Edgar Filing: ANGLOGOLD ASHANTI LTD

Page 1

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated May 22, 2008

This Report on Form 6-K shall be incorporated by reference in

our automatic shelf Registration Statement on Form F-3 as amended (File No. 333-132662), our

Registration Statement on Form F-4 (File No. 333-149068) and our Registration Statements on

Form S-8 (File Nos. 333-10990 and 333-113789) as amended, to the extent not superseded by

documents or reports subsequently filed by us under the Securities Act of 1933 or the Securities

Exchange Act of 1934, in each case as amended

AngloGold Ashanti Limited

(Name of Registrant)

76 Jeppe Street

Newtown, Johannesburg, 2001

(P O Box 62117, Marshalltown, 2107)

South Africa

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F
or Form 40-F:

Form 20-F:

Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation
S-T Rule 101(b)(1):

Yes:

No:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation
S-T Rule 101(b)(7):

Yes:

No:

Indicate by check mark whether the registrant by furnishing the information contained in this form is
also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

Yes:

No:

Enclosures:

Unaudited condensed consolidated financial statements as of March 31, 2008 and
December 31, 2007 and for each of the three month periods ended March 31, 2008
and 2007, prepared in accordance with U.S. GAAP, and related management’s
discussion and analysis of financial condition and results of operations.

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Prepared in accordance with US GAAP

Three months ended March 31,

2008

(unaudited)

2007

(unaudited)

(in US Dollars, millions, except for share data)

Sales and other income

894

734

Product sales

884

723

Interest, dividends and other

Cost and expenses

1,087

699

Production costs

459

418

Exploration costs

Related party transactions

(3)

(2)

General and administrative

Royalties

Market development costs

Depreciation, depletion and amortization

147

140

Interest expense

Accretion expense

Employment severance costs

Profit on sale of assets, realization of loans , indirect taxes and other (see note D)

(11)

(4)

Non-hedge derivative loss

375

Other operating items

(3)

(Loss)/income from continuing operations before income tax, equity
income, minority interests

(193)

Taxation benefit/(expense) (see note E)

(40)

Minority interest

(12)

(7)

Equity income in affiliates

(Loss)/income from continuing operations

(192)

Discontinued operations

(1)

Net (loss)/income – applicable to common stockholders

(192)

(Loss)/income per share : (cents)

From continuing operations

Ordinary shares

(69)

E Ordinary shares

(34)

Ordinary shares – diluted

(69)

E Ordinary shares – diluted

(34)

Discontinued operations

Ordinary shares

E Ordinary shares

Ordinary shares – diluted

E Ordinary shares – diluted

Net (loss)/income

Ordinary shares

(69)

E Ordinary shares

(34)

Ordinary shares – diluted

(69)

E Ordinary shares – diluted

(34)

Weighted average number of shares used in computation

Ordinary shares

277,939,548

277,026,858

E Ordinary shares – basic and diluted

4,122,800

4,167,212

Ordinary shares – diluted

277,939,548

278,081,942

Dividend declared per ordinary share (cents)

Dividend declared per E ordinary share (cents)

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS

Prepared in accordance with US GAAP

At March 31,

2008

(unaudited)

At December 31,

2007

(in US Dollars, millions)

ASSETS

Current assets

2,140

2,113

Cash and cash equivalents

475

477

Restricted cash

Receivables

216

205

Trade

Recoverable taxes, rebates, levies and duties

Related parties

Other

Inventories (see note C)

531

523

Materials on the leach pad (see note C)

Derivatives

490

516

Deferred taxation assets

313

275

Assets held for sale (see note J)

Property, plant and equipment, net

5,344

5,527

Acquired properties, net

1,204

1,280

Goodwill and other intangibles, net

603

591

Other long-term inventory (see note C)

Materials on the leach pad (see note C)

206

190

Other long-term assets

581

559

Deferred taxation assets

Total assets

10,201

10,381

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

5,124

3,795

Accounts payable and other current liabilities

629

634

Derivatives

3,142

2,782

Short-term debt

1,257

319

Tax payable

Liabilities held for sale (see note J)

Other non-current liabilities

128

146

Long-term debt

708

1,564

Derivatives

256

297

Deferred taxation liabilities

1,207

1,345

Provision for environmental rehabilitation

356

394

Other accrued liabilities

Provision for pension and other post-retirement medical benefits

156

180

Minority interest

Commitments and contingencies

Stockholders’ equity

2,159

2,552

Common stock

400,000,000 (2007 – 400,000,000) authorized common stock of 25 ZAR
cents each

Stock issued 2008 – 277,745,007 (2007 – 277,457,471)

Additional paid in capital

5,627

5,607

Accumulated deficit

(2,650)

(2,440)

Accumulated other comprehensive income (see note H)

(828)

(625)

Total liabilities and stockholders' equity

10,201

10,381

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Prepared in accordance with US GAAP

Three months ended March 31,

2008

(unaudited)

2007

(unaudited)

(in US Dollars, millions)

Net cash provided by operating activities

154

157

Net (loss)/income – applicable to common stockholders

(192)

Reconciled to net cash provided by operations:

Profit on sale of assets , realization of loans , indirect taxes and other

(11)

(2)

Depreciation, depletion and amortization

147

140

Deferred taxation

(68)

(21)

Movement in non-hedge derivatives

337

Equity income in affiliates

(8)

(16)

Dividends received from affiliates

Other non cash items

Net increase in provision for environmental
rehabilitation and pension and other post-retirement medical
benefits

Effect of changes in operating working capital items:

Receivables

(20)

(26)

Inventories

(47)

(15)

Accounts payable and other current liabilities

Net cash provided by continuing operations

154

158

Net cash used in discontinued operations

(1)

Net cash used in investing activities

(243)

(226)

Increase in non-current investments

(31)

(14)

Additions to property, plant and equipment

(255)

(194)

Proceeds on sale of mining assets

Proceeds on sale of investments

Cash (outflows)/inflows from derivatives with financing

(9)

Net loans repaid/(advanced)

(4)

Change in restricted cash

(6)

(26)

Net cash generated/(used) by financing activities

129

(35)

Net repayments of short-term debt

(20)

Issuance of stock

Share issue expenses

Net proceeds of long-term debt

160

Cash (outflows)/inflows from derivatives with financing

(1)

Dividends paid

(19)

(94)

Net increase/(decrease) in cash and cash equivalents

(104)

Effect of exchange rate changes on cash

(42)

(8)

Cash and cash equivalents – January 1,

477

471

Cash and cash equivalents – March 31,

475

359

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008
Prepared in accordance with US GAAP

Note A. Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in

accordance with accounting principles generally accepted in the United States of America

("US GAAP") for interim financial information. Accordingly, they do not include all of the information
and footnotes required by US GAAP for complete financial statements. In the opinion of

management, all adjustments (consisting of normal recurring accruals) considered necessary for a

fair presentation have been included. Operating results for the three-month period ended
March 31, 2008 are not necessarily indicative of the results that may be expected for the year ending

December 31, 2008.

The balance sheet as at December 31, 2007 has been derived from the audited financial statements
at that date but does not include all of the information and footnotes required by US GAAP for

complete financial statements.

For further information, refer to the consolidated financial statements and footnotes thereto included

in the Company’s annual report on Form 20-F for the year ended December 31, 2007.

Note B. Accounting developments

Recently adopted pronouncements

Fair value measurements

The Company adopted FASB Statement No. 157, “Fair Value Measurements” (“SFAS157”) for

financial assets and financial liabilities on January 1, 2008.

SFAS157 provides enhanced guidance for using fair value to measure assets and liabilities. Under
SFAS157, fair value refers to the price that would be received to sell an asset or paid to transfer a

liability in an orderly transaction between market participants in the market in which the reporting

entity transacts. SFAS157 clarifies the principle that fair value should be based on the assumptions
market participants would use when pricing the asset or liability and establishes a fair value

hierarchy that prioritizes the information used to develop those assumptions. SFAS157 also requires

that fair value measurements be separately disclosed by level within the fair value hierarchy. The

adoption of SFAS157 did not have a material impact on the Company’s financial statements. See
note N “Fair value measurements” for additional information.

On February 12, 2008, the FASB issued FASB Staff Position No. FAS157-2, “Effective date of FASB

Statement No. 157” (“the FSP”). The FSP provides a one year deferral until January 1, 2009 for the
implementation of SFAS157 for certain non-financial assets and non-financial liabilities, except for

those items that are recognized or disclosed at fair value in the financial statements on a recurring

basis (at least annually).

Fair value option for financial assets and liabilities

In February 2007, the FASB issued FASB Statement No. 159, “The Fair Value Option for Financial

Assets and Financial Liabilities” (“SFAS159”). SFAS159 permits entities to choose to measure

many financial instruments and certain other items at fair value, with the objective of improving

financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings
caused by measuring related assets and liabilities differently without having to apply complex hedge

accounting provisions. The provisions of SFAS159 were adopted January 1, 2008. The Company

did not elect the Fair Value Option for any of its financial assets or liabilities, and therefore, the

adoption of SFAS159 had no impact on the Company’s financial statements.

Employers’ accounting for defined benefit pension and other post-retirement plans

In September 2006, the FASB issued FASB Statement No. 158, “Employers’ Accounting for

Defined Benefit Pension and Other Post-retirement Plans, an amendment of FASB Statements No.

87, 88, 106 and 132(R)” (“SFAS158”). The Company adopted the recognition and disclosure
requirements of SFAS158 in 2006, as required, except for the requirement to measure the plan

assets and benefit obligations at the fiscal year end, which is effective in fiscal years ending after

December 15, 2008. The Company is implementing processes to meet these measurement

requirements of SFAS158.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued

Prepared in accordance with US GAAP

Note B. Accounting developments (continued)

Recently issued pronouncements

Business combinations

In December 2007, the FASB issued FASB Statement No. 141 (R), “Business Combinations”
(“SFAS141(R)”). SFAS141(R) requires the acquiring entity in a business combination to recognize all

(and only) the assets acquired and liabilities assumed in the transaction; establishes the acquisition-

date fair value as the measurement objective for all assets acquired and liabilities assumed; and

requires the acquirer to disclose to investors and other users all of the information they need to
evaluate and understand the nature and financial effect of the business combination. SFAS141(R)

applies prospectively to business combinations for which the acquisition date is on or after the

beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may

not apply it before that date. SFAS141(R) applies to all transactions or other events in which an entity
(the acquirer) obtains control of one or more businesses (the acquiree), including combinations

achieved without the transfer of consideration. The Company is currently evaluating the potential

impact of adopting SFAS141(R) on the Company’s financial statements.

Noncontrolling interests

In December 2007, the FASB issued FASB Statement No. 160, “Noncontrolling Interests in
Consolidated Financial Statements” (“SFAS160”). SFAS160 amends ARB 51 to establish accounting

and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a

subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the

consolidated entity that should be reported as equity in the consolidated financial statements.
SFAS160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or

after December 15, 2008. Earlier adoption is prohibited. It shall be applied prospectively as of the

beginning of the fiscal year in which this Statement is initially adopted, except for the presentation and
disclosure requirements. The presentation and disclosure requirements shall be applied

retrospectively for all periods presented. The Company is currently evaluating the potential impact of

adopting SFAS160 on the Company’s financial statements.

Derivative instruments

In March 2008, the FASB issued FASB statement No. 161, “Disclosures about Derivative Instruments

and Hedging Activities – an amendment of FASB statement No. 133” (“SFAS161”). SFAS161 applies
to all derivative instruments and nonderivative instruments that are designated and qualify as hedging

instruments pursuant to paragraphs 37 and 42 of SFAS133 and related hedged items accounted for

under SFAS133. SFAS161 requires enhanced disclosures about an entity’s derivative and hedging

activities and thereby improves the transparency of financial reporting. Entities are required to provide
enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative

instruments and related hedged items are accounted for under SFAS133 and its related

interpretations, and (c) how derivative instruments and related hedged items affect an entity’s financial
position, results of operations and cash flows. SFAS161 is effective for financial statements issued for

fiscal years and interim periods beginning after November 15, 2008, with early application

encouraged. Comparative disclosures for earlier periods at initial adoption are encouraged but not

required. The Company does not expect the adoption of SFAS161 to have a material impact on the
Company’s financial statements.

Hierarchy of Generally Accepted Accounting Principles

In May 2008, the FASB issued FASB Statement No. 162, “The Hierarchy of Generally Accepted
Accounting Principles” (“SFAS162”). SFAS162 is intended to improve financial reporting by identifying

a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing

financial statements that are presented in conformity with U.S. generally accepted accounting

principles (GAAP) for nongovernmental entities. SFAS162 is effective 60 days following the United
States Securities and Exchange Commission (SEC's) approval of the Public Company Accounting

Oversight Board Auditing amendments to AU Section 411, “The Meaning of Present Fairly in

Conformity with Generally Accepted Accounting Principles”. The Company does not expect the
adoption of SFAS162 to have a material impact on the Company’s financial statements.

Note C. Inventories

At March 31,

2008

At December 31,

2007

(unaudited)

(in US Dollars, millions)

The components of inventory consist of the following :

Short-term

Gold in process

125

133

Gold on hand (doré/bullion)

Ore stockpiles

171

166

Uranium oxide and sulfuric acid

Supplies

220

225

581

572

Less: Heap leach inventory

(1)

(50)

(49)

531

523

(1)

Short-term portion relating to heap leach inventory classified separate, as materials on the leach pad.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note C. Inventories (continued)

At March 31,

2008

At December 31,

2007

(unaudited)

(in US Dollars, millions)

Long-term

Gold in process

206

190

Ore stockpiles

Supplies

301

274

Less: Heap leach inventory

(1)

(206)

(190)

(1)

Long-term portion relating to heap leach inventory classified separate, as materials on the leach pad.

Note D. Profit on sale of assets, realization of loans, indirect taxes and other

In the three months ended March 31, 2008, the Company recorded a profit of $11 million (before

taxation of $2 million) relating mainly to the disposal of royalty and production related interests of the El

Chanate and Marigold projects in North America, to Royal Gold Inc. and the disposal of minor assets in

South America. The profit of $4 million (before taxation of $1 million) recorded in the three months
ended March 31, 2007 mainly related to the disposal of minor assets in South America, the recovery of

loans written off and proceeds received on the sale of Central African Gold Plc (CAG) shares arising

from the sale of Bibiani (concluded in December 2006).

Note E. Taxation

ended March 31, 2008 was 3 percent of loss before tax compared to 114 percent for the same period

in 2007. Charges for deferred tax in the three months ended March 31, 2008 amounted to a net tax

benefit of $68 million compared to a net tax benefit of $21 million in the same period in 2007. The
three months ended March 31, 2008 benefited from deferred tax credits of $87 million on unrealized

non-hedge derivative losses, compared to similar tax credits of $11 million in the same period in 2007.

Charges for current tax in the three months ended March 31, 2008 amounted to $63 million compared

to $61 million in the same period in 2007.

Uncertain taxes

As at March 31, 2008, the Company had $117 million of total unrecognized tax benefits which, if

recogniz ed, would affect the Company’s effective income tax rate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in US Dollars,

millions)

Balance at January 1, 2008

134

Additions based on tax positions related to the current year

Additions for tax positions of prior years

Reductions for tax positions of prior years

Settlements

Translation

(21)

Balance as at March 31, 2008

117

The Company’s continuing practice is to recognize interest and penalties related to unrecognized tax
benefits as part of its income tax expense. During the three months ended March 31, 2008, the

Company recognized approximately $3 million in interest. The Company had approximately $35 million

for the payment of interest accrued as at March 31, 2008.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note F. Segment information

The Company produces gold as its primary product and does not have distinct divisional segments in

terms of principal business activity, but manages its business on the basis of different geographic

segments. This information is consistent with the information used by the Company’s Chief Operating

Decision Maker in evaluating operating performance of, and making resource allocation decisions
among operations.

Three months ended March 31,

2008

2007

(unaudited)

(in US Dollars, millions)

Revenues by area

South Africa

366

348

Argentina

Australia

Brazil

Ghana

105

Guinea

Mali

Namibia

USA

Tanzania

Other, including Corporate and Non-gold producing subsidiaries

952

861

Less: Equity method investments included above

(80)

(72)

Plus/less: Loss/(gains) on realized non-hedge derivatives included above

(55)

Total revenues

894

734

Three months ended March 31,

2008

2007

(unaudited)

(in US Dollars, millions)

Segment income/(loss)

South Africa

105

Argentina

Australia

Brazil

Ghana

Guinea

Mali

Namibia

USA

(2)

Tanzania

(13)

(30)

Other, including Corporate and Non-gold producing subsidiaries

(25)

(20)

Total segment income

256

159

Three months ended March 31,

2008

2007

(unaudited)

(in US Dollars, millions)

Reconciliation of segment income to Net (loss)/income

Segment total

256

159

Exploration costs

(36)

(24)

General and administrative expenses

(30)

Market development costs

(3)

Non-hedge derivative loss

(375)

(43)

Other operating items

(8)

Taxation benefit/(expense)

(40)

Discontinued operations

(1)

Minority interest

(12)

(7)

Net (loss)/income

(192)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued

Prepared in accordance with US GAAP

Note F. Segment information (continued)

At March 31,

2008

At December 31,

2007

(unaudited)

(in US Dollars, millions)

Segment assets

South Africa

3,046

3,337

Argentina

238

236

Australia

1,309

1,183

Brazil

677

674

Ghana

2,154

2,155

Guinea

364

371

Mali

311

(1)

291

(1)

Namibia

USA

527

528

Tanzania

1,325

1,343

Other, including Corporate, Assets held for sale and Non-gold producing subsidiaries

185

187

Total segment assets

10,201

10,381

(1)

Investment held.

Three months ended March 31,

Note G. (Loss)/income per share data

2008

2007

The following table sets forth the computation of basic and diluted (loss)/income per share

(in US dollars millions, except per share data):

(unaudited)

Numerator

Net (loss)/income

(192)

Less Dividends:

Ordinary shares

E Ordinary shares

Undistributed losses

(210)

(87)

Ordinary shares undistributed losses

(209)

(86)

E Ordinary shares undistributed losses

(1)

Total undistributed losses

(210)

(87)

Three months ended March 31,

2008

2007

(unaudited)

Denominator for basic (loss)/income per ordinary share

Ordinary shares

277,658,759

276,426,639

Fully vested options

(1)

280,789

600,219

Weighted average number of ordinary shares

277,939,548

277,026,858

Effect of dilutive potential ordinary shares

Dilutive potential of stock incentive options

(2)

641,741

Dilutive potential of convertible bonds

(3)

Dilutive potential of E Ordinary shares

(4)

413,343

Denominator for diluted (loss)/income per share – adjusted weighted average number of ordinary

shares and assumed conversions

277,939,548

278,081,942

Weighted average number of E Ordinary shares used in calculation of basic and diluted
(loss)/income per E Ordinary share

4,122,800

4,167,212

(1)

Compensation awards are included in the calculation of basic (loss)/income per common share
from when the necessary conditions have been met, and it is virtually certain that shares will be
issued as a result of employees exercising their options.

(2)

The calculation of diluted (loss)/income per common share for the three months ended
March 31, 2008 did not assume the effect of 744,781 shares , issuable upon the exercise of stock
incentive options as their effects are anti-dilutive f or this period.

(3)

The calculation of diluted (loss)/income per common share for the three months ended
March 31, 2008 and 2007 did not assume the effect of 15,384,615 shares , issuable upon the
exercise of Convertible Bonds as their effects are anti-dilutive for these periods.

(4)

The calculation of diluted (loss)/income per common share for the three months ended
March 31, 2008 did not assume the effect of conversion of E Ordinary shares as the Company
recorded a loss from continuing operations during this period.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note H. Accumulated other comprehensive income

Other comprehensive income, net of related taxation, consists of the following:

Three months ended March 31,

2008

2007

(unaudited)

(in US Dollars, millions)

Opening balance

(625)

(765)

Translation loss

(170)

(41)

Financial instruments

(33)

(828)

(803)

Net (loss)/income

(192)

Translation loss

(170)

(41)

Financial instruments

(33)

Total other comprehensive income is:

(395)

(35)

Note I. Employee benefit plans

The Company has made provision for pension and provident schemes covering

substantially all employees.

Components of net periodic benefit cost

Three months ended March 31,

2008

2007

(unaudited)

(in US Dollars, millions)

Pension

benefits

Other

benefits

Pension

benefits

Other

benefits

Service cost

Interest cost

Expected return on plan assets

(5)

(4)

Net periodic benefit cost

Employer contributions

As disclosed in the Company's annual report on Form 20-F for the year ended December 31, 2007,

the Company expected to contribute $6 million to its pension plan in 2008. As of March 31, 2008, the

Company had contributed $2 million during 2008.

The actuarial valuation completed as at December 31, 2007 indicated that the pension fund was fully
funded.

Note J. Assets and (liabilities) held for sale

At March 31,

2008

At December 31,

2007

(unaudited)

(in US Dollars, millions)

Effective June 30, 2005, the investment in the Weltevreden mining rights, located in South Africa, of
$13 million, was classified as held for sale. This investment was previously recognised as a tangible

asset. Weltevreden's rights were sold to Aflease Gold and Uranium Resources Limited on

June 15, 2005. On December 19, 2005, Aflease was acquired by sxr Uranium One (formerly
Southern Cross Inc.). In terms of these sale agreements, the purchase price would be paid in the

form of sxr Uranium One shares to be issued to the Company. The conditions precedent to the

agreement were not fulfilled by the expiry date of December 31, 2007. Consequently, the

agreement lapsed and a new agreement is being negotiated with Aflease Gold Limited. The
negotiation terms include a purchase consideration of R288 million ($36 million) to be paid in the

form of Aflease shares to be issued to the Company. In addition, conditions precedent include the

approval by the Minister of Minerals and Energy of the cession of the Weltevreden mining right from

AngloGold Ashanti to Aflease, unconditional approval of the transaction by the Competition
Commission and approval by the JSE Limited of the issue and allotment of Aflease shares.

Rand Refinery Limited (a subsidiary of the Company) allocated parts of its premises previously

recognized as a tangible asset, to held for sale. Rand Refinery Limited intends to sell off parts of the

estate that are no longer utilized within the next twelve months. A buyer has been found, a sale

agreement has been drawn up and parties are in the process of finalizing the agreement.

Effective June 30, 2007, exploration properties acquired from Trans-Siberian Gold plc situated in
Russia were classified as held for sale. The cash sale of these exploration properties forms part of

the strategic alliance between Polymetal and AngloGold Ashanti, which was concluded during the

March 2008 quarter.

The remaining moveable and immovable assets of Ergo, the surface dump reclamation operation

east of Johannesburg, which ceased mining operations in March 2005, was sold by the Company to
ERGO Mining (Pty) Limited a joint venture between Mintails South Africa (Pty) Limited and DRD

South African Operations (Pty) Limited.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED

MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note J. Assets and (liabilities) held for sale (continued)

At March 31,

2008

At December 31,

2007

(unaudited)

(in US Dollars, millions)

The assets and associated liabilities were sold for R88 million ($11 million), after the sale

agreement was amended to include the Withok Complex, inter alia containing the Brakpan Tailings

Storage Facility. The transaction was approved by the Competition Commission in early May 2008
and ERGO Mining will operate, in terms of a agreement for its own account, under the AngloGold

Ashanti mineral authorizations until the mining rights have been approved by the Minister of

Minerals and Energy for transfer to ERGO Mining. A specific exclusion from the sale to ERGO

Mining is the freehold land (agricultural land) owned by the Company. ERGO Mining has provided
the Company with guarantees to the value of R63 million ($8 million) for rehabilitation obligations

associated with the sites in the event of environmental damage caused to the Daggafontein

Tailings Storage Facility or the Withok Complex as a result of ERGO Mining’s operations.

(20)

As at March 31, 2008 and December 31, 2007 the carrying amounts of major classes of assets and

liabilities classified as held for sale, included:

Property, plant and equipment

Acquired properties

Provision for environmental rehabilitation

(20)

Deferred taxation

(1)

Net assets

(7)

Note K. Commitments and contingencies

Capital expenditure commitments

Capital commitments and contingent liabilities of the Company include total contracted capital

expenditure of $457 million and total authorized capital expenditure not yet contracted of
approximately $748 million as of March 31, 2008. The Company intends to finance these capital

expenditures from cash on hand, cash flow from operations, existing credit facilities and, potentially,

additional credit facilities or debt instruments.

South Africa – groundwater pollution

The Company has identified a number of groundwater pollution sites at its current operations in
South Africa and has investigated a number of different technologies and methodologies that could

possibly be used to remediate the pollution plumes. The geology of the area is typified by a

dolomite rock formation that is prone to solution cavities. Polluted process water from the

operations has percolated from pollution sources to this rock formation and has been trans ported
three dimensionally, creating pollution plumes in the dolomite aquifer. Numerous scientific,

technical and legal reports have been produced and the remedying of the polluted soil and

groundwater is the subject of a continued research program between the University of the
Witwatersrand and the Company. Subject to the technology being developed as a proven

remediation technique, no reliable estimate can be made for the obligation.

Brazil – sales tax on gold deliveries

Mineração Serra Grande S.A. (MSG), the operator of the Crixas mine in Brazil, has received two

tax assessments from the State of Goiás related to payments of sales taxes on gold deliveries for
export namely, one assessment for the period between February 2004 and June 2005 and the

other for the period between July 2005 and May 2006. The tax authorities maintain that whenever a

taxpayer exports gold mined in the State of Goiás through a branch located in a different Brazilian

state, it must obtain an authorization from the Goiás State Treasury by means of a Special Regime
Agreement (Termo de Acordo re Regime Especial – TARE). The MSG operation is co-owned with

Kinross Gold Corporation. The Company’s attributable share of the first assessment is

approximately $41 million. Although MSG requested the TARE in early 2004, the TARE, which

authorized the remittance of gold to the Company’s branch in Minas Gerais specifically for export
purposes, was only granted and executed in May 2006. In November 2006 the administrative

council’s second chamber ruled in favor of MSG and fully canceled the tax liability related to the first

period. The State of Goiás has appealed to the full board of the State of Goiás tax administrative

council. The second assessment was issued by the State of Goiás in October 2006 on the same
grounds as the first assessment, and the Company’s attributable share of the assessment is

approximately $25 million. The Company believes both assessments are in violation of federal

legislation on sales taxes.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note K. Commitments and contingencies (continued)

Brazil – VAT dispute

Morro Velho and AngloGold Ashanti Brasil Mineração are involved in disputes with tax authorities.

These disputes involve eleven federal tax assessments including income tax, social contributions
and annual property tax based on ownership of properties outside of urban perimeters (ITR). The

amount involved is approximately $9 million.

Brazil – VAT dispute

Mineração Serra Grande S.A. (MSG), received a tax assessment in October 2003 from the State of

Minas Gerais related to sales taxes on gold allegedly returned from the branch in Minas Gerais to

the company head office in the State of Goiás. The tax administrators rejected the Company’s

appeal against the assessment. The Company is now appealing the dismissal of the case. The
Company’s attributable share of the assessment is approximately $8 million.

AngloGold Offshore Investments Limited – Nufcor International Limited loan facility

AngloGold Offshore Investments Limited, a wholly-owned subsidiary of the Company, has
guaranteed 50 percent of the Nufcor International Limited loan facility with FirstRand (Ireland) plc

(formerly RMB International (Dublin) Limited) amounting to $40 million. Nufcor International Limited

is accounted for under the equity method.

South Africa – provision of surety

The Company has provided surety in favor of the lender in respect of gold loan facilities to wholly

owned subsidiaries of Oro Group (Proprietary) Limited, an affiliate of the Company. The Company

has a total maximum liability, in terms of the suretyships, of R100 million ($12 million). The
suretyship agreements have a termination notice period of 90 days. The probability of the non-

performance under the suretyships is considered minimal, based on factors of no prior defaults,

being well-established companies and recourse via general notarial bonds over the gold stocks of

the subsidiaries of the Oro Group. These bonds should enable the Company to recover the majority
of the guaranteed amount. The Company receives a fee from the associate for providing the surety

and has assessed the possibility of a claim for non-performance.

North America – reclamation

Pursuant to US environmental and mining requirements, gold mining companies are obligated to

close their operations and rehabilitate the lands that they mine in accordance with these
requirements. AngloGold Ashanti USA has posted reclamation bonds with various federal and state

governmental agencies to cover potential rehabilitation obligations in amounts aggregating

approximately $48 million.

The Company has provided a guarantee for these obligations which would be payable in the event of

AngloGold Ashanti USA not being able to meet its rehabilitation obligations. As at March 31, 2008

the carrying value of these obligations relating to AngloGold Ashanti USA amounted to $31 million

and is included in the Provision for environmental rehabilitation in the Company's consolidated
balance sheet. The obligations will expire upon completion of such rehabilitation and release of such

areas by the applicable federal and/or state agency. There are no recourse provisions that would

enable AngloGold Ashanti to recover from third parties any of the amounts paid under the guarantee.

Guarantee for convertible bond

The Company has guaranteed all payments and other obligations of AngloGold Ashanti Holdings plc

regarding the issued $1 billion 2.375 percent convertible bonds due 2009. The Company’s

obligations regarding the guarantee are direct, unconditional and unsubordinated.

Guarantee for syndicated loan facility

AngloGold Ashanti Limited, AngloGold Ashanti Holdings plc, AngloGold Ashanti USA Incorporated

and AngloGold Ashanti Australia Limited each have guaranteed all payments and other obligations
of AngloGold Ashanti Holdings plc, AngloGold Ashanti USA Incorporated and AngloGold Ashanti

Australia Limited regarding the $1.15 billion Syndicated loan facility dated December 13, 2007 The

total amount outstanding under the syndicated $1.15 billion facility as of March 31, 2008 amounted

to $677 million.

North and South America delivery guarantees

The Company has issued gold delivery guarantees to several counterpart banks in which it

guarantees the due performance of its subsidiaries AngloGold (USA) Trading Company, AngloGold
South America Limited and Cerro Vanguardia S.A. under their respective gold hedging agreements.

Ashanti Treasury Services – guarantees

The Company together with its wholly-owned subsidiary AngloGold Ashanti Holdings plc has

provided guarantees to several counterpart banks for the hedging commitments of its wholly-owned
subsidiary Ashanti Treasury Services Limited (ATS). The maximum potential amount of future

payments is all moneys due, owing or incurred by ATS under or pursuant to the Hedging

Agreements. At March 31, 2008 the marked-to-market valuation of the ATS hedge book was
negative $1,670 million.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note K. Commitments and contingencies (continued)

Geita hedge guarantee

The Company and its wholly-owned subsidiary AngloGold Ashanti Holdings plc have issued hedging

guarantees to several counterpart banks in which they have guaranteed the due performance by
GMC of its obligations under or pursuant to the hedging agreements entered into by GMC, and to the

payment of all money owing or incurred by GMC as and when due. This guarantee remains in force

until no sum remains to be paid under the hedging agreements and the Bank has irrevocably
recovered or received all sums payable to it under the hedging agreements. The maximum potential

amount of future payments is all moneys due, owing or incurred by GMC under or pursuant to the

hedging agreements. At March 31, 2008 the marked-to-market valuation of the GMC hedge book

was negative $595 million.

Taxation

With operations in several countries on several continents, many of which are emerging markets,

AngloGold Ashanti is subject to, and pays annual taxes under the various tax regimes where it

operates. Some of these tax regimes are defined by contractual agreements with the local

government, but others are defined by the general corporate tax laws of the country. The Company
has historically filed, and continues to file, all required tax returns and to pay the taxes reasonably

determined to be due. In some jurisdictions, tax authorities are yet to complete their assessments for

previous years. The tax rules and regulations in many countries are complex and subject to

interpretation. From time to time the Company is subject to a review of its historic tax filings and in
connection with such reviews, disputes can arise with the taxing authorities over the interpretation or

application of certain rules to the Company’s business conducted within the country involved.

Management believes based on information currently to hand, that such tax contingencies have

been adequately provided for, and as assessments are completed, the Company will make
appropriate adjustments to those estimates used in determining amounts due.

Vulnerability from concentrations

There is a concentration of risk in respect of recoverable value added tax and fuel duties from the
Malian government to the Company’s equity accounted affiliates. Recoverable value added tax due

from the Malian government to the equity accounted affiliates of the Company amounts to an

attributable $47 million at March 31, 2008 (December 31, 2007: attributable $42 million). The last

audited value added tax return was for the period ended March 31, 2007 and as at March 31, 2008
an attributable $24 million was still outstanding and an attributable $23 million is still subject to audit.

The accounting processes for the unaudited amount are in accordance with the processes advised

by the Malian government in terms of the previous audits.

Recoverable fuel duties from the Malian government to the equity accounted affiliates of the

Company amount to an attributable $5 million at March 31, 2008 (December 31, 2007: attributable

$7 million). Fuel duty refund claims are required to be submitted before January 31 of the following

year and are subject to authorization by, firstly, the Department of Mining, and secondly, the
Customs and Excise authorities. As at March 31, 2008 an attributable $5 million is still subject to

authorization by the Customs and Excise authorities. The accounting processes for the unauthorized

amount are in accordance with the processes advised by the Malian government in terms of the

previous authorizations. With effect from February 2006, fuel duties are no longer payable to the
Malian government.

The Government of Mali is a shareholder in all of the Company’s equity accounted affiliates in Mali.

Management is in negotiations with the Government of Mali to agree a protocol for the repayment of
these amounts. The amounts outstanding have been discounted to their present value at a rate of

6.5 percent.

There is a concentration of risk in respect of recoverable value added tax and fuel duties from the
Tanzanian government. Recoverable value added tax due from the Tanzanian government to the

Company amounts to $17 million at March 31, 2008 (December 31, 2007: $16 million). The last

audited value added tax return was for the period ended November 30, 2007 and as at

March 31, 2008 $13 million was still outstanding and $4 million is still subject to audit. The
accounting processes for the unaudited amount are in accordance with the processes advised by the

Tanzanian government in terms of the previous audits. The amounts outstanding have been

discounted to their present value at a rate of 7.8 percent.

Recoverable fuel duties from the Tanzanian government to the Company amount to $36 million at

March 31, 2008 (December 31, 2007: $37 million). Fuel duty claims are required to be submitted

after consumption of the related fuel and are subject to authorization by the Customs and Excise

authorities. As at March 31, 2008, claims for refund of fuel duties amounting to $17 million have
been lodged with the Customs and Excise authorities, which are still outstanding, whilst claims for

refund of $19 million have not yet been submitted. The accounting processes for the unauthorized

amount are in accordance with the processes advised by the Tanzanian government in terms of the

previous authorizations. The amounts outstanding have been discounted to their present value at a
rate of 7.8 percent.

In addition to the above, the Company has contingent liabilities in respect of certain tax

assessments, claims, disputes and guarantees which are not considered to be material.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note L. Recent developments

Announcements made after March 31, 2008:

On February 14, 2008, AngloGold Ashanti announced that it had entered into a binding

memorandum of agreement (MOA) with B2Gold Corp. (B2Gold). The MOA provides for the existing

Colombian joint venture agreements between AngloGold Ashanti and B2Gold to be amended to
provide that B2Gold acquire from AngloGold Ashanti additional interest in certain mineral properties

in Colombia. In exchange, B2Gold would issue to AngloGold Ashanti 25 million common shares and

21.4 million common share purchase warrants in B2Gold. Subsequently, the transaction was

finalized, as announced by AngloGold Ashanti on May 16, 2008.

On April 14, 2008, it was announced that, following the stabilization of power provided by Eskom (the

South African electricity supply body) to the South African operations during the quarter, AngloGold

Ashanti forecast the first quarter production to be approximately 1.19 million ounces. The revised
production outlook was approximately 8 percent above guidance provided in the fourth quarter of

2007. AngloGold Ashanti had also fully delivered into maturing hedge contracts during the quarter.

On January 25, 2008, the South African national power supplier, Eskom, had communicated that it
could not guarantee power supply to AngloGold Ashanti’s South African operations. Precautionary

steps were taken for the safety of employees, including ceasing the transportation of employees

underground to carry-out mining activities and the cessation of milling activities. Following extensive

discussions with Eskom and the South African government, Eskom agreed to guarantee a power
supply equivalent to 90 percent of previous supply and undertook to more reliably warn companies

when power outages may occur. Mining operations resumed on Wednesday, January 30, 2008 at

AngloGold Ashanti’s South African mines and in late March 2008, Eskom increased power supply to

96.5 percent of previous levels. At these power levels and as a result of the Company’s previously
implemented and ongoing initiatives to improve its energy efficiencies, the Company has been able

to restore production back to 100 percent of previous capacity. Since 2004, AngloGold Ashanti and

Eskom have undertaken and committed funds and other resources to various initiatives to improve

energy efficiencies and reduce power consumption at AngloGold Ashanti’s South African mines.
These combined efforts have res ulted in a decline in the use of electricity, fuel and coal and have to

date achieved a 17 percent improvement in energy efficiencies at the Company’s South African

operations. AngloGold Ashanti views these initiatives as being important not only in the light of power

shortages and related disruption to its mining operations but also in that it anticipates that these
initiatives will assist in managing future operating cost increases in the light of anticipated increases

in unit electrical power, fuel and other energy costs.

On May 6, 2008, AngloGold Ashanti announced that it intends to proceed, subject to certain
conditions, with an approximate one-for-four renounceable rights offer. The final terms of the

proposed rights offer, which were announced on May 21, 2008, would result in AngloGold Ashanti

issuing approximately 69.4 million shares at a subscription price of ZAR194.00 and in the ratio of
24.6403 rights offer shares for every 100 AngloGold Ashanti shares held raising approximately

ZAR13.48 billion ($1.77 billion based on an exchange rate of ZAR7.63/$1.00 on May 20, 2008). The

proposed rights offer is being fully underwritten subject to certain customary conditions. The

proposed rights offer will materially change the number of common shares in issue. The proposed
rights offer was approved at a general meeting of AngloGold Ashanti shareholders held on

May 22, 2008. The principal purpose of the rights offer is to provide AngloGold Ashanti with

additional financial resources to improve its financial flexibility. In particular, the net proceeds from

the rights offer will allow AngloGold Ashanti both to significantly restructure and reduce its existing
gold hedging position, which has adversely affected its financial performance in recent years, while

also being able to continue to fund its principal development projects and exploration growth

initiatives. Pending this use of proceeds, the net proceeds of the rights offer may, in the interim, be

used by AngloGold Ashanti to reduce its short-term borrowings and the borrowings outstanding on
AngloGold Ashanti’s revolving credit facility or retained as cash and invested in accordance with

AngloGold Ashanti’s cash management policies.

Note M. Declaration of dividends

On February 6, 2008, AngloGold Ashanti declared a final dividend of 53 South African cents
(6.606 US cents) per ordinary share for the year ended December 31, 2007 with a record date of

February 29, 2008 and payment dates of March 7, 2008 for holders of ordinary shares and CDIs,

March 10, 2008 for holders of GhDSs and March 17, 2008 for holders of ADSs. In addition, on

February 6, 2008 AngloGold Ashanti declared a dividend of 26.5 South African cents (3 US cents)
per E ordinary share, payable on March 7, 2008 to employees participating in the Bokamoso ESOP

and Izingwe Holdings (Proprietary) Limited. In addition to the cash dividend, an amount equal to the

dividend paid to holders of E ordinary shares will be offset when calculating the strike price of E

ordinary shares.

Each CDI represents one-fifth of an ordinary share and 100 GhDSs represents one ordinary share.
Each ADS represents one ordinary share.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2008 …continued
Prepared in accordance with US GAAP

Note N. Fair value measurements

The Company adopted SFAS157 as of January 1, 2008, with the exception of the application of the
statement to non-recurring non-financial assets and non-financial liabilities. The Company currently

does not have non-financial assets and non-financial liabilities that are required to be measured at

fair value on a recurring basis.

SFAS157 establishes a fair value hierarchy which requires an entity to maximize the use of

observable inputs and minimize the use of unobservable inputs when measuring fair value. The
standard describes three levels of inputs that may be used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or

liabilities; quoted prices in markets that are not active; or other inputs that are observable

or can be corroborated by observable market data for substantially the full term of the

assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are

significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and
liabilities. The market approach uses prices and other relevant information generated by market

transactions involving identical or comparable assets or liabilities.

The following table sets out the Company’s financial assets and (liabilities) measured at fair value by

level within the fair value hierarchy as at March 31, 2008 (in US Dollars, millions):

Description

Level 1

Level 2

Level 3

Total

Cash equivalents

294

Marketable equity securities

Derivatives, net

(2,908)

The Company’s cash equivalents are classified within Level 1 of the fair value hierarchy because

they are valued using quoted market prices. The cash instruments that are valued based on quoted

market prices in active markets are primarily money market securities.

The Company’s marketable equity securities are included in Other long-term assets in the

Company’s consolidated balance sheet. They consist of investments in ordinary shares, associated

purchase warrants and options and are valued using quoted market prices in active markets and as

such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity
securities is calculated as the quoted market price of the marketable equity security multiplied by the

quantity of shares , warrants and/or options held by the Company.

The Company’s derivative instruments are valued using pricing models and the Company generally
uses similar models to value similar instruments. Where possible, the Company verifies the values

produced by its pricing models to market prices. Valuation models require a variety of inputs,

including contractual terms, market prices, yield curves, credit spreads, measures of volatility, and
correlations of such inputs. The Company’s derivatives trade in liquid markets, and as such, model

inputs can generally be verified and do not involve significant management judgment. Such

instruments are typically classified within Level 2 of the fair value hierarchy.

Note O. Supplemental condensed consolidating financial information

With effect from October 1, 2004, AngloGold Ashanti has transferred certain of its operations and
assets located outside South Africa (excluding certain operations and assets in the United States,

Australia and Africa) to AngloGold Ashanti Holdings plc (originally SMI Holdings Limited and formerly

AngloGold Holdings plc) (“IOMco”), its wholly-owned subsidiary. IOMco is an Isle of Man registered

company.

IOMco has issued debt securities which are fully and unconditionally guaranteed by AngloGold
Ashanti Limited (being the “Guarantor”). The following is condensed financial information of the

registrant and consolidating financial information for the Company as of March 31, 2008 and

December 31, 2007 and for the three months ended March 31, 2008 and 2007, with a separate
column for each of IOMco as Issuer, AngloGold Ashanti Limited as Guarantor and the other

businesses of the group combined (the “Non-Guarantor Subsidiaries”). For the purposes of the

condensed consolidating financial information, the Company carries its investments under the equity

method.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31,2008…continued
Prepared in accordance with US GAAP

Note O. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of income

FOR THE THREE MONTHS ENDED MARCH 31, 2008

(unaudited)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Sales and other income

334

565

(6)

894

Product sales

323

561

884

Interest, dividends and other

(6)

Costs and expenses

392

335

716

(356)

1,087

Production costs

175

284

459

Exploration costs

(1)

Related party transactions

(3)

General and administrative expenses/(recoveries)

(39)

Royalties paid

Market development costs

Depreciation, depletion and amortization

147

Interest expense

Accretion expense

Employment severance costs

(Profit)/loss on sale of assets , realization of loans, indirect taxes and other

(3)

362

(9)

(361)

(11)

Non-hedge derivative loss and other commodity contracts

106

266

372

(Loss)/income from continuing operations before income tax, equity income,
minority interests

(58)

(334)

(151)

350

(193)

Taxation benefit/(expense)

(1)

(39)

Minority interest

(12)

Equity income in affiliates

Equity (loss)/income in subsidiaries

(184)

184

(Loss)/income from continuing operations

(189)

(335)

(202)

534

(192)

Discontinued operations

(Loss)/income

(189)

(335)

(202)

534

(192)

Preferred stock dividends

(3)

Net (loss)/income - applicable to common stockholders

(192)

(335)

(205)

540

(192)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008…continued
Prepared in accordance with US GAAP

Note O. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of income

FOR THE THREE MONTHS ENDED MARCH 31, 2007

(unaudited)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Sales and other income

347

390

(4)

734

Product sales

340

385

(2)

723

Interest, dividends and other

(2)

Costs and expenses

306

(16)

400

699

Production costs

182

236

418

Exploration costs

Related party transactions

(2)

General and administrative expenses/(recoveries)

(24)

Royalties paid

Market development costs

Depreciation, depletion and amortization

140

Interest expense

Accretion expense

Employment severance costs

Profit on sale of assets, realization of loans, indirect taxes and other

(4)

Non-hedge derivative loss and other commodity contracts

Income/(loss) from continuing operations before income tax, equity income,

minority interests

(10)

(13)

Taxation (expense)/benefit

(13)

(28)

(40)

Minority interest

(7)

Equity income/(loss) in affiliates

(1)

Equity (loss)/income in subsidiaries

(40)

Income/(loss) from continuing operations

(45)

Discontinued operations

(1)

Income/(loss)

(45)

Preferred stock dividends

(1)

Net income/(loss) - applicable to common stockholders

(46)

Condensed consolidating balance sheets

AT MARCH 31, 2008

(unaudited)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

ASSETS

Current Assets

1,684

2,414

4,828

(6,786)

2,140

Cash and cash equivalents

218

208

475

Restricted cash

Receivables and other current assets

1,450

2,365

4,585

(6,786)

1,614

Trade and other receivables and deferred taxation assets

326

200

(3)

529

Inter-group balances

851

2,359

3,573

(6,783)

Derivatives

188

302

490

Inventories

459

531

Materials on the leach pad

Assets held for sale

Property, plant and equipment, net

1,658

3,686

5,344

Acquired properties, net

214

990

1,204

Goodwill and other intangibles, net

247

621

(265)

603

Other long-term inventory

Materials on the leach pad

206

Other long-term assets and deferred taxation assets

2,073

2,391

532

(4,387)

609

Total assets

5,629

5,052

10,958

(11,438)

10,201

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

2,492

1,059

8,698

(7,125)

5,124

Accounts payable and other current liabilities

171

458

629

Inter-group balances

888

6,184

(7,125)

Derivatives

1,143

1,999

3,142

Short-term debt

250

1,003

1,257

Tax

Liabilities held for sale

Other non-current liabilities

117

(78)

128

Long-term debt

376

301

708

Derivatives

179

256

Deferred taxation liabilities

511

683

1,207

Provision for environmental rehabilitation

257

356

Other accrued liabilities

Provision for pension and other post-retirement medical benefits

143

156

Minority interest

Commitments and contingencies

Stockholders’ equity

2,159

3,617

631

(4,248)

2,159

Stock issued

3,625

901

(4,526)

Additional paid in capital

5,627

109

332

(441)

5,627

Accumulated (deficit)/prof it

(2,650)

(117)

(1,740)

1,857

(2,650)

Accumulated other comprehensive income

(828)

1,138

(1,138)

(828)

Total liabilities and stockholders’ equity

5,629

5,052

10,958

(11,438)

10,201

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008…continued
Prepared in accordance with US GAAP

Note O. Supplemental condensed consolidating financial information (continued)

Condensed consolidating balance sheets

AT DECEMBER 31, 2007

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

ASSETS

Current Assets

1,549

2,636

4,923

(6,995)

2,113

Cash and cash equivalents

188

249

477

Restricted cash

Receivables and other current assets

1,335

2,596

4,663

(6,995)

1,599

Trade and other receivables and deferred taxation assets

284

190

(3)

480

Inter-group balances

784

2,587

3,621

(6,992)

Derivatives

182

334

516

Inventories

453

523

Materials on the leach pad

Assets held for sale

Property, plant and equipment, net

1,953

3,574

5,527

Acquired properties, net

258

1,022

1,280

Goodwill and other intangibles, net

247

611

(267)

591

Other long-term inventory

Materials on the leach pad

190

Other long-term assets and deferred taxation assets

2,263

2,461

516

(4,644)

596

Total assets

6,023

5,344

10,920

(11,906)

10,381

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

2,277

8,422

(6,968)

3,795

Accounts payable and other current liabilities

200

438

(4)

634

Inter-group balances

815

6,096

(6,964)

Derivatives

978

1,804

2,782

Short-term debt

304

319

Tax

(21)

Liabilities held for sale

Other non-current liabilities

134

106

(94)

146

Long-term debt

1,306

222

1,564

Derivatives

207

297

Deferred taxation liabilities

627

702

1,345

Provision for environmental rehabilitation

140

254

394

Other accrued liabilities

Provision for pension and other post-retirement medical benefits

167

180

Minority interest

Commitments and contingencies

Stockholders’ equity

2,552

3,974

887

(4,861)

2,552

Stock issued

3,625

901

(4,526)

Additional paid in capital

5,607

332

(421)

5,607

Accumulated (deficit)/profit

(2,440)

260

(1,511)

1,251

(2,440)

Accumulated other comprehensive income

(625)

1,165

(1,165)

(625)

Total liabilities and stockholders’ equity

6,023

5,344

10,920

(11,906)

10,381

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008…continued
Prepared in accordance with US GAAP

Note O. Supplemental condensed consolidating financial information (continued)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008…continued
Prepared in accordance with US GAAP

Note O. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of cash flows

FOR THE THREE MONTHS ENDED MARCH 31, 2008

(unaudited)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Net cash provided by/(used) in operating activities

142

(95)

113

(6)

154

Net (loss)/income – applicable to common stockholders

(192)

(335)

(205)

540

(192)

Reconciled to net cash provided by/(used) in operations:

(Profit)/loss on sale of assets , realization of loans, indirect taxes and other

(3)

362

(9)

(361)

(11)

Depreciation, depletion and amortization

147

Deferred taxation

(88)

(68)

Other non cash items

322

(373)

573

(185)

337

Net increase in provision for environmental rehabilitation and pension and other

post-retirement medical benefits

Effect of changes in operating working capital items:

Net movement inter-group receivables and payables

255

(287)

Receivables

(29)

(20)

Inventories

(2)

(45)

(47)

Accounts payable and other current liabilities

(5)

Net cash provided by/(used) in continuing operations

142

(95)

113

(6)

154

Net cash used in discontinued operations

Net cash (used)/generated in investing activities

(69)

(178)

(243)

Decrease/(increase) in non-current investments

(35)

(31)

Additions to property, plant and equipment

(69)

(186)

(255)

Proceeds on sale of mining assets

Proceeds on sale of investments

Cash effects from hedge restructuring

(9)

Net loans (advanced)/repaid

Change in restricted cash

(6)

Net cash (used)/generated by financing activities

(9)

100

129

Net repayments of short-term debt

(20)

Issuance of stock

(20)

Share issue expenses

Net proceeds of long-term debt

160

Cash effects from hedge restructuring

(1)

Dividends (paid)/received

(18)

(17)

(19)

Net increase/(decrease) in cash and cash equivalents

(33)

Effect of exchange rate changes on cash

(34)

(8)

(42)

Cash and cash equivalents – January 1,

188

249

477

Cash and cash equivalents – March 31,

218

208

475

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008…continued
Prepared in accordance with US GAAP

Note O. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of cash flows

FOR THE THREE MONTHS ENDED MARCH 31, 2007

(unaudited)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Net cash provided by/(used) in operating activities

(2)

157

Net income/(loss) – applicable to common stockholders

(46)

Reconciled to cash provided by/(used) in operations:

Loss/(profit) on sale of assets , realization of loans , indirect taxes and other

(3)

(2)

Depreciation, depletion and amortization

140

Deferred taxation

(18)

(3)

(21)

Other non cash items

(14)

(32)

Net increase/(decrease) in provision for environmental rehabilitation and pension

and other post-retirement medical benefits

(8)

Effect of changes in operating working capital items:

Net movement inter-group receivables and payables

(7)

Receivables

(5)

(21)

(26)

Inventories

(20)

(15)

Accounts payable and other current liabilities

(16)

(5)

Net cash provided by/(used) in continuing operations

(2)

158

Net cash used in discontinued operations

(1)

Net cash (used)/generated in investing activities

(73)

(153)

(226)

Increase in non-current investments

(14)

Additions to property, plant and equipment

(69)

(125)

(194)

Proceeds on sale of mining assets

Proceeds on sale of investments

Cash effects from hedge restructuring

Net loans (advanced)/repaid

(9)

(4)

Change in restricted cash

(26)

Net cash (used)/generated by financing activities

(17)

(21)

(35)

Net repayments of short-term debt

(20)

Issuance of stock

Share issue expenses

Net proceeds of long-term debt

Cash effects from hedge restructuring

Dividends (paid)/received

(48)

(36)

(12)

(94)

Net decrease in cash and cash equivalents

(24)

(18)

(62)

(104)

Effect of exchange rate changes on cash

(7)

(1)

(8)

Cash and cash equivalents – January 1,

180

259

471

Cash and cash equivalents – March 31,

149

196

359

REVIEW OF FINANCIAL AND OPERATING PERFORMANCE FOR THE THREE MONTHS

ENDED MARCH 31, 2008 PREPARED IN ACCORDANCE WITH US GAAP

In the following discussion references to rands, ZAR and R are to the lawful currency of the Republic
of South Africa, references to US dollars, dollar or $ are to the lawful currency of the United States,
references to euro or € are to the lawful currency of the European Union, references to AUD dollars
and A$ are to the lawful currency of Australia, references to BRL is to the lawful currency of Brazil,
reference to C$ is to the lawful currency of Canada and references to GHC or cedi are to the lawful
currency of Ghana.

Introduction

Operating results

AngloGold Ashanti’s revenues are derived primarily from the sale of gold produced at its mines. A
portion of its revenue is derived from sales of silver, uranium oxide and sulfuric acid. AngloGold
Ashanti’s operating results are directly related to the price of gold which can fluctuate widely and are
also affected by numerous factors beyond its control, including industrial and jewellery demand, the
strength of the US dollar (the currency in which the price of gold is generally quoted) and of other
currencies, interest rates, actual or expected gold sales by central banks, forward sales or de-hedging
activities by producers, global or regional political or economic events, and production and cost levels
in major gold-producing regions.

As the amounts produced in any single year constitute a very small portion of the total potential supply
of gold, normal variations in AngloGold Ashanti’s current production do not necessarily have a
significant impact on the supply of gold or on its price. If revenue from gold sales falls for a substantial
period below AngloGold Ashanti’s cost of production at its operations, AngloGold Ashanti could
determine that it is not economically feasible to continue commercial production at any or all of its
operations nor to continue the development of some or all of its projects.

Impact of exchange rate fluctuations

During the first three months of 2008 the rand weakened against the US dollar (based on the
exchange rates of R6.84 and R8.09 per US dollar on January 1, 2008 and March 31, 2008,
respectively). The value of the rand lost 4 percent against the US dollar when comparing the average
exchange rates of the rand against the US dollar of R7.52 and R7.22 during the first three months of
2008 and 2007, respectively.

The weaker rand against the US dollar, which positively impacted on the profitability of AngloGold
Ashanti, was offset by an increase in the Australian dollar which strengthened by 13 percent against
the US dollar based on the average exchange rates of A$1.10 and A$1.27 per US dollar during the
first three months of 2008 and 2007, respectively. The strengthening of the local currency in Brazil by
18 percent against the US dollar based on the average exchange rates of BRL1.74 and BRL2.11 per
US dollar during the first three months of 2008 and 2007, respectively, further negatively impacted on
AngloGold Ashanti’s profitability.

Acquisitions and dispositions

The global gold mining industry has experienced active consolidation and rationalization activities in
recent years. Accordingly, AngloGold Ashanti has been, and expects to continue to be, involved in a
number of acquisitions and dispositions as part of this global trend to identify value-adding business
combination and acquisition opportunities.

AngloGold Ashanti completed the acquisition of the minority interests of 15 percent in the Iduapriem
and Teberebie mine previously held by the Government of Ghana and the International Finance
Corporation effective September 1, 2007. The Company is still in the process of finalizing the
purchase price allocation of fixed assets. The final purchase price allocation is not expected to vary
significantly from the preliminary allocation

During the quarter, AngloGold Ashanti disposed of certain assets, the most significant of which was
the disposal of royalty and production related interests of El Chanate and Marigold projects in North
America to Royal Gold Inc. for $13.75 million before taxation.

Gold market for the quarter ended March 31, 2008

The first quarter of 2008 was characterized by a volatile gold price, with a trading range of close to
$200 per ounce. While the market in mid March 2008 was exceptionally strong, with the price
reaching a record high of $1,031 per ounce, the price also traded as low as $833 per ounce during the
quarter.

The average US dollar gold price for the quarter was $925 per ounce, 17 percent higher than the
previous quarter’s average price of $788 per ounce. A weaker Rand/US dollar exchange rate saw the
rand gold price reaching highs of some R271,622 per kilogram. In rand terms, the gold price
averaged R224,308 per kilogram for the quarter, some 31 percent higher than the previous quarter’s
average of R171,334 per kilogram.

Jewellery market

Jewellery demand slowed as a result of the high price volatility experienced during the quarter,
particularly in the key markets of India and the Middle East. It is anticipated that jewellery demand for
the quarter will show a decline on a year-on-year basis, but it must be noted that comparisons made
against the first quarter of 2007 may be misleading as demand during that period was exceptionally
strong and reached record levels in some markets.

In the Gulf markets, where local currencies are pegged against the US dollar, the full effect of the US
dollar gold price volatility was felt and this led to a downturn in demand of approximately 20 percent
year-on-year. Inflationary concerns in these markets acted as a further restraint on consumer
confidence. In Dubai, where demand from the tourist trade balances local demand, the effects of poor
local consumption were not felt as severely as in Saudi Arabia, where demand is primarily local. High
value, branded segments of the market were less seriously affected than trade in high caratage, low
value-added jewellery items.

The Egyptian and Turkish markets held ground in the first two months of the year, however both
markets slowed in March 2008, with the Turkish market in particular showing a significant fall in
consumption when compared to the same quarter in the previous year. This was due to low levels of
re-stocking prior to the main summer tourist season and the political crisis in March 2008 which
caused the Turkish lira to decline against the US dollar, thus driving up the price of gold in local
currency terms still further.

The Chinese market performed strongly despite the more volatile price environment, with jewellery
demand increasing by some 9 percent year-on-year and investment demand by an estimated
63 percent. Chinese consumers perceive gold as an investment vehicle which can provide a hedge
against the inflationary pressures which are increasingly being felt in that economy. The absence of
viable investment alternatives also helped the case for local gold investment.

US demand continued the declining trend from the fourth quarter of 2007, particularly in the lower
price segments of the market. Higher gold price levels are causing retailers to reduce the quantity of
gold used in jewellery items in order to maintain price points.

Central bank sales

Sales under the Central Bank Gold Agreement totaled 70 tonnes during the quarter. The bulk of these
sales were accounted for by the French and Swiss Central Banks with smaller sales by Sweden and
the Netherlands.

International Monetary Fund (IMF) sales, though still subject to US congressional approval, look likely
to take place over the longer term and will most probably be effected through the existing Central
Bank Gold Agreement, without significant disruption to the market.

Investment market

Investment in Exchange Traded Funds (ETFs) continued to grow for the fourth consecutive year. Total
ETF holdings at quarter end stood at 29.7 million ounces, with a total value of over $27.2 billion. The
majority of inflows during the quarter were accounted for by the New York Stock Exchange listed
StreetTracks Gold Shares product.

A new ETF was announced in the Middle East, and is expected to be listed and finalized by June this
year. The ETF is backed by the Dubai Government and is Sharia compliant.

Producer hedging

The size of the global hedge book as at the end of 2007 was confirmed late in February at 26.8 million
ounces. Since then, Newcrest have announced a further reduction in their hedge book by some
300,000 ounces.

During the quarter, the delta of the hedge book was reduced by 1.14 million ounces to 9.25 million
ounces and AngloGold Ashanti reduced its hedge commitments from 11.28 million ounces to
10.03 million ounces, through deliveries into maturing contracts and hedge buy-backs (limited to non-
hedge derivatives).

Currencies

The US dollar continued to fall against the Euro, reaching a new low of Euro/US$1.59 in March 2008.
Overall, the US dollar depreciated 8 percent during the quarter from its opening value of
Euro/ US$1.46.

Post quarter end, the US Dollar continued to be under pressure at an exchange rate of Euro/US$1.60.
This weakness is primarily due to growing fears of an economic recession in the United States which
is consistent with the Federal Reserve’s actions during the quarter, by cutting its target rate by
2 percentage points.

Oil prices have continued to trade stronger, moving through the psychological barrier of $100 per
barrel and reaching a high of $110 per barrel during the quarter. This move did not help sentiment
towards the US dollar, contributing as it did to fears of surging inflation in a falling interest rate
environment.

The South African Rand suffered its poorest quarterly performance in some time, losing 19 percent
from its opening of R/US$6.84 to close at R/US$8.09. A number of factors have contributed to this
weakness, most notably the uncertainty of power generation and supply, and the effect it will have on
economic growth. In addition, the extent of the current account deficit within this environment has
added to the negative outlook for the Rand.

The Australian dollar and Brazilian real both traded to multi-year highs of A$/US$0.95 and
US$/BRL1.66, respectively, in a quarter where both currencies continued their pattern of steady
appreciation against the US dollar.

Operating review for the three months ended March 31, 2008

Presented in the table below is selected operating data for AngloGold Ashanti for the three months
ended March 31, 2008 and 2007. The operating data gives effect to acquisitions and dispositions as of
the effective date of such acquisitions and dispositions:

Operating data for AngloGold Ashanti

Three months ended March 31,

2008

2007

Total gold production (000 oz)

(1)

1,196

1,326

Capital expenditure ($ million)

257

196

Consolidated entities

255

194

Equity accounted joint ventures

(2)

(1)

Including equity accounted joint ventures.

(2)

Attributable portion.

Gold production

For the three months ended March 31, 2008, AngloGold Ashanti’s total gold production decreased by
approximately 130,000 ounces, or about 10 percent, to 1.20 million ounces from 1.33 million ounces
produced in the same period in 2007. In South Africa, gold production decreased from
567,000 ounces produced in the three months to March 31, 2007, to 498,000 ounces produced in the
same period in 2008 following power shortages. The production at Great Noligwa was lower due to
safety related stoppages and the natural decline in values as the mining progresses to the boundaries
of the mine. The production at TauTona was also lower due to a decrease in grades and stricter safety
related controls. Gold production in Argentina, Australia, Mali and Tanzania decreased from
52,000 ounces, 148,000 ounces, 108,000 ounces and 78,000 ounces, respectively, produced in the
three months to March 31, 2007, to 28,000 ounces, 119,000 ounces, 94,000 ounces and
64,000 ounces produced, respectively, in the same period in 2008. This was mainly due to a reduction
in feed grade at Cerro Vanguardia (in Argentina); lower grades following the completion of mining in
the high grade zone at Sunrise Dam (in Australia) and a decrease in tonnage stacked and grade at
Yatela (in Mali). In Tanzania gold production was lower compared to 2007 due to ongoing problems in
the crusher section and plant availability at Geita.

The decrease in gold produced over 2007 at most mines was partially offset by an increase in gold
production in Guinea from 73,000 ounces produced in the three months to March 31, 2007, to
93,000 ounces produced 2008, as a result of an improved recovered grade due to mining in higher
grade pits.

In the quarter ended March 31, 2008, AngloGold Ashanti’s total gold production decreased by
170,000 ounces to 1.20 million ounces, or 12 percent from 1.37 million ounces produced during the
quarter ended December 31, 2007 mainly due the Eskom crisis, lower grades and volumes.

Capital expenditures

Total capital expenditure during the three months ended March 31, 2008 was $257 million compared
to $196 million in the same period in 2007. This $61 million, or 31 percent, increase is mainly
reflected in the $60 million increase in capital expenditure in the Australian region from $47 million
recorded in the three months ended March 31, 2007 to $107 million spent for the same period in 2008
mainly on the Boddington project.

Comparison of financial performance on a segment basis for the three months ended
March 31, 2008 and 2007

The Company produces gold as its primary product and does not have distinct divisional segments in
terms of principal business activity, but manages its business on the basis of different geographic
segments. This information is consistent with the information used by the Company’s Chief Operating
Decision Maker in evaluating operating performance of, and making resource allocation decisions
among operations.

Revenues

Three months ended March 31,

2008

2007

US dollar,

millions

Percentage

US dollar,

millions

Percentage

Category of activity

Product sales

884

723

Interest, dividends and other

Total revenues

894

734

Geographical area data

South Africa

366

41%

348

47%

Argentina

Australia

10%

12%

Brazil

10%

11%

Ghana

105

12%

11%

Guinea

10%

Mali

10%

Namibia

USA

Tanzania

Other, including Corporate and Non-gold producing

subsidiaries

952

107%

861

117%

Less: Equity method investments included above

(80)

(9%)

(72)

(10%)

Plus/less: Loss/(gains ) on realized non-hedge derivatives
included above

(55)

(7%)

Total revenues

894

100%

734

100%

Assets

At March 31, 2008

At December 31, 2007

US dollar,

millions

Percentage

US dollar,

millions

Percentage

Geographical area data

Total segment assets

South Africa

3,046

30%

3,337

32%

Argentina

238

236

Australia

1,309

13%

1,183

11%

Brazil

677

674

Ghana

2,154

21%

2,155

21%

Guinea

364

371

Mali

311

(1)

291

(1)

Namibia

USA

527

528

Tanzania

1,325

13%

1,343

13%

Other, including Corporate, Assets held for sale and
Non-gold producing subsidiaries

185

187

Total segment assets

10,201

100%

10,381

100%

(1)

Investment held.

Comparison of financial performance for the three months ended March 31, 2008
and 2007

Revenues

Revenues from product sales and other income increased from $734 million in the first three months
of 2007 to $894 million in the same period of 2008, representing a 22 percent increase over the
period. This was due to the increase in the gold price in the first three months of 2008 as the average
spot price of gold was $925 per ounce during the three months ended March 31, 2008,
$275 per ounce, or 42 percent, higher than $650 per ounce, the average spot price of gold in the first
three months of 2007. The majority of product sales consisted of US dollar-denominated gold sales.

Total revenues from the South African operations increased to $366 million over the three months
ended March 31, 2008 from $348 million realized in the same period in 2007, mainly as a result of the
increase in gold price, which more than offset a decrease in gold production.

Total revenues derived from Brazil and Ghana increased to $92 million and $105 million respectively,
over the three months ended March 31, 2008 from $77 million and $83 million respectively, realized in
the same period of 2007 mainly as a result of the higher gold price.

In Guinea, total revenues generated increased from $55 million realized in the first three months of
2007 to $86 million in the same period in 2008, mainly as a result of the increase in gold price and in
gold production.

Production costs

During the three months ended March 31, 2008, AngloGold Ashanti incurred production costs of
$459 million representing an increase of $41 million, or 10 percent, from $418 million recorded for the
same period of 2007.

Production costs in AngloGold Ashanti’s South Africa operations decreased to $172 million in the first
three months of 2008 from $180 million for the same period of 2007 mainly as a result of the
weakening of the South African rand relative to the US dollar being offset by the impact of lower
production and inflationary cost increases on power costs, steel, reagents, materials and contract
labor costs.

Production costs in AngloGold Ashanti’s operations in Australia, Tanzania, Ghana and Guinea
increased from $40 million, $43 million, $54 million and $29 million, respectively, in the first three
months of 2007 to $54 million, $51 million, $70 million and $42 million, respectively, for the same
period of 2008 mainly as a result of an increase in operational costs due to inflationary pressures
following higher commodity prices, increasing oil prices, rising input costs as well as the strengthening
of local currencies relative to the US dollar.

Exploration costs

Exploration costs increased from $24 million in the three months ended March 31, 2007 to $36 million
in the same period in 2008 mainly due to increased exploration activities at Tropicana in Australia,
regional and target generation activities in Colombia and continued drilling in the Mongbwalu region of
the Democratic Republic of the Congo.

Royalties

Royalties paid by AngloGold Ashanti increased from $18 million in the three months ended
March 31, 2007, to $25 million paid in the same period in 2008, mainly due to the higher gold price.
Royalties are mostly calculated based on a percentage of revenues and are payable primarily to local
governments.

Depreciation, depletion and amortization

Depreciation, depletion and amortization expense increased by $7 million to $147 million in the
three months ended March 31, 2008 when compared to $140 million recorded in the same period in
2007 mainly due to amortization expense increases in Brazil, from $8 million incurred in the three
months ended March 31, 2007 to $14 million in the same period of 2008, as a result of production
from the Cuiabá expansion project (completed in 2007).

Interest expense

Interest expense increased by $5 million from $16 million recorded in the three months ended
March 31, 2007 to $21 million in the three months ended March 31, 2008 mainly due to an increase in
bank borrowings.

Accretion expense

Accretion expense of $5 million was recorded in the three months ended March 31, 2008 compared
with $4 million in the three months ended March 31, 2007. Accretion relates to the unwinding of
discounted future reclamation obligations to present values and increases the reclamation obligations
to its future estimated payout.

Employment severance costs

Employment severance costs increased to $3 million during the three months ended March 31, 2008
from $1 million in the same period in 2007. Employment severance costs recorded for the three
months ended March 31, 2008 relates to retrenchments in the South African region reflecting mainly
rationalization of operations at Great Noligwa, Kopanang and TauTona.

Profit on sale of assets, realization of loans, indirect taxes and other

In the three months ended March 31, 2008, the Company recorded a profit of $11 million (before
taxation of $2 million) relating mainly to the disposal of royalty and production related interests of the
El Chanate and Marigold projects in North America, to Royal Gold Inc. and the disposal of minor
assets in South America. The profit of $4 million (before taxation of $1 million) recorded in the three
months ended March 31, 2007 mainly related to the disposal of minor assets in South America, the
recovery of loans written off and proceeds received on the sale of Central African Gold Plc (CAG)
shares arising from the sale of Bibiani (concluded in December 2006).

Non-hedge derivative loss

A loss on non-hedge derivatives of $375 million, being derivatives not designated in formal hedge
accounting relationships, was recorded in the three months ended March 31, 2008 compared to a loss
of $43 million in the same period of 2007 relating to the use of non-hedging instruments. The loss
recorded in the three months ended March 31, 2008 is primarily the result of the revaluation of non-
hedge derivatives resulting from changes in the prevailing spot gold price, exchange rates, interest
rates and greater volatilities compared to 2007. Non-hedge derivatives recorded in the three months
ended March 31, 2008 and 2007 included:

Three months ended March 31,

2008

2007

(in US Dollars, millions)

Loss/(gains ) on realized non-hedge derivatives

(55)

Loss on unrealized non-hedge derivatives

353

Net loss

375

Other operating items

Other operating items, consisting of provision for loss on future deliveries of other commodities and
unrealized gain/loss on other commodity physical borrowings amounted to a net credit of $3 million in
the three months ended March 31, 2008 compared to an expense of $8 million in the same period in
2007, due to a decrease in other commodity contracts and the price of uranium.

Taxation benefit/expense

A net taxation benefit of $5 million was recorded in the three months ended March 31, 2008 compared
to a net expense of $40 million in the same period in 2007. Net taxation benefit for the three months
ended March 31, 2008 was 3 percent of loss before tax compared to 114 percent for the same period
in 2007. Charges for deferred tax in the three months ended March 31, 2008 amounted to a net tax
benefit of $68 million compared to a net tax benefit of $21 million in the same period in 2007. The
three months ended March 31, 2008 benefited from deferred tax credits of $87 million on unrealized
non-hedge derivative losses, compared to similar tax credits of $11 million in the same period in 2007.
Charges for current tax in the three months ended March 31, 2008 amounted to $63 million compared
to $61 million in the same period in 2007.

Equity income in affiliates

Equity income in affiliates decreased to $8 million in the three months ended March 31, 2008 from
$16 million in the three months ended March 31, 2007, mainly as a result of decreased earnings from
operations in Mali and the Company’s investment held in Nufcor International Limited.

Liquidity and capital resources

Net cash provided by operating activities was $154 million in the three months ended March 31, 2008,
$3 million lower than $157 million for the comparable period in 2007. Net cash outflow from operating
working capital items amounted to $63 million in the three months ended March 31, 2008 compared to
an outflow of $5 million in the same period in 2007.

Investing activities in the three months ended March 31, 2008 resulted in a net cash outflow of
$243 million compared with an outflow of $226 million in the three months ended March 31, 2007.
Additions to property, plant and equipment, which included capital expenditure of $255 million
compared to $194 million in the same period in 2007, were recorded in the first three months of 2008
for major capital projects including Boddington (in Australia) and TauTona and Mponeng (in South
Africa).

Net cash generated by financing activities in the three months ended March 31, 2008 amounted to an
inflow of $129 million, which is an increase of $164 million from an outflow of $35 million in the three
months ended March 31, 2007, and included cash inflows from proceeds from loans of $160 million
(which included $142 million and $17 million, respectively, under the $1,150 million unsecured
syndicated loan facility and short-term loans raised in South America). Proceeds from stock issued in
the three months ended March 31, 2008 amounted to $9 million. Cash outflows during the three
months ended March 31, 2008 comprised normal scheduled loan repayments of $2 million and of
$18 million in South American short-term loans. The Company made dividend payments of $19 million
(7 US cents per ordinary share) in the three months ended March 31, 2008 compared with dividends
of $94 million (32 US cents per ordinary share) paid in the same period in 2007.

As a result of the items discussed above, at March 31, 2008, AngloGold Ashanti had $475 million of
cash and cash equivalents compared with $477 million at December 31, 2007, a decrease of
$2 million. At March 31, 2008, the Company had a total of $645 million available but undrawn under its
credit facilities.

AngloGold Ashanti is currently involved in a number of capital projects. As of March 31, 2008,
$457 million of AngloGold Ashanti’s future capital expenditure had been contracted for and another
approximately $748 million had been authorized but not yet contracted for, as described in
note K “Commitments and contingencies” to the condensed consolidated financial statements.

To service the above capital commitments and other operational requirements the Company is
dependant upon existing cash resources, cash generated from operations and borrowing facilities.

Cash generated from operations is subject to operational, market and other risks. Distributions from
operations may be subject to foreign investment and exchange control laws and regulations and the
quantity of foreign exchange available in offshore countries. In addition, distributions from joint
ventures are subject to the relevant board approval.

The credit facilities and other financing arrangements contain financial covenants and other similar
undertakings. To the extent that external borrowings are required, the Company’s covenant
performance indicates that existing financing facilities will be available to meet the above
commitments. To the extent that any of the financing facilities matures in the near future, the Company
believes that these facilities can be refinanced on similar terms to those currently in place.

During the next twelve months, approximately $1,257 million of AngloGold Ashanti’s debt is scheduled
to mature consisting mainly of the 2.375 percent convertible bond (due February 2009) and the Rand
denominated corporate bond (due August 2008) of $1,002 million and $250 million, respectively, as at
March 31, 2008.

AngloGold Ashanti intends to finance capital expenditure projects and the repayment of debt
scheduled to mature in 2008 from cash on hand, cash flow from operations, existing credit facilities
and, potentially, additional credit facilities or debt instruments. The Company intends to refinance its
convertible bond due February 2009 with the proceeds of an equity-linked instrument, the principal
amount of which may exceed the existing convertible bond. The structure, size and timing of such an
issue will depend upon prevailing market conditions.

Critical accounting policies

The preparation of AngloGold Ashanti’s financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the year. For a full discussion of the Company’s critical accounting policies, please
see “Item 5: Operating and financial review and prospects – Critical accounting policies” in the
Company’s Annual Report on Form 20-F for the year ended December 31, 2007 which was filed with
the United States Securities and Exchange Commission (SEC) on May 19, 2008.

Recently adopted pronouncements

Fair value measurements

The Company adopted FASB Statement No. 157, “Fair Value Measurements” (“SFAS157”) for
financial assets and financial liabilities on January 1, 2008.

SFAS157 provides enhanced guidance for using fair value to measure assets and liabilities. Under
SFAS157, fair value refers to the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants in the market in which the reporting entity
transacts. SFAS157 clarifies the principle that fair value should be based on the assumptions market
participants would use when pricing the asset or liability and establishes a fair value hierarchy that
prioritizes the information used to develop those assumptions. SFAS157 also requires that fair value
measurements be separately disclosed by level within the fair value hierarchy. The adoption of
SFAS157 did not have a material impact on the Company’s financial statements.

On February 12, 2008, the FASB issued FASB Staff Position No. FAS157-2, “Effective date of FASB
Statement No. 157” (“the FSP”). The FSP provides a one year deferral until January 1, 2009 for the
implementation of SFAS157 for certain non-financial assets and non-financial liabilities, except for
those items that are recognized or disclosed at fair value in the financial statements on a recurring
basis (at least annually).

Refer to note N “Fair value measurements” to the condensed consolidated financial statements for
additional information.

Fair value option for financial assets and liabilities

In February 2007, the FASB issued FASB Statement No. 159, “The Fair Value Option for Financial
Assets and Financial Liabilities” (“SFAS159”). SFAS159 permits entities to choose to measure many
financial instruments and certain other items at fair value, with the objective of improving financial
reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by
measuring related assets and liabilities differently without having to apply complex hedge accounting
provisions. The provisions of SFAS159 were adopted January 1, 2008. The Company did not elect
the Fair Value Option for any of its financial assets or liabilities, and therefore, the adoption of
SFAS159 had no impact on the Company’s financial statements.

Employers’ accounting for defined benefit pension and other post-retirement plans

In September 2006, the FASB issued FASB Statement No. 158, “Employers’ Accounting for Defined
Benefit Pension and Other Post-retirement Plans, an amendment of FASB Statements No. 87, 88, 106
and 132(R)” (“SFAS158”). The Company adopted the recognition and disclosure requirements of
SFAS158 in 2006, as required, except for the requirement to measure the plan assets and benefit
obligations at the fiscal year end, which is effective in fiscal years ending after December 15, 2008.
The Company is implementing processes to meet these measurement requirements of SFAS158.

Recently issued pronouncements

Business combinations

In December 2007, the FASB issued FASB Statement No. 141 (R), “Business Combinations”
(“SFAS141(R)”). SFAS141(R) requires the acquiring entity in a business combination to recognize all
(and only) the assets acquired and liabilities assumed in the transaction; establishes the acquisition-
date fair value as the measurement objective for all assets acquired and liabilities assumed; and
requires the acquirer to disclose to investors and other users all of the information they need to
evaluate and understand the nature and financial effect of the business combination. SFAS141(R)
applies prospectively to business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may
not apply it before that date. SFAS141(R) applies to all transactions or other events in which an entity
(the acquirer) obtains control of one or more businesses (the acquiree), including combinations
achieved without the transfer of consideration. The Company is currently evaluating the potential
impact of adopting SFAS141(R) on the Company’s financial statements.

Noncontrolling interests

In December 2007, the FASB issued FASB Statement No. 160, “Noncontrolling Interests in
Consolidated Financial Statements” (“SFAS160”). SFAS160 amends ARB 51 to establish accounting
and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated financial statements.
SFAS160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2008. Earlier adoption is prohibited. It shall be applied prospectively as of the
beginning of the fiscal year in which this Statement is initially adopted, except for the presentation and
disclosure requirements. The presentation and disclosure requirements shall be applied
retrospectively for all periods presented. The Company is currently evaluating the potential impact of
adopting SFAS160 on the Company’s financial statements.

Derivative instruments

In March 2008, the FASB issued FASB statement No. 161, “Disclosures about Derivative Instruments
and Hedging Activities – an amendment of FASB statement No. 133” (“SFAS161”). SFAS161 applies
to all derivative instruments and nonderivative instruments that are designated and qualify as hedging
instruments pursuant to paragraphs 37 and 42 of SFAS133 and related hedged items accounted for

under SFAS133. SFAS161 requires enhanced disclosures about an entity’s derivative and hedging
activities and thereby improves the transparency of financial reporting. Entities are required to provide
enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative
instruments and related hedged items are accounted for under SFAS133 and its related
interpretations, and (c) how derivative instruments and related hedged items affect an entity’s financial
position, results of operations and cash flows. SFAS161 is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008, with early application
encouraged. Comparative disclosures for earlier periods at initial adoption are encouraged but not
required. The Company does not expect the adoption of SFAS161 to have a material impact on the
Company’s financial statements.

Hierarchy of Generally Accepted Accounting Principles

In May 2008, the FASB issued FASB Statement No. 162, “The Hierarchy of Generally Accepted
Accounting Principles” (“SFAS162”). SFAS162 is intended to improve financial reporting by identifying
a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing
financial statements that are presented in conformity with U.S. generally accepted accounting
principles (GAAP) for nongovernmental entities. SFAS162 is effective 60 days following the United
States Securities and Exchange Commission (SEC's) approval of the Public Company Accounting
Oversight Board Auditing amendments to AU Section 411, “The Meaning of Present Fairly in
Conformity with Generally Accepted Accounting Principles”. The Company does not expect the
adoption of SFAS162 to have a material impact on the Company’s financial statements.

Contractual obligations

In addition to the contractual obligations as disclosed in the Company’s Annual Report on Form 20-F
for the year ended December 31, 2007, during the three months ended March 31, 2008, the Company
drew down $142 million under the $1,150 million unsecured syndicated loan facility. As of
March 31, 2008, $677 million was drawn under the $1,150 million unsecured syndicated loan facility.
Advances and repayments on short -term loans in South America amounted to $17 million and
$18 million, respectively, during the three months ended March 31, 2008.

Short-term debt as of March 31, 2008, includes $1,002 million and $250 million, respectively, under
the 2.375 percent convertible bond (due February 2009) and the Rand denominated corporate bond
(due August 2008). As at March 31, 2008, the estimated fair value of all derivatives making up the
hedge positions was a negative $4,851 million (at December 31, 2007: negative $4,342 million).

Heap leach inventory

The costs of materials currently contained on leach pads are reported as a separate line item apart
from inventory. As of March 31, 2008, $50 million was classified as short-term compared with
$49 million as at December 31, 2007 as AngloGold Ashanti expects the related gold to be recovered
within twelve months. As of March 31, 2008, $206 million was classified as long term compared with
$190 million as at December 31, 2007.

Hedging overview for the quarter ended March 31, 2008

The Company continues to actively manage its hedge position in a value accretive manner, whilst
actively reducing the overall hedge delta.

As at 31 March 2008, the net delta hedge position was 9.25 million ounces or 288 tonnes (at

December 31, 2007: 10.39 million ounces or 323 tonnes ). Despite a higher gold price, the delta of the
hedge book was reduced by 1. 14 million ounces to 9.25 million ounces, and total commitments
reduced from 11.28 million ounces to 10.03 million ounces, as delivery into maturing contracts and

hedge buy-backs (limited to non-hedge derivatives) were effected during the quarter.

The marked-to-market value of all hedge transactions, irrespective of accounting designation, making
up the hedge positions was a liability of $4.78 billion, of which $2.91 billion is on balance sheet as at

March 31, 2008 (at December 31, 2007 the hedge position was a liability of $4.27 billion. This value
was based on a gold price of $917.40 per ounce, exchange rates of R8.10/$ and A$/$0.91 and the

prevailing market interest rates and volatilities at that date. The increase in the negative marked-t o-

market value was primarily due to the higher spot gold price.

As at April 30, 2008, (AngloGold Ashanti issued its IFRS results for the quarter ended March 31, 2008
on May 6, 2008), the marked-t o-market value of the hedge book, irrespective of accounting
designation, was a liability of $4.32 billion, based on a gold price of $874.20 per ounce and exchange
rates of R7.62/$ and A$/$0.93 and the prevailing market interest rates and volatilities at the time.

These marked-to-market valuations are in no way predictive of the future value of the hedge position,
nor of future impact on the revenue of the Company. The valuation represents the cost of buying all
hedge contracts at the time of valuation, at market prices and rates available at the time.

AngloGold Ashanti’s hedge position as at March 31, 2008

The following table indicates AngloGold Ashanti’s gold hedge position at a weighted average
settlement price as at March 31, 2008 (references in the table to "$" are to the US dollar, references to
"A$" are to the Australian dollar and references to "BRL" are to the Brazilian real):

Year

2008

2009

2010

2011

2012

2013-2016

Total

DOLLAR GOLD

Forward contracts

Amount (kg)

17,113

21,738

14,462

12,931

11,944

12,364

90,552

US$/oz

$309

$316

$347

$397

$404

$432

$359

Restructure Longs

Amount (kg)

*20,254

US$/oz

$846

Put options sold

Amount (kg)

17,531

3,748

1,882

3,764

30,689

US$/oz

$810

$530

$410

$420

$430

$445

$659

Call options
purchased

Amount (kg)

7,048

US$/oz

$428

Call options sold

Amount (kg)

41,435

45,950

36,804

39,385

24,460

39,924

227,958

US$/oz

$506

$498

$492

$517

$622

$604

$534

RAND GOLD

Forward contracts

Amount (kg)

(467)

933

466

Rand per kg

R161,159

R116,335

R131,276

Call options sold

Amount (kg)

2,986

8,958

Rand per kg

R202,054

R216,522

R230,990

R216,522

A DOLLAR GOLD

Forward contracts

Amount (kg)

10,886

3,390

3,110

17,386

A$ per oz

A$858

A$644

A$685

A$785

Put options sold

Amount (kg)

6,532

A$ per oz

A$972

Call options
purchased

Amount (kg)

3,110

1,244

3,110

7,464

A$ per oz

A$680

A$694

A$712

A$696

Call options sold

Amount (kg)

1,555

A$ per oz

A$948

Delta (kg)

(30,267)

(71,812)

(52,226)

(52,040)

(33,363)

(47,877)

(287,585)

** Total net gold:

Delta (oz)

(973,105)

(2,308,806)

(1,679,102) (1,673,122) (1,072,644)

(1,539,279)

(9,246,058)

Indicates a long position resulting from forward purchase contracts. The Company enters into forward
purchase contracts as part of its strategy to acti vely manage and reduce the size of the hedge book

The Delta of the hedge position indicated above is the equivalent gold position that would have the same
marked-to-market sensitivity for a small change in the gold price. This is calculated using the Black-Scholes
option formula with the ruling market prices, interest rates and volatilities as at March 31, 2008.

A limited number of the dollar gold hedge contracts included optional early termination provisions
pursuant to which the hedge counterparty can elect to terminate the relevant hedging contracts on
specified dates. The early termination provision which applies can be exercised in the first five
business days of January 2010. These contracts form part of the Ashanti hedge that was in place prior
to the Business Combination between AngloGold and Ashanti completed in April 2004.

The following table indicates AngloGold Ashanti’s silver hedge position as at March 31, 2008

Year

2008

2009

2010

2011

2012

2013-2016

Total

DOLLAR SILVER

Put options purchased

Amount (kg)

32,659

$ per oz

$7.66

Put options sold

Amount (kg)

32,659

$ per oz

$6.19

Call options sold

Amount (kg)

32,659

$ per oz

$8.64

The following table indicates AngloGold Ashanti’s currency hedge position at March 31, 2008

Year

2008

2009

2010

2011

2012

2013-2016

Total

RAND DOLLAR (000)

Forward contracts

Amount ($)

10,000

US$/R

R7.01

Put options purchased

Amount ($)

50,000

US$/R

R7.31

Put options sold

Amount ($)

50,000

US$/R

R6.89

Call options sold

Amount ($)

50,000

US$/R

R7.96

A DOLLAR (000)

Forward contracts

Amount ($)

5,000

A$/US$

$0.73

Put options purchased

Amount ($)

70,000

A$/US$

$0.85

Put options sold

Amount ($)

70,000

A$/US$

$0.89

Call options sold

Amount ($)

70,000

A$/US$

$0.82

BRAZILIAN REAL (000)

Forward contracts

Amount ($)

26,000

1,000

27,000

US$/BRL

BRL 1.91

BRL 1.84

BRL 1.91

Put options purchased

Amount ($)

37,000

500

37,500

US$/BRL

BRL 1.78

BRL 1.76

BRL 1.78

Call options sold

Amount ($)

117,000

1,000

118,000

US$/BRL

BRL 1.80

BRL 1.76

BRL 1.80

Fair value of the hedge book derivative (liabilities)/assets split by accounting designation as at
March 31, 2008

Normal purchase

and sale

exemption

Cash flow

hedge

accounted

Non-hedge

accounted

Total

US Dollars (millions)

Forward sale type agreements

(1,155)

(341)

(255)

(1,751)

Option contracts

(758)

–

(2,332)

(3,090)

(1)

Foreign exchange contracts

–

Foreign exchange option contracts

–

(14)

Interest rate swaps – Gold

(29)

–

Total

(1,942)

(340)

(2,568)

(4,850)

(1)

Includes deliverable call options sold. A deliverable option is an option in terms of which the delivery quantity
is fixed regardless of the market price on the exercise date. In the event that the market price is lower than
the strike price, gold is sold to the counterpart at the ruling spot price.

Recent developments

On January 14, 2008, AngloGold Ashanti announced that it had agreed to acquire 100 percent of
Golden Cycle Gold Corporation (GCGC) through a transaction in which GCGC’s shareholders will
receive 29 AngloGold Ashanti ADRs for every 100 shares of GCGC common stock held. GCGC holds
a 33 percent shareholding in Cripple Creek & Victor while AngloGold Ashanti holds the remaining
67 percent. The transaction will result in Cripple Creek & Victor being wholly-owned by AngloGold
Ashanti. The transaction is subject to a number of regulatory and statutory approvals, including

approval by GCGC shareholders. The transaction, at the date of announcement, was valued at
approximately $149 million.

On February 14, 2008, AngloGold Ashanti announced that it had entered into a binding memorandum
of agreement (MOA) with B2Gold Corp. (B2Gold). The MOA provides for the existing Colombian joint
venture agreements between AngloGold Ashanti and B2Gold to be amended to provide that B2Gold
acquire from AngloGold Ashanti additional interest in certain mineral properties in Colombia. In
exchange, B2Gold would issue to AngloGold Ashanti 25 million common shares and 21.4 million
common share purchase warrants in B2Gold. Subsequently, the transaction was finalized, as
announced by AngloGold Ashanti on May 16, 2008.

On April 14, 2008, it was announced that, following the stabilization of power provided by Eskom (the
South African electricity supply body) to the South African operations during the quarter, AngloGold
Ashanti forecast the first quarter production to be approximately 1.19 million ounces. The revised
production outlook was approximately 8 percent above guidance provided in the fourth quarter of
2007. AngloGold Ashanti had also fully delivered into maturing hedge contracts during the quarter. On
January 25, 2008, the South African national power supplier, Eskom, had communicated that it could
not guarantee power supply to AngloGold Ashanti’s South African operations. Precautionary steps
were taken for the safety of employees, including ceasing the transportation of employees
underground to carry-out mining activities and the cessation of milling activities. Following extensive
discussions with Eskom and the South African government, Eskom agreed to guarantee a power
supply equivalent to 90 percent of previous supply and undertook to more reliably warn companies
when power outages may occur. Mining operations resumed on Wednesday, January 30, 2008 at
AngloGold Ashanti’s South African mines and in late March 2008, Eskom increased power supply to
96.5 percent of previous levels. At these power levels and as a result of the Company’s previously
implemented and ongoing initiatives to improve its energy efficiencies, the Company has been able to
restore production back to 100 percent of previous capacity. Since 2004, AngloGold Ashanti and
Eskom have undertaken and committed funds and other resources to various initiatives to improve
energy efficiencies and reduce power consumption at AngloGold Ashanti’s South African mines.
These combined efforts have resulted in a decline in the use of electricity, fuel and coal and have to
date achieved a 17 percent improvement in energy efficiencies at the Company’s South African
operations. AngloGold Ashanti views these initiatives as being important not only in the light of power
shortages and related disruption to its mining operations but also in that it anticipates that these
initiatives will assist in managing future operating cost increases in the light of anticipated increases in
unit electrical power, fuel and other energy costs.

On May 6, 2008, AngloGold Ashanti announced that it intends to proceed, subject to certain
conditions, with an approximate one-for-four renounceable rights offer. The final terms of the proposed
rights offer, which were announced on May 21, 2008, would result in AngloGold Ashanti issuing
approximately 69.4 million shares at a subscription price of ZAR194.00 and in the ratio of
24.6403 rights offer shares for every 100 AngloGold Ashanti shares held raising approximately
ZAR13.48 billion ($1.77 billion based on an exchange rate of ZAR7. 63/$1.00 on May 20, 2008). The
proposed rights offer is being fully underwritten subject to certain customary conditions. The proposed
rights offer will materially change the number of common shares in issue. The proposed rights offer
was approved at a general meeting of AngloGold Ashanti shareholders held on May 22, 2008.

The principal purpose of the rights offer is to provide AngloGold Ashanti with additional financial
resources to improve its financial flexibility. In particular, the net proceeds from the rights offer will
allow AngloGold Ashanti both to significantly restructure and reduce its existing gold hedging position,
which has adversely affected its financial performance in recent years, while also being able to
continue to fund its principal development projects and exploration growth initiatives. Pending this use
of proceeds, the net proceeds of the rights offer may, in the interim, be used by AngloGold Ashanti to
reduce its short-term borrowings and the borrowings outstanding on AngloGold Ashanti’s revolving
credit facility or retained as cash and invested in accordance with AngloGold Ashanti’s cash
management policies.

AngloGold Ashanti has traditionally used gold hedging instruments to protect a portion of its
anticipated gold sales against declines in the market price of gold. The use of these instruments has
prevented AngloGold Ashanti from fully participating in the significant increase in the market price for
gold in recent years. As at December 31, 2007, the total net delta tonnage of AngloGold Ashanti’s

hedge positions was 10.39 million ounces and the total committed hedge position was 11.28 million
ounces, an increase of 0.16 million ounces and a reduction of 0.34 million ounces against the
December 31, 2006, hedge delta and hedge committed position, respectively. As at December 31,
2007, the marked-to-market value of all hedge transactions making up the hedge positions was
negative $4.27 billion.

Since the beginning of 2008, prevailing spot gold prices have been significantly higher than those
prevailing during 2007. If these high prices continue to prevail, AngloGold Ashanti estimates that its
gold hedging position will continue to have a significant adverse affect upon its financial performance.
AngloGold Ashanti believes that this has also negatively affected the market price of its ordinary
shares, further constraining its financial flexibility.

In order to address this issue, AngloGold Ashanti intends to early settle certain contracts otherwise
due to mature in 2009 and 2010 during the course of 2008 in addition to settling contracts due to
mature in 2008. Given the low committed prices of these contracts, AngloGold Ashanti expects that if
these measures were implemented it would result in a realization of previously recognized losses for
contracts historically recognized on Balance Sheet on a marked–to–market basis. These losses would
be measured by the difference between the committed price of the contracts and the prevailing gold
price at the time that these contracts are settled. If the restructuring is implemented as anticipated the
received price for the remainder of 2008 should be approximately $475 per ounce assuming a gold
price of $900 per ounce and gold production for the last nine months of 2008 of 3.8 million ounces.

AngloGold Ashanti also continues to give consideration to the early settlement of contracts not
currently recorded on balance sheet (Normal Purchase Normal Sale Exemption (NPSE)) by means of
early physical delivery. Such early physical settlement, if it were to occur, would result in a significant
adverse impact on our 2008 recorded revenues in AngloGold Ashanti’s income statement, as sales
that would have otherwise been executed at the spot price of gold will be replaced with sales based on
the earlier contracted prices of such NPSE contracts that are settled during the year. Furthermore
should AngloGold Ashanti conclude that such early physical settlement of NPSE contracts represents
a tainting event, it would be required to recognize on balance sheet the fair value of a portion of some,
or potentially all of, the existing NPSE contracts, which would result in a significant adverse impact on
its financial statements. No such conclusion has yet been made by AngloGold Ashanti and it is still
considering the potential impact of any such transaction.

In addition to the settlement of certain contracts during 2008 AngloGold Ashanti also intends to
restructure some of the remainder of its hedge book in order to achieve greater participation in the
spot price for gold beyond 2009. The exact nature and extent of the restructuring will depend upon
prevailing and anticipated market conditions at the time, particularly the prevailing gold price and
exchange rates as well as other relevant economic factors.

If the restructuring is executed as currently anticipated, the overall impact would be to reduce the
hedge book to approximately 6.25 million ounces, which would represent 8.6 percent of AngloGold
Ashanti’s ore reserves as at December 31, 2007. As a result of this reduction the discount to the spot
gold price realized during 2009 is estimated to be approximately 6 percent and at a similar level
thereafter assuming a gold price of $900 per ounce.

Also on May 6, 2008, AngloGold Ashanti announced a significant greenfields discovery at its
100 percent owned La Colosa exploration site, based on a conceptual economic study completed
during the quarter.

On May 15, 2008, AngloGold Ashanti announced that it had terminated the process related to its
proposed sale of its interests in the Morila Gold Mine in Mali, due to the fact that no proposals were
received which met the Company’s value criteria for such a sale. AngloGold Ashanti will therefore
remain a joint venture partner together with Randgold Resources Limited and the Government of Mali
in the Morila Gold Mine. Randgold Resources will continue as operators of the mine.

Forward-looking statements

Except for historical information, there may be matters discussed in this interim report that are forward-
looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. In particular, the statements made
under “Gold market” regarding the future performance of the gold and currency markets, “Liquidity and
capital resources” regarding sources of financing and “Recent developments” regarding the
Company’s proposed strategy to reduce its gold hedging position are forward-looking statements. All
statements other than statements of historical fact are, or may be deemed to be, forward-looking
statements, including, without limitation those concerning: AngloGold Ashanti’s strategy to reduce its
gold hedging position including the extent and effect of the hedge reduction; the economic outlook for
the gold mining industry; expectations regarding gold prices, production, 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 at AngloGold
Ashanti's exploration and production projects and the completion of acquisitions and dispositions;
AngloGold Ashanti’s liquidity and capital resources and expenditure; and the outcome and
consequences of any pending litigation proceedings. These forward-looking statements are not based
on historical facts, but rather reflect AngloGold Ashanti's current expectations concerning future results
and events and generally may be identified by the use of forward-looking words or phrases such as
"believe", "aim", "expect", "anticipate", "intend", "foresee", "forecast", "likely", "should", "planned",
"may", "estimated", "potential" or other similar words and phrases. Similarly, statements that describe
AngloGold Ashanti's objectives, plans or goals are or may be forward-looking statements.

These forward-looking statements involve known and unknown risks, uncertainties and other factors
that may cause the AngloGold Ashanti's actual results, performance or achievements to differ
materially from the anticipated results, performance or achievements expressed or implied by these
forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in
these forward-looking statements are reasonable, no assurance can be given that such expectations
will prove to have been correct.

For a discussion of such risk factors, shareholders should refer to the annual report on Form 20-F for
the year ended December 31, 2007, which was filed with the Securities and Exchange Commission on
May 19, 2008. 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.

In connection with the proposed merger transaction involving AngloGold Ashanti and Golden Cycle
Gold Corporation, AngloGold Ashanti filed with the SEC on February 5, 2008 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 Exchange
Commission (“SEC”) as well. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION,
INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE
PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY WHEN
THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE PROPOSED TRANSACTION. The final proxy 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 (http://www.sec.gov). 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) 471-9013.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this Current Report to be signed on its behalf by the
undersigned, thereunto duly authorized.

AngloGold Ashanti Limited

Date: May 22, 2008

By: /s/ L EATWELL

Name: L Eatwell
Title: Company Secretary