NEWS RELEASE - TSHEPONG SOUTH SHAFT SINKING PROJECT

ANGLOGOLD CORPORATE COMMUNICATIONS DEPARTMENT
12TH FLOOR, 55 MARSHALL STREET
JOHANNESBURG 2001
TELEPHONE: (+27 11) 637 6385/6160
FAX: (+27 11) 637 6399/6400
CDR/CCD/AG022.98
10 SEPTEMBER 1998
TSHEPONG SOUTH SHAFT SINKING PROJECT
(FREEGOLD 4) MOTHBALLED

FOLLOWING A RECENT IN-DEPTH AUDIT AND RE-EVALUATION OF THE VIABILITY OF THE
SOUTH SHAFT SINKING PROJECT, THE ANGLOGOLD BOARD HAS DECIDED TO CEASE SINKING
OF THE TSHEPONG SOUTH SHAFT (PREVIOUSLY KNOWN AS FREEGOLD 4). THE STUDY
CONCLUDED THAT THE RETURN ON SHAREHOLDERS INVESTMENT FROM THE PROJECT, BASED ON
PROJECTED WORKING COSTS, THE GRADE OF THE REEF IN SITU AND THE GOLD PRICE, DID
NOT JUSTIFY CONTINUED INVESTMENT.

THE SHAFT HAS CURRENTLY BEEN SUNK TO A DEPTH OF 2 325 METRES BELOW SURFACE AND
ALL ASSOCIATED "IN CIRCLE DEVELOPMENT", TOGETHER WITH THE REEF AND WASTE
OREPASSES, HAVE BEEN COMPLETED DOWN TO AND INCLUDING 75 LEVEL (2 301 METRES
BELOW SURFACE). EXPENDITURE TO DATE HAS AMOUNTED TO R308 MILLION WITH AN
ESTIMATED EXPENDITURE OF A FURTHER R382 MILLION TO COMPLETION.

OPERATIONS WILL BE WOUND DOWN OVER THE NEXT SIX WEEKS AND THE SITE

DE-ESTABLISHED AT A COST OF APPROXIMATELY R6 MILLION. IT IS EXPECTED THAT BY
THE END OF OCTOBER 1998, THE SHAFT WILL BE ON A CARE AND MAINTENANCE PROGRAMME.
THE PROJECT WILL BE RE-EVALUATED IF ECONOMIC CONDITIONS IMPROVE SUBSTANTIALLY.
THIS MOVE WILL HAVE NO IMPACT ON THE FUTURE OF TSHEPONG NORTH SHAFT, WHICH
REMAINS A CORE PART OF ANGLOGOLD.
ENDS
QUERIES:
CHARMANE RUSSELL
(+2711) 637 6160 (W)
082 895 3162 (MOBILE)
(+2711) 486-3615 (H)