SALE BY EAST DAGGA OF ITS GOLD SLIMES MATERIAL TO ANGLOGOLD

EAST DAGGAFONTEIN MINES LIMITED
(REGISTRATION NUMBER 80/01395/06)
("EAST DAGGA")
ANGLOGOLD LIMITED
(REGISTRATION NUMBER 05/17354/06)
("ANGLOGOLD")

SALE BY EAST DAGGA OF ITS GOLD SLIMES MATERIAL TO ANGLOGOLD AND THE ASSOCIATED
CANCELLATION OF THE PROCESSING AGREEMENT WITH ANGLOGOLD. THE REDUCTION OF EAST
DAGGA'S DEBENTURE PREMIUM THROUGH THE DISTRIBUTION OF ANGLOGOLD SHARES TO EAST
DAGGA'S LINKED UNIT HOLDERS.

INFORMATION PERTAINING TO BOTH EAST DAGGA LINKED UNIT HOLDERS AND ANGLOGOLD
SHAREHOLDERS
1. INTRODUCTION

EAST DAGGA AND ANGLOGOLD HAVE AGREED IN PRINCIPLE, SUBJECT TO CERTAIN

CONDITIONS PRECEDENT, FOR EAST DAGGA TO SELL ITS GOLD SLIMES MATERIAL AND
SURFACE RIGHTS ON THE EAST RAND TO ANGLOGOLD AND TO CANCEL THE ASSOCIATED
PROCESSING AGREEMENT WITH ANGLOGOLD ("THE TRANSACTION"). THE SALE SPECIFICALLY
EXCLUDES PLATINUM REVENUES IN TERMS OF THE AGREEMENT BETWEEN IMPALA PLATINUM
HOLDINGS LIMITED AND ANGLOGOLD ON SLIMES DAM 6L13. THE TRANSACTION WILL BE
EFFECTIVE FROM 1 JULY 1998.
2. RATIONALE FOR THE DISPOSAL
2.1 EAST DAGGA

IN EAST DAGGA'S LATEST ANNUAL REPORT, SHAREHOLDERS WERE ADVISED THAT THE LIFE
OF EAST DAGGA'S GOLD RECOVERY OPERATIONS WAS ESTIMATED TO BE SOME FIVE YEARS.
IN TERMS OF THE PROPOSED TRANSACTION, LINKED UNIT HOLDERS WILL BE OBTAINING AN
INTEREST IN ANGLOGOLD'S GOLD OPERATIONS, SOME OF WHICH HAVE REMAINING LIVES IN
EXCESS OF THIRTY YEARS. THIS WILL REALISE FULL VALUE FOR EAST DAGGA LINKED UNIT
HOLDERS, WHILE THE DIVERSITY OF ANGLOGOLD'S PORTFOLIO OF MINES, WHICH INCLUDES
BOTH UNDERGROUND AND OPEN-PIT MINING AND A SIGNIFICANT EXPOSURE TO NON-SOUTH
AFRICAN OPERATIONS, SHOULD REDUCE SHAREHOLDERS' RISK PROFILE. IN THE CURRENT
UNCERTAIN ECONOMIC ENVIRONMENT, BOTH THE LIFE EXTENSION AND RISK
DIVERSIFICATION CAN BE REGARDED AS BENEFICIAL.
2.2 ANGLOGOLD

THE TRANSACTION ALLOWS ANGLOGOLD TO EXERCISE FULL CONTROL OVER ALL RESOURCES
AVAILABLE FOR PROCESSING AT ITS ERGO OPERATIONS, THEREBY ENABLING INCREASED
PLANT RESOURCE ALLOCATION FLEXIBILITY. JUST OVER 60 MILLION TONS OF MATERIAL
WILL BE PROCESSED FOR ANGLOGOLD'S ACCOUNT AS A RESULT OF THE PURCHASE, YIELDING
APPROXIMATELY 353 000 OUNCES AT A CASH COST OF R1 295 OR $210 PER OUNCE. THE
PURCHASE PRICE AMOUNTS TO R290 PER RECOVERABLE OUNCE OR $47 PER OUNCE AT AN
EXCHANGE RATE OF R6,15 TO THE US DOLLAR.
3. TERMS OF THE TRANSACTION

THE AGGREGATE CONSIDERATION PAYABLE BY ANGLOGOLD TO EAST DAGGA IN RESPECT OF
THE TRANSACTION IS R106 MILLION. THE PURCHASE CONSIDERATION WILL BE 420 947
ANGLOGOLD SHARES, AT R251,81 PER SHARE, BEING THE AVERAGE CLOSING PRICE FOR THE
THIRTY TRADING DAYS ENDING 2 SEPTEMBER 1998.

AS A RESULT OF THE FORMATION OF ANGLOGOLD, A WHOLLY-OWNED SUBSIDIARY, WESTERN
ULTRA DEEP LEVELS LIMITED, OWNS SHARES IN ANGLOGOLD AND THE TRANSACTION WILL BE
STRUCTURED SO THAT A PORTION OF THESE SHARES WILL BE USED TO SATISFY THE
PURCHASE CONSIDERATION.
4. CONDITIONS PRECEDENT

PURSUANT TO THE REQUIREMENTS OF SECTION 228 OF THE COMPANIES ACT AND THE
LISTING REQUIREMENTS OF THE JOHANNESBURG STOCK EXCHANGE ("THE JSE"), THE
TRANSACTION IS SUBJECT TO THE APPROVAL OF EAST DAGGA'S LINKED UNIT HOLDERS IN
GENERAL MEETING. IN ADDITION, APPROVAL IS REQUIRED FROM REGULATORY BODIES,
INCLUDING THE JSE AND THE SECURITIES REGULATION PANEL.

INFORMATION PERTAINING TO EAST DAGGA LINKED UNIT HOLDERS

5. DISTRIBUTION OF ANGLOGOLD SHARES TO EAST DAGGA LINKED UNIT HOLDERS

SUBJECT TO THE TRANSACTION BEING CONCLUDED, EAST DAGGA WILL, BY MEANS OF A
REDUCTION OF DEBENTURE PREMIUM, DISTRIBUTE THE 420 947 ANGLOGOLD SHARES TO THE
EAST DAGGA LINKED UNIT HOLDERS ("THE DISTRIBUTION"). IN TERMS OF THE

DISTRIBUTION, A HOLDER OF 100 LINKED UNITS IN EAST DAGGA WILL RECEIVE 2,3694
ANGLOGOLD SHARES.
6. FINANCIAL EFFECTS ON EAST DAGGA

THE PROFORMA FINANCIAL EFFECTS OF THE TRANSACTION ON THE EARNINGS AND NET ASSET
VALUE PER SHARE OF EAST DAGGA FOR THE YEAR ENDED 31 MARCH 1998 ARE SET OUT IN
THE TABLE BELOW:

                                       BEFORE THE    AFTER THE     %

                                       TRANSACTION   TRANSACTION   DECREASE
HEADLINE EARNINGS PER LINKED UNIT

HOLDER (CENTS)                         8,73          2,08          -76,17
DEBENTURE INTEREST PER LINKED UNIT

HOLDER (CENTS)                         170,00        61,58         -63,78
NET ASSET VALUE PER SHARE (CENTS)      317,13        192,88        -39,18
NOTES:

1. THE PROFORMA CALCULATION ASSUMES THAT THE TRANSACTION WAS EFFECTIVE ON 1
APRIL 1997 AT WHICH TIME THE PURCHASE CONSIDERATION, BEING 420 947 ANGLOGOLD
SHARES, IS DISTRIBUTED TO SHAREHOLDERS AS A REDUCTION IN DEBENTURE PREMIUM BY
THE VALUE OF R106 MILLION.

2. PRO FORMA REVENUE AFTER THE TRANSACTION IS DERIVED PREDOMINANTLY FROM
PLATINUM DUMP REVENUE ASSOCIATED WITH 6L13 AND INTEREST ON CASH BALANCES.
3. PROFORMA DEBENTURE INTEREST PER LINKED UNIT AFTER THE TRANSACTION REPRESENTS
A PAYMENT OF R10,9 MILLION (EQUIVALENT TO 18,17%) ON THE RESIDUAL DEBENTURE
PREMIUM OF R60,2 MILLION.

4. THE PROFORMA CALCULATION OF THE HEADLINE EARNINGS PER SHARE AFTER THE
TRANSACTION INCORPORATES THE DEBENTURE INTEREST PAYMENT REFERRED TO IN 3 ABOVE.
7. PROSPECTS FOR EAST DAGGA AFTER THE TRANSACTION

THE FOCUS OF EAST DAGGA'S BUSINESS AFTER THE TRANSACTION WILL SHIFT TO
EXPLORATION AND OTHER APPROPRIATE BUSINESS OPPORTUNITIES. THIS WILL BE FUNDED
BY THE INCOME DERIVED FROM EAST DAGGA'S 33 PER CENT SHARE OF PLATINUM SLIMES
DAM 6L13, AND CASH CURRENTLY ON HAND OF APPROXIMATELY R22 MILLION. CURRENT
EXPLORATION CONTRACTS INCLUDE THE SERRATA GOLD PROJECT IN SPAIN AND THE
KAMATIVI TIN AND TANTALUM DUMP IN ZIMBABWE. IN ADDITION, EAST DAGGA HAS A 35
PER CENT RIGHT IN A PROJECT WHICH HAS DEVELOPED A BINDING MEDIUM CAPABLE OF
PRODUCING BRIQUETTES FROM MINERAL AND METAL FINES.
8. CHANGE OF LISTING

SUBSEQUENT TO THE COMPLETION OF THE TRANSACTION, EAST DAGGA WILL CONSIDER
APPLYING TO THE LISTINGS DIVISION OF THE JSE TO HAVE ITS LISTING TRANSFERRED
FROM THE GOLD MINING SECTOR (RAND AND OTHERS) TO THE FINANCIAL (MINING
EXPLORATION) SECTOR.
9. BOARD RECOMMENDATION

THE BOARD OF EAST DAGGA IS OF THE OPINION THAT THE PROPOSED TRANSACTION IS FAIR
TO EAST DAGGA LINKED UNIT HOLDERS AND RECOMMENDS THAT LINKED UNIT HOLDERS VOTE
IN FAVOUR OF THE RESOLUTIONS NECESSARY TO IMPLEMENT THE PROPOSED TRANSACTION.
10. CIRCULAR AND GENERAL MEETING

A CIRCULAR SETTING OUT THE FULL TERMS OF THE TRANSACTION INCLUDING A NOTICE
CONVENING A GENERAL MEETING OF EAST DAGGA LINKED UNIT HOLDERS, THE DISTRIBUTION
MECHANISM AND TRANSACTION TIMETABLE, WILL BE DESPATCHED TO EAST DAGGA LINKED
UNIT HOLDERS ON OR ABOUT FRIDAY,
9 OCTOBER 1998.
JOHANNESBURG
11 SEPTEMBER 1998
CORPORATE ADVISER TO EAST DAGGA
FLEMING MARTIN SA LIMITED
REGISTRATION NUMBER 95/11812/06
ATTORNEYS TO EAST DAGGA
C D & T
CLIFFE DEKKER & TODD INC.
REG. NO. 93/01524/21
AUDITORS TO EAST DAGGA
PRICEWATERHOUSECOOPERS INC.
(REGISTRATION NUMBER 98/12055/21)
SPONSORING BROKER TO EAST DAGGA
INVESTEC SECURITIES LIMITED
INCORPORATING FERGUSSON BROS.
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE
REG. NO. 72/08905/06
ADVISER TO ANGLOGOLD
WARBURG DILLON READ (SOUTH AFRICA) (PTY) LTD
(REGISTRATION NUMBER 94/08363/07)
SUBSIDIARY OF UBS AG
JOINT SPONSORING BROKERS TO ANGLOGOLD

WARBURG DILLON READ SECURITIES (SOUTH AFRICA) (PTY) LTD
(REGISTRATION NUMBER 95/11140/07)
SUBSIDIARY OF UBS AG
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE
MERRILL LYNCH SMITH BORKUM HARE(PTY) LTD
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE
REG. NO. 95/01805/07