Australia

AngloGold Ashanti’s three assets in Australia are the Sunrise Dam gold mine, and the Boddington and Tropicana joint venture projects. In 2007, production from Sunrise Dam was a record 600,000 ounces, an increase of 29% and equivalent to 11% of group production for the year.

Ownership of these assets, all in the state of Western Australia, is as follows:

• The Sunrise Dam gold mine is 100% owned by AngloGold Ashanti and is currently the only producing AngloGold Ashanti operation in Australia.
• The Boddington project is a joint venture between AngloGold Ashanti and Newmont Mining Corporation, in which each has interests of 33.33% and 66.67% respectively.
• The Tropicana project is a joint venture between AngloGold Ashanti (70%) and Independence Group NL (30%), which will contribute in terms of its 30% stake on completion of the pre-feasibility study.

Sunrise Dam

Description: The Sunrise Dam gold mine is located in the northern goldfields of Western Australia, 220 kilometres north-east of Kalgoorlie and 55 kilometres south of Laverton. The mine consists of a large open-pit, which is now in its eleventh year of operation, and an underground mine, which began producing in 2003. Mining at both operations is conducted by contractors and the ore mined is treated in a conventional gravity and CIL processing plant which is owner-managed.

Safety: While no fatalities were recorded there was a slight deterioration in the rate of lost-time injuries. The LTIFR for the year was 2.63 (2006: 1.81).

Operating review: Production increased by 29% to a record 600,000 ounces in line with expectations (2006: 465,000 ounces). The GQ zone in the open pit provided the anticipated large volumes of high grade ore, which accounted for the increase in annual gold production. Approximately 79,000 ounces of gold production was sourced from the underground mine. Progress was made in developing access to the Cosmo, Dolly, and Watu lodes and 2,000 metres of underground capital development and 6,100 metres of operational development were completed. A total of 67,400 metres of diamond drilling was also completed.

Processing plant throughput in 2007 was 3.8 million tonnes, slightly lower than the record throughput of 3.9 million tonnes in 2006.

Total cash costs fell by 8% to A$364/oz (rose by 3% in US dollar terms to $306/oz). Despite cost increases in areas such as open-pit mining contractor rates per unit mined, the greater volume of ore mined, and the appreciation in value of the Australian dollar, the increase in production, due primarily to the higher grade of ore mined, resulted in the decrease in cash costs, year-on-year.

Adjusted gross profit at A$163 million ($137 million) for 2007 was 10% down on that of 2006 (A$181 million, $137 million). The conversion of the mine’s diesel power station to liquefied natural gas (LNG) progressed well and the new LNG facility will begin operation in the second quarter of 2008. Capital expenditure for the year amounted to A$35 million ($30 million).

Growth prospects: The main open pit (the Mega Pit) will be completed in the second quarter of 2008, at a final depth of 440 metres. A cutback of the north wall of the open pit began in October 2007, and is scheduled for completion in mid-2010.

The underground life of mine study was completed in late 2007 and, following successful exploration, underground reserves have increased to 552,000 ounces (after depletion). Underground resources at year end were 1.6 million ounces (indicated 880,000 ounces) and a high proportion of this indicated resource will be converted to reserve early in 2008.

Outlook: Gold production for 2008 is projected to be in a range of 400,000 to 420,000 ounces, with more than 100,000 ounces sourced from the underground mine. Underground production will continue to ramp up for the next several years, with a current peak capacity target of 150,000 ounces per year.

Total cash costs are estimated to be around A$660/oz to A$670/oz ($580/oz and $590/oz) while capital expenditure is scheduled to be A$26 million ($23 million) – to be spent primarily on the underground mine.

Boddington

Description: Boddington is located 130 kilometres south-east of Perth in Western Australia. The original, predominantly oxide open-pit operation was closed at the end of 2001.

Operating review, growth prospects and outlook: The Boddington expansion project, which involves mining the basement reserves beneath the oxide pits, was approved in March 2006. The project has an attributable capital budget of between A$770 million and A$900 million ($700 million and $800 million). At year-end, overall project progress was approximately 65% complete, with engineering and procurement activities nearing completion. Construction of the treatment plant was approximately 32% complete and owner-mining had begun.

Based on the current mine plan, mine life is estimated to be more than 20 years, with attributable life-of-mine gold production expected to be greater than 5.7 million ounces of gold. Average attributable gold production in the first five years will be between 320,000 and 350,000 ounces per year, while on an average life-of-mine basis, attributable production is estimated to be between 250,000 and 270,000 ounces per year. AngloGold Ashanti’s share of copper production, which will be sold as concentrate, is expected to be between 10,000 and 12,500 tonnes per year. Production is expected to begin in late 2008/early 2009. Attributable capital expenditure for 2008 is expected to be approximately A$433 million ($381 million).

Tropicana

Description: Tropicana is a 12,500 square kilometres tenement package located 330 kilometres east north-east of Kalgoorlie in Western Australia. AngloGold Ashanti holds a 70% interest in the project and Independence Group NL holds a 30% interest (free carried to completion of the pre-feasibility study). Independence has agreed to contribute to certain project studies to ensure timely development of the project and to contribute to all regional exploration.

Operating review, growth prospects and outlook: The pre-feasibility study on this project began in June 2007. The study, which is scheduled to be completed by mid-2008, focuses on the Tropicana and Havana zones. An indicated and inferred resource estimate of 62.8 million tonnes at a grade of 2.01g/t and containing 4.05 million ounces was released in December 2007.

Metallurgical testwork has determined that the preferred plant configuration is a conventional carbon-in-leach circuit. Tests are currently underway to assess the optimal crushing and grinding circuit as well as the possible inclusion of energy-efficient high-pressure grinding rolls.

With the completion of the resource estimate, pit design and mine scheduling studies are underway to determine the optimal operating scale, grade and material scheduling strategy, infrastructural requirements, and capital and operating costs. A potential large-scale water resource has been identified within 50 kilometres of the deposit.

AngloGold Ashanti and Independence have agreed to jointly fund ongoing drilling to increase the resource classification to measured, indicated and inferred by mid-2008 to enable estimation of reserves and to streamline the progression of the project to feasibility level.

Baseline environmental studies for the project have been substantially completed.

Regional exploration continues on the greater tenement package (see the Global exploration section of this report for additional information).