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ANGLOGOLD ASHANTI LIMITED - Sale Of Greenfields Exploration Tenements In Colombia

Release Date: 05/03/2019 14:15
Code(s): ANG ANG013     PDF:  
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Sale Of Greenfields Exploration Tenements In Colombia

AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
JSE Bond Company Code - BIANG
(“AngloGold Ashanti” or the “Company”)


6 March 2019

NEWS RELEASE

SALE OF GREENFIELDS EXPLORATION TENEMENTS IN COLOMBIA

(JOHANNESBURG – PRESS RELEASE) – AngloGold Ashanti is pleased to announce an
agreement with Royal Road Minerals Limited (“Royal Road Minerals”) for the sale of its
interests in Northern Colombia Holdings Limited (“Transaction”), as it seeks to focus on its
portfolio of projects in the country.

Northern Colombia Holdings, a wholly-owned subsidiary of AngloGold Ashanti, owns an
exploration title package comprised of mining concession agreements covering approximately
36,000 hectares of land. This package includes the rights to acquire mining concessions over
approximately 215,000 hectares of land in prospective mineral belts in the Nariño, Cauca and
Antioquia departments of Colombia.

This Transaction supports the Company’s broader strategic objective to maintain a focused
and efficient portfolio. In Colombia, AngloGold Ashanti will focus on its key projects in the
region, particularly Quebradona and Gramalote.

The sale of the exploration title package under Northern Colombia Holdings Limited represents
approximately 70% by area of the exploration titles outside of AngloGold Ashanti’s three key
projects in Colombia. Upon closing of the Transaction, AngloGold Ashanti will receive a cash
payment of approximately US$4.6 million. Further payments will be made to AngloGold
Ashanti in the event of certain milestones being achieved by Royal Road Minerals including:
    -   US$5 million upon the declaration of an inferred mineral resource of not less than one
        million gold equivalent ounces on any specific area (“Specific Project”);
    -   US$5 million on completion of a feasibility study for any Specific Project;
    -   US$5 million on commencement of commercial production for any Specific Project;
        and
    -   US$20 million in four equal quarterly payments in the first year following the
        commencement of commercial production for any Specific Project.

In the event Royal Road Minerals declares an inferred mineral resource of not less than five
million gold equivalent ounces on a Specific Project, AngloGold Ashanti has a once-off option
to purchase a 75% interest in that Specific Project and certain of the receipts mentioned above
are then forfeited for that Specific Project.

Closing of the Transaction is subject to certain conditions precedent, including the completion
of a capital raise of at least US$3.5 million by Royal Road Minerals and the receipt of certain
regulatory approvals by Royal Road Minerals and AngloGold Ashanti.


Ends
CONTACTS
Media

Chris Nthite                                              +27 11 637 6388/+27 83 301 2481                               cnthite@anglogoldashanti.com

Stewart Bailey                                            +27 81 032 2563 / +27 11 637 6031                             sbailey@anglogoldashanti.com

General inquiries                                                                                                         media@anglogoldashanti.com

Investors

Stewart Bailey                                            +27 81 032 2563 / +27 11 637 6031                              sbailey@anglogoldashanti.com

Sabrina Brockman                                          +1 646 880 4526/ +1 646 379 2555                             sbrockman@anglogoldashanti.com

Fundisa Mgidi                                                +27 11 6376763 / +27 82 821 5322                            fmgidi@anglogoldashanti.com
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold
mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, productivity
improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones,
commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions,
dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential
or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations,
economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may
cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or
implied in these forward-looking statements. 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, social and political and market conditions, the success of business and operating initiatives,
changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of
pending or future litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to AngloGold Ashanti’s annual reports
on Form 20-F filed with the United States Securities and Exchange Commission. These factors are not necessarily all of the important factors that could cause AngloGold
Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material
adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no
obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except to the extent required by applicable law. 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.

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or
any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled
measures other companies may use.

Website: www.anglogoldashanti.com

ENDS

JSE Sponsor:
The Standard Bank of South Africa Limited

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