ANG - Anglogold Ashanti - Anglogold Ashanti`s $294m profit follows hedge

ANG - Anglogold Ashanti - Anglogold Ashanti`s $294m profit follows hedge        
elimination; forecasts growth                                                   
ANGLOGOLD ASHANTI                                                               
Incorporated in the Republic of South Africa                                  
  Registration Number: 1944/017354/06)                                          
  ISIN Number:ZAE000043485                                                      
  JSE Share Code: ANG                                                           
("AngloGold Ashanti/Company")                                                 
ANGLOGOLD ASHANTI`S $294M PROFIT FOLLOWS HEDGE ELIMINATION; FORECASTS GROWTH    
(JOHANNESBURG) - AngloGold Ashanti posted adjusted headline earnings* of $294m  
during the fourth quarter after its operations in South Africa, Argentina and   
Guinea posted strong production results and elimination of the company`s hedge  
book in October boosted cash flow.                                              
"As long as the hedge book was in place, we were fighting with one hand tied    
behind our backs," Chief Executive Officer Mark Cutifani said. "Now that we`re  
selling our gold at spot prices and entrenching business improvements across the
organization, we`re spinning off significant cash flow."                        
The result represents strong growth in underlying profitability given that the  
previous quarter`s adjusted headline earnings* of $303m were boosted by a once- 
off credit of $84m. Cash flow generated from the company`s operating activities 
in the three months to December 31, excluding hedge buy-back costs, surged 60%  
to $679m.                                                                       
Since AngloGold Ashanti`s new strategy was launched at the end of March, 2008,  
when the company had almost 12Moz committed under its legacy hedging programme, 
those contracts have been eliminated, the balance sheet strengthened and wide   
ranging operational improvements made across its operating portfolio. The       
company has also approved the first greenfield project development in more than 
a decade, at its Tropicana deposit in Western Australia.                        
Production was 1.148Moz at a total cash cost of $672/oz in the three months to  
31 December compared with 1.162Moz at $643/oz the previous quarter, and guidance
of 1.14Moz at $675/oz assuming an exchange rate of R6.75/$.                     
The South African operations delivered another good performance, maintaining    
production of 476,000oz despite the sale of the Tau Lekoa mine during the       
September quarter. The result was helped by an excellent safety performance,    
which allowed for better operational continuity. Cerro Vanguardia increased     
production 4% to 50,000oz and improved total cash costs to $357/oz, while       
production from Siguiri rose 15% to 71,000oz from the previous quarter.         
The final tranche of the accelerated buy-back of the company`s outstanding hedge
positions was completed on 7 October and $2.64bn was spent at an average price  
of $1,300/oz. This allows AngloGold Ashanti to sell its gold at market prices,  
allowing it to better fund its organic growth projects which are expected to add
about 1Moz to current production over the next five years.                      
Production in 2011 is anticipated at between 4.55Moz and 4.75Moz at a total cash
cost of $660/oz- $685/oz, assuming an average exchange rate of R7.11/$ and oil  
at $95 a barrel. This represents a return to growth after six years of declining
production. The first quarter, which traditionally has the lowest output        
following the Christmas break in South Africa, is expected to be 1.04Moz at a   
total cash cost of $675/oz to $700/oz, assuming R7/$ and oil at $95 a barrel.   
AngloGold Ashanti posted a reserve of 71.2Moz at the end of 2010, more than     
replacing its production during the year. The reserve was calculated at $850/oz,
considerably lower than the price used by the company`s North American peers.   
Its resource calculated at US$1,100/oz of 220Moz of gold was little changed from
2009.                                                                           
*Excludes cost of accelerated hedge buy-back                                    
  ENDS                                                                          
17 FEBRUARY 2011                                                              
  JSE Sponsor - UBS                                                             
Contacts                                                                        
                     Tel: E-mail:                                               
Alan Fine (Media)        +27 11 637 6383         afine@AngloGoldAshanti.com     
Sicelo Ntuli (Investors) +27 11 637-6339        sntuli@anglogoldashanti.com     
Stewart Bailey(Investor) +1 2128364303         sbailey@anglogoldashanti.com     
                        or +27 82 330 9628                                      
Certain statements made in this communication, including, without limitation,   
those concerning 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 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 and financial condition. 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 April 
19, 2010 and as amended on May 18, 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: 17/02/2011 08:01:01 Supplied by www.sharenet.co.za                     
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