ANG - AngloGold Ashanti Limited - Anglogold Ashanti eliminates hedge book, gains

ANG - AngloGold Ashanti Limited - Anglogold Ashanti eliminates hedge book, gains
full exposure to gold                                                           
AngloGold Ashanti Limited                                                       
Incorporated in the Republic of South Africa                                    
Registration Number: 1944/017354/06)                                            
ISIN Number: ZAE000043485                                                       
JSE Share Code: ANG                                                             
("AngloGold Ashanti/Company")                                                   
ANGLOGOLD ASHANTI ELIMINATES HEDGE BOOK, GAINS FULL EXPOSURE TO GOLD            
(JOHANNESBURG) -- AngloGold Ashanti has completed the elimination of its gold   
hedge book, providing the company and its shareholders with full exposure to the
prevailing gold price. The company will now sell the gold it produces at market 
prices and therefore expects to enhance cash flow and profit margins as a result
of removing hedge contracts with low committed gold prices.                     
"We`ve moved decisively to eliminate the hedge book," Chief Executive Officer   
Mark Cutifani said. "The completion of the hedge book restructure over the last 
three years has created about US$4.0 billion of value for our shareholders and  
represents one of the major building blocks for the new AngloGold Ashanti.  We  
remain bullish on the outlook for gold and will now benefit from full exposure  
to the price as we go forward."                                                 
The cost of scheduled hedge book maturities during the third quarter of 2010 was
approximately US$98 million.  The additional cost of closing out all future     
hedge contracts amounted to approximately US$2.63 billion, representing an      
average buy-back price of US$1,300 per ounce for this final tranche of the      
hedge restructure. The cost will be reflected in adjusted headline earnings     
for the last two quarters of 2010.                                              
This final phase of hedge restructuring has been funded with proceeds from the  
issue of new equity and the mandatory convertible bonds completed in September, 
as well as cash from internal sources and debt facilities.                      
AngloGold Ashanti has consistently executed a strategy to reduce its outstanding
gold hedging position in recent years. A number of initiatives have been        
undertaken to accelerate this reduction of the hedge book from 11.3 million     
ounces at the beginning of 2008, to 3.22 million ounces in June 2010.           
In September 2010 AngloGold Ashanti successfully completed a concurrent offering
of equity and mandatory convertible bonds, raising gross proceeds of            
approximately US$1.6 billion in order to help fund an elimination of its        
residual gold hedge book. This has now been achieved.                           
ENDS                                                                            
7 October 2010                                                                  
JSE Sponsor - UBS                                                               
Contacts                                                                        
                     Tel: E-mail:                                               
Alan Fine (Media)        +27 11 637 6383         afine@AngloGoldAshanti.com     
Stewart Bailey(Investor) +1 2128364303         sbailey@anglogoldashanti.com     
                        or +27 82 330 9628                                      
All of the financial information contained in this document has been based on   
AngloGold Ashanti`s financial statements that are prepared in compliance with   
International Financial Reporting Standards. This document does not constitute  
or form part of and should not be construed as, an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of AngloGold Ashanti or   
any of its subsidiaries in any jurisdiction or an inducement to enter into      
investment activity.                                                            
Certain statements made in this communication, including, without limitation,   
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging        
position including the extent and effects of the reduction, the economic        
outlook for the gold mining industry, expectations regarding gold prices,       
production, cash costs and other operating results, growth prospects and        
outlook of AngloGold Ashanti`s operations, individually or in the aggregate,    
including the completion and commencement of commercial operations of certain   
of AngloGold Ashanti`s exploration and production projects, the resumption of   
production at AngloGold Ashanti`s mines in Ghana, the completion of announced   
mergers and acquisitions transactions, AngloGold Ashanti`s liquidity and        
capital resources, and expenditure and the outcome and consequences of          
any litigation proceedings or environmental issues, contain certain             
forward-looking statements regarding AngloGold Ashanti`s operations,            
economic performance, financial condition and our Project One performance       
targets. Although AngloGold Ashanti believes that the expectations reflected    
in such forward-looking statements are reasonable, no assurance can be given    
that such expectations will prove to have been correct. Accordingly, results    
could differ materially from those set out in the forward-looking statements    
as a result of, among other factors, changes in economic and market conditions, 
success of business and operating initiatives, changes in the regulatory        
environment and other government actions including environmental approvals      
and actions, fluctuations in gold prices and exchange rates, and business and   
operational risk management.                                                    
For a discussion of certain of these factors, refer to AngloGold Ashanti`s      
annual report for the year ended 31 December 2009, which was distributed to     
shareholders on 30 March 2010.  The company`s annual report on Form 20-F, was   
filed with the Securities and Exchange Commission in the United States on 19    
April 2010. AngloGold Ashanti undertakes no obligation to update publicly       
or release any revisions to these forward-looking statements to reflect events  
or circumstances after today`s date or to reflect the occurrence of             
unanticipated events.  All subsequent written or oral forward-looking           
statements attributable to AngloGold Ashanti or any person acting on its        
behalf are qualified by the cautionary statements herein.  AngloGold Ashanti    
posts information that is important to investors on the main page of its        
website at www.anglogoldashanti.com and under the "Investors" tab on the        
main page.  This information is updated regularly.  Investors should visit      
this website to obtain important information about AngloGold Ashanti.           
Date: 07/10/2010 11:41:01 Supplied by www.sharenet.co.za                     
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