SOURCE: AngloGold Ashanti

August 11, 2005 14:12 ET

AngloGold Ashanti Welcomes End of South African Strike

JOHANNESBURG, SOUTH AFRICA -- (MARKET WIRE) -- August 11, 2005 -- AngloGold Ashanti (NYSE: AU) welcomes the end of the gold mining industry's wage dispute and strike, achieved late today through agreement between the Chamber of Mines and the National Union of Mineworkers and Solidarity.

Says CEO Bobby Godsell: "Strikes are by their nature unpleasant and costly. However it is pleasing that the strike was resolved reasonably quickly and was conducted in an orderly manner. It is an indication of how far we have come since the last wage strike in 1987, which lasted for three weeks and involved significant violence."

"The settlement, involving the lowest percentage increases ever, was also an important step in establishing a norm of lower single digit increases in an environment of low inflation," Godsell added.

Says AngloGold Ashanti South Africa region head Robbie Lazare: "With the three lost production shifts and the start up to normalized production, we have effectively lost just over a ton of gold. Our focus now will be on improving productivity initiatives so as to offset increased costs, and working with the unions to recover some of the lost shifts."

The two-year agreement, effective July 1 2005, can be summarized as follows:

--  Wage increases of between 6% and 7%, with the highest increase for the
    lowest job category;
--  A wage increase in the second year of CPIX plus 1%, subject to a
    guaranteed increase of between 5.5% and 6%, again depending on the job
    category;
--  Increased employer contributions to the risk benefit within the
    retirement fund; and
--  Improvements in accommodation subsidies.
    
Disclaimer

Except for historical information contained herein, there are matters discussed in this news release that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For discussion of important factors including, but not limited to development of the Company's business, the economic outlook in the gold mining industry, expectations regarding gold prices and production, and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company's annual report on the Form 20-F for the year ended 31 December 2004 which is filed with the Securities and Exchange Commission on 14 July 2005.

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