LONMIN PLC - ("LONMIN") AGREES TO SUPPORT RECOMMENDED MERGER OF ANGLOGOLD

LONMIN PLC - ("LONMIN") AGREES TO SUPPORT RECOMMENDED MERGER OF ANGLOGOLD       
LIMITED ("ANGLOGOLD") AND ASHANTI GOLDFIELDS COMPANY LIMITED ("ASHANTI")        
ISIN code: GB0031192486                                                         
Summary                                                                         
Lonmin refers to today"s announcement by AngloGold and Ashanti that their Boards
of Directors have entered into a transaction agreement (the "Transaction        
Agreement") setting out the terms of a recommended merger of the two companies  
("the Merger").                                                                 
Lonmin has signed an undertaking to AngloGold pursuant to which Lonmin has      
agreed to vote in favour of and support the Merger in respect of its 36,000,000 
Ashanti ordinary shares (representing approximately 27.6% of Ashanti"s current  
issued share capital).  Lonmin has agreed not to solicit alternative offers and 
to withdraw its support only if the Ashanti Board publicly announces the        
withdrawal of its recommendation or if the Transaction Agreement is terminated. 
Lonmin also holds Ashanti Mandatorily Exchangeable Notes ("MENs") with a face   
value of US$75 million.  Upon completion of the Merger, Ashanti Capital (Second)
Limited, a subsidiary of Ashanti, will redeem these MENs for US$75 million plus 
accrued and unpaid interest thereon in cash.                                    
Commenting on the agreement, Lonmin"s Chairman Sir John Craven said:            
"Lonmin is pleased to support the merger between AngloGold and Ashanti, which   
enhances the value of our financial investment.                                 
I believe this significant development in the global gold mining industry will  
enable both parties to build on their considerable strengths. As Ghana"s largest
employer, Ashanti has entered a transaction which enhances the opportunities for
employment there and will maximise the Group"s operational performance across   
all their assets."                                                              
Lonmin"s Chief Executive Officer, Edward Haslam, is a member of the Board of    
Directors of Ashanti and did not take part in the deliberations of the Ashanti  
Board relating to the recommendation of the Merger.  Ashanti"s Chief Executive  
Officer, Sam Jonah, KBE, is a member of the Board of Directors of Lonmin and did
not take part in the deliberations of the Lonmin Board relating to its decision 
to agree to support the Merger.  Sam Jonah, in addition to joining the Board of 
the enlarged entity, will play a leading role in the executive management in the
position of President, and will join a five person Executive Committee chaired  
by AngloGold Chief Executive Officer Bobby Godsell.                             
Terms of the Merger                                                             
The terms of the Merger are set out in the joint announcement made earlier today
by AngloGold and Ashanti, which includes, inter alia, the following information:
The Merger will be effected by means of a scheme of arrangement (the "Scheme")  
between Ashanti and its shareholders under Ghanaian law                         
Each holder of an Ashanti ordinary share ("Ashanti Share") or Ashanti Global    
Depositary Security ("Ashanti GDS") will be entitled to elect to receive either 
0.26 AngloGold ordinary shares ("AngloGold Shares") or 0.26 AngloGold American  
Depositary Shares ("AngloGold ADSs") for each Ashanti Share or Ashanti GDS      
Ashanti shareholders resident in Ghana will have the option of receiving        
AngloGold Ghanaian Depositary Shares ("AngloGold GhDSs"), 100 of which shall    
represent one AngloGold share, at an exchange ratio of 26 AngloGold GhDSs for   
each Ashanti Share or Ashanti GDS                                               
Completion of the Merger is conditional on, among other things, the approval of 
the Merger by Ashanti shareholders, the receipt of the required regulatory      
approvals (in addition to the approvals from the Government of Ghana referred to
below), third party consents and the confirmation of the Scheme by the High     
Court of Ghana prior to 31 March 2004                                           
The Merger is conditional on AngloGold receiving undertakings from the          
Government of Ghana (holder of approximately 16.9% of Ashanti"s issued ordinary 
share capital) to vote in favour of the Merger and is also subject to receiving 
certain regulatory and other approvals and undertakings that have been requested
by AngloGold and Ashanti from the Government of Ghana prior to the date of the  
Transaction Agreement.  The Transaction Agreement will terminate if these       
conditions are not satisfied (or waived by AngloGold) on or before 30 September 
2003 or such later date as Ashanti and AngloGold may agree                      
Based on the closing market price of AngloGold ADSs on the New York Stock       
Exchange on 1 August 2003, the last practicable trading day prior to this       
announcement, of US$32.15, the Merger values each Ashanti Share (and each       
Ashanti GDS) at US$8.36 and the current issued share capital of Ashanti at      
approximately US$1,089 million.                                                 
This represents a premium of approximately 4% to the closing market price of    
Ashanti GDSs on the New York Stock Exchange on 1 August 2003, the last          
practicable trading day prior to this announcement, of US$8.00 and, on the bases
of closing prices for AngloGold ADSs and Ashanti GDSs on the New York Stock     
Exchange on 15 May 2003, the day prior to the announcements of discussions      
between AngloGold and Ashanti, of US$30.63 and US$7.10 respectively, a premium  
of approximately 12%.  Based on the average closing prices of Ashanti GDSs and  
AngloGold ADSs on the New York Stock Exchange over the 30 trading days to 15 May
2003 these terms represent a premium of approximately 34%.                      
Effect of the Merger on Lonmin                                                  
Based on the Merger ratio of 0.26 AngloGold Shares or AngloGold ADSs per Ashanti
Share and Lonmin"s current shareholding, Lonmin will receive 9,360,000 AngloGold
Shares or AngloGold ADSs upon closing of the Merger (representing approximately 
3.6% of AngloGold"s enlarged issued share capital).  Based on the closing market
price of AngloGold ADSs on the New York Stock Exchange on 1 August 2003, the    
last practicable trading day prior to this announcement, of US$32.15, these     
shares have a value of approximately US$301 million.                            
Lonmin"s Ashanti shareholding is shown as a fixed asset investment in Lonmin"s  
2002 financial statements and 2003 Interim Report at a Directors" valuation of  
US$200 million.  The investment made no contribution to Lonmin"s attributable   
net income in the year ending 30 September 2002 or the six months ending 31     
March 2003 as Ashanti did not pay any dividends for the years ended 31 December 
2001 or 2002 or in the first quarter of 2003.  Lonmin does not expect to incur a
taxable gain on its Ashanti Shares as a result of the Merger transaction.       
AngloGold"s most recent interim and final dividends were declared on 31 July    
2003 (3.75 Rand per share, ex dividend date 18 August 2003) and 30 January 2003 
(6.75 Rand per share), respectively.  Ashanti shareholders will not be entitled 
to receive AngloGold"s 2003 interim or final dividends.                         
Lonmin"s Ashanti MENs are also shown as a fixed asset investment in Lonmin"s    
2002 financial statements and 2003 Interim Report, at a valuation of            
US$77 million.  Upon completion of the Merger, Ashanti Capital (Second) Limited,
a subsidiary of Ashanti, will redeem the Ashanti MENs held by Lonmin for cash at
their face value of US$75 million plus accrued and unpaid interest thereon      
(approximately US$2.7 million to date).                                         
In the event that the Merger does not complete and subject to the agreement of  
the Government of Ghana, Lonmin has agreed to extend from 28 December 2003 to   
31 December 2004 (i) the deadline for Ashanti to undertake a rights issue as    
part of its Cash Redemption Alternative recapitalisation programme announced on 
28 June 2002, and (ii) the final exercise date of the call option granted by    
Lonmin to the Government of Ghana on 28 June 2002 in relation to US$28.4 million
MENs.                                                                           
Lonmin has yet to determine whether or not the AngloGold Shares or AngloGold    
ADSs it would receive on completion of the Merger will be sold or retained.     
Concurrently with the Shareholder Support Deed of Agreement entered into between
Lonmin and AngloGold, the parties have entered into a Registration Rights       
Agreement which gives Lonmin additional flexibility in selling its AngloGold    
Shares or AngloGold ADSs following closing of the Merger, should it so choose.  
Morgan Stanley & Co. Limited is acting as financial adviser to Lonmin Plc.      
Information on Ashanti                                                          
Ashanti, headquartered in Accra, Ghana, is engaged in the mining and processing 
of gold ores and the exploration and development of gold properties in four     
African countries - Ghana, Guinea, Tanzania and Zimbabwe.  Ashanti also has an  
extensive exploration programme in Africa.                                      
For the six months ended 30 June 2003 Ashanti reported (in accordance with UK   
GAAP):                                                                          
Gold production of 0.7 million ounces (attributable)                            
Cash operating costs (including royalties) of US$232 per ounce (attributable)   
Revenue of US$257 million                                                       
Pre-exceptional net earnings of US$14.6 million                                 
Pre-exceptional net earnings per share of US$0.11                               
Net assets of US$478 million                                                    
For further information relating to Lonmin Plc:                                 
Anthony Cardew/Jackie Range CardewChancery Tel: +44 (0)20 7930 0777             
This Press release is not an offer of securities for sale in the United States. 
Securities may not be offered or sold in the United States absent registration  
or an exemption from registration.  Any public offering of securities in the    
United States will be made by means of a prospectus that may be obtained from   
the issuer or selling security holder and that will contain detailed information
about the issuer and management, as well as financial statements.               
Morgan Stanley & Co. Limited is acting exclusively for Lonmin Plc and no one    
else in connection with the matters described herein and will not be responsible
to anyone other than Lonmin Plc for providing the protections afforded to       
clients of Morgan Stanley & Co. Limited or for providing advice in relation to  
such matters.                                                                   
NOT FOR DISTRIBUTION IN THE UNITED STATES                                       
4 August 2003                                                                   
Date: 05/08/2003 07:57:48 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department