SOURCE: AngloGold Ashanti

May 16, 2008 11:32 ET

AngloGold Ashanti Completes Transaction With B2Gold

AngloGold Ashanti (NYSE: AU) Completes Transaction to Acquire 15.9% Direct Interest in B2Gold and Increase B2Gold's Interest in Certain Colombian Properties

JOHANNESBURG, SOUTH AFRICA--(Marketwire - May 16, 2008) - AngloGold Ashanti Limited ("AngloGold Ashanti") is pleased to announce that it has completed the transaction with B2Gold Corp ("B2Gold") as previously announced on 14 February 2008, under which:

--  AngloGold Ashanti's existing right to receive 20% of the voting shares
    of B2Gold's wholly-owned subsidiary, Andean Avasca Resources Inc. (AARI),
    has been terminated;
--  their existing Colombian joint venture arrangements have been amended;
--  B2Gold has acquired from AngloGold Ashanti additional interests in
    certain mineral properties in Colombia that were not included in the
    original joint venture agreement.

In exchange, B2Gold issued to AngloGold Ashanti's nominee 25 million common shares of B2Gold and 21.4 million share purchase warrants in B2Gold. The exercise price of the warrants is Cdn$3.34 with respect to 11,000,000 warrants and Cdn$4.25 with respect to the balance of the 10,400,000 warrants. Both tranches of warrants have a three-year term. Based on the 157,277,500 currently outstanding shares of B2Gold, AngloGold Ashanti will hold approximately 15.9% of B2Gold's issued and outstanding shares. AngloGold Ashanti's fully diluted interest in B2Gold upon the exercise of the 21.4 million warrants will be approximately 26%.

AngloGold Ashanti's purpose in effecting this transaction is to build on its Colombian strategy of continuing to leverage its first-mover advantage through developing its exploration projects, both in its own right and together with partners like B2Gold. Through the transaction, it will acquire a direct interest in B2Gold that will provide AngloGold Ashanti with exposure to B2Gold's global exploration programme, as well as participation in the underlying joint venture interests in Colombia that AngloGold Ashanti will retain with B2Gold.

As a result of the transaction:

--  B2Gold retains 100% of AARI and no longer has an obligation to list
    AARI shares on a stock exchange;
--  B2Gold acquires a 100% interest in the Miraflores property in Colombia
    from AngloGold Ashanti and a 100% interest (subject to AngloGold Ashanti
    retaining a 1% royalty) in the Mocoa property, a copper/molybdenum deposit
    located in the south of Colombia;
--  AngloGold Ashanti transfers to B2Gold a 2% interest in the Gramalote
    joint venture and assigns to B2Gold other rights relating to Gramalote
    Limited, including AngloGold Ashanti's right to acquire an additional 24%
    interest in Gramalote, so that B2Gold will be entitled to a 51% interest in
    the Gramalote joint venture (AngloGold Ashanti retaining the remaining
--  B2Gold takes over management of exploration of the Gramalote property
    and is responsible for expenditures to complete a feasibility study of the
    project by July 2010.  The transfer of the 2% interest in the Gramalote
    joint venture to B2Gold is conditional on B2Gold completing the feasibility
    study by June 2010;
--  AngloGold Ashanti transfers to the Gramalote joint venture its
    interests in additional land positions, of approximately 1 500 square
    kilometers in extent, located around the Gramalote deposit; and
--  B2Gold's obligations, in terms of the extent of drilling required for
    it to earn in its interests in other Colombian properties under the
    Relationship, Farm-out and Joint Venture Agreement dated 8 November 2006
    with AngloGold Ashanti and AARI, increase from 3 000 metres to 5 000

Commenting on the transaction, Richard Duffy, Executive Vice President: Business Development for AngloGold Ashanti said: "The conclusion of this agreement with B2Gold marks a further step in building a solid platform for AngloGold Ashanti's exploration activities in Colombia and maximising AngloGold Ashanti's exposure to the potential of this prospective country."

Certain statements made during 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 the outlook of AngloGold
Ashanti's operations including the completion and commencement of
commercial operations of certain of AngloGold Ashanti's exploration and
production projects, and its liquidity and capital resources and
expenditure, 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, fluctuations in
gold prices and exchange rates, and business and operational risk
management. For a discussion of such factors, refer to AngloGold Ashanti's
annual report for the year ended 31 December 2007, which was distributed to
shareholders on 31 March 2008.  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.

In connection with the proposed merger transaction involving AngloGold
Ashanti and Golden Cycle Gold Corporation, AngloGold Ashanti has filed with
the SEC a registration statement on Form F-4 and GCGC will mail a proxy
statement/prospectus to its stockholders, and each will be filing other
documents regarding the proposed transaction with the U.S. Securities and
statement/prospectus will be mailed to GCGC's stockholders. Stockholders
will be able to obtain a free copy of the proxy statement/prospectus, as
well as other filings containing information about AngloGold Ashanti and
GCGC, without charge, at the SEC's Internet site (
Copies of the proxy statement/prospectus and the filings with the SEC that
will be incorporated by reference in the proxy statement/prospectus can
also be obtained, without charge, by directing a request to AngloGold
Ashanti, 76 Jeppe Street, Newtown, Johannesburg, 2001 (PO Box 62117,
Marshalltown, 2107) South Africa, Attention: Investor Relations, +27 11 637
6385, or to Golden Cycle Gold Corporation, 1515 S. Tejon, Suite 201,
Colorado Springs, CO 80906, Attention: Chief Executive Officer, (719) 471-

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