AngloGold Ashanti Ltd and Mwana Africa Holdings (Pty) Ltd jointannouncementANGLOGOLD ASHANTI LIMITED(formerly AngloGold Limited)Incorporated in the Republic of South AfricaRegistration Number: 1944/017354/06)ISIN Number:ZAE000043485 JSE Share Code: ANG(`AngloGold Ashanti/Company`)Mwana Africa Holdings (Proprietary) LimitedIncorporated in the Republic of South Africa Reg. No. 2002/027269/07ANGLOGOLD ASHANTI AGREES TO SELL THE FREDA-REBECCA GOLD MINE TOMWANA AFRICA HOLDINGS (PROPRIETARY) LIMITEDAngloGold Ashanti Limited has agreed to sell its entireinterests in Ashanti Goldfields Zimbabwe Limited (`AshantiZimbabwe`) to Mwana Africa Holdings (Proprietary) Limited(`Mwana`) for a cash consideration of US$2.255 million (`theTransaction). The principal and sole operating asset of AshantiZimbabwe is the Freda-Rebecca Gold Mine (`Freda-Rebecca`).Freda-Rebecca is situated near Bindura in Zimbabwe andproduced some 51,091 ounces of gold at a cash cost of US$268 perounce in 2003. The total Proven and Probable Ore Reserves ofFreda-Rebecca as at 31 December 2003 were 300,000 ounces and atthat time, Ashanti Goldfields Company Limited estimated thatFreda-Rebecca had a remaining life of some 4 years. AngloGoldAshanti has no other operations or exploration activities inZimbabwe. Both for this reason and the short remaining life andrelatively small scale of Freda-Rebecca, AngloGold Ashanti hadpreviously announced that it was considering the sale of Freda-Rebecca. Mwana, whose shareholders and directors are all African,represent a broad spectrum of experience and expertise fromAngola, the Democratic Republic of Congo, Kenya, South Africa,Zambia and Zimbabwe, owns and operates the Bindura Nickel Minewhich is located in close proximity to Freda-Rebecca.The Transaction is subject to, and conditional upon Mwanaobtaining certain regulatory consents and approvals, includingthe approval of the South African Reserve Bank and all approvalsin Zimbabwe necessary to implement the Transaction.Commenting on the Transaction, AngloGold Ashanti PresidentSam Jonah said, `The sale of Freda-Rebecca to Mwana is entirelyconsistent with our policy of disposing of shorter life, lowermargin operations and concentrating our financial and managerialresources on the assets we believe will generate longer-termvalue for shareholders. We also understand that Mwana will bein a position to capitalise on the potential synergies whichexist between its existing Bindura Nickel operation and Freda-Rebecca`. `This acquisition is in line with our statedobjective to growth and to diversify our presence in Zimbabweand in the region. It also demonstrates our confidence inZimbabwe as an investment destination, despite the challenges ofthe moment`, said Kalaa Mpinga, Chairman of Mwana.Johannesburg10 September 2004 AngloGold Ashanti Limited sponsor : UBSDate: 10/09/2004 12:49:02 PM Produced by the JSE SENS Department
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