AGG: Boston Shaker underground mine approval

AngloGold Ashanti Limited (Incorporated in the Republic of South Africa)

Reg. No. 1944/017354/06 ISIN. ZAE000043485 - JSE share code: ANG CUSIP: 035128206 - NYSE share code: AU JSE Bond Company Code - BIANG ("AngloGold Ashanti" or the "Company")

28 March 2019

NEWS RELEASE

Boston Shaker underground mine to go ahead at Tropicana

(JOHANNESBURG - PRESS RELEASE)

AngloGold Ashanti Australia Ltd (70% and manager) and Independence Group NL (30%) have approved development of the Boston Shaker Underground Project at the Tropicana Gold Mine in Western Australia.

A Feasibility Study has confirmed that underground mining is technically and financially viable, demonstrating robust economics with an anticipated IRR of 39% for a capital investment of $79.3 million (100%). See Table 1 for breakdown.

Boston Shaker will contribute higher grade mill feed, resulting in an improved gold production profile and enhanced cash flow. Importantly the underground mine will provide improved cash flow during 2021-2023 when the mine plan includes periods of higher waste stripping in the Havana open pit.

Ore from the underground mine will enable Tropicana gold production to be maintained at between 450,000-500,000 ounces per annum (100%) over the next five years, lifting the average to 480,000 oz. per annum over the five year period.

The project will commence in the June quarter 2019 and first gold is scheduled for the September quarter in 2020.

"Underground mining at Boston Shaker will leverage further value from this high performing operation, achieving pay-back in just over three years," said Ludwig Eybers, AngloGold Ashanti's Chief Operating Officer International.

"An ongoing focus on Operational Excellence has enabled Tropicana to consistently exceed expectations, and I am sure this world class performance will extend into the underground operation."

The expanded ore production from the mine will capitalise on investments made in the Tropicana processing plant, which includes the second ball mill, commissioned in November 2018, increasing throughput capacity to 8.1 Mtpa.

The Boston Shaker ore body remains open at depth and the JV partners will continue to test high grade extensions to the Mineral Resource beneath the Tropicana and Havana pits to assess the opportunity for further underground mining operations (see Figure 1).

Figure 1: Tropicana Underground Opportunities

Project Details

A maiden underground Ore Reserve has been declared at Tropicana, based on an Ore Reserve gold price of $1,100/oz The Boston Shaker (100%) Ore Reserve is estimated at 2.8 million tonnes grading 3.84 g/t for 317,000 oz of contained gold - see Table 2.

The Boston Shaker underground Mineral Resource estimate is 12.5 Mt at 4.2 g/t for 1.7 Moz

-see Table 3.

The Feasibility Study was based on the mining of 6.58 million tonnes, grading 3.84 g/t, assuming the systematic conversion of Mineral Resources to Ore Reserves over the life of the mine.

The average underground mining rate will be approximately 1.1 Mtpa (including development) over an eight year mine life to 2026 to produce a total of 732,000 oz. Mining methods will comprise conventional mechanised mining and underhand sublevel open stoping.

The proposed mining fleet comprises: two jumbos, two production drills, three remote- capable loaders and four trucks.

An underground mining contract has been awarded to Macmahon Holdings Ltd (Macmahon), the mining alliance partner at Tropicana since commencement of open pit mining in 2012. As Macmahon will operate both the open pit and underground mines significant operational and management synergies will be delivered.

The underground operation adds an additional year to Tropicana's overall mine life, taking it to 2029 based on the current Measured, Indicated and Inferred Mineral Resource of 136.2 Mt at 1.76 g/t for a contained 7.7 Moz.

Decline development is expected to commence in Q2 2019 with mining of the first stope scheduled to begin in August 2020. The portal will be located in the completed Tropicana Pit, to minimise interaction between the open pit fleet working in the Boston Shaker pit and underground equipment (see Figure 2).

Figure 2: Boston Shaker Decline Location and Stope Design

Average underground mining costs, including geology, are anticipated to be between $55- $60/tonne.

Metallurgical test work based on current processing plant conditions indicate a recovery rate of 89.9% from the underground ore. Underground ore will be blended with open pit ore and no changes are anticipated in the plant operating expenditure.

The capital cost (100%) is estimated at $79.3 million (A$105.7 million) - see Table 1 for breakdown.

Table 1: Boston Shaker Underground Project Capital Cost.

Description	Total	2019	2020
	US$ million	US$ million	US$ million
	(100%, Nominal)	(100%, Nominal)	(100%, Nominal)
Mining (ORD)	46.6	18.7	27.9
Infrastructure and Indirects	32.7	18.9	13.7
Total Capex	79.3	37.7	41.6

Table 2: Boston Shaker Underground Ore Reserve (100%) as at 31 December, 2018.

Category	Mt	g/t	Moz
Proved	-	-	-
Probable	2.8	3.65	0.317
Total	2.8	3.65	0.317

Table 3: Boston Shaker Underground Mineral Resource (100%) as at 31 December 2018.

		Open Pit		Underground				Total
Classification	Mt	g/t	Moz	Mt	g/t	Moz	Mt	g/t	Moz
Measured	0.6	1.66	0.03	-	-	-	0.6	1.66	0.03
Indicated	6.6	1.92	0.41	5.1	4.08	0.67	11.7	2.86	1.07
Inferred	0.0	0.60	0.00	7.5	4.35	1.04	7.5	4.35	1.04
Total	7.2	1.90	0.44	12.5	4.24	1.71	19.8	3.38	2.15

Table 4: Key Boston Shaker Underground Project Metrics

				Unit			100%			70%
Capital		Investment		$A		105.7			74
				million
				$US		79.3			55
				million
Financial		IRR		%		39
Metrics		Payback period		years		3.3
		Gold price assumption		USD		1240
				AUD		1654
Production		Life of mine (underground)		years		8
Metrics		Life of mine ore production		Mt		6.58
		Life of mine underground		oz		732,000			512,400
		gold production
		Average annual
		underground ore		Mtpa		1.1
		production
		Average underground gold		g/t		3.84
		grade
		Average annual gold
		production from project		oz		105,000			73,000
		area (Boston Shaker
		Underground

JORC Code Competent Persons Statements

The information that relates to the Tropicana Mineral Resources is based on, and fairly represents information and supporting documentation compiled by Mr Damon Elder, a full-time employee and security holder of AngloGold Ashanti Australia Limited, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Elder has sufficient experience relevant to the type and style of mineral

deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr Elder consented to the inclusion in this report of the Tropicana Mineral Resource estimate, based on the information in the form and context in which it appears.

The information that relates to the Tropicana Open Pit Ore Reserves is based on, and fairly represents information and supporting documentation compiled by Mr Steven Hulme, a full-time employee and security holder of AngloGold Ashanti Australia Limited, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Hulme has sufficient experience relevant to the type and style of mineral deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr Hulme consented to the inclusion in this report of the Tropicana Open Pit Ore Reserve estimate, based on the information, in the form and context in which it appears.

The information that relates to the Tropicana Underground Ore Reserves is based on, and fairly represents information and supporting documentation compiled by Mr Jeff Dang, a full-time employee and security holder of AngloGold Ashanti Australia Limited, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Dang has sufficient experience relevant to the type and style of mineral deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr Dang consented to the inclusion in this report of the Tropicana Underground Ore Reserve estimate, based on the information, in the form and context in which it appears.

Ends

Johannesburg

JSE Sponsor: The Standard Bank of South Africa Limited

CONTACTS

Media
Chris Nthite	[phone]/[phone]	[e-mail]
General inquiries		[e-mail]
Investors
Sabrina Brockman	[phone]/ [phone]	[e-mail]
Fundisa Mgidi	[phone] / [phone]	[e-mail]

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, productivity improvements, growth prospects and outlook of AngloGold Ashanti's operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti's exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti's liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti's operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti's actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable,

no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to AngloGold Ashanti's annual reports on Form 20-F filed with the United States Securities and Exchange Commission. 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. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to

reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

This communication may contain certain "Non-GAAP" financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.

Website:www.anglogoldashanti.com

ENDS