PRESS RELEASE - JOINT STATEMENT BY EAST DAGGAFONTEIN AND ANGLOGOLD

JOINT STATEMENT BY EAST DAGGAFONTEIN MINES LIMITED AND ANGLOGOLD LIMITED
NEWS RELEASE
CORPORATE COMMUNICATIONS DEPARTMENT
12TH FLOOR 55 MARSHALL STREET
JOHANNESBURG 2001
TELEPHONE: (+27 11) 637 6385/6160
FAX: (+27 11) 637 6399/6400
CDR/CCD/AG021.98
DATE 11 SEPTEMBER 1998

ANGLOGOLD PURCHASES GOLD SLIMES AND DUMP MATERIAL FROM EAST DAGGAFONTEIN. EAST
DAGGAFONTEIN SHAREHOLDERS TO RECEIVE ANGLOGOLD SHARES

EAST DAGGAFONTEIN AND ANGLOGOLD TODAY ANNOUNCED THAT THE COMPANIES HAVE AGREED
TO THE PURCHASE OF CERTAIN ASSETS INCLUDING GOLD SLIMES, DUMP MATERIAL AND
SURFACE RIGHTS BY ANGLOGOLD FROM EAST DAGGAFONTEIN, WITH EFFECT FROM 1 JULY
1998. THE EXISTING PROCESSING AGREEMENT BETWEEN THE COMPANIES WILL BE

CANCELLED. THE AGGREGATE PURCHASE CONSIDERATION PAYABLE BY ANGLOGOLD TO EAST
DAGGAFONTEIN IS R106.0 MILLION. THE PURCHASE CONSIDERATION WILL BE 420 947
ANGLOGOLD SHARES, AT R251.81 PER SHARE (THE AVERAGE CLOSING PRICE FOR THE
THIRTY TRADING DAYS ENDING 2 SEPTEMBER 1998. EAST DAGGAFONTEIN WILL, BY MEANS
OF A REDUCTION OF DEBENTURE PREMIUM, DISTRIBUTE THE 420 947 ANGLOGOLD SHARES TO
ITS LINKED UNIT HOLDERS,  A HOLDER OF 100 LINKED UNITS IN EAST DAGGAFONTEIN
WILL RECEIVE 2,3694 ANGLOGOLD SHARES. EAST DAGGAFONTEIN'S LINKED UNIT HOLDERS
WERE ADVISED BY THE COMPANY THAT THE LIFE OF ITS GOLD RECOVERY OPERATIONS WAS
ESTIMATED TO BE SOME FIVE YEARS IN TERMS OF THE TRANSACTION, EAST DAGGAFONTEIN
LINKED UNIT HOLDERS WILL GAIN AN INTEREST IN FURTHER GOLD OPERATIONS, SOME OF
WHICH HAVE REMAINING LIVES IN EXCESS OF THIRTY YEARS. THIS WILL REALISE THE
FULL VALUE FOR EAST DAGGAFONTEIN LINKED UNIT HOLDERS, WHILE THE DIVERSITY OF
ANGLOGOLD'S PORTFOLIO OF MINES, WHICH INCLUDES BOTH UNDERGROUND AND OPEN-PIT
MINING AND A CONSIDERABLE EXPOSURE TO NON-SOUTH AFRICAN OPERATIONS, SHOULD
REDUCE THE EAST DAGGAFONTEIN'S LINKED UNIT HOLDERS' RISK PROFILE. IN THE
CURRENT UNCERTAIN ECONOMIC ENVIRONMENT BOTH THE LIFE EXTENSION AND RISK
DIVERSIFICATION CAN BE REGARDED AS BENEFICIAL TO EAST DAGGA LINKED UNIT
HOLDERS. THE TRANSACTION WILL ALLOW 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,
AND APPROXIMATELY 353 000 OUNCES OF GOLD AT A CASH COST OF R1 295 OR $210 PER
OUNCE, WILL BE RECOVERED. THE PURCHASE PRICE AMOUNTS TO R290 PER RECOVERABLE
OUNCE OR $47 PER OUNCE AT AN EXCHANGE RATE OF R6.15 TO THE US DOLLAR. THE REAL
RETURN TO SHAREHOLDERS OF ANGLOGOLD IS ESTIMATED AT 14%. 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 DAGGAFONTEIN'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 BOTH THESE PROJECTS, EAST DAGGAFONTEIN IS
CAPITALISING ON ITS EXPERIENCE IN DUMP RECLAMATION. IN ADDITION, EAST

DAGGAFONTEIN HAS A 43 PER CENT RIGHT IN A PROJECT WHICH HAS DEVELOPED A BINDING
MEDIUM CAPABLE OF PRODUCING BRIQUETTES FROM MINERAL AND METAL FINES. SUBSEQUENT
TO THE COMPLETION OF THE TRANSACTION, EAST DAGGAFONTEIN WILL APPLY 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.
THE TRANSACTION IS SUBJECT TO THE APPROVAL OF EAST DAGGER'S LINKED UNIT HOLDERS
IN GENERAL MEETING. IN ADDITION APPROVAL IS REQUIRED FROM CERTAIN REGULATORY
BODIES, INCLUDING THE JSE AND THE SECURITIES REGULATION PANEL.  A CIRCULAR
SETTING OUT THE FULL TERMS OF THE TRANSACTION INCLUDING A NOTICE CONVENING A
GENERAL MEETING OF EAST DAGGAFONTEIN LINKED UNIT HOLDERS, THE DISTRIBUTION
MECHANISM AND TRANSACTION TIMETABLE, WILL BE DISPATCHED TO EAST DAGGAFONTEIN
LINKED UNIT HOLDERS ON OR ABOUT FRIDAY 2 OCTOBER 1998. ENDS JOHANNESBURG 11
SEPTEMBER 1998