ANGLOGOLD & ARM REACH AGREEMENT ON SALE OF 6 SHAFTS & A GOLD PLANT

JOINT STATEMENT BY
ANGLOGOLD AND AFRICAN RAINBOW MINERALS (ARM)

ANGLOGOLD AND ARM REACH AGREEMENT ON THE SALE OF SIX SHAFTS AND A GOLD PLANT IN
THE FREE STATE

ANGLOGOLD AND AFRICAN RAINBOW MINERALS COMPANY (ARM) TODAY ANNOUNCED THAT THE
COMPANIES HAD REACHED AGREEMENT REGARDING THE SALE OF SIX SHAFTS AND A GOLD
PLANT TO ARM. THE SHAFTS, FORMERLY PART OF FREEGOLD'S WESTERN HOLDINGS MINE
(SHAFTS 1-4 AND 6-7) AND THE WELKOM GOLD PLANT, WERE PREVIOUSLY CLOSED BY
FREEGOLD AND DO NOT FORM PART OF THE NEW ANGLOGOLD.

IN ADDITION TO CASH PAYMENTS OF R28 MILLION TO BE MADE BY ARM TO ANGLOGOLD, ARM
WILL ASSUME REHABILITATION LIABILITIES OF ABOUT R34,4 MILLION. ANGLOGOLD WILL
RETAIN OWNERSHIP OF THE MAJOR ROTATING EQUIPMENT (VALUED AT R76 MILLION).
THE DEAL FOLLOWS THE SUCCESSFUL PURCHASE AND SALE AND TRIBUTING AGREEMENT
BETWEEN ANGLOGOLD AND ARM OF THE VAAL REEFS NO 1-7 SHAFT LAST YEAR. FOLLOWING
THE SALE OF THE THEN LOSS-MAKING SHAFTS, ARM HAS MANAGED TO PROFITABLY OPERATE
THESE SHAFTS AND, AT THE SAME TIME, RETAIN MANY OF THE EMPLOYEES PREVIOUSLY
EMPLOYED BY ANGLOGOLD.

SAYS ALAN SMITH, ANGLOGOLD'S EXECUTIVE OFFICER - FREE STATE OPERATIONS, "AN
IMPORTANT CONSIDERATION IN THE DEAL WAS THE PROVISION OF AS MANY JOBS AS
POSSIBLE TO THOSE EMPLOYEES WHO WORKED ON THESE OPERATIONS IN THE PAST. THE OLD
WESTERN HOLDINGS MINES, WHICH OPERATED FOR MORE THAN 50 YEARS, HAVE SERVED THE
REGION AND THE COUNTRY WELL. WE ARE DELIGHTED THAT, THROUGH THIS DEAL, WE ARE
ABLE TO EXTEND THE LIFE OF THESE SHAFTS FOR SOME YEARS TO COME."

SAYS PATRICE MOTSEPE, CHAIRMAN OF ARM "I CONSIDER THE ACQUISITION OF THESE
SHAFTS AND THE GOLD PLANT AS ANOTHER MILESTONE IN THE CONTINUING GROWTH OF OUR
COMPANY. WE HAVE BEEN SUCCESSFUL AT ORKNEY AND HAVE MADE A R30-MILLION
OPERATING PROFIT FROM THE SEVEN VAAL REEFS SHAFTS WE TOOK OVER AT THE BEGINNING
OF THIS YEAR. WE ARE CURRENTLY INVOLVED IN DISCUSSIONS WHICH WILL LEAD TO THE
ACQUISITION OF MORE MARGINAL AND HIGH QUALITY MINES."
ENDS
JOHANNESBURG
30 JULY 1998
12TH FLOOR, 55 MARSHALL STREET
JOHANNESBURG
2001
TELEPHONE : 637 6160
FAX :  637 6399
CCD/GK/AG016.98
THURSDAY
30 JULY 1998
QUERIES:
ANGLOGOLD
CHARMANE RUSSELL
2711 637 6160 (B)
27828953162 (M)
GERDA KRUGER
27 11 637 6155 (B)
27828960307 (M)
ARM
PATRICE MOTSEPE
27 11 883 5605 (B)
27 82 501 5329 (M)
ANDRE WILKENS
2718 478 3900 (B)
27828008415 (M)