Tropicana Gold Project

Tropicana Project Overview The Tropicana Feasibility Study The Tropicana Gold Project (TGP) is located Commencement of a Feasibility Study at the Tropicana Gold Project 330 kilometres east-north-east of Kalgoorlie on was approved by the joint venture partners in July 2009. the edge of Western Australia’s Great Victoria The decision to commit to the Feasibility Study followed the positive Desert. The TGP is part of a joint venture between outcome of a detailed Pre-Feasibility Study (PFS), which was based AngloGold Ashanti Australia Ltd (70% interest and on a Measured, Indicated and Inferred Mineral Resource of 75.3 Million tonnes grading 2.07 grams/tonne for 5.01 million ounces. Manager) and Independence Group NL (30%). In early 2010 a Proved and Probable Reserve estimate of 45 The Tropicana Joint Venture (TJV) comprises more than 13,000 million tonnes grading 2.3 g/t for 3.3 million ounces of gold was square kilometres of tenements stretched along more than 300 announced. This was based on pit optimisation at an assumed kilometres of the ancient collision zone between the Yilgarn Craton US$900/oz gold price, and 0.85 A$:US$ exchange rate. and the Albany-Fraser Province. The TGP, located at the northern end of the leases, was discovered in 2005 after AngloGold Ashanti The PFS focused on a wide range of project options and defined a followed up an unexplained gold-in-soil anomaly evident in public preferred project with the following specifications: domain regional data collected in the 1990s. • Open pit of the Tropicana and Havana deposits via The region is very remote and no significant gold exploration had conventional drill and blast, truck and excavator operation. been carried out in the project area before AngloGold Ashanti • Ore processing at a rate of 6 million tonnes per annum Australia’s efforts. (approval is being sought for up to 7 Mtpa), based on a comminution circuit comprising two-stage crushing, From a geological perspective, Tropicana is distinct from the high pressure grinding rolls and ball milling, along with a Archaean greenstone-hosted gold deposits in the Yilgarn region and conventional CIL circuit. is different to any other gold discoveries in Australia. Work to date Tropicanaindicates JV the Tenement mineralisation Position is hosted within high-grade gneissic • Development of considerable supporting infrastructure, rocks and is associated with late biotite and pyrite alteration. including construction of 220 kilometres of new road, power infrastructure and communications capacity. The key development issues being addressed in the Feasibility Laverton Study are owner versus contract mining, and diesel versus gas

Leonora power. The TGP is expected to produce an average of between 330,000- 410,000 ounces per annum over its life, which is estimated to be 10 years, based on known resources. There is potential to increase resources, and mine life, through additional drilling. Menzies Cash costs, which will depend on the mining and treatment options chosen, and gold and oil prices, are expected to be between A$590/oz and A$710/oz (based on a gold price of US$950/oz, AUD:USD exchange rate of 0.8 and an oil price of US$70/bbl). Kalgoorlie-Boulder The capital cost of plant and infrastructure, excluding mining fleet Rawlinna capital if owner mining is adopted, is expected to be approximately A$520 million. The TJV released its Public Environmental Review document late in 2009 and expects to complete the State and Federal Environmental

N Impact Assessment process during 2010. 100km The Feasibility Study is expected to be completed in the second W E S T E R N NB: Tenements Current as at 16/01/2009 A U S T R A L I A half of 2010 at which time the joint venture partners will consider a Tropicana JV Granted Tenure and Tenement Applications decision to begin development of a mining operation. If the project Tropicana Gold Project TROPICANA JV

KALGOORLIE Road is approved at this time, and regulatory approvals have been PERTH Track received, construction will begin in late 2010 and production will Railway Line start in the first half of 2013. 500km

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Regional Exploration

The Tropicana Deposit is the first discovery within a new gold province located along an ancient collision zone between the Yilgarn Craton and the Albany-Fraser Province. The geological setting was historically not considered prospective for gold deposits. AngloGold Ashanti and Independence geoscientists identified the potential for discovery of new mineral deposit styles within the region and exploration models are progressively being refined to maximise greenfields targeting success. AngloGold Ashanti and Independence Group hold an extensive tenement portfolio over a ~330 km length of the highly-prospective tectonic contact. Comprehensive regional geochemical, geophysical and geological data sets are being collected to supplement the sparse information available in the public domain. The data has significance not only to gold exploration, but also in advancing the broader scientific and exploration community’s understanding of the tectonic evolution and metallogeny of this frontier region. On a regional scale, first-pass aircore drilling programs over domains of anomalous soil/auger geochemistry have, in many areas, returned anomalous results that warrant follow-up exploration. Systematic progression of exploration programs through phases of infill auger sampling, aircore drilling, and reverse circulation and diamond drilling are being completed in areas of the greatest potential. This was part of the strategy that led to the discovery of the Havana Zone at Tropicana in 2006. Regional exploration programs completed to date have identified numerous aircore anomalies within the tenements that are being tested with further drilling.

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The Natural Environment The Environmental Assessment

The Tropicana Gold Project is situated on the western edge of the Process Great Victoria Desert. The Great Victoria Desert is an active sand- The full details of the Environmental Assessment Process required ridge desert of deep Quaternary aeolian sands with a tree steppe for the Tropicana Gold Project, along with the Public Environmental of Marble Gum (Eucalyptus gongylocarpa), Mulga and Ooldea Review document for the project, can be viewed at www. Mallee (E. youngiana) over hummock grassland, dominated by tropicanajv.com.au. All of the public documentation for the project Hard Spinifex (Triodia basedowii). will be posted on this site as it becomes available. The climate is arid, with average daily temperature ranges of 15-45°C in summer and 0-30°C during winter. Rainfall generally comprises scattered showers during the winter months, and seasonal thunderstorms and cyclone-related events during the summer months. The rainfall averages between 150-250 mm annually, falling predominantly between December and June. The baseline flora studies suggest that more than 600 species occur within the survey areas, including one Declared Rare Flora Species, a number of Priority Flora Species and at least one new flora species. The fauna studies have identified a number of threatened species within the region. Information collected during these surveys will has been used to develop plans for the TGP and will assist with design of the Project layout. Where necessary avoidance strategies for threatened and priority species have been adopted. To ensure the protection of identified heritage sites near the Tropicana Gold Project, the Project Team has developed a heritage management plan in consultation with local indigenous groups.

First Half 2010 The Community Australia

It is AngloGold Ashanti Australia’s practice to establish long-term AngloGold Ashanti Australia Ltd is a wholly-owned subsidiary of relationships and to foster partnerships with local communities AngloGold Ashanti Ltd. in areas in which we operate. As this project develops the TJV Based in Perth, Western Australia, AngloGold Ashanti Australia will continue to engage with all stakeholders to ensure mutual owns the and 70% of the Tropicana Joint understanding and engender cooperative relationships. Venture, which it manages. We endeavour to provide social investment initiatives that deliver The company also manages its exploration activities in the South meaningful and lasting benefits to employees, the community and East Asia region from Perth. key stakeholders. AngloGold Ashanti has a stakeholder consultation programme Independence Group NL underway for the project, which involves: Independence Group NL (IGO) owns the Long Nickel Mine in • local indigenous groups; Western Australia, which produces approximately 9,000 tonnes • government departments such as the WA Dept of per annum of nickel metal. Environment and Conservation and the WA Dept. of Mines and Petroleum; The company has a strategy of increasing shareholder wealth • local councils –the Shires of Menzies and Laverton and the City through successful investment in operations, exploration and of Kalgoorlie-Boulder; and corporate acquisitions. • other interested parties. The Long mine has been a key contributor to IGO’s growth and The Project Team considers local indigenous groups to be the key the company has successfully increased its resource base over the stakeholders and is committed to entering into a mutually beneficial past seven years. engagement strategy through the establishment of a Community IGO has an excellent safety record at the Long Nickel Mine and Partnership program. has had no environmental incidents since commencing operations The remote location of the Tropicana project will necessitate a fly- in 2002. in, fly-out operation.I t is envisaged that employees and contractors Based in Perth, IGO’s exploration focus remains on gold and nickel are likely to be based in Kalgoorlie or Perth. sulphide resources in Australia. The company’s most advanced To gain an understanding of AngloGold Ashanti’s commitment to exploration project is the Tropicana Joint Venture in which it has a health and safety, community relations, environmental stewardship 30% interest. and social responsibility, please visit our website at www. IGO’s website address is: www.igo.com.au anglogoldashanti.com and read the latest copy of our Report to Society. Information and Contacts Company Information AngloGold Ashanti and Independence Group both provide updates on activities at Tropicana in their quarterly and annual reports. AngloGold Ashanti Ltd These are available on the websites of each company. AngloGold Ashanti is one of the world’s leading gold producers. For the latest information about Tropicana Joint Venture and to The company has operations located in 10 countries on four see public documents relating to the project, please go to www. continents, together with a substantial project pipeline and a tropicanajv.com.au focused global exploration programme. Our contact details in Australia are: AngloGold Ashanti produces between 4.5-4.7 million ounces of AngloGold Ashanti Australia Ltd gold per annum and employs more than 62,000 people, including Level 13, 44 St Georges Tce contractors, around the globe. Perth, WA 6000 The company is headquartered in , South Africa, Ph: 1800 068 705 and is listed on the Johannesburg, New York, Australian, London and Ghana Stock Exchanges as well as Euronext Brussels and Euronext Paris.

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