indicated
mineral resources is 13.0 million ounces of gold and 3.3 billion pounds of
copper. The project contemplates a large-scale open pit mine that could
produce (Placer Dome's share) approximately 500,000 ounces of gold and
65,000 tonnes of copper per year over an 18-year mine life.

Based on work completed in January 2004, capital costs for the project
were estimated at $1.65 billion, on a 100% basis. Assuming a copper price of
$0.95 per pound, Cerro Casale's cash costs were projected at approximately
$115 per ounce of gold (net of copper credits). Total costs, including
amortization and depreciation of capital, were projected at approximately
$225 per ounce.

The Donlin Creek project contemplates an open pit operation mining a
large refractory gold deposit in southwest Alaska. Placer Dome owns 30% of the
project and is earning an additional 40% by funding $32 million of exploration
and development, completing a feasibility study, and making a decision to
build a mine to produce at least 600,000 ounces of gold per year (on a 100%
basis). Placer Dome's share of the project's measured and indicated gold
mineral resource and inferred gold mineral resource, assuming 70% ownership,
is 7.8 million ounces and 10.0 million ounces, respectively.

Work in 2004 consisted of a preliminary assessment on the viability and
economics of the project. Based on this work, Placer Dome is committing
$11 million to the development of the project in 2005. About half of the funds
will be used for drilling to reclassify a portion of the inferred gold mineral
resource to a measured and indicated gold mineral resource. Work on design
concepts, infrastructure planning, power supply and geotechnical requirements
are also ongoing. Baseline environmental studies are being completed in order
to commence the permitting process later this year.

In north-central British Columbia, a pre-feasibility study is expected to
commence shortly on the Mount Milligan project, a large gold-copper porphyry
deposit containing estimated measured and indicated mineral resources of
5.6 million ounces of gold and 1.7 billion pounds of copper (refer to the
Mineral Resources - Exploration and Development Properties table in this
document for further details). During 2005, the focus of activities will
include additional conventional metallurgical test work and an investigation
of new concentrate processing options. A decision will be made in 2005 on
whether a feasibility study is warranted.

Outlook for 2005

Placer Dome's share of gold production in 2005 is expected to total
approximately 3.7 million ounces, slightly above 2004 levels as the resumption
of milling at Golden Sunlight and increased production from North Mara and
Granny Smith are expected to offset lower production from Cortez. Cash costs
for gold are forecast between $250 and $260 per ounce, and total costs are
expected to be in the $315 to $325 per ounce range, assuming prevailing
foreign exchange rates, energy costs and other input costs.

Copper production for 2005 is expected to be 410 to 420 million pounds,
lower than previous 2005 production guidance of 430 million pounds, but in
line with 2004 levels as higher recoveries at Zaldivar are expected to offset
decreased production at Osborne. Cash costs are expected to be in the range of
$0.60 to $0.65 per pound, and total costs are forecast at $0.75 to $0.80 per
pound assuming prevailing foreign exchange rates and continuing high input and
shipping costs.

Consolidated capital expenditures, including pre-stripping, are
anticipated to be approximately $260 million in 2005. Major investments
include $40 million at North Mara for the Gokona Pit development, $24 million
at Cortez for mobile equipment and further development of Cortez Hills,
$15 million at Porcupine for the continued development of the Pamour open pit
mine and underground development at the Hoyle Pond mine, $11 million at South
Deep for underground development and infrastructure, $8 million at Kanowna
Belle for mine development and $7 million for development at Osborne. In
addition, Placer Dome's share of deferred stripping expenditures in 2005 is
anticipated to be approximately $35 million.

Exploration expenditures in 2005 are anticipated to be approximately
$90 million, up from $77 million in 2004. About $60 million of this total will
be allocated to exploration activities within an economic radius of existing
mine sites, with the highest spending levels at Cortez, Campbell, Kanowna
Belle, Kalgoorlie West, North Mara and Granny Smith.

Placer Dome also plans to spend approximately $55 million in 2005 on
resource development, technology advancement, gold marketing and other related
items. The largest component, $23 million, relates to its development project
portfolio. Before allowance for non-cash stock-based compensation,
expenditures on general and administrative items are forecast to be
approximately $72 million in 2005, up from $64 million in 2004 due to the
continued strength of currencies against the U.S. dollar and additional
information technology support expenditures.

In 2005, Placer Dome expects to reduce the committed ounce position of
its precious metals sales program to 7.5 million ounces of gold by delivering
into maturing contracts.

Detailed Review of Financial Results

Earnings

Consolidated net earnings for the year and three months ended December
31, 2004 were $284 million or $0.68 per share and $39 million or $0.09 per
share, respectively, compared with earnings of $229 million or $0.56 per share
and $81 million or $0.20 per share for the same periods in 2003.

In 2004, net earnings included a non-cash $34 million foreign currency
translation loss relating to the closure of the Misima mine, and a write-down
of mining assets and restructuring charges totalling $14 million after-tax. In
2004, Placer Dome's net earnings were impacted by an unrealized non-hedge
derivative loss of $7 million (2003 - gain of $30 million and 2002 - gain of
$8 million). Net earnings for 2004 were increased by a non-cash after-tax
adjustment of $4 million as a result of a change in accounting policy with
respect to deferred stripping to exclude the recording of liabilities on the
balance sheet. The 2003 net earnings included a non-cash decrease in after-tax
earnings of $17 million, the effect of the adoption of a new accounting
standard relating to accounting for post-mining related asset retirement
obligations. Net earnings for 2002 included a non-cash after-tax charge of
$8 million as a result of a change in accounting policy with respect to
depreciation and depletion of property, plant and equipment at certain mining
operations to exclude the effect of future estimated mining and development
costs.

During the third quarter of 2004, Placer Dome recognized an after-tax
gain of $76 million relating to the reversal of a previously accrued tax and
interest liability for Ontario mining taxes as a result of a decision by the
Ontario Court of Appeal which ruled in favour of Placer Dome. Also during
2004, earnings were favourably impacted by the recognition of an $88 million
non-cash tax gain primarily for previously unrecorded tax benefits in
Australia, an amount that is estimated more likely than not to be realized
beyond 2004. These adjustments primarily reflect a more positive operational
outlook in Australia and Papua New Guinea including an improved gold price
environment. During 2004 the Canadian dollar appreciated 8% against the
U.S. dollar resulting in an increase in the net Canadian deferred tax assets
and a deferred tax recovery of $19 million. Placer Dome's net earnings for
2003 were positively impacted by the recognition in the second and fourth
quarters of a non-cash tax asset totalling $111 million for previously
unrecorded tax benefits related to its U.S. operations, an amount that is
estimated more likely than not to be realized beyond 2003. The recognition
reflected a more positive outlook for Placer Dome's U.S. operations including
an improved gold price environment. This was partially offset by non-cash
foreign exchange losses on deferred tax liabilities denominated in foreign
currencies which appreciated against the U.S. dollar during 2003 and the
recording of provisions for known tax contingencies where, in the judgment of
the Corporation, it was probable that a liability had been incurred.

During the fourth quarter of 2004, certain tax issues were resolved
favourably, resulting in reductions in accruals for tax contingencies for a
net reduction in tax expense of $13 million. As well, during the fourth
quarter the Australian and Canadian dollars strengthened 9% and 5%,
respectively against the U.S. dollar resulting in a net deferred tax asset
increase and deferred tax recovery of $19 million. Net earnings for the fourth
quarter of 2003 were positively impacted by the recognition of a $72 million
non-cash tax asset for previously unrecorded tax benefits related to Placer
Dome's U.S. operations, an amount that is estimated more likely than not to be
realized beyond 2003. The recognition reflected a more positive outlook for
Placer Dome's U.S. operations, including an improved gold price environment.
This was partially offset by non-cash foreign exchange losses on deferred tax
liabilities denominated in foreign currencies which appreciated against the
U.S. dollar during 2003, and the recording of provisions for known tax
contingencies where, in the judgment of the Corporation, it was probable that
a liability had been incurred.

In the fourth quarter of 2004, a write-down of mining assets and
restructuring charges totalled $14 million ($10 million after tax). Mine asset
write-downs of $11 million were primarily the result of obsolescence due to
technological changes. Restructuring charges of $3 million were incurred,
primarily related to the South Deep mine, due to a restructuring and reduction
in the work force.

Cash from Operations

Cash from operations for the year and three months ended December 31,
2004 were $376 million and $44 million, respectively, compared with
$297 million and $29 million for the same periods in 2003. The increase for
the year of 27% from 2003 primarily reflected higher cash mine operating
earnings, partially offset by increased expenditures on deferred stripping,
and non-mine operating costs (including exploration and resource development,
technology and other). The increase for the fourth quarter of 52% from 2003
primarily relates to changes in working capital, partially offset by lower
cash mine operating earnings, higher general and administrative and
exploration costs.

Forward Sales

Under Placer Dome's precious metals sales program, the Corporation
realized an average price of $391 per ounce of gold in 2004, and $398 per
ounce in the fourth quarter of 2004, $18 and $36 per ounce, respectively,
below the average spot price during the periods. During 2004, Placer Dome
reduced the maximum committed ounces under its gold sales program by
1.5 million ounces to 9.0 million ounces. At December 31, 2004, Placer Dome's
maximum committed ounces under its gold sales program were 15% of 2004
year-end gold mineral reserves. On December 31, 2004, based on the closing
spot price of gold of $438 per ounce and an Australian and Canadian to U.S.
dollar exchange rate of $1.2814 and $1.2036, respectively, the mark-to-market
value of the precious metals sales and derivative program was negative
$775 million. For the copper sales and currency derivative programs, the mark-
to-market of forward and option contracts on December 31, 2004, was negative
$38 million (based on a spot copper price of $1.488 per pound) and positive
$51 million (based on an AUD/USD foreign exchange rate of 1.2814 and a
Canadian to U.S. dollar foreign exchange rate of 1.2036), respectively.

Other Income Statement Items

Costs related to general and administrative, exploration, technology,
resource development and other totalled $204 million and $63 million in the
year and three-month periods ended December 31, 2004, respectively, an
increase of $13 million and $17 million from the prior comparative periods.
The $13 million and $2 million increase in general and administrative costs in
year and fourth quarter of 2004, respectively, compared to 2003, were due to
the negative impact of the weakening of the U.S. dollar and the increased
corporate activity. The $12 million increase in the fourth quarter for
resource development, technology and other was primarily due to a reduction of
$9 million in the fair value of the Turquoise Ridge reclamation accrual in the
fourth quarter of 2003 and increased activity on the development projects.
Exploration expense for the year was $1 million higher in 2004 than 2003, but
$3 million higher in the fourth quarter due to timing of expenditures.

In the year and fourth quarter of 2004, a write-down of mining assets and
restructuring charges totalled $20 million ($14 million after-tax),
$14 million ($10 million after-tax). Various mining assets became obsolete,
primarily as a result of technological changes, resulting in $16 million and
$11 million of write-offs in the year and fourth quarter, respectively.
Restructuring charges of $4 million and $3 million were incurred in the year
and fourth quarter respectively, primarily at the South Deep mine due to the
restructuring and reduction of the work force.

Fourth Quarter 2004

Mine operating earnings for the fourth quarter of 2004 were $78 million,
a decrease of 39% or $50 million over the comparative period in 2003 due to
lower contributions from gold.

Consolidated gold production in the fourth quarter decreased by 11% to
902,000 ounces from 1,011,000 ounces in 2003 due to the temporary closure at
Golden Sunlight as the mine develops stage 5B, the closure of the Misima mine
late in the second quarter of 2004, and reduced production from the Kalgoorlie
West operations. This was partially offset by higher production from the
Porgera and Granny Smith mines.

Placer Dome's share of cash and total production costs per ounce for the
fourth quarter of 2004 were $264 and $330, respectively, compared with $229
and $284 in 2003. The increase was due primarily to the continued appreciation
of foreign currencies against the U.S. dollar ($10 per ounce), rising global
energy costs ($6 per ounce), lower production, higher input commodity prices
and mine-site specific issues. The average exchange rate of the Canadian and
Australian dollars, Papua New Guinean kina, Chilean peso and South African
rand to the U.S. dollar appreciated 8%, 6%, 11%, 5% and 11%, respectively,
from the fourth quarter of 2003 to 2004.

Gold operating earnings were $53 million in the fourth quarter of 2004
compared with $112 million in the fourth quarter of 2003 due to lower sales
volumes and price realized, and higher unit costs. Gold sales revenue for the
quarter was $355 million compared with $402 million in the prior year period,
a decrease of 12% reflecting an 11% decrease in sales volume and a $4 per
ounce decrease in the average realized price.

The average realized sales price in the fourth quarter of 2004 decreased
$4 per ounce compared with the prior year period. The $43 per ounce increase
in the average spot gold price was more than offset by the impact of a change
in contribution from Placer Dome's precious metals sales program to negative
$32 million in the fourth quarter 2004 from positive $7 million in the fourth
quarter of 2003.

Copper operating earnings of $32 million in the fourth quarter of 2004
were 45% higher than the prior-year period due primarily to a 29% higher
realized price per pound, partially offset by decreased sales and increased
costs. Copper sales revenue for the quarter was $105 million compared with
$89 million in the 2003 period, reflecting the increase in the average
realized price partially offset by an 11% decrease in sales volume and a
negative contribution from metal hedging of $22 million compared to $5 million
in the prior-year quarter. Consolidated copper production in the fourth
quarter of 2004 was 93 million pounds (42,356 tonnes), 16% less than the
prior-year period as Zaldivar ore had a high sulphide copper content, which
slowed the recovery of copper, and Osborne experienced production shortfalls
early in the fourth quarter. Consolidated cash and total production costs per
pound of copper for the period were $0.64 and $0.82, respectively, compared
with $0.53 and $0.67, respectively, in 2003. The increase was due primarily to
higher energy costs, the appreciation of the Australian dollar and the Chilean
peso against the U.S. dollar, and lower production.


Review of Mining Operations

-------------------------------------------------------------------------
PRODUCTION AND OPERATING SUMMARY
-------------------------------------------------------------------------
For the twelve months
ended December 31
------------------------------------------------
Placer Dome's Share
Placer Mine ----------------------------------
Dome's share operating Millfeed
(% of mine earnings (000s Grade Recovery
Mine production) (1) tonnes) (g/t,%) (%)
-------------------------------------------------------------------------
GOLD
Canada
Campbell 100% 2004 $ 14 446 15.3 95.7
2003 $ 21 363 17.6 96.1
-------------------------------------------------------------------------
Musselwhite 68% 2004 10 992 5.3 95.8
2003 4 905 5.5 95.5
-------------------------------------------------------------------------
Porcupine 51% 2004 20 2,038 3.4 91.9
2003 22 2,106 3.7 92.4
-------------------------------------------------------------------------
United States
Bald
Mountain(3) 100% 2004 2 2,019 0.8 -
2003 8 4,125 0.7 -
-------------------------------------------------------------------------
Cortez(3)(4)(5) 60% 2004 125 22,899 1.2 -
2003 114 14,399 1.8 -
-------------------------------------------------------------------------
Golden
Sunlight(6) 100% 2004 1 - - -
2003 52 2,245 4.0 82.1
-------------------------------------------------------------------------
Turquoise
Ridge(7) 75% 2004 (1) 323 13.5 90.4
100% 2003 8 211 14.3 95.7
-------------------------------------------------------------------------
Australia
Granny Smith 100% 2004 (10) 4,434 2.1 89.3
2003 11 3,955 2.5 88.8
-------------------------------------------------------------------------
Henty 100% 2004 17 288 16.0 96.4
2003 3 289 11.4 95.6
-------------------------------------------------------------------------
Kalgoorlie West 100% 2004 (1) 3,053 2.7 95.6
2003 (4) 3,438 3.8 95.2
-------------------------------------------------------------------------
Kanowna Belle 100% 2004 22 1,900 4.4 89.4
2003 21 1,909 4.9 89.0
-------------------------------------------------------------------------
Osborne(8) 100% 2004 - 1,533 1.0 82.3
2003 - 1,485 1.0 80.5
-------------------------------------------------------------------------
Papua New Guinea
Misima(9) 80% 2004 6 1,850 0.8 87.5
2003 4 4,471 0.7 87.6
-------------------------------------------------------------------------
Porgera 75% 2004 126 4,691 5.8 88.4
2003 42 4,242 5.3 87.6
-------------------------------------------------------------------------
Chile
La Coipa(10) 50% 2004 15 3,282 1.1 81.2
2003 10 3,208 1.2 83.6
-------------------------------------------------------------------------
South Africa
South Deep 50% 2004 (5) 1,100 6.2 97.2
2003 4 979 7.2 96.9
-------------------------------------------------------------------------
Tanzania
North Mara(11) 100% 2004 25 2,128 3.4 92.0
2003 7 869 3.4 93.5
-------------------------------------------------------------------------
Metal hedging
loss 2004 (63)
2003 54
-------------------------------------------------------------------------
Currency
hedging gain 2004 15
2003 -
-------------------------------------------------------------------------
TOTAL GOLD 2004 $ 303
2003 $ 371
-------------------------------------------------------------------------
COPPER
Osborne(8) 100% 2004 30 1,533 2.7 93.9
2003 4 1,485 3.0 96.0
-------------------------------------------------------------------------
Zaldivar(3) 100% 2004 229 18,169 1.0 -
2003 56 16,942 1.1 -
-------------------------------------------------------------------------
Metal hedging
loss 2004 (57)
2003 (5)
-------------------------------------------------------------------------
TOTAL COPPER 2004 $ 202
2003 $ 55
-------------------------------------------------------------------------
Other(1) 2004 (21)
2003 (20)
-------------------------------------------------------------------------
CONSOLIDATED
MINE 2004 $ 484
OPERATING
EARNINGS(1) 2003 $ 406
-------------------------------------------------------------------------


-------------------------------------------------------------------------
PRODUCTION AND OPERATING SUMMARY
-------------------------------------------------------------------------
For the twelve months
ended December 31 Estimated annual 2005
----------------------------------------------------
Placer Dome's Share
----------------------------------------------------
Placer Production Cost per Cost per
Dome's share --------------- unit(2) Production unit(12)
(% of mine (ozs, % ($/oz, $/lb) (ozs, ($/oz, $/lb)
Mine production) 000s lbs) change Cash Total 000s lbs) Cash Total
-------------------------------------------------------------------------

GOLD
Canada
Campbell 100% 2004 209,045 +6% 276 344 200,000 285 365
2003 197,114 202 264
-------------------------------------------------------------------------
Musselwhite 68% 2004 163,386 +8% 269 345 165,000 275 355
2003 151,422 250 330
-------------------------------------------------------------------------
Porcupine 51% 2004 201,710 -13% 236 310 185,000 255 335
2003 233,101 206 262
-------------------------------------------------------------------------
United States
Bald
Mountain
(3) 100% 2004 46,685 -48% 349 379 90,000 330 380
2003 90,601 228 279
-------------------------------------------------------------------------
Cortez(3),
(4),(5) 60% 2004 630,801 -1% 162 201 515,000 185 225
2003 639,241 135 172
-------------------------------------------------------------------------
Golden
Sunlight
(6) 100% 2004 2,419 -99% - - 90,000 265 335
2003 234,946 143 151
-------------------------------------------------------------------------
Turquoise
Ridge(7) 75% 2004 126,921 +37% 343 352 150,000 280 300
100% 2003 92,965 215 220
-------------------------------------------------------------------------
Australia
Granny
Smith 100% 2004 267,267 -5% 354 440 325,000 310 420
2003 280,129 246 320
-------------------------------------------------------------------------
Henty 100% 2004 143,064 +40% 170 283 110,000 210 335
2003 102,070 204 308
-------------------------------------------------------------------------
Kalgoorlie
West 100% 2004 262,553 -34% 335 418 250,000 350 430
2003 396,254 271 364
-------------------------------------------------------------------------
Kanowna
Belle 100% 2004 237,291 -10% 254 316 245,000 280 360
2003 262,889 204 283
-------------------------------------------------------------------------
Osborne(8) 100% 2004 41,630 +11% - - 40,000 - -
2003 37,357 - -
-------------------------------------------------------------------------
Papua New
Guinea
Misima(9) 80% 2004 40,522 -57% 275 281 - - -
2003 94,837 276 310
-------------------------------------------------------------------------
Porgera 75% 2004 764,809 +20% 192 228 720,000 255 295
2003 638,940 256 301
-------------------------------------------------------------------------
Chile
La Coipa(10) 50% 2004 90,932 -9% 231 300 100,000 245 325
2003 99,637 208 291
-------------------------------------------------------------------------
South Africa
South Deep 50% 2004 214,293 -3% 394 437 230,000 350 400
2003 220,371 301 342
-------------------------------------------------------------------------
Tanzania
North
Mara(11) 100% 2004 208,484 +133% 230 289 290,000 230 320
2003 89,525 225 301
-------------------------------------------------------------------------
Metal hedging
loss 2004
2003
-------------------------------------------------------------------------
Currency
hedging gain 2004 (4) (4)
2003 - -
-------------------------------------------------------------------------
TOTAL GOLD 2004 3,651,812 -5% 240 298 3,650,000- 250- 315-
3,750,000 260 325
2003 3,861,399 218 274
-------------------------------------------------------------------------
COPPER
Osborne(8) 100% 2004 87,404 -7% 0.69 0.84 80,000 0.91 1.04
2003 93,638 0.56 0.69
-------------------------------------------------------------------------
Zaldivar(3) 100% 2004 325,406 -2% 0.51 0.66 332,000 0.55 0.68
2003 331,720 0.51 0.66
-------------------------------------------------------------------------
Metal hedging
loss 2004
2003
-------------------------------------------------------------------------
TOTAL COPPER 2004 412,810 -3% 0.55 0.70 410,000- 0.60- 0.75-
420,000 0.65 0.80
2003 425,358 0.52 0.67
-------------------------------------------------------------------------
Other(1) 2004
2003
-------------------------------------------------------------------------
CONSOLIDATED
MINE 2004
OPERATING
EARNINGS(1) 2003
-------------------------------------------------------------------------



-------------------------------------------------------------------------
PRODUCTION AND OPERATING SUMMARY
-------------------------------------------------------------------------
For the Fourth Quarter
-----------------------------------------------
Placer Dome's Share
Placer Mine ----------------------------------
Dome's share operating Millfeed
(% of mine earnings (000s Grade Recovery
Mine production) (1) tonnes) (g/t,%) (%)
-------------------------------------------------------------------------
GOLD
Canada
Campbell 100% 2004 $ 3 106 15.6 95.4
2003 $ 9 96 16.5 96.9
-------------------------------------------------------------------------
Musselwhite 68% 2004 4 243 5.6 96.1
2003 2 241 5.5 95.2
-------------------------------------------------------------------------
Porcupine 51% 2004 4 509 3.1 91.6
2003 8 519 4.0 92.1
-------------------------------------------------------------------------
United States
Bald
Mountain(3) 100% 2004 - 689 0.8 -
2003 3 117 0.7 -
-------------------------------------------------------------------------
Cortez(3)
(4)(5) 60% 2004 26 5,692 1.2 -
2003 27 4,224 1.3 -
-------------------------------------------------------------------------
Golden
Sunlight(6) 100% 2003 16 502 4.3 79.7
-------------------------------------------------------------------------
Turquoise
Ridge(7) 75% 2004 (3) 101 13.1 90.2
100% 2003 5 86 15.0 94.4
-------------------------------------------------------------------------
Australia
Granny Smith 100% 2004 (5) 1,152 2.7 89.9
2003 - 1,028 2.8 90.5
-------------------------------------------------------------------------
Henty 100% 2004 3 72 13.9 95.8
2003 2 70 14.2 97.2
-------------------------------------------------------------------------
Kalgoorlie West 100% 2004 (5) 755 2.4 95.0
2003 1 819 4.4 95.2
-------------------------------------------------------------------------
Kanowna Belle 100% 2004 8 470 5.0 88.5
2003 7 501 4.9 88.7
-------------------------------------------------------------------------
Osborne(8) 100% 2004 - 330 0.6 80.1
2003 - 360 1.3 82.1
-------------------------------------------------------------------------
Papua New Guinea
Misima(9) 80% 2003 3 1,183 0.4 87.6
-------------------------------------------------------------------------
Porgera 75% 2004 34 1,191 5.5 90.5
2003 17 1,108 5.0 87.6
-------------------------------------------------------------------------
Chile
La Coipa(10) 50% 2004 4 831 1.4 79.4
2003 6 858 1.7 81.4
-------------------------------------------------------------------------
South Africa
South Deep 50% 2004 1 292 6.5 97.2
2003 (1) 272 6.2 96.9
-------------------------------------------------------------------------
Tanzania
North Mara(11) 100% 2004 9 605 3.9 90.5
2003 6 518 3.5 92.9
-------------------------------------------------------------------------
Metal hedging
loss 2004 (32)
2003 7
-------------------------------------------------------------------------
Currency hedging
gain 2004 6
2003 -
-------------------------------------------------------------------------
TOTAL GOLD 2004 $ 53
2003 $ 112
-------------------------------------------------------------------------
COPPER
Osborne(8) 100% 2004 1 330 2.7 90.3
2003 2 360 3.3 96.7
-------------------------------------------------------------------------
Zaldivar(3) 100% 2004 53 4,398 0.9 -
2003 25 3,875 1.2 -
-------------------------------------------------------------------------
Metal hedging
loss 2004 (22)
2003 (5)
-------------------------------------------------------------------------
TOTAL COPPER 2004 $ 32
2003 $ 22
-------------------------------------------------------------------------
Other(1) 2004 (7)
2003 (6)
-------------------------------------------------------------------------
CONSOLIDATED
MINE 2004 $ 78
OPERATING
EARNINGS(1) 2003 $ 128
-------------------------------------------------------------------------


-------------------------------------------------------------------------
PRODUCTION AND OPERATING SUMMARY
-------------------------------------------------------------------------
For the Fourth Quarter
------------------------------------
Placer Dome's Share
------------------------------------
Placer Production Cost per
Dome's share -------------------- unit(2)
(% of mine (ozs, % ($/oz, $/lb)
Mine production) 000s lbs) change Cash Total
-------------------------------------------------------------------------
GOLD
Canada
Campbell 100% 2004 50,708 +2% 354 422
2003 49,487 211 246
-------------------------------------------------------------------------
Musselwhite 68% 2004 43,637 +9% 280 350
2003 40,123 250 333
-------------------------------------------------------------------------
Porcupine 51% 2004 45,409 -26% 257 338
2003 61,031 189 239
-------------------------------------------------------------------------
United States
Bald Mountain(3) 100% 2004 11,102 -34% 426 469
2003 16,725 188 261
-------------------------------------------------------------------------
Cortez(3)(4)(5) 60% 2004 130,096 -7% 181 232
2003 140,513 156 197
-------------------------------------------------------------------------
Golden Sunlight(6) 100% 2003 53,812 136 148
-------------------------------------------------------------------------
Turquoise Ridge(7) 75% 2004 38,863 +2% 406 418
100% 2003 38,259 199 204
-------------------------------------------------------------------------
Australia
Granny Smith 100% 2004 93,030 +19% 399 483
2003 78,425 269 366
-------------------------------------------------------------------------
Henty 100% 2004 32,630 +5% 200 337
2003 31,136 183 294
-------------------------------------------------------------------------
Kalgoorlie West 100% 2004 55,726 -47% 402 533
2003 105,292 277 361
-------------------------------------------------------------------------
Kanowna Belle 100% 2004 65,870 -13% 257 308
2003 75,342 209 293
-------------------------------------------------------------------------
Osborne(8) 100% 2004 7,579 -37% - -
2003 12,059 - -
-------------------------------------------------------------------------
Papua New Guinea
Misima(9) 80% 2003 23,226 288 319
-------------------------------------------------------------------------
Porgera 75% 2004 204,110 +18% 200 247
2003 172,945 267 306
-------------------------------------------------------------------------
Chile
La Coipa(10) 50% 2004 25,156 -27% 223 287
2003 34,447 188 269
-------------------------------------------------------------------------
South Africa
South Deep 50% 2004 59,757 +10% 384 429
2003 54,280 365 406
-------------------------------------------------------------------------
Tanzania
North Mara(11) 100% 2004 63,027 +20% 218 280
2003 52,371 229 288
-------------------------------------------------------------------------
Metal hedging
loss 2004
2003
-------------------------------------------------------------------------
Currency hedging
gain 2004 (7) (7)
2003 - -
-------------------------------------------------------------------------
TOTAL GOLD 2004 926,700 -11% 264 330
2003 1,039,473 229 284
-------------------------------------------------------------------------
COPPER
Osborne(8) 100% 2004 17,932 -30% 0.98 1.23
2003 25,638 0.56 0.66
-------------------------------------------------------------------------
Zaldivar(3) 100% 2004 75,446 -12% 0.56 0.72
2003 85,425 0.52 0.67
-------------------------------------------------------------------------
Metal hedging
loss 2004
2003
-------------------------------------------------------------------------
TOTAL COPPER 2004 93,378 -16% 0.64 0.82
2003 111,063 0.53 0.67
-------------------------------------------------------------------------
Other(1) 2004
2003
-------------------------------------------------------------------------
CONSOLIDATED
MINE 2004
OPERATING
EARNINGS(1) 2003
-------------------------------------------------------------------------

Notes to the Production and Operating Summary Tables:
(1) Mine operating earnings represent 100% of the results of mines owned
by Placer Dome and its subsidiaries and a pro-rata share of joint
ventures. "Consolidated operating earnings" (and the related
sub-totals) in accordance with accounting principles generally
accepted in the U.S. exclude the pro-rata share of La Coipa, a
non-controlled incorporated joint venture. Mine operating earnings
comprises sales, at the spot price, less cost of sales including
reclamation costs, depreciation and depletion for each mine, in
millions of U.S. dollars. Pursuant to SFAS 109 - Accounting for
Income Taxes, on business acquisitions, where differences between
assigned values and tax bases of property, plant and equipment
acquired exist, Placer Dome grosses up the property, plant and
equipment values to reflect the recognition of the deferred tax
liabilities. Other mine operating earnings includes a charge of
$13 million (2003 - $9 million) and $5 million (2003 - $3 million)
for the twelve and three months ended December 31, 2004,
respectively, related to the amortization of the gross up of the
property, plant and equipment allocation. These balances include
$6 million (2003 - $5 million) for Porgera, $3 million (2003 -
$1 million) for North Mara, $1 million (2003 - $2 million) for
Kalgoorlie West, $1 million (2003-$1 million) for Zaldivar, and
$1 million (nil in 2003) for each of Kanowna Belle and Henty. The
fourth quarter balances include $3 million (2003 - $1 million) for
Porgera, $1 million (2003 - nil) for North Mara, $1 million (2003 -
nil) for Kalgoorlie West, and nil (nil in 2003) for each of
Zaldivar, Kanowna Belle and Henty.
(2) Components of Placer Dome's share of cash and total production costs
in accordance with the Gold Institute Standard:

-------------------------------------------
December 31
-------------------------------------------
Fourth quarter Twelve months
-------------------------------------------
2004 2003 2004 2003
$/oz $/oz $/oz $/oz
-------------------------------------------------------------------------
Direct mining expenses 262 230 238 208
Stripping and mine development
adjustment (14) (13) (15) (3)
Third party smelting, refining
and transportation 1 1 1 1
By-product credits (1) (2) (1) (1)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash operating costs per ounce 248 216 223 205
-------------------------------------------------------------------------
Royalties 15 12 15 12
Production taxes 1 1 2 1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total cash costs per ounce 264 229 240 218
-------------------------------------------------------------------------
Depreciation 35 37 30 34
Depletion and amortization 25 19 23 19
Reclamation and mine closure 6 (1) 5 3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total production costs per ounce 330 284 298 274
-------------------------------------------------------------------------

(3) Recovery percentage is not susceptible to accurate measurement at
heap leach operations.
(4) During the second quarter of 2004, Placer Dome changed its
accounting policy, retroactive to January 1, 2004, with respect
to deferred stripping to exclude the recording of liabilities on
the balance sheet. The cumulative effect of this change through
December 31, 2003, was to increase earnings on an after tax basis
by $4 million ($0.01 per share).
(5) The Cortez mine processes material by way of carbon-in-leach ("CIL")
and heap leaching.
----------------------------------------------
Millfeed Grade Recovery Production
(000s tonnes) (g/t) (%) ozs
-------------------------------------------------------------------------
Carbon-in-leach
For the 12 months ended
December 31
2004 1,856 5.4 88.3 285,645
2003 2,071 6.5 89.8 390,087
For the fourth quarter of
2004 456 3.8 87.7 48,798
2003 526 5.6 89.1 84,374
-------------------------------------------------------------------------
Heap leach
For the 12 months ended
December 31
2004 20,789 0.7 Note 3 297,371
2003 12,049 0.9 Note 3 198,107
For the fourth quarter of
2004 5,170 0.7 Note 3 66,492
2003 3,697 0.8 Note 3 56,095
-------------------------------------------------------------------------
Sale of carbonaceous ore
For the 12 months ended
December 31
2004 254 6.8 86.6 47,785
2003 278 6.7 85.1 51,047
For the fourth quarter of
2004 66 7.9 89.1 14,806
2003 - - - 44
-------------------------------------------------------------------------
Total
For the 12 months ended
December 31
2004 22,899 1.2 Note 3 630,801
2003 14,398 1.8 Note 3 639,241
For the fourth quarter of
2004 5,692 1.0 Note 3 130,096
2003 4,223 1.4 Note 3 140,513
-------------------------------------------------------------------------

(6) Production from Golden Sunlight was suspended in December 2003 and
recommenced in January 2005 when ore was delivered from stages 5B
and 2B.
(7) Production from Turquoise Ridge relates to third party ore sales. On
December 23, 2003, Placer Dome and Newmont Mining Corporation formed
the Turquoise Ridge Joint Venture. Results prior to this represent
100% of the mine's results, and 75% thereafter. The cash and total
cost per ounce balances do not include the cost of processing the
ore.
(8) Osborne produces copper concentrate with gold as a by-product.
Therefore, gold unit costs are not applicable.
(9) Silver is a by-product at the Misima mine. For the twelve and three
months ended December 31, 2004, Placer Dome's share of Misima's
production was 162,000 and nil ounces of silver, respectively,
compared with 433,000 and 85,000 ounces for the respective prior-
year periods. Mining was completed at Misima in May 2001, but
processing of stockpiles continued until May 2004.
(10) Gold and silver are accounted for as co-products at La Coipa mine.
Gold equivalent ounces are calculated using a ratio of the silver
market price to gold market price for purposes of calculating costs
per equivalent ounce of gold. The equivalent ounces of gold produced
at La Coipa were 151,064 and 42,830 ounces, respectively for the
twelve and three month periods ended December 31, 2004 and 154,519
and 44,463 ounces, respectively, for the comparative period year
periods. At La Coipa, production for silver was 3.7 million
and 0.9 million ounces for the twelve and three months ended
December 31, 2004, respectively, and 4.1 million and 0.8 ounces
for the comparative prior-year periods.
(11) On July 23, 2003, Placer Dome completed the acquisition of East
African Gold, which owns 100% of the open pit North Mara mine in
northern Tanzania.
(12) Estimated 2005 annual unit costs for the Canadian, Australian,
Papua New Guinean and South Deep mines are based on Canadian
and Australian dollar, Papua New Guinean kina, Chilean peso and
South African rand exchange rates to the U.S. dollar of 1.2048,
1.2821, 3.03, 600, and 6.00 to 1, respectively. Any change from
these exchange rates would have an impact on the unit costs. At
December 31, 2004 these exchange rates were 1.2036, 1.2847, 3.05,
556, and 5.66 to 1, respectively.


Quarterly Review of Mining Operations

Canada
Production at the Campbell mine in the fourth quarter of 2004, at 50,708
ounces, was 2% above 2003 levels, as higher tonnage more than offset lower
grades and recoveries. Cash costs per ounce, at $354, increased 68% from the
prior-year period primarily due to the processing of increased tonnage of
lower grade ore, increased development work and the stronger Canadian dollar.
Annual gold production in 2005 is expected to be 4% lower than 2004 due to
anticipated lower grade. Cash costs per ounce are expected to be 3% higher
than 2004 levels due to lower production and the stronger Canadian dollar.

Placer Dome's share of production in fourth quarter of 2004 for the
Porcupine Joint Venture, was 45,409 ounces, 26% lower than 2003 due to lower
grades and recoveries. This reflects lower production from the Dome
underground which closed as planned in late May 2004, partially offset by
increased production from the lower grade Dome open pit. Cash costs per ounce,
at $257, were negatively impacted by the lower production levels and the
stronger Canadian dollar. Gold production in 2005 is expected to be 8% lower
than 2004 due to the planned closure of the Dome open pit in the third quarter
of 2005, offset partially by the production from the lower-grade Pamour pit.
Overburden removal at the Pamour pit commenced in the fourth quarter of 2004
with gold production expected to start in the third quarter 2005. Cash costs
per ounce are expected to be 8% higher than in 2004 due to lower production
levels and the continued strength of the Canadian dollar.

United States
Placer Dome's share of production from the Cortez mine in fourth quarter
of 2004, at 130,096 ounces, was 7% below 2003 as increases in heap leach
production due to increased tonnage were more than offset by lower heap leach
grade and lower CIL production due to lower grades. Unit cash production costs
at $181 per ounce were 16% above 2003 levels, primarily due to lower CIL
grades and an increased proportion of production from relatively lower grade
heap leach ore. Annual gold production in 2005 is expected to be 18% lower
than 2004 primarily due to lower CIL and heap leach grades. Cash and total
production costs are expected to rise by about 14% to $185 per ounce and 12%
to $225 per ounce, respectively, compared with 2004, due to lower production.

At the Bald Mountain mine, production in the fourth quarter of 2004 was
11,102 ounces, 34% lower than 2003. Cash costs were $426 per ounce, 127% above
2003 due to mining a higher level of waste, combined with lower gold
production due to lower than expected secondary recoveries from older leach
piles due to a loss of alkalinity. Activities at the site during 2004 were
focused on pre-stripping and waste removal of Stage 7 of Bald Mountain's Top
Pit to facilitate sustained ore production beginning in the third quarter of
2005. Production at Stage 7 is scheduled to ramp up during 2005 and is
expected to continue until the first quarter of 2007 with the heap leach pads
expected to produce gold until 2009. As a result, gold production in 2005 is
expected to be 93% higher than in 2004 due to full development of the orebody
where higher grades and lower strip ratios exist.

Production at Golden Sunlight was nil in the fourth quarter of 2004, down
from 53,812 ounces in 2003. Mining from the open pit and the underground mines
ceased in August and December 2003, respectively. Production from Golden
Sunlight was suspended in December 2003 and operations recommenced in January,
2005 when ore was delivered to the mill from Stages 5B and 2B. Production in
2005 is expected to be 90,000 ounces, at a cash cost per ounce of $265.

Placer Dome's share of production from Turquoise Ridge in fourth quarter
of 2004, at 38,863 ounces was similar to the comparative 2003 period. Cash
costs were $406 per ounce, 104% above 2003 levels, due to lower grades and
increased labour training and start-up costs. Placer Dome's 75% share of
annual gold production from the Turquoise Ridge and Getchell mines in 2005 is
expected to be 150,000 ounces. Placer Dome's share of cash and total costs per
ounce for the production of ore is $280 and $300, respectively. These unit
costs do not include the cost of processing the ore.

Construction work at Turquoise Ridge was completed during the quarter.
Ongoing development work continued during 2004 and is expected to be complete
in 2005 with operations expected to reach annualized production of 300,000
ounces (Placer Dome's share 225,000 ounces) of gold in 2006.

Australia and Papua New Guinea
At the Porgera mine, Placer Dome's share of production in the fourth
quarter of 2004, at 204,110 ounces, was 18% above 2003 primarily due to higher
throughput, reflecting the installation of the secondary crusher, higher
grades and recoveries. Cash costs per ounce were $200 or 25% lower than the
prior year, as increased production more than offset strengthening currencies.

In 2005, Placer Dome's share of gold production is expected to be 720,000
ounces, a 6% decrease over 2004. The production in the first half of 2005,
sourced from Stage 4, is expected to be marginally higher than the comparative
2004 period, however the second half of 2005 will be sourced from Stage 5,
which has harder ore and lower grades, resulting in 14% lower production than
in the first half of the year. Unit cash costs are expected to increase by
approximately 33% in 2005 from 2004 due to lower production levels, increased
operating costs, and the continued weakness of the U.S. dollar.

At the Granny Smith mine, production in fourth quarter of 2004, at 93,030
ounces, was 19% above that of the prior-year period due to the processing of
softer ore from Stage 3. Cash costs per ounce were $399, a 48% increase over
the prior-year period due to the appreciation of the Australian dollar against
the U.S. dollar, higher diesel prices, and increased maintenance and stripping
costs.

The Wallaby underground feasibility study and related underground
development continued during 2004. The study is scheduled for completion in
the second quarter of 2005, with the primary goal of delineating the Zone
60/250 ore body and justifying its exploitation via an underground mining
operation. Delineation drilling has been conducted from surface within the
Wallaby open pit and from an underground drill drive developed as part of the
feasibility study. The study also includes trial underground mining in three
lenses in the upper areas of the proposed underground mine. This trial is
expected to result in the production of approximately 46,000 ounces during the
feasibility study period, resulting in the study having a net cost of
approximately $6 million.

In 2005, annual production is expected to be around 325,000 ounces, a 22%
increase from 2004 due primarily to higher open pit grades and minimal milling
of low grade stockpiles. Unit cash costs are expected to decrease by
approximately 12% in 2005 due to higher production, partially offset by higher
costs and the continued strength of the Australian dollar against the U.S.
dollar.

Production from Kalgoorlie West in the fourth quarter of 2004, at
55,726 ounces, was down 47% from 2003 due the closure of the mill at Kundana
in the first quarter of 2004 and the completion of open pit operations at
certain other deposits in December 2003. Cash and total costs per ounce were
$402 and $533, respectively, a 45% and 48% increase from 2003 due to mining
higher-cost ore bodies than 2003, the use of low-grade ore to supplement mill
feed, and the continued strength of the Australian dollar against the U.S.
dollar.

The development of the Raleigh underground mine commenced in July. The
underground mine will be an extension of the Raleigh open pit mine with
production scheduled to commence in late 2005 and continue through 2011. The
Raleigh mine is located partially on a mining lease owned 100% by Placer Dome
and partially on a mining lease owned by a joint venture in which Placer Dome
has a 51% interest. Placer Dome's share of the capital cost is estimated at
$17 million, with the majority of this expenditure in 2005. Placer Dome's
share of production over the six-year mine life is expected to be
approximately 250,000 ounces.

In 2005, production is expected to be about 250,000 ounces, a decrease of
5% from 2004. Unit cash costs are expected to be $350 per ounce, 4% higher
than 2004 due to lower production levels.

At the Kanowna Belle mine production for the fourth quarter of 2004 was
65,870 ounces, 13% below 2003 due to delays in processing, caused by the high
sulphur content of the ore. Cash and total costs per ounce were $257 and $308,
respectively, a 23% and 5% increase from 2003 due to lower production and the
appreciation of the Australian dollar against the U.S. dollar. In 2005, annual
production is expected to be about 245,000 ounces, an increase of 3% over
2004. Unit cash costs are expected to increase by approximately 10%, to $280
per ounce due to higher operating costs and the continued strength of the
Australian dollar against the U.S. dollar.

At the Osborne mine, copper and gold production in the fourth quarter of
2004 were 17.9 million pounds (8,134 tonnes) and 7,579 ounces, respectively, a
decrease of 30% and an increase of 37% from 2003 levels due to lower
throughput, grades and recovery for copper and gold due to delays in accessing
mining areas in the first part of the quarter. Cash and total costs per pound
of copper (Osborne produces copper concentrate with gold as a by-product) were
$0.98 and $1.23, respectively, a 75% and 86% increase, respectively, from 2003
due to lower production levels, increased development work, higher shipping
and fuel costs, updates of the mine closure reclamation estimate and the
appreciation of the Australian dollar against the U.S. dollar. Copper and gold
production for 2005 are expected to decrease 8% and 4%, respectively, from
2004 levels. Cash and total costs per pound are expected to increase 32% and
24%, respectively, to $0.91 and $1.04, respectively, due to lower production,
higher smelting and refining charges, increased mine development costs and the
continued strength of the Australian dollar against the U.S. dollar.

South Africa and Tanzania
At the South Deep mine, Placer Dome's share of production for the fourth
quarter of 2004 was 59,757 ounces, 10% above 2003, including the recovery of
approximately 6,500 ounces from the clean up of the milling facility that was
closed in 2002. Unit cash and total production costs increased by 5% and 6%,
respectively, to $384 and $429, respectively, due to primarily to a 27%
appreciation in the average exchange rate of the rand for the U.S. dollar,
partially offset by the inclusion of the ounces recovered from the plant
clean up.

Work on the South Deep Twin Shaft project was completed and commissioning
of the shafts commenced during the fourth quarter. The new shaft complex
provides for quicker access of personnel and logistic supplies to the centre
of mining operations. The rock-hoisting facility now provides direct delivery
of ore from 2.76 kilometres underground into the metallurgical plant located
adjacent to the shaft complex on surface. The mine is now focused on the
commissioning of the Ventilation/Refrigeration system down the new Ventilation
shaft. Direct cooling into workplaces will have a better cooling effect on
underground conditions relative to the old system. Accelerated development
rates can now be achieved on the 90 and 94 levels.

In 2005, Placer Dome's share of annual gold production is expected to be
approximately 230,000 ounces, a 7% increase over 2004 due to higher throughput
and grades. Unit cash costs are expected to decrease by approximately 11%
to $350 per ounce in 2005 from 2004 due to higher production levels, the
weakening of the rand relative to the U.S. dollar and a reduced work force.
Early in 2004, South Deep restructured and reduced management. In the fourth
quarter, as part of its ongoing efforts to improve mine costs structure, the
South Deep mine completed a restructuring which reduced the work force by
approximately 350 people.

At the North Mara mine, production was 63,027 ounces, a 20% increase over
2003 due to higher grades, and throughput, partially offset by lower recovery.
Cash costs, at $218 per ounce were 5% below the prior-year's period due to
higher production.

An expansion of the mine's nominal mill throughput from approximately
2.0 million to 2.8 million tonnes per annum was completed in the fourth
quarter. This is expected to increase estimated annual production to between
280,000 and 300,000 ounces. During the fourth quarter, Placer Dome also took
over mining operations from the existing mining contractor at a cost of
$16 million, including purchasing its mobile equipment fleet. Owner mining is
expected to reduce cost per tonne mined over the life of mine and provide
better control over the mining operation. Stage 1 of the Nyabirama pit will be
concluded in the second quarter of 2005. It is planned that this will be
followed with the Gokona Stage 1 development, with site preparation now under
way.

Gold production in 2005 is expected to be approximately 290,000 ounces,
39% above 2004 due to the mining operations moving into the higher grade
Gokona pit where ore should be exposed in the fourth quarter, increased mining
capacity through the purchase of additional mining equipment, and increased
mill throughput. Cash costs per ounce at $230 are expected to be in line with
2004; however, total costs per ounce are expected to increase to $320 due to
additional depreciation related to the plant upgrade, the purchase of the
mining fleet and the startup of the Gokona pit.

Chile
At the Zaldivar mine, fourth quarter 2004 production was 75.5 million
pounds, (34,222 tonnes) of copper, 12% below the 2003 period due to mining of
a lower-grade area and high sulphide copper content impacting recovery. Cash
and total cost per pound were $0.56 and $0.72 respectively, 8% and 7% above
the comparative 2003 periods due to lower production. In 2005, annual
production is targeted at 332 million pounds (150,500 tonnes) as the recovery
issue mentioned above reverses, with cash costs increasing to $0.55 per pound,
reflecting higher acid, fuel, labor and parts costs.

Financial Condition, Liquidity and Capital Resources
At December 31, 2004, Placer Dome had cash and short-term investments
of $1,031 million and working capital of $1,183 million, compared with
$559 million and $704 million, respectively, at the beginning of the year.
In addition to cash and short-term investments, Placer Dome had $122 million
of restricted cash, primarily related to the North Mara demand loan, which
requires cash to be placed on deposit with the lender in an amount equal to
drawdowns. The increase in working capital was primarily attributable to
financing activities including $492 million in common shares, of which $452
million related to an equity offering of 21,275,000 common shares at $22.00 in
the fourth quarter of 2004. Of Placer Dome's cash and short-term investments,
$1,017 million was held by the Corporation and its wholly owned subsidiaries
and $14 million by other subsidiaries. At December 31, 2004, Placer Dome also
had $895 million of undrawn bank lines of credit available, $46 million of
which has been utilized to support letters of credit granted for bonding and
reclamation purposes.

Total funds invested in property, plant and equipment, excluding deferred
stripping, over the last two years are detailed below.

-----------------
2004 2003
$ $
-------------------------------------------------------------------------
South Deep development 53 63
North Mara plant upgrade and equipment buyout 39 -
Golden Sunlight pre-stripping 30 -
Turquoise Ridge / Getchell development 29 22
Integrated business system 22 -
Porcupine Pamour Pit 18 -
Zaldivar processing enhancements and development 17 23
Cortez mobile equipment 14 -
Granny Smith tenements 9 -
Wallaby development 7 2
Cortez heap leach pad expansion 7 -
Kalgoorlie West development and equipment enhancement 7 18
Campbell DC zone development 4 9
Other 84 76
-------------------------------------------------------------------------
-------------------------------------------------------------------------
340 213
-------------------------------------------------------------------------

Development at South Deep primarily related to the main shaft, which was
completed in late 2004, and underground development.

In 2003, investing activities included a net $253 million ($255 million
purchase price, offset by $2 million in cash in East African Gold upon
acquisition) for the purchase of East African Gold Limited, which owns the
North Mara mine in Tanzania.

Consolidated short and long-term debt balances at December 31, 2004, were
$1,267 million, compared with $1,189 million at December 31, 2003. Significant
financing activities include:

-----------------
2004 2003
Cash (outflow) inflow from financing activity $ $
-------------------------------------------------------------------------
Preferred Securities, 8.625% due in 2045 - (185)
Unsecured bonds, 7.125% due in 2003 - (200)
Non-recourse debt (assumed in East African Gold
acquisition in 2003) (36) -
Unsecured debt (assumed in AurionGold acquisition
in 2002) - (139)
Dividends (41) (44)
Common shares (net of issue costs) 492 31
Restricted cash (110) -
North Mara demand loan 110 -
Unsecured bonds, 6.375% due in 2033 - 200
Unsecured bonds, 6.45% due in 2035 - 300
Senior convertible debentures, 2.75% due in 2023 - 230
Issue costs re Unsecured bond and Senior convertible
debenture financings - (15)
Other 4 (11)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
419 167
-------------------------------------------------------------------------

At December 31, 2004, Placer Dome was in compliance with all debt
covenants and default provisions.

Forward Sales, Options and Other Commitments
Placer Dome enters into financial agreements with major international
banks and other international financial institutions in order to manage
underlying revenue and cost exposures arising from fluctuations in commodity
prices and foreign currency exchange rates. Contracts include forward sales
and options, which, with the exception of call options, commit counterparties
to prices payable at a future date. There are no margin call provisions in any
of the Corporation's counterparty agreements.

Specific limits are set as a declining percentage of planned production
(or production costs) in each of the next 15 years. These limits are set out
in policies approved by the Board of Directors and reviewed not less than
annually. Under its programs, Placer Dome has established the minimum prices
it expects to receive (or pay) in the future for a portion of metal sales (and
foreign currency production costs), through a combination of forward sales
contracts and options. Under the metal sales program, forward sale and call
and cap option commitments represent approximately 39% and 32%, and put
options represent approximately 19% and 24% of 2005 projected gold and copper
production, respectively. Approximately two-thirds of the company's copper
hedge positions are due in the first half of 2005.

Precious Metals
During 2004, Placer Dome reduced the maximum committed ounces under its
precious metal sales program by 1.5 million ounces to 9.0 million. Committed
ounces were reduced during the year by delivering into hedge contracts and
through early delivery of forward sales. This represents a cumulative decrease
in maximum committed ounces of more than 14% for the year. Looking forward,
Placer Dome expects to reduce its maximum committed ounces to 7.5 million
ounces by December 31, 2005. This would represent a cumulative decrease in
maximum committed ounces of approximately 16% for the year.

At December 31, 2004, Placer Dome had committed a maximum of 9.0 million
ounces of gold under its precious metal sales program, or approximately 15% of
reported December 31, 2004 mineral reserves, at an average expected realized
price of approximately $392 per ounce for delivery over a period of 12 years.

On December 31, 2004, based on spot prices of $438 per ounce for gold,
$6.80 per ounce for silver and an Australian to U.S. dollar ("AUD/USD")
exchange rate of $1.2814, the mark-to-market value of Placer Dome's precious
metal sales program was negative $775 million, a change of $70 million from
the negative $705 million at the end of 2003 (at the then spot prices of $417
per ounce for gold and $5.98 per ounce for silver and an AUD/USD exchange rate
of $1.3319). The amount reflects the value that would have been paid to
counterparties if the contracts were closed out on December 31, 2004 under
prevailing market conditions without allowance for market illiquidity.

The year-over-year change in the mark-to-market value of Placer Dome's
precious metals sales program and the reconciliation to the unrealized
mark-to-market value are detailed as follows:

-----------
$ million
-------------------------------------------------------------------------
Mark-to-market value at December 31, 2003 (705)
Cash value cost 89
Change in spot price (169)
Accrued contango 142
Change in the Australian dollar to U.S. dollar exchange
rate, volatility, interest rates and gold lease rates (132)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Mark-to-market value at December 31, 2004 (775)
Provision included in Deferred Commodity and Currency
Derivatives liability relating primarily to the value of
the AurionGold and the East African Gold precious metal
hedge books remaining from the acquisitions by Placer Dome 163
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net unrealized mark-to-market value at December 31, 2004 (612)
-------------------------------------------------------------------------

The net unrealized mark-to-market value of negative $612 million reflects
the income statement effect Placer Dome would expect to incur had it closed
out its contracts on December 31, 2004 under metal price, foreign exchange
rates, interest rates and volatilities prevailing at that time. This amount is
the mark-to-market balance of negative $775 million less the remaining amount
of the deferred commodity derivative provision of $163 million recorded on
Placer Dome's balance sheet at December 31, 2004 primarily related to the fair
value of the AurionGold and East African Gold precious metal hedge books on
the dates that Placer Dome acquired control of those companies.

The mark-to-market and unrealized mark-to-market amounts are not
estimates of future gains or losses which depend on various factors including
contango and interest rates, gold lease rates and the then prevailing spot
price.

For the copper sales and currency derivative programs, the mark-to-market
of forward and option contracts on December 31, 2004, was negative $38 million
(based on a spot copper price of $1.488 per pound) and positive $51 million
(based on an AUD/USD foreign exchange rate of 1.2814 and a Canadian to U.S.
dollar foreign exchange rate of 1.2036), respectively.

Sensitivities
The sensitivity of annual net earnings to key metal price changes based
on metal prices of $400 per ounce for gold and $1.20 per pound for copper and
projected 2005 sales volumes is estimated as follows:

-----------------------------------------
Change in 2005 net earnings
-----------------------------------------
Increase in price Decrease in price
--------------------------------------------------------
Price change Per share Per share
($) $millions ($) $millions ($)
-------------------------------------------------------------------------
Gold 25.00/oz 46 0.10 (44) (0.10)
Copper 0.05/lb 11 0.03 (13) (0.03)
-------------------------------------------------------------------------

The sensitivity of annual net earnings to foreign exchange fluctuations
with respect to mine operating costs and non-hedge derivatives of the
Australian dollar, the Canadian dollar, the Chilean peso, the Papua New
Guinean kina and the South African rand to the U.S. dollar for projected 2005
sales volumes is estimated as follows:

-----------------------------------------
Change in 2005 net earnings
--------------------------------------------------------
Local currencies Local currencies
appreciate by 10% depreciate by 10%
Rate -----------------------------------------
December 31, Per share Per share
2004 $millions ($) $millions ($)
-------------------------------------------------------------------------
Australian dollar 1.2847 (10) (0.02) 14 0.03
Canadian dollar 1.2037 (3) (0.01) 7 0.02
Chilean peso 556 (6) (0.02) 6 0.02
Papua New Guinean
kina 3.05 (3) (0.01) 3 0.01
South African rand 5.66 (8) (0.02) 8 0.02
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF EARNINGS
(millions of U.S.$, except share and per share amounts,
U.S. GAAP, unaudited)

-------------------------------------------
December 31
-------------------------------------------
Fourth Quarter Twelve Months
-------------------------------------------
2004 2003 2004 2003
-------------------------------------------------------------------------
Sales 460 492 1,888 1,763
Cost of sales 311 293 1,149 1,090
Depreciation and depletion 71 71 255 267
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Mine operating earnings 78 128 484 406
-------------------------------------------------------------------------
General and administrative 16 14 64 51
Exploration 25 22 77 76
Resource development,
technology and other 22 10 63 64
Write-down of mining assets
and restructuring charges 14 - 20 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating earnings 1 82 260 215
-------------------------------------------------------------------------
Non-hedge derivative gains
(losses) (13) 2 (28) 46
Investment and other business
income (loss) 4 (1) (11) (3)
Interest and financing expense (21) (19) (77) (65)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) before taxes
and other items (29) 64 144 193
-------------------------------------------------------------------------
Income and resource tax
recovery 66 12 130 44
Equity earnings of associates 2 4 7 7
Minority interests - 1 (1) 2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings before the
cumulative effect of the
change in accounting policies 39 81 280 246
-------------------------------------------------------------------------
Changes in accounting policies - - 4 (17)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings 39 81 284 229
-------------------------------------------------------------------------
Per common share
Net earnings before the
cumulative effect of the
changes in accounting policies 0.09 0.20 0.67 0.60
Net earnings 0.09 0.20 0.68 0.56
Dividends - - 0.10 0.10
-------------------------------------------------------------------------
Weighted average number of
common shares outstanding
(millions) 423.7 410.6 416.8 409.4
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(millions of U.S.$, except share amounts,
U.S. GAAP, unaudited)

-------------------------------------------
December 31
-------------------------------------------
Fourth Quarter Twelve Months
-------------------------------------------
2004 2003 2004 2003
-------------------------------------------------------------------------
Common shares, opening 2,049 2,003 2,023 1,992
Issued in equity offering 457 - 457 -
Exercise of options 16 20 42 31
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Common shares, closing 2,522 2,023 2,522 2,023
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive
income, opening (27) (38) (35) (50)
Cumulative translation
adjustment - - 34 -
Unrealized gains on securities 1 5 - 6
Unrealized gains on currency
derivatives 10 12 10 25
Reclassification of currency
derivatives to net earnings (2) - (10) -
Unrealized gains (losses) on
copper derivatives - (11) (24) (12)
Reclassification of copper
derivatives to net earnings 3 1 10 1
Minimum pension liability
adjustment - (4) - (5)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive
income, closing (15) (35) (15) (35)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contributed surplus, opening 69 61 66 60
Stock-based compensation - 5 3 6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contributed surplus, closing 69 66 69 66
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retained earnings, opening 549 264 345 157
Net income 39 81 284 229
Common share dividends - - (41) (41)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retained earnings, closing 588 345 588 345
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders' equity 3,164 2,399 3,164 2,399
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions of U.S.$, U.S. GAAP, unaudited)

-------------------------------------------
December 31
-------------------------------------------
Fourth Quarter Twelve Months
-------------------------------------------
2004 2003 2004 2003
-------------------------------------------------------------------------
Operating activities

Net earnings 39 81 284 229
Add (deduct) non cash items
Depreciation and
amortization 71 71 255 267
Deferred stripping
adjustments (10) (6) (44) (3)
Deferred income and
resource taxes (61) (67) (159) (130)
Deferred reclamation 14 - 22 16
Cumulative translation
adjustment - - 34 -
Write down of assets 10 - 16 -
Deferred commodity and
currency sales contracts
and derivatives (5) (11) (18) (45)
Unrealized losses (gains)
on foreign currency and
option contracts 5 (3) 8 (44)
Change in accounting policy - - (4) 17
Other items, net 3 15 3 46
-------------------------------------------------------------------------
Cash from operation before
change in non-cash operating
working capital 66 80 397 353
Change in non-cash operating
working capital (22) (51) (21) (56)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash from operations 44 29 376 297
-------------------------------------------------------------------------
Investing activities

Property, plant and equipment (103) (63) (340) (213)
Business acquisition, net of
cash acquired - - - (253)
Short-term investments - - (5) (2)
Disposition of assets and
investments 2 8 13 13
Other, net (2) - 4 4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(103) (55) (328) (451)
-------------------------------------------------------------------------
Financing activities

Short-term debt 23 (165) 113 -
Long-term debt and capital
leases net (2) 514 (35) 181
Restricted cash (20) - (110) -
Common shares issued 466 20 492 31
Redemption of minority interest - - - (1)
Dividends paid
Common shares - - (41) (41)
Minority interest - - - (3)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
467 369 419 167
-------------------------------------------------------------------------

Increase in cash and cash
equivalents 408 343 467 13

-------------------------------------------------------------------------
Cash and cash equivalents

Beginning of period 609 207 550 537
-------------------------------------------------------------------------
-------------------------------------------------------------------------
End of period 1,017 550 1,017 550
-------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEETS
(millions of U.S.$, U.S. GAAP, unaudited)

ASSETS

---------------------
As at December 31
---------------------
2004 2003
(restated)
(i)
-------------------------------------------------------------------------
Current assets
Cash and cash equivalents 1,017 550
Short-term investments 14 9
Restricted cash 122 32
Accounts receivable 138 131
Income and resource tax assets 97 17
Inventories 248 244
-------------------------------------------------------------------------
-------------------------------------------------------------------------
1,636 983
-------------------------------------------------------------------------
Investments 50 51
Other assets 173 168
Deferred commodity and currency sales contract
and derivatives 54 48
Income and resource tax assets 400 230
Deferred stripping 170 107
Property, plant and equipment 2,607 2,544
Goodwill 454 454
-------------------------------------------------------------------------
-------------------------------------------------------------------------
5,544 4,585
-------------------------------------------------------------------------


LIABILITIES AND SHAREHOLDERS' EQUITY

---------------------
As at December 31
---------------------
2004 2003
(restated)
(i)
-------------------------------------------------------------------------
Current liabilities
Accounts payable and accrued liabilities 268 243
Income and resource taxes liabilities 27 26
Short-term debt 113 -
Current portion of long-term debt and capital
leases 45 10
-------------------------------------------------------------------------
-------------------------------------------------------------------------
453 279
-------------------------------------------------------------------------
Long-term debt and capital leases 1,109 1,179
Reclamation and post closure obligations 251 225
Income and resource tax liabilities 265 216
Deferred commodity and currency sales contracts
and derivatives 223 209
Deferred credits and other liabilities 79 78
Shareholders' equity 3,164 2,399
-------------------------------------------------------------------------
-------------------------------------------------------------------------
5,544 4,585
-------------------------------------------------------------------------

(i) On July 23, 2003, Placer Dome completed the acquisition of 100% of
the shares of East African Gold Mines Limited ("East African Gold").
The transaction provides Placer Dome with the North Mara open pit
gold mine in Northern Tanzania and surrounding land packages. The
results of operations of East African Gold have been included in
the accompanying financial statements since July 23, 2003. With the
finalization of the East African Gold purchase price equation in the
second quarter of 2004, there were several adjustments to the fair
values assigned to the acquired assets and liabilities from the
initial purchase price allocation. Accordingly, Placer Dome's
December 31, 2003 consolidated balance sheet has been restated to
reflect these changes. Net earnings for 2003 and the first quarter
of 2004 were not re-stated as the effect on the post acquisition
period in those years was not material.



Forward Sales
At December 31, 2004, Placer Dome's consolidated metal sales program
consisted of:

--------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011+ Total
-------------------------------------------------------------------------
Gold
(000s ounces):
-------------------------------------------------------------------------
Forward contracts
sold(i)
Fixed contracts
Amount 1,047 1,239 1,245 978 347 246 461 5,563
Average price
($/oz) 330 344 372 396 411 410 474 375
Fixed interest
floating lease
rate
Amount - - 15 232 772 285 625 1,929
Average price
($/oz) - - 414 357 430 420 485 437
A$ forward
contracts
Amount - 15 24 - - - - 39
Average price
($/oz) - 482 494 - - - - 489
-------------------------------------------------------------------------
Total
Forward
contracts
sold 1,047 1,254 1,284 1,210 1,119 531 1,086 7,531

A$ forward
contracts
purchased (75) - - - - - - (75)
-------------------------------------------------------------------------
Total
Forward
contracts 972 1,254 1,284 1,210 1,119 531 1,086 7,456
-------------------------------------------------------------------------
Call options
sold and cap
agreements(ii)
Amount 277 219 115 200 20 40 20 891
Average price
($/oz) 362 357 363 394 500 500 500 380
A$ contracts
Amount 56 - - - - - - 56
Average price
($/oz) 391 - - - - - - 391
-------------------------------------------------------------------------
Total
Call options
sold and cap
agreements 333 219 115 200 20 40 20 947
-------------------------------------------------------------------------
Total
Firm committed
ounces(iii) 1,305 1,473 1,399 1,410 1,139 571 1,106 8,403
-------------------------------------------------------------------------
Contingent call
options sold(iv)
Knock-in
(up and in)
Amount 128 52 - - - - 64 244
Average price
($/oz) 404 390 - - - - 429 408
Average barrier
level ($/oz) 439 429 - - - - 429 434
Knock-out
(down and out)
Amount 38 42 66 54 117 30 - 347
Average price
($/oz) 415 436 444 458 436 480 - 442
Average barrier
level ($/oz) 364 395 387 374 384 390 - 383
-------------------------------------------------------------------------
Total
Maximum
committed
ounces(v) 1,471 1,567 1,465 1,464 1,256 601 1,170 8,994
-------------------------------------------------------------------------
Put options
purchased(vi)
Amount 718 538 363 179 159 103 99 2,159
Average price
($/oz) 406 416 441 414 407 440 434 418
-------------------------------------------------------------------------
Put options
sold(vii)
Amount 80 80 160
Average price
($/oz) 250 250 250
-------------------------------------------------------------------------

Contingent call options purchased not included in the above table total
0.1 million ounces at an average price of $437 per ounce.



-----------------------------------------
2005 2006 2007 2008 2009 Total
-------------------------------------------------------------------------
Silver (000s ounces):
-------------------------------------------------------------------------
Fixed forward contracts(i)
Amount - 1,200 - - - 1,200
Average price ($/oz) - 6.25 - - - 6.25
Call options sold(ii)
Amount 1,560 3,632 1,050 820 550 7,612
Average price ($/oz) 5.25 9.01 9.11 8.98 8.75 8.23
-------------------------------------------------------------------------
Total committed amount 1,560 4,832 1,050 820 550 8,812
-------------------------------------------------------------------------
Put options purchased(vi)
Amount 2,160 3,820 1,050 820 550 8,400
Average price ($/oz) 5.21 6.40 6.89 7.25 7.25 6.29
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Copper (millions of pounds):
--------------------------------------
--------------------------------------
Fixed forward contracts(i)
Amount 28.1
Average price ($/lb) 1.19
Call options sold(ii)
Amount 103.1
Average price ($/lb) 1.11
--------------------------------------
Total committed amount
Amount 131.2
Average price ($/lb) 1.12
--------------------------------------
Put options purchased (vi)
Amount 100.9
Average price ($/lb) 1.00
--------------------------------------

(i) Forward sales contracts - Forward sales establish a selling price
for future production at the time they are entered into, thereby
limiting the risk of declining prices but also limiting potential
gains on price increases. The types of forward sales contracts
used include:
a) Fixed forward contracts - a deliverable sales contract,
denominated in U.S. dollars, where the interest rate and metal
lease rate of the contract are fixed to the maturity of the
contract. The average price is based on the price at the
maturity of the contract.
b) Fixed interest floating lease rate contracts - a deliverable
sales contract, denominated in U.S. dollars, which has the U.S.
dollar interest rate fixed to the maturity of the contract.
Gold lease rates are reset at rollover dates ranging from
3 months to 4 years. The average price reflects the expected
value to maturity of the contracts based on assumed gold lease
rates.
c) Australian dollar forward contracts - a deliverable sales
contract denominated in Australian dollars that has been
converted to U.S. dollars at an exchange rate of 1.2814. On a
portion of these contracts, the gold lease rates have been
fixed to maturity. The remaining contracts include a lease rate
allowance or are floating at market rates.
Forward sales that are offset by call options purchased are
combined with the call option purchased and included in put
options purchased. Please refer to item (vi).

(ii) Call options sold and cap agreements - Call options sold by the
Corporation provide the buyer with the right, but not the
obligation, to purchase production from the Corporation at a
predetermined price on the exercise date of the option. Cap
agreements represent sales contracts requiring physical delivery
of gold at the prevailing spot price or the cap option price at
the expiry date of the contract. Call options and cap agreements
are disclosed based on the intended delivery date of the option.
The expiry date of the option may differ from the intended
delivery date. The average price is based on the exercise price of
the options. Call options denominated in Australian dollars have
been converted to U.S. dollars at an exchange rate of 1.2814.

(iii) Firm committed ounces - Firm committed ounces is the total of
forward sales and call options and cap agreements sold net of call
options purchased. It does not include any contingent option
commitments, whether bought or sold.

(iv) Contingent call options sold - Contingent call options sold are
option contracts denominated in Australian dollars that have been
converted to U.S. dollars at an exchange rate of 1.2814. These
contracts are similar to standard call options except that they
are extinguished or activated when the gold price reaches a
predetermined barrier. Contingent options are path-dependent
since they are dependent on the price movement of gold during
the life of the option or within specified time frames.
Knock-out options consist of down and out options and up and out
options. A down and out option will expire early if the gold price
trades below the barrier price within specified time frames whereas
an up and out option will expire early if the gold price trades
above the barrier price within specified time frames.
Knock-in options consist of up and in and down and in options. An
up and in option will come into existence if the gold price trades
above the barrier price within specified time frames whereas a down
and in option will come into existence if the gold price trades
below the barrier price within specified time frames.
As of December 31, 2004, the positions disclosed as contingent call
options sold have not been extinguished (knocked out) or activated
(knocked in) as the gold price has not traded above or below the
barrier levels during the specified time frames. In the event these
positions are activated they will be reclassified to call options
sold.

(v) Maximum committed ounces - Maximum committed ounces is the total of
firm committed ounces and contingent call options sold. This total
represents the maximum committed ounces in each period, provided
the contingent call options sold are not extinguished or are
activated and the contingent call options purchased are not
activated.

(vi) Put options purchased - Put options purchased by the Corporation
establish a minimum sales price for the production covered by such
put options and permit the Corporation to participate in any price
increases above the strike price of such put options. Certain
positions disclosed as put options are a combination of a purchased
call option and a forward sale of the same amount and maturity.
Therefore, the amount of call options purchased offsets the
committed ounces of the corresponding forward sale. The combined
instrument is referred to as a synthetic put.

(vii) Put options sold - Put options sold by the Corporation are sold in
conjunction with a forward sales contract or with the purchase of a
higher strike put option. A put option sold gives the put buyer the
right, but not the obligation, to sell gold to the put seller at a
predetermined price on a predetermined date.

At December 31, 2004, Placer Dome's consolidated foreign currency program
consisted of:
--------------------------------
2005 2006 2007 Total
-------------------------------------------------------------------------
Australian Dollars (millions USD)
Fixed forward contracts(i)
Amount 54.3 37.1 5.0 96.4
Average rate (AUD/USD) 1.8182 1.9168 1.5713 1.8433
Put options sold(ii)
Amount - 20.0 5.5 25.5
Average rate (AUD/USD) - 1.5972 1.6537 1.6093
-------------------------------------------------------------------------
Total committed dollars
Amount 54.3 57.1 10.5 121.9
Average rate (AUD/USD) 1.8182 1.8049 1.6145 1.7944
-------------------------------------------------------------------------
Call options purchased(iii)
Amount 75.0 23.5 12.0 110.5
Average rate (AUD/USD) 1.3455 1.5099 1.6431 1.4128
-------------------------------------------------------------------------
Canadian Dollars (millions USD)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Call options purchased(iii)
Amount 66.0 - - 66.0
Average rate (CAD/USD) 1.2363 - - 1.2363
-------------------------------------------------------------------------

(i) Fixed forward contracts establish an exchange rate of U.S. dollar
to the operating currency of the region at the time they are
entered into, thereby limiting the risk of exchange rate
fluctuations.
(ii) Put options sold by the Corporation provide the buyer with the
right, but not the obligation, to purchase U.S. dollars from the
Corporation at a predetermined exchange rate on the exercise date
of the options.
(iii) Call options purchased by the Corporation establish a minimum
exchange rate for converting U.S. dollars to the operating currency
of the region for the amount hedged, but permit the Corporation to
participate in any further weakness in the hedged currency.



Mineral Reserves(1)(2)(9)(12) - Proven and Probable(2)
Estimates of the Corporation's share at December 31, 2004
-------------------------------------------------------------------------
MINE BY METAL PROVEN MINERAL RESERVES PROBABLE MINERAL RESERVES
-------------------------------------------------------------------------
Contained Contained
Tonnes Grade oz Tonnes Grade oz
(000s) (g/t) (000s) (000s) (g/t) (000s)
-------------------------------------------------------------------------
GOLD
Canada
Campbell 1,039 18.6 621 1,574 16.0 811
Musselwhite 4,243 5.5 754 3,312 5.5 590
Porcupine 11,454 1.3 481 24,014 1.6 1,273
United States
Bald Mountain 10,637 1.0 332 8,715 2.2 617
Cortez(8) 115,925 1.8 6,601 59,668 1.2 2,257
Golden Sunlight 7,171 2.2 501 3,706 1.9 227
Turquoise Ridge 3,080 20.9 2,065 1,586 21.3 1,085
Australia
Granny Smith 4,180 2.1 288 4,556 3.7 542
Henty - - - 749 10.1 242
Kalgoorlie West 164 4.2 22 7,922 3.5 891
Kanowna Belle 6,871 5.3 1,164 4,297 4.6 640
Osborne 5,352 0.9 156 2,404 0.6 50
Papua New Guinea
Porgera(8) 36,813 3.5 4,094 6,962 6.2 1,391
South Africa
South Deep(8)(9) 6,131 9.6 1,889 104,684 7.7 25,919
Tanzania
North Mara 6,294 2.3 464 27,758 3.9 3,444
Chile
La Coipa 9,158 1.3 369 4,089 1.0 137
-------------------------------------------------------------------------
-------------------------------------------------------------------------
19,801 40,116
-------------------------------------------------------------------------
SILVER
La Coipa 9,158 68.1 20,043 4,089 94.6 12,437
-------------------------------------------------------------------------
-------------------------------------------------------------------------
20,043 12,437
-------------------------------------------------------------------------
COPPER Contained Contained
Tonnes Grade lbs Tonnes Grade lbs
(000s) (%) (millions) (000s) (%) (millions)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Zaldivar(8) 132,347 0.685 1,998 288,926 0.660 4,204
Osborne 5,352 1.829 216 2,404 2.336 124
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2,214 4,238
-------------------------------------------------------------------------

----------------------------------------------------------
MINE BY METAL TOTAL PROVEN AND PROBABLE MINERAL RESERVES
----------------------------------------------------------
Contained
Tonnes Grade oz Recovery
(000s) (g/t) (000s) (%)(1)
----------------------------------------------------------
GOLD
Canada
Campbell 2,613 17.0 1,432 95.5
Musselwhite 7,555 5.5 1,344 95.7
Porcupine 35,468 1.5 1,754 90.5
United States
Bald Mountain 19,532 1.5 949 76.8
Cortez(8) 175,593 1.6 8,858 78.5
Golden Sunlight 10,877 2.1 728 79.3
Turquoise Ridge 4,666 21.0 3,150 90.8
Australia
Granny Smith 8,736 3.0 830 86.0
Henty 749 10.1 242 94.6
Kalgoorlie West 8,086 3.5 913 96.0
Kanowna Belle 11,168 5.0 1,804 89.3
Osborne 7,756 0.8 206 80.0
Papua New Guinea
Porgera(8) 43,775 3.9 5,485 83.0
South Africa
South Deep(8)(9) 110,815 7.8 27,808 97.0
Tanzania
North Mara 34,052 3.6 3,908 89.0
Chile
La Coipa 13,247 1.2 506 81.0
----------------------------------------------------------
----------------------------------------------------------
59,917
----------------------------------------------------------
SILVER
La Coipa 13,247 76.3 32,480 63.6
----------------------------------------------------------
----------------------------------------------------------
32,480
----------------------------------------------------------
COPPER Contained
Tonnes Grade lbs Recovery
(000s) (%) (millions) (%)(1)
----------------------------------------------------------
----------------------------------------------------------
Zaldivar(8) 421,273 0.668 6,202 81.0
Osborne 7,756 1.986 340 94.7
----------------------------------------------------------
----------------------------------------------------------
6,542
----------------------------------------------------------
Rounding differences may occur.
Notes: Refer to notes following these tables.



Reconciliation of Mineral Reserves(1)(2)(9)(12) - Proven and Probable(2)
Estimates of the Corporation's share
-------------------------------------------------------------------------
Other
Mineral increase or Mineral
Reserves (decrease) Reserves
December 31, Mined in in mineral December 31,
MINE BY METAL 2003 2004(5) reserves(6) 2004
-------------------------------------------------------------------------
GOLD (000s ozs)
Canada
Campbell 1,430 218 220 1,432
Musselwhite 1,402 171 113 1,344
Porcupine 1,549 219 424 1,754
United States
Bald Mountain 676 67 340 949
Cortez 7,646 891 2,103 8,858
Golden Sunlight 706 3 25 728
Turquoise Ridge 3,642 140 (352) 3,150
Australia
Granny Smith 1,404 299 (275) 830
Henty 333 148 57 242
Kalgoorlie West 1,003 275 185 913
Kanowna Belle 2,246 265 (177) 1,804
Osborne 237 51 20 206
Papua New Guinea
Misima 40 46 6 -
Porgera 5,391 865 959 5,485
South Africa
South Deep(9) 28,442 220 (414) 27,808
Tanzania
North Mara 3,808 227 327 3,908
Chile
La Coipa 590 112 28 506
-------------------------------------------------------------------------
-------------------------------------------------------------------------
60,545 4,217 3,589 59,917
-------------------------------------------------------------------------
SILVER (000s ozs)
La Coipa 38,232 6,423 671 32,480
Misima 374 374 - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
38,606 7,825 1,699 32,480
-------------------------------------------------------------------------
COPPER (million lbs)
Zaldivar 6,534 424 92 6,202
Osborne 418 93 15 340
-------------------------------------------------------------------------
-------------------------------------------------------------------------
6,952 517 107 6,542
-------------------------------------------------------------------------
Rounding differences may occur.
Notes: Refer to the notes following these tables.



Mineral Resources(3)(4)(7)(9)(12) (in addition to mineral reserves)
- Measured, Indicated and Inferred(4)
Estimates of the Corporation's share at December 31, 2004
--------------------------------------------------------------------
--------------------------------------------------------------------
MINE BY METAL MEASURED MINERAL INDICATED MINERAL
RESOURCES RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained
Tonnes Grade oz Tonnes Grade oz
(000s) (g/t) (000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD
Canada
Campbell 1,286 17.4 720 3,936 7.8 987
Musselwhite 1,056 3.9 133 910 6.5 190
Porcupine 3,167 2.6 267 24,431 1.9 1,469
United States
Bald Mountain 31,783 0.8 844 16,829 1.1 578
Cortez(8) 73,630 1.2 2,868 97,697 0.8 2,423
Golden Sunlight 5,841 1.7 313 1,411 3.0 135
Turquoise Ridge 2,008 13.4 866 795 11.9 306
Australia
Granny Smith 81 7.5 19 2,839 2.7 248
Henty - - - 68 7.0 15
Kalgoorlie West 264 1.0 9 6,853 2.0 433
Kanowna Belle 6,066 5.2 1,020 5,392 4.5 786
Osborne 1,777 1.4 80 2,964 1.1 109
Papua New Guinea
Porgera(8) 14,808 3.2 1,508 11,873 2.3 863
South Africa
South Deep(8)(9) 208 13.5 89 15,354 11.0 5,434
Tanzania
North Mara 481 1.7 26 10,123 2.2 723
Chile
La Coipa 9,076 0.9 266 5,034 1.1 176
--------------------------------------------------------------------
--------------------------------------------------------------------
9,028 14,875
--------------------------------------------------------------------
SILVER
La Coipa 9,077 34.0 9,916 5,033 35.2 5,696
--------------------------------------------------------------------
--------------------------------------------------------------------
9,916 5,696
--------------------------------------------------------------------
Contained Contained
Tonnes Grade lbs Tonnes Grade lbs
COPPER (000s) (%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Zaldivar(8) 11,439 0.563 141 50,112 0.540 598
Osborne 1,777 4.987 195 2,964 1.797 118
--------------------------------------------------------------------
--------------------------------------------------------------------
336 716
--------------------------------------------------------------------

--------------------------------------------------------------------
--------------------------------------------------------------------
MINE BY METAL TOTAL MEASURED AND INFERRED MINERAL
INDICATED RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained
Tonnes Grade oz Tonnes Grade oz
(000s) (g/t) (000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD
Canada
Campbell 5,222 10.2 1,707 4,876 17.9 2,807
Musselwhite 1,966 5.1 323 5,428 6.3 1,087
Porcupine 27,598 2.0 1,736 7,600 3.1 749
United States
Bald Mountain 48,612 0.9 1,422 9,805 0.6 193
Cortez(8) 171,327 1.0 5,291 18,597 0.8 489
Golden Sunlight 7,252 1.9 448 335 1.8 19
Turquoise Ridge 2,803 13.0 1,172 2,098 20.6 1,389
Australia
Granny Smith 2,920 2.8 267 16,213 5.3 2,763
Henty 68 7.0 15 186 9.1 54
Kalgoorlie West 7,117 1.9 442 12,449 3.8 1,506
Kanowna Belle 11,458 4.9 1,806 534 4.2 73
Osborne 4,741 1.2 189 934 1.2 35
Papua New Guinea
Porgera(8) 26,681 2.8 2,371 3,522 6.9 785
South Africa
South Deep(8)(9) 15,562 11.0 5,523 - - -
Tanzania
North Mara 10,604 2.2 749 4,117 3.2 424
Chile
La Coipa 14,110 1.0 442 523 0.7 12
--------------------------------------------------------------------
--------------------------------------------------------------------
23,903 12,385
--------------------------------------------------------------------
SILVER
La Coipa 14,110 34.4 15,612 523 62.4 1,049
--------------------------------------------------------------------
--------------------------------------------------------------------
15,612 1,049
--------------------------------------------------------------------
Contained Contained
Tonnes Grade lbs Tonnes Grade lbs
COPPER (000s) (%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Zaldivar(8) 61,551 0.545 739 35,139 0.499 377
Osborne 4,741 2.992 313 934 1.895 39
--------------------------------------------------------------------
--------------------------------------------------------------------
1,052 426
--------------------------------------------------------------------
Rounding differences may occur.
Notes: Refer to notes following these tables.



Mineral Resources - Exploration and Development Properties(3)(4)(7)(12)
(Measured, Indicated and Inferred)(4)
Estimates of the Corporation's Share at December 31, 2004
--------------------------------------------------------------------
--------------------------------------------------------------------
PROPERTY BY METAL MEASURED MINERAL INDICATED MINERAL
RESOURCES RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained
Tonnes Grade oz Tonnes Grade oz
(000s) (g/t) (000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD
Cerro Casale(10) 103,413 0.8 2,493 464,526 0.7 10,471
Donlin Creek(11) 5,530 3.1 559 76,650 2.9 7,240
Mount Milligan 156,497 0.5 2,263 251,957 0.4 3,362
Pueblo Viejo 118,326 3.2 12,280 31,937 2.9 2,973
--------------------------------------------------------------------
--------------------------------------------------------------------
17,595 24,046
--------------------------------------------------------------------
SILVER
Pueblo Viejo 118,326 18.2 69,138 31,937 13.3 13,637
--------------------------------------------------------------------
--------------------------------------------------------------------
69,138 13,637
--------------------------------------------------------------------
Contained Contained
Tonnes Grade lbs Tonnes Grade lbs
COPPER (000s) (%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Cerro Casale(11) 103,413 0.250 570 464,526 0.260 2,685
Mount Milligan 156,497 0.198 683 251,957 0.175 972
--------------------------------------------------------------------
--------------------------------------------------------------------
1,253 3,657
--------------------------------------------------------------------

--------------------------------------------------------------------
--------------------------------------------------------------------
PROPERTY BY METAL TOTAL MEASURED AND INFERRED MINERAL
INDICATED MINERAL RESOURCES
RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained
Tonnes Grade oz Tonnes Grade oz
(000s) (g/t) (000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD
Cerro Casale(10) 567,939 0.7 12,964 87,310 0.6 1,782
Donlin Creek(11) 82,180 3.0 7,799 99,540 3.1 10,016
Mount Milligan 408,454 0.4 5,625 35,393 0.4 444
Pueblo Viejo 150,263 3.2 15,253 2,148 2.9 199
--------------------------------------------------------------------
--------------------------------------------------------------------
41,641 12,441
--------------------------------------------------------------------
SILVER
Pueblo Viejo 150,263 17.1 82,775 2,148 12.6 873
--------------------------------------------------------------------
--------------------------------------------------------------------
82,775 873
--------------------------------------------------------------------
Contained Contained
Tonnes Grade lbs Tonnes Grade lbs
COPPER (000s) (%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Cerro Casale(11) 567,939 0.260 3,255 87,310 0.330 645
Mount Milligan 408,454 0.184 1,655 35,393 0.146 114
--------------------------------------------------------------------
--------------------------------------------------------------------
4,910 759
--------------------------------------------------------------------
Rounding differences may occur. Refer to notes following these tables.


CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED,
INDICATED AND INFERRED MINERAL RESOURCES:

In this document the Corporation uses the term "mineral resources" and
its subcategories "measured", "indicated" and "inferred" mineral resources.
Investors are advised that while such terms are recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission does not
recognize them. U.S. investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted into
reserves. "Inferred mineral resources" have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian rules,
issuers must not make any disclosure of results of an economic evaluation that
includes inferred mineral resources, except in rare cases. U.S. investors are
cautioned not to assume that part or all of an inferred mineral resource
exists, or is economically or legally mineable.

Notes to the Mineral Reserves, Reconciliation of Mineral Reserves,
Mineral Resources and Mineral Resources - Exploration and Development
Properties Tables:

(1) The Corporation's mineral reserves are estimated as at
December 31, 2004 using appropriate cut-off grades associated with
an average long-term gold price of $350 per ounce (except at
South Deep where a gold price of $325 per ounce was used - see
note 9) (2003 - $325), silver price of $5.00 per ounce
(2003 - $4.75) and copper price of $0.90 per pound (except at
Osborne where, due to its shorter life a copper price of $1.09 per
pound was used) (2003 $0.85) and on Canadian and Australian dollar,
Papua New Guinean kina, Chilean peso and South African rand average
long-term exchange rates to the U.S. dollar of 1.43, 1.54, 3.33, 675
and 8.75 to 1, respectively (2003 - 1.45, 1.667, 4.00, 750 and
7 to 1, respectively). The estimates incorporate the current and/or
expected mine plans and cost levels at each property. Recovery is
approximate and is stated as a percentage of contained ounces for
gold and silver and contained pounds for copper. With respect to
long-term mines with a larger mineral reserve base and properties
under development, significant capital expenditures may be required
for mine construction prior to the start of commercial production
and for subsequent exploitation. The qualified persons responsible
for mineral reserve estimates are listed under note 12. Consistent
with Placer Dome's mineral reserve estimation practices, independent
data verification has not been performed.

(2) A "mineral reserve" is the economically mineable part of a measured
or indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. A mineral reserve includes diluting
materials and allowances for losses that may occur when the material
is mined. A "proven mineral reserve" is the economically mineable
part of a measured mineral resource demonstrated by at least a
preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and other
relevant factors that demonstrate, at the time of reporting, that
economic extraction is justified. A "probable mineral reserve" is
the economically mineable part of an indicated, and in some
circumstances a measured, mineral resource demonstrated by at least
a preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and other
relevant factors that demonstrate, at the time of reporting, that
economic extraction can be justified. The above definitions of
"mineral reserve", "proven mineral reserve" and "probable mineral
reserve" conform to Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") definitions of these terms as at the effective
date of estimation as required by National Instrument 43-101 of the
Canadian Securities Administrators ("NI 43-101").

(3) These mineral resources are in addition to gold, silver and copper
mineral reserves and have been estimated as at December 31, 2004
using appropriate cut-off grades associated with an average
long-term gold price of $425 per ounce and copper price of
$1.00 per pound. With respect to exploration properties and
properties under development, significant capital expenditures would
be required for mine construction prior to the start of commercial
production. The qualified persons responsible for mineral resource
estimates are listed under note 12. Consistent with Placer Dome's
mineral resource estimation practices, independent data verification
has not been performed except in the case of certain exploration
properties. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. Where this document refers to
measured, indicated or inferred mineral resources, these would be
described as mineralized material in the U.S. reporting environment.

(4) A "mineral resource" is a concentration or occurrence of natural,
solid, inorganic or fossilized organic material in or on the earth's
crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a
mineral resource are known, estimated or interpreted from specific
geological evidence and knowledge. A "measured mineral resource" is
that part of a mineral resource for which quantity, grade or
quality, densities, shape, and physical characteristics are so well
established that they can be estimated with confidence sufficient to
allow the appropriate application of technical and economic
parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely
enough to confirm both geological and grade continuity. An
"indicated mineral resource" is that part of a mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics, can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably assumed. An
"inferred mineral resource" is that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis of
geological evidence and limited sampling and reasonable assumed, but
not verified, geological and grade continuity. The estimate is based
on limited information and samplings gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes. The above definitions of "mineral resource",
"measured mineral resource", "indicated mineral resource" and
"inferred mineral resource" conform to CIM definitions of those
terms as at the effective date of estimation, as required by
NI 43-101. Mineral resources which are not mineral reserves do not
have demonstrated economic viability.

(5) Based on 2004 production divided by the recovery percentage for each
mine.

(6) Increase (decrease) in mineral reserves resulted from
reclassifications between mineral resources and mineral reserves,
acquisition and divestiture of mineral reserves during the year,
changes due to geological remodeling and mine planning, changes in
currency exchange rates and costs of input commodities and the
impact of an increase in the average long term gold price from
$325 to $350 per ounce.

(7) Increase (decrease) in mineral resources resulted from
reclassifications between mineral resources and mineral reserves,
changes due to geological remodeling, exploration activity, changes
in currency exchange rates and the impact of a decrease in the
average long term gold price from $450 to $425 per ounce. The
overall reduction of measured and indicated gold mineral resources
at mine sites to 23.9 million ounces at December 31, 2004 from
42.0 million ounces at December 31, 2003 was primarily due to a
previously announced 14.1 million ounce decrease at South Deep as a
result of a review completed in the middle of 2004 (refer to
note 9).

(8) Economic cut-off grades for material properties:

The cut-off grades for a particular property can vary depending on
the various rock types, metallurgical processes and mining methods.
Cut-off grades are therefore quoted below as a range for each
material property to reflect the variability of these parameters.

--------------------------------------------
--------------------------------------------
MINERAL RESERVES MINERAL RESOURCES
--------------------------------------------
Cut-off grade Cut-off grade
(g/t gold, % copper) (g/t gold, % copper)
--------------------------------------------------------------
--------------------------------------------------------------
Cortez 0.17 - 3.30 g/t 0.17 - 3.30 g/t
Porgera 1.00 - 5.00 g/t 1.00 - 4.00 g/t
South Deep 5.00 - 7.40 g/t 5.00 g/t
Zaldivar 0.283 - 0.289 % 0.245%
--------------------------------------------------------------

The Corporation is not aware of any environmental, permitting,
legal, title, taxation, socio-political, marketing or other relevant
issues which may materially affect the Corporation's mineral reserve
and mineral resource estimates, other than the factors discussed in
the filings by Placer Dome with the U.S. Securities and Exchange
Commission and Canadian provincial securities regulatory
authorities.

(9) Mineral resource and reserve estimates for South Deep as at
December 31, 2004 are based on estimates as at June 30, 2004,
depleted for production in the last six months of 2004. The
June 30, 2004 estimates were prepared using appropriate cut-off
grades associated with an average long-term gold price of
$325 per ounce and an average long-term rand to U.S. dollar exchange
rate of 8.75:1. A qualified person employed by the Placer Dome
Western Areas Joint Venture ("PDWAJV") prepared the mineral resource
estimate. Steffen, Robertson and Kirsten (South Africa) (Pty) Ltd.
("SRK Consulting") were retained by the PDWAJV to review the mine's
mineral reserve estimation process. In completing its review, SRK
Consulting determined that additional geological modeling at
South Deep was advisable, and the mineral reserve estimate has been
qualified accordingly. SRK Consulting was of the view that
additional geological modeling would improve the understanding of
the Phase 1 mine mineral resource estimate and thus reduce the risks
associated with applying this interpretation to the Phase 2 area. It
would also improve the confidence in the various mining methods
selected for Phase 2 and associated production schedules.
Accordingly, the mine continues to work to improve the mineral
resource and mineral reserve estimation to address the qualifying
issues raised by SRK Consulting. This is consistent with the ongoing
mineral resource estimation process of the mine and its strategy to
optimize the operation. Additional geological modeling, changes in
economic assumptions and the long-term cost structure of the mine
may impact future mineral reserve and mineral resource estimates. It
is expected that this work will be completed for Placer Dome's year-
end 2005 disclosure.

(10) Assuming 51% indirect ownership by Placer Dome, which ownership
interest is subject to certain obligations of Placer Dome under the
terms of a shareholders agreement. The other indirect owners of the
Cerro Casale property are Bema Gold Corporation (24%) and Arizona
Star Resource Corp. (25%).

(11) Assuming 70% ownership by Placer Dome; the other owner of the Donlin
Creek property is NovaGold Resources Inc. On February 11, 2003,
Placer Dome announced that it was exercising its option to earn back
to a 70% interest in Donlin Creek. In order to do this, Placer Dome
must spend $32 million over 5 years and complete a feasibility
study, followed by a positive construction decision for a mine that
would produce 600,000 ounces of gold per annum. If Placer Dome
chooses to terminate such expenditures and not to complete its
earn-in, the Corporation retains its 30% interest.

(12) The Corporation's mineral reserve and mineral resource estimates are
based on information prepared by or under the supervision of one or
more "qualified persons", as that term is defined in NI 43-101. The
qualified persons responsible for the Corporation's mineral reserve
and mineral resource estimates as at December 31, 2004 are listed
below. All named persons are, or were at the time the estimates were
prepared, employees of Placer Dome. In estimating the applicable
mineral reserves and mineral resources, the qualified persons have
used assumptions, parameters and methods appropriate for each
property and have verified the underlying data as appropriate in
their professional opinion (including sampling, analytical and test
data).

--------------------------------------------------------
--------------------------------------------------------
MINERAL RESERVES
-------------------------------------------------------------------------
BY PROPERTY Name Title
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Campbell Stephane Blais Chief Engineer
-------------------------------------------------------------------------
Musselwhite Robert MacDonald Chief Mine Engineer
-------------------------------------------------------------------------
Porcupine Stephen Taylor Senior Engineer
Peter Andrews Senior Open Pit Project
Engineer
Jason Floyd Senior Open Pit Engineer
-------------------------------------------------------------------------
Bald Mountain Tim Thompson Chief Geologist
Britt Buhl Business Systems Co-ordinator
-------------------------------------------------------------------------
Cortez Bill Martinich Technical Service
Superintendent
-------------------------------------------------------------------------
Golden Sunlight Paul Buckley Engineering Superintendent
-------------------------------------------------------------------------
Turquoise Ridge Simon Jackson Chief Engineer
-------------------------------------------------------------------------
Granny Smith Ray Hodson Chief Mining Engineer
Richard Boffey Underground Project Manager
-------------------------------------------------------------------------
Henty Simon Pollard Senior Geologist
-------------------------------------------------------------------------
Kalgoorlie West Mark Kaesehagen Project Development Manager
Dan Doherty Underground Superintendent
-------------------------------------------------------------------------
Kanowna Belle David Williams Resource Geologist
Matthew Varvari Senior Planning Engineer
Mark Kaesehagen Project Development Manager
-------------------------------------------------------------------------
Osborne Alasdair Noble Minerals Processing Engineer
Sharn Morrison Mine Engineering Team Leader
-------------------------------------------------------------------------
Porgera John Butterworth Senior Planning Engineer
-------------------------------------------------------------------------
South Deep Dexter Ferreira Chief Planning Engineer
-------------------------------------------------------------------------
North Mara Bruce Van Brunt Strategic Planning Engineer
-------------------------------------------------------------------------
La Coipa Mauricio Rubio Gonzalez Senior Production Geologist
Andres Guaringa Vasquez Mine Engineer
-------------------------------------------------------------------------
Zaldivar Eduardo Jofre Chief Mining Engineer
-------------------------------------------------------------------------
Cerro Casale N/A N/A
-------------------------------------------------------------------------
Donlin Creek N/A N/A
-------------------------------------------------------------------------
Mount Milligan N/A N/A
-------------------------------------------------------------------------
Pueblo Viejo N/A N/A
-------------------------------------------------------------------------


--------------------------------------------------------
--------------------------------------------------------
MINERAL RESOURCES
-------------------------------------------------------------------------
BY PROPERTY Name Title
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Campbell Frank Hrdy Senior Resource Geologist
-------------------------------------------------------------------------
Musselwhite Andrew Cheatle Chief Geologist
-------------------------------------------------------------------------
Porcupine JV Alastair Still Strategic Development
Superintendent
Stephen Price Chief Geologist
-------------------------------------------------------------------------
Bald Mountain Tim Thompson Chief Geologist
Britt Buhl Business Systems Co-ordinator
-------------------------------------------------------------------------
Cortez Bill Martinich Technical Service
Superintendent
-------------------------------------------------------------------------
Golden Sunlight Paul Buckley Engineering Superintendent
-------------------------------------------------------------------------
Turquoise Ridge Tony Dorff Chief Geologist
-------------------------------------------------------------------------
Granny Smith Bruce Robertson Senior Underground Geologist
Richard Holmes Chief Mine Geologist
-------------------------------------------------------------------------
Henty Simon Pollard Senior Geologist
-------------------------------------------------------------------------
Kalgoorlie West Jon Abbott Senior Resource Geologist
Roger Cooper Senior Resource Geologist
-------------------------------------------------------------------------
Kanowna Belle Jon Abbott Senior Resource Geologist
Ben Playford Senior Mine Geologist
-------------------------------------------------------------------------
Osborne Philip Agnew Resource Geologist
Frank Tullemans Geology Team Leader
John Crimeen Senior Project Geologist
Richard Lewis Manager Resource Evaluation
-------------------------------------------------------------------------
Porgera Anthony Burgess Senior Resource Geologist
-------------------------------------------------------------------------
South Deep Adrian Adams Chief Geologist
-------------------------------------------------------------------------
North Mara Darin Labrenz Chief Geologist
-------------------------------------------------------------------------
La Coipa Andres Guaringa Vasquez Mine Engineer
Juan Ochoa Matulic Mine Superintendent
-------------------------------------------------------------------------
Zaldivar Jorge Aceituno Mine Superintendent
-------------------------------------------------------------------------
Cerro Casale Marc Jutras Senior Mining Engineer/
Geostatistician
-------------------------------------------------------------------------
Donlin Creek Marc Jutras Senior Mining Engineer/
Geostatistician
-------------------------------------------------------------------------
Mount Milligan Rob Pease General Manager, Canada
Exploration and Global Major
Projects
-------------------------------------------------------------------------
Pueblo Viejo Chris Keech Senior Geologist/
Geostatistician
-------------------------------------------------------------------------

Non-GAAP Measures
Placer Dome has included certain non-GAAP performance measures throughout
this document. These non-GAAP performance measures do not have any
standardized meaning prescribed by GAAP and, therefore, are unlikely to be
comparable to similar measures presented by other companies. Placer Dome
believes that, in addition to conventional measures, prepared in accordance
with U.S. GAAP, certain investors use this information to evaluate Placer
Dome's performance and its ability to generate cash flow for use in investing
and other activities. Accordingly, they are intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. Set out below are
definitions for these performance measures and reconciliations of the non-GAAP
measures to reported GAAP measures.

Cash Flow from Operations per Common Share
Cash flow from operations per common share is determined by dividing the
cash flow from operations by the weighted average number of common shares
outstanding during the period, as follows:

--------------------------------
December 31
--------------------------------
Fourth Quarter Twelve Months
--------------------------------
2004 2003 2004 2003
-------------------------------------------------------------------------
Cash from operations ($millions) 44 29 376 297
-------------------------------------------------------------------------
Weighted average number of common
shares (millions) 423.7 410.6 416.8 409.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash from operations per common share $0.10 $0.07 $0.90 $0.73
-------------------------------------------------------------------------

Unit costs
A reconciliation of costs per ounce of gold produced, calculated in
accordance with the Gold Institute Standard, and cost per pound of copper
produced to the Cost of Sales and Depreciation and Depletion is included
below:

($millions except production and unit costs)(i)

--------------------------------------------------------------
Twelve Months ended December 31
--------------------------------------------------------------
2004 2003
--------------------------------------------------------------
Gold Copper Gold Copper
--------------------------------------------------------------
Cost Cost Cost Cost
of Deprecia- of Deprecia- of Deprecia- of Depre-
Sales tion Sales tion Sales tion Sales ciation
-------------------------------------------------------------------------
Reported 1,149 255 - - 1,090 267 - -
Copper (247) (59) 247 59 (219) (57) 219 57
Corporate(ii) (4) (18) - - (7) (14) - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Related to
precious
metals 898 178 247 59 864 196 219 57
Add La Coipa 34 10 - - 30 12 - -
Deduct minority
interest (3) - - - (8) (1) - -
By-product (4) - (17) - (5) - (12) -
Roast ore
costs (51) - - - - - - -
Reclamation (18) 18 (4) 4 (14) 14 (2) 2
Inventories (3) (3) (7) (2) (9) (2) 7 3
Other(iii) (15) (2) 8 1 (12) (2) 11 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
838 201 227 62 846 217 223 62
-------------------------------------------------------------------------
Production
reported(i) 3,652 3,652 413 413 3,861 3,861 425 425
Osborne
gold ozs (42) (42) - - (37) (37) - -
Roast ore
ozs (175) (175) - - - - - -
Golden
Sunlight ozs (2) (2) - - - - - -
La Coipa gold
equivalents
ozs 60 60 - - 55 55 - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Production
base for
calculation 3,493 3,493 413 413 3,879 3,879 425 425
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Unit costs(i) 240 58 0.55 0.15 218 56 0.52 0.15
-------------------------------------------------------------------------
-------------------------------------------------------------------------


--------------------------------------------------------------
Fourth Quarter
--------------------------------------------------------------
2004 2003
--------------------------------------------------------------
Gold Copper Gold Copper
--------------------------------------------------------------
Cost Cost Cost Cost
of Deprecia- of Deprecia- of Deprecia- of Depre-
Sales tion Sales tion Sales tion Sales ciation
-------------------------------------------------------------------------
Reported 311 71 - - 293 71 - -
Copper (62) (14) 62 14 (57) (15) 57 15
Corporate(ii) 1 (7) - - (4) (4) - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Related to
metals
production 250 50 62 14 232 52 57 15
Add La Coipa 9 2 - - 8 4 - -
Deduct
minority
interest - - - - (2) (1) - -
By product (1) - (3) - (2) - (3) -
Roast ore
costs (18) - - - - - - -
Reclamation (6) 5 (3) 3 (1) 1 (1) 1
Inventories 3 - 2 - 3 - 3 2
Other(iii) (4) 1 2 - (1) 1 3 (2)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
233 58 60 17 237 57 59 16
-------------------------------------------------------------------------
Production
reported(i) 927 927 93 93 1,039 1,039 111 111
Osborne
gold ozs (8) (8) - - (12) (12) - -
Roast ore
ozs (54) (54) - - - - - -
La Coipa gold
equivalents
ozs 18 18 - - 10 10 - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Production
base for
calculation 883 883 93 93 1,037 1,037 111 111
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Unit costs(i) 264 66 0.64 0.18 229 55 0.53 0.14
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold production is in thousands of ounces, and unit costs for gold
are in $/oz. Copper production is in thousands of pounds, and unit
costs for copper are in $/lb.
(ii) Corporate depreciation includes the amortization of tax gross ups.
(iii) Other consists of management fees and unusual costs such as
significant severance or costs incurred during a temporary mine
shut down, which are excluded from the determination of unit costs
and smelting charges which are netted against sales revenue but
included in the determination of unit costs.

Placer Dome today declared a semi-annual dividend of $0.05 per common
share, payable on April 11, 2005 to shareholders of record at the close of
business on March 11, 2005.

Placer Dome's audited consolidated financial statements prepared in
Canadian GAAP will be first mailed to registered shareholders on or about
March 21, 2005, and will be available on the Placer Dome website at
www.placerdome.com on or about March 1, 2005. The audited consolidated
financial statement prepared in Canadian GAAP will be available on the website
maintained by the Canadian securities regulators at www.sedar.com, on or about
March 1, 2005. Any shareholder entitled to receive Placer Dome's annual
financial statements may also obtain a copy on request.

Placer Dome is one of the world's largest gold mining companies. Based in
Vancouver, Canada, Placer Dome has interests in 17 mines in seven countries
and employs more than 13,000 people around the world. Placer Dome's shares
trade on the Toronto, New York, Swiss and Australian stock exchanges and
Euronext-Paris under the symbol PDG.

Placer Dome will host a conference call to discuss fourth quarter and
year-end results at 7:00am PST/10:00am EST on Thursday, February 24. North
American participants may access the call at (800) 424-9805. International
participants please dial (212) 676-4902. The call can be heard live on the
Placer Dome website at www.placerdome.com, where it will be accompanied by a
webcast presentation. The conference call will be available for replay until
March 10, 2005 by dialling (416) 626-4100, reservation No. 21231253.

Placer Dome's 2005 annual meeting will be held at the Vancouver
Convention and Exhibition Centre on Wednesday, April 27, 2005 at 10:00am PDT.
The meeting will be webcast live at www.placerdome.com. An archived version of
the webcast will be available following the conclusion of the meeting.

Two new candidates have been nominated for election to the Placer Dome
Board of Directors. Don Carty, retired Chairman and Chief Executive Officer of
American Airlines, and Clive Mather, President and Chief Executive Officer of
Shell Canada, will stand for election at the upcoming annual meeting. Both
individuals have extensive experience leading large, complex multinational
organizations. More information on Messrs. Carty and Mather is available at
www.placerdome.com/board.

FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" based on Placer
Dome Inc's ("Placer Dome") expectations, estimates and projections as of the
dates which those statements were made. These forward-looking statements
include, among other things, statements with respect to Placer Dome's business
strategy, plans, outlook, long-term growth in cash flow, earnings per share
and shareholder value, projections, targets and expectations as to reserves,
resources, results of exploration (including targets) and related expenses,
property acquisitions, mine development, mine operations, mine production
costs, drilling activity, sampling and other data, recovery improvements,
future production levels, capital costs, costs savings, cash and total costs
of production of gold, copper and other minerals, expenditures for
environmental matters and technology, projected life of our mines, reclamation
and other post closure obligations and estimated future expenditures for those
matters, completion dates for the various development stages of mines, future
gold and other mineral prices (including the long-term estimated prices used
in calculating Placer Dome's mineral reserves), the percentage of production
derived from mechanized mining, currency exchange rates, debt reductions, and
the percentage of anticipated production covered by forward sale and other
option contracts or agreements. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause Placer
Dome's actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking
statements, including:

- uncertainties and costs related to Placer Dome's exploration and
development activities, such as those associated with determining
whether gold or other mineral reserves exist on a property;
- uncertainties related to feasibility studies that provide estimates of
expected or anticipated economic returns from a mining project;
- uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the future development or implementation of
new technologies, research and development and, in each case, related
initiatives and the effect of those on our operating performance;
- uncertainties related to the accuracy of our reserve and resource
estimates and our estimates of future production and future cash and
total costs of production;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations, particularly laws,
regulations and policies relating to:
- mine expansions, environmental protection and associated compliance
costs arising from exploration, mine development, mine operations
and mine closures;
- expected effective future tax rates in jurisdictions in which our
operations are located;
- the protection of the health and safety of mine workers; and
- mineral rights ownership in countries where our mineral deposits
are located, including the effect of the Mineral and Petroleum
Resources Development Act (South Africa);
- changes in general economic conditions, the financial markets and in
the demand and market price for gold, copper and other minerals and
commodities, such as diesel fuel, electricity and other forms of
energy, and fluctuations in exchange rates, particularly with respect
to the value of the U.S. dollar, Canadian dollar, Australian dollar,
Papua New Guinean kina, South African rand and Chilean peso
- the effects of forward selling instruments to protect against
fluctuations in gold and copper prices and exchange rate movements and
the risks of counterparty defaults;
- geopolitical uncertainty and political and economic instability in the
countries in which we operate; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or other
events or occurrences that interrupt the production of minerals in our
mines.

A discussion of these and other factors that may affect Placer Dome's
actual results, performance, achievements or financial position is contained
in the filings by Placer Dome with the U.S. Securities and Exchange Commission
and Canadian provincial securities regulatory authorities. This list is not
exhaustive of the factors that may affect our forward-looking statements.
These and other factors should be considered carefully and readers should not
place undue reliance on such forward-looking statements. Placer Dome does not
undertake to update any forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.
>>

%SEDAR: 00002304E

Contact Information

  • On this news release please contact Investor Relations:
    Greg Martin
    (604) 661-3795
    or
    Meghan Brown
    (604) 661-1577

    Media Relations:
    Gayle Stewart
    (604) 661-1911

    Toll-free within North America
    (800) 565-5815

    For enquiries related to shares, transfers and dividends please contact
    CIBC Mellon Trust Company
    Toll-free within North America
    (800) 387-0825
    Collect calls accepted from outside North America
    (416) 643-5500

    Head Office:
    Suite 1600, Bentall IV,
    1055 Dunsmuir Street
    P.O. Box 49330, Bentall Postal Station,
    Vancouver, British Columbia
    Canada, V7X 1P1
    tel (604) 682-7082
    fax (604) 682-7092

    On the internet:
    www.placerdome.com