Golden Cycle Gold 425 Business combination disclosure

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF LOSS

Prepared in accordance with US GAAP

Filed by AngloGold Ashanti Limited
This communication is filed pursuant to Rule 425 under The Securities Act of 1933, as amended.
Subject Company: Golden Cycle Gold Corporation Commission File Number: 001-09385

Nine months ended September 30,

2007

(unaudited)

2006

(unaudited)

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

Sales and other income

2,290 2,009

Product sales

2,259 1,985

Interest, dividends and other

Cost and expenses

2,432 2,109

Production costs

1,337

1,163

Exploration costs

83 43

Related party transactions

(9)

General and administrative

Royalties

51 43

Market development costs

Depreciation, depletion and amortization

459

498

Interest expense

56 59

Accretion expense

13 11

Employment severance costs

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

(24)

(11)

Non-hedge derivative loss

343

215

Other operating costs and expenses

(3)

Loss from continuing operations before income tax, equity income,
minority interests

(142) (100)

Taxation expense (see note G)

(106)

(47)

Minority interest

(22) (23)

Equity income in affiliates

Loss from continuing operations

(250) (94)

Discontinued operations (see note H)

(4)

Net loss – applicable to common stockholders

(254) (92)

Loss per share : (cents)

From continuing operations

Ordinary shares

(89)

(35)

E Ordinary shares

(44)

Ordinary shares – diluted

(89)

(35)

E Ordinary shares – diluted

(44)

Discontinued operations

Ordinary shares

(1) 1

E Ordinary shares

(1)

Ordinary shares – diluted

(1)

E Ordinary shares – diluted

(1)

Net loss

Ordinary shares

(90)

(34)

E Ordinary shares

(45)

Ordinary shares – diluted

(90)

(34)

E Ordinary shares – diluted

(45)

Weighted average number of shares used in computation

Ordinary shares

277,247,087 271,588,698

E Ordinary shares – basic and diluted

4,131,425

Ordinary shares – diluted 277,247,087

271,588,698

Dividend paid per ordinary share (cents)

45 39

Dividend paid per E ordinary share (cents)

22 -

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS

Prepared in accordance with US GAAP

At September 30,

2007

(unaudited)

At December 31,

2006

(in US Dollars, millions)

ASSETS

Current assets

2,050 1,876

Cash and cash equivalents

478

471

Restricted cash

Receivables

204 160

Trade

33 40

Recoverable taxes, rebates, levies and duties

Related parties

Other

84 60

Inventories (see note C)

456

354

Materials on the leach pad (see note C)

Derivatives

594

649

Deferred taxation assets

197

167

Assets held for sale

Property, plant and equipment, net

5,375 4,977

Acquired properties, net

1,289 1,289

Goodwill and other intangibles, net

592 566

Derivatives

- 6

Other long-term inventory (see note C)

93 68

Materials on the leach pad (see note C)

183 149

Other long-term assets (see note E)

532 543

Deferred taxation assets

38 39

Total assets

10,152 9,513

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

3,614 2,467

Accounts payable and other current liabilities

624

498

Derivatives

2,273 1,782

Short-term debt (see note D)

606

Tax payable

110 �� 148

Liabilities held for sale

Other non-current liabilities

127 24

Long-term debt (see note D)

1,109 1,472

Derivatives

321 397

Deferred taxation liabilities

1,288 1,275

Provision for environmental rehabilitation (see note E)

342 310

Other accrued liabilities

40 27

Provision for pension and other post-retirement medical benefits

178 172

Minority interest

59 61

Commitments and contingencies

- -

Stockholders’ equity

3,074 3,308

Common stock

400,000,000 (2006 – 400,000,000) authorized common stock of 25 ZAR
cents each

Stock issued 2007 – 276,919,836 (2006 – 276,236,153)

Additional paid in capital

5,586

5,539

Accumulated deficit

(1,880)

(1,476)

Accumulated other comprehensive income (see note L)

(642)

(765)

Total liabilities and stockholders' equity

10,152 9,513

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Prepared in accordance with US GAAP

Nine months ended September 30,

2007

(unaudited)

2006

(unaudited)

(in US Dollars, millions)

Net cash provided by operating activities

471 592

Net loss – applicable to common stockholders

(254)

(92)

Reconciled to net cash provided by operations:

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

(21)

(7)

Depreciation, depletion and amortization

459

498

Deferred taxation

(40)

(87)

Movement in non-hedge derivatives

332

307

Equity income in affiliates

(20)

(76)

Dividends received from affiliates

Other non cash items

Net increase/(decrease) in provision for environmental
rehabilitation and pension and other post-retirement medical
benefits

16 (14)

Effect of changes in operating working capital items:

Receivables (46)

Inventories (163)

(127)

Accounts payable and other current liabilities

113

Net cash provided by continuing operations

474

594

Net cash used in discontinued operations

(3)

(2)

Net cash used in investing activities

(685) (440)

Acquisition of assets

(40)

Increase in non-current investments

(2)

(14)

Additions to property, plant and equipment

(685)

(554)

Proceeds on sale of mining assets

Proceeds on sale of discontinued assets

Proceeds on sale of investments

Dividends from investments

Cash inflows from derivatives with financing

Net loans repaid

- 5

Change in restricted cash

(30)

Net cash generated in financing activities

209 29

Net repayments of short-term debt

(65)

(540)

Issuance of stock

511

Share issue expenses

(1)

(5)

Net proceeds of long-term debt

240

Cash inflows from derivatives with financing

154

Dividends paid

(141)

(125)

Net (decrease)/increase in cash and cash equivalents

(5) 181

Effect of exchange rate changes on cash

12 (29)

Cash and cash equivalents – January 1,

471 196

Cash and cash equivalents – September 30,

478 348

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007

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 nine-month period ended
September 30, 2007 are not necessarily indicative of the results that may be expected for the year
ending December 31, 2007.

The balance sheet as at December 31, 2006 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, 2006.

Note B. Accounting developments

Recently adopted pronouncements

Income taxes

The Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48,
“Accounting for Uncertainty in Income Taxes” (“FIN 48”) on January 1, 2007.

Resulting from the implementation of FIN 48, the Company recognized a $25 million increase in its
net liability for unrecognized income tax benefits. In addition, the Company reclassified $121 million
of income tax liabilities from current to Other non-current liabilities as of September 30, 2007, as
payment of cash is not anticipated within one year of the balance sheet date.

As at January 1, 2007, the Company had $84 million of total gross unrecognized tax benefits and the
Company recorded an opening adjustment of $25 million against opening retained income as a result
of adopting FIN 48 on January 1, 2007. The total tax provision as of January 1, 2007 (including
interest accrued of $28 million) was $173 million. Of this, $109 million represents the amount of net
unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate.
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 nine months ended September 30, 2007, the Company increased its accrual for interest
by $7 million.

The Company operates in numerous countries around the world and accordingly is subject to, and
pays annual income taxes under, the various income tax regimes in the countries in which it
operates. Some of these tax regimes are defined by contractual agreements with local government
and others are defined by the general corporate income tax laws of the country. The Company has
historically filed, and continues to file, all required income tax returns and to pay the taxes reasonably
determined to be due. The tax rules and regulations in many countries are highly complex and
subject to interpretation. From time to time, the Company is subject to a review of its historic income
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 countr y
involved.

As at September 30, 2007, the Company’s South African tax filings for the years 1998 – 2003 remain
open to scrutiny by the South African Revenue Service. As at September 30, 2007, in South Africa,
the Company’s assessments due from the tax authorities for 2004 and all subsequent years have yet
to be received. It is possible that the Company will receive assessments during the next twelve
months, which may have an effect on uncertain tax positions.

In all other jurisdictions, the revenue system is based on a self-assessment process, all tax filings
due by September 30, 2007 have been filed, and the self-assessed position recorded in the
consolidated financial statements. The legislation of individual jurisdictions provides for different
periods for the authorities to review the filings with specified expiry dates. In Tanzania, audits for the
years 2000 – 2005 are in progress. The Company is disputing some of the adjustments for the years
2000 – 2003 and these arguments are under consideration by the authorities. Based on current legal
advice, the Company does not expect the resolution will significantly affect the Company’s
consolidated financial statements.

Recently issued pronouncements

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 are effective for the Company’s year ending
December 31, 2008. The Company is currently reviewing the guidance issued in SFAS159 and has
not yet determined the impact of this on the financial statements.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note B. Accounting developments (continued)

Recently issued pronouncements (continued)

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 recognition and disclosure requirements of SFAS158 adopted by
the Company had no material impact as of December 31, 2006, while the measurement requirements
of SFAS158, which are effective for fiscal years ending December 31, 2008, requires an entity to
measure a defined benefit post-retirement plan's assets and obligations that determine its funded
status as of the same day of the employer's fiscal year-end statement of financial position. The
Company is currently considering processes to meet these measurement requirements of SFAS158.

Fair value measurements

In September 2006, the FASB issued FASB Statement No. 157, “Fair Value Measurements”
(“SFAS157”). SFAS157 defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles, and expands disclosures about fair value measurement.
The provisions of SFAS157 are effective for the Company’s fiscal year ending December 31, 2008.
The Company is currently reviewing the guidance issued in SFAS157 and has not yet determined the
impact of this on the financial statements.

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 wh ich an entity
(the acquirer) obtains control of one or more businesses (the acquiree), including combinations
achieved without the transfer of consideration.

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 shall be 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.

Note C. Inventories

At September 30,

2007

At December 31,

2006

(unaudited)

(in US Dollars, millions)

The components of inventory consist of the following :

Short-term

Gold in process

124 111

Gold on hand

40 37

Ore stockpiles

134 84

Uranium oxide and sulfuric acid

13 6

Supplies

194 162

505 400

Less: Heap leach inventory

(1)

(49) (46)

456 354

(1)

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

Long-term

Gold in process

183 149

Ore stockpiles

91 66

Supplies

2 2

276 217

Less: Heap leach inventory

(1)

(183) (149)

93 68

(1)

Long-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 NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note D. Long-term debt

The Company entered into a fifteen-year secured capital lease for its new corporate office (Turbine
Square). The lease is payable in monthly installments terminating March 2022 and is South African
rand based. The amount outstanding on the capital lease was $32 million as of September 30, 2007.

During the nine months ended September 30, 2007, the Company repaid $20 million and $8 million,
under its $700 million unsecured syndicated loan facility (refinanced during December 2007 – see
note P) and Ghanaian Cedi-based bank overdraft, respectively. These amounts were funded from cash
flow from operations.

In addition, during the nine months ended September 30, 2007 the Company drew down $135 million
and $70 million, under the $700 million unsecured syndicated loan facility and the Australia and New
Zealand Banking Group facility, respectively. As of September 30, 2007, $295 million was drawn under
the $700 million unsecured syndicated loan facility and the total amount included in short-term debt
under this facility amounted to $298 million. Advances and repayments on short-term loans in South
America amounted to $30 million and $28 million, respectively, during the nine months ended
September 30, 2007.

Note E. Provision for environmental rehabilitation

Long-term environmental obligations comprising decommissioning and restoration are based on the
Company’s environmental management plans, in compliance with the current environmental and
regulatory requirements.

(in US Dollars,

The following is a reconciliation of the total liabilities for reclamation and remediation obligations:

millions)

Balance as at December 31, 2006

310

Additions to liabilities

Liabilities settled

(8)

Accretion expense

Translation

Balance as at September 30, 2007

342

Certain amounts have been contributed to a rehabilitation trust and environmental protection bond
under the Company's control. The monies in the trust and bond are invested primarily in interest
bearing debt securities and are included in Other long-term assets in the Company’s consolidated
balance sheet. Cash balances held in the trust and bond are classified as restricted cash in the
Company’s consolidated balance sheets for all periods presented. As at September 30, 2007 and
December 31, 2006 the balances held in the trust and bond (cash and investments) amounted to
$86 million and $91 million, respectively. Besides these assets there were no other assets that were
legally restricted for purposes of settling asset retirement obligations as at September 30, 2007.

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

In the nine months ended September 30, 2007, the Company recorded a profit of $24 million (before
taxation of $1 million) relating mainly to the disposal of minor assets in South Africa and South
America, the recovery of loans written off, proceeds received on the sale of Central African Gold Plc
(CAG) shares arising from the sale of Bibiani (concluded in December 2006) and a reassessment of
indirect taxes in Brazil. The profit of $11 million (before taxation of $2 million) recorded in the nine
months ended September 30, 2006 mainly related to the disposal of minor equipment and assets in
North and South America, the recovery of loans written off, the write-off of non-recoverable value
added state tax in South America and a reassessment of indirect taxes in Guinea and Tanzania.

Note G. Taxation

A net taxation expense of $106 million was recorded in the nine months ended September 30, 2007
compared to a net expense of $47 million in the same period in 2006. Net taxation expense for the nine
months ended September 30, 2007 was 74 percent of loss before tax compared to 47 percent for the
same period in 2006. Charges for deferred tax in the nine months ended September 30, 2007
amounted to a net tax benefit of $40 million compared to a net tax benefit of $87 million in the same
period in 2006.The nine months ended September 30, 2006 benefited from deferred tax credits of
$91 million on unrealized non-hedge derivative losses, compared to similar tax credits of $50 million in
the same period in 2007. Charges for current tax in the nine months ended September 30, 2007
amounted to $146 million compared to $134 million in the same period in 2006 reflecting mainly the
impact of th e South African tax formula on the increase in the earnings of the operations in that
country. Charges for deferred tax in the nine months ended September 30, 2007 included a tax
expense of $30 million as a result of a change to the estimated deferred tax rate in South Africa.

Note H. Discontinued operations

The Ergo reclamation surface operation, which forms part of the South African operations and is
included under South Africa for segmental reporting, has been discontinued as the operation has
reached the end of its useful life and the assets are no longer in use. After a detailed investigation of
several options and scenarios, and based on management’s decision reached on February 1, 2005,
mining operations at Ergo ceased on March 31, 2005 with only site restoration obligations remaining.
The results of Ergo for the nine months ended September 30, 2007 and 2006, are summarized as
follows:

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note H. Discontinued operations (continued)

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

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

Per

share

(1)(2)

(cents)

Per

share

(2)

(cents)

Revenue

Costs, expenses and recoveries

(2)

Pre-tax profit

(1)

Taxation

(3) (1)

(3)

(1)

Net (loss)/profit attributable to discontinued operations

(4)

(1)

Per basic and diluted ordinary and E ordinary shares.

(2)

Basic and diluted (loss)/earnings per common share. The calculation of diluted (loss)/earnings per

common share for the nine months ended September 30, 2007 and 2006 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. The calculation of diluted (loss)/earnings per common share for the nine months
ended September 30, 2007 and 2006 did not assume the effect of 833,584 and 124,674 shares,
respectively, issuable upon the exercise of stock incentive options as their effects are anti-dilutive for
these periods. The calculation of diluted loss per common share for the nine months ended
September 30, 2007 did not assume the effect of conversion of E Ordinary shares as the Company
recorded a loss from continuing operations during this period.

Note I. Stock-based compensation plans

As at September 30, 2007, the Company has five stock-based employee compensation plans consisting of
time-based awards (TRO), performance related awards (PRO), Bonus Share Plan awards (BSP), Long-
Term Incentive Plan awards (LTIP) and the Employee Share Ownership Plan (ESOP). During the nine
months ended September 30, 2007 and 2006 the Company recognized a compensation expense of
$25 million (net of $1 million income tax benefit) and $5 million (net of $ nil million income tax benefit),
respectively, related to stock based compensation plans in accordance with the provisions of SFAS123(R).

The following table summarizes activity for stock options (PRO, TRO) outstanding as of September 30, 2007:

2007 2007

Options

(000)

Weighted-

average

exercise price

Rand

Outstanding at beginning of year

3,059 229

Granted

13 239

Exercised

(672) 235

Forfeited (terminations)

(60) 244

Outstanding at September 30, 2007

2,340 227

Options exercisable at September 30, 2007

1,460

226

As of September 30, 2007, there was $1 million of total unrecognized compensation cost related to
unvested stock options.

The following table summarizes activity for equity settled compensation awards (BSP, LTIP) outstanding as
of September 30, 2007:

2007

Awards

(000)

Outstanding at beginning of year

1,142

Granted

618

Exercised

(6)

Forfeited (terminations)

(57)

Outstanding at September 30, 2007

1,697

Awards exercisable at September 30, 2007

As of September 30, 2007, there was $23 million of total unrecognized compensation cost related to
unvested stock awards. These awards have no exercise price.

The following table summarizes activity for the ESOP as of September 30, 2007:

E Ordinary Shares outstanding as of September 30, 2007:

2007 2007

Options

(000)

Weighted-

average

exercise price

Rand

Outstanding at beginning of year

2,786 289

Granted

- -

Exercised

(108) 296

Forfeited (terminations)

- -

Outstanding at September 30, 2007

2,678 302

Options exercisable at September 30, 2007

- -

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note I. Stock-based compensation plans (continued)

Free shares awarded under ESOP outstanding as of September 30, 2007:

2007

Awards

(000)

Outstanding at beginning of year

929

Granted

Exercised

(36)

Forfeited (terminations)

Outstanding at September 30, 2007

893

Awards exercisable at September 30, 2007

As of September 30, 2007, there was $47 million of total unrecognized compensation cost related to
unvested ESOP awards. Free shares have no exercise price.

Note J. 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. During 2007, the Company changed the method of allocating hedging to individual mines. In
prior periods, forward contracts were allocated to each reporting segment, based on the then prevailing
contractual relationship with the counterparty. Following the removal of certain counterparty restrictions
and the granting of group level guarantees during 2006, the Company has applied an average received
gold price across all reporting segments. The average received gold price for each mine is thus similar to
the Company’s average received gold price which includes realized gains/losses on non-hedge
derivatives. Where applicable, the corresponding items of segment information for all earlier periods
presented have been restated to reflect this. 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.

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

(in US Dollars, millions)

Revenues by area

South Africa

1,110 1,160

Argentina

104 96

Australia

272 210

Brazil

229 182

Ghana

272 251

Guinea

149 115

Mali

201 242

Namibia

39 40

USA

117 70

Tanzania

173 145

Other, including Corporate and Non-gold producing subsidiaries

2,672 2,518

Less: Equity method investments included in above

(201)

(242)

Less: Gains on realized non-hedge derivatives included in above

(181)

(267)

Total revenues

2,290 2,009

Nine months ended September 30,

2007

2006

(unaudited) (unaudited)

(in US Dollars, millions)

Segment income/(loss)

South Africa

289 249

Argentina

55 43

Australia

92 48

Brazil

58 69

Ghana

(3) (54)

Guinea

- (5)

Mali

72 92

Namibia

7 16

USA

(3) (29)

Tanzania

(86) (84)

Other, including Corporate and Non-gold producing subsidiaries

(60)

(38)

Total segment income

421 307

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note J. Segment information (continued)

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

(in US Dollars, millions)

Reconciliation of segment income to Net loss

Segment total

421

307

Exploration costs

(83) (43)

General and administrative expenses

(98) (64)

Market development costs

(11) (12)

Non-hedge derivative loss

(343) (215)

Other operating costs and expenses

(8) 3

Taxation expense

(106) (47)

Discontinued operations

(4) 2

Minority interest

(22) (23)

Net loss

(254) (92)

At September 30,

2007

At December 31,

2006

(unaudited)

(in US Dollars, millions)

Segment assets

South Africa

3,287

3,093

Argentina

233

254

Australia

1,089

805

Brazil

635

544

Ghana

2,121

2,058

Guinea

345

357

Mali

285

(1)

280

(1)

Namibia

USA

521

507

Tanzania

1,356

1,382

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

208

169

Total segment assets

10,152

9,513

(1)

Investment held.

Nine months ended September 30,

Note K. Loss per share data

2007 2006

The following table sets forth the computation of basic and diluted loss per share (in US dollars
millions, except per share data):

(unaudited) (unaudited)

Numerator

Net loss

(254) (92)

Less Dividends:

Ordinary shares

(124) (107)

E Ordinary shares

(1) -

Undistributed losses

(379) (199)

Ordinary shares undistributed losses

(376) (199)

E Ordinary shares undistributed losses

(3) -

Total undistributed losses

(379) (199)

Denominator for basic loss per ordinary share

Ordinary shares

276,698,228 271,143,179

Fully vested options

(1)

548,859 445,519

Weighted average number of ordinary shares

277,247,087

271,588,698

Effect of dilutive potential ordinary shares

Dilutive potential of stock incentive options

(2)

- -

Dilutive potential of convertible bonds

(3)

- -

Dilutive potential of E Ordinary shares

(4)

- -

Denominator for diluted loss per share – adjusted weighted average number of ordinary shares and
assumed conversions

277,247,087 271,588,698

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

4,131,425 -

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note K. Loss per share data (continued)

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

Loss per share (cents)

Ordinary shares

(90) (34)

E Ordinary shares

(45) -

Ordinary shares – diluted

(90) (34)

E Ordinary shares – diluted

(45) -

(1)

Compensation awards are included in the calculation of basic loss 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 per common share for the nine months ended
September 30, 2007 and 2006 did not assume the effect of 833,584 and 124,674 shares,
respectively, issuable upon the exercise of stock incentive options as their effects are anti-
dilutive for these periods.

(3)

The calculation of diluted loss per common share for the nine months ended
September 30, 2007 and 2006 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 per common share for the nine months ended
September 30, 2007 did not assume the effect of conversion of E Ordinary shares as the
Company recorded a loss from continuing operations during this period.

Note L. Accumulated other comprehensive income

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

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

(in US Dollars, millions)

Opening balance

(765) (676)

Translation gain/(loss)

(227)

Financial instruments

(20)

(642) (923)

Net loss

(254) (92)

Translation gain/(loss)

(227)

Financial instruments

(20)

Total other comprehensive income is:

(131) (339)

Note M. Employee benefit plans

The Company has made provision for pension and provident schemes covering
substantially all employees.

Components of net periodic benefit cost

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

(in US Dollars, millions)

Pension
benefits

Other
benefits

Pension
benefits

Other
benefits

Service cost

Interest cost

Expected return on plan assets

(14)

(18)

Net periodic benefit cost

(5)

Employer contributions

As disclosed in the Company's annual report on Form 20-F for the year ended December 31, 2006,
the Company expected to contribute $6 million to its pension plan in 2007. As of

September 30, 2007, the Company had contributed $4 million.

The actuarial valuation completed during December 31, 2006 indicated that the pension fund was
fully funded and that no additional funding is required.

Note N. Summarized income statement information of affiliates

The Company has investments in certain joint venture arrangements consisting of operating entities
situated in Mali (the Sadiola, Yatela and Morila Joint Ventures) accounted for under the equity
method. In addition, the Company holds a 50 percent interest in Nufcor International Limited.
Summarized income statement information reflecting the results of significant investees in the period
ended September 30, 2007 and 2006, are as follows:

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note N. Summarized income statement information of affiliates (continued)

Nine months ended September 30,

2007 2006

(unaudited) (unaudited)

(in US Dollars, millions)

Revenue

242

Costs and expenses

(29) (137)

Income before taxation

105

Taxation

(14) (28)

Net income

Note O. Commitments and contingencies

Capital expenditure commitments

Capital commitments and contingent liabilities of the Company include total contracted capital
expenditure of $641 million and total authorized capital expenditure not yet contracted of
approximately $560 million as of September 30, 2007. The expenditure is expected to be financed
from existing cash resources, cash generated by operations and existing and future debt facilities.

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 viability of the suggested remediation
techniques in the local geologic formation in South Africa is however unknown. No sites have been
remediated and present research and development work is focused on several pilot projects to find a
solution that will in fact yield satisfactory results in South African conditions. Subject to the
technology being developed as a 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 Serra Grande operation is co-
owned with Kinross Gold Corporation. The Company’s attributable share of the first assessment is
approximately $36 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 Serra Grande 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 $22 million. The Company believes both assessments are in violation
of federal legislation on sales taxes.

Brazil – VAT dispute

Morro Velho is involved in a dispute with tax authorities, as a result of an erroneous duplication of a
shipping invoice between two states in Brazil, tax authorities are claiming that VAT is payable on the
second invoice. The amount involved is approximately $5 million.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note O. Commitments and contingencies (continued)

Brazil – VAT dispute

Mineração Serra Grande S.A. 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 at the judicial
sphere. The Company’s attributable share of the assessment is approximately $7 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 ($15 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 $50 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
September 30, 2007 the carrying value of these obligations relating to AngloGold Ashanti USA
amounted to $28 million and are 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 $1,000,000,000 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 Offshore Investments Limited and AngloGold American
Investments Limited have guaranteed all payments and other obligations of the wholly-owned
subsidiaries AngloGold Ashanti Holdings plc and AngloGold Ashanti USA Incorporated regarding the
$700 million syndicated loan facility. The total amount outstanding under the syndicated $700 million
facility as of September 30, 2007 amounted to $298 million. The facility was refinanced and
increased to $1.15 billion during December 2007.

North and South America delivery guarantees

The Company has issued gold delivery guarantees to several counterparty 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 have
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 September 30, 2007 the marked-to-market valuation of the ATS hedge book was
negative $1,261 million.

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 the
Geita Management Company Limited (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 September 30, 2007 the
marked-to-market valuation of the GMC hedge book was negative $405 million.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note O. Commitments and contingencies (continued)

In addition to the above, the Company has contingent liabilities in respect of certain claims, disputes
and guarantees which are not considered to be material.

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
applicatio n 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 reimbursable value added tax and fuel duties from the
Malian government. Reimbursable value added tax due from the Malian government to the
Company amounts to $37 million at September 30, 2007 (June 30, 2007: $32 million). The last
audited value added tax return was for the period ended March 31, 2007 and as at
September 30, 2007, $29 million was still outstanding and $8 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.

Reimbursable fuel duties from the Malian government to the Company amount to $8 million at
September 30, 2007 (June 30, 2007: $8 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
September 30, 2007, the Customs and Excise authorities have approved $1 million which is still
outstanding, while $7 million is still subject to authorization. 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 entities in Mali and protocol
agreements governing repayments of certain of these amounts have been signed. All payments as
scheduled in terms of the protocol agreements have been recovered up to September 2007. The
amounts outstanding have been discounted to their present value at a rate of 5 percent.

There is a concentration of risk in respect of reimbursable value added tax and fuel duties from the
Tanzanian government. Reimbursable value added tax due from the Tanzanian government to the
Company amounts to $18 million at September 30, 2007 (June 30, 2007: $17 million). The last
audited value added tax return was for the period ended April 30, 2007 and as at
September 30, 2007 $15 million was still outstanding and $3 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 5 percent.

Reimbursable fuel duties from the Tanzanian government to the Company amount to $30 million at
September 30, 2007 (June 30, 2007: $26 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 September 30, 2007, claims for refund of fuel duties amounting to $19 million have
been lodged with the Customs and Excise authorities, which are still outstanding, whilst claims for
refund of $11 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 5 percent.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007 …continued

Prepared in accordance with US GAAP

Note P. Recent developments

Announcements made after September 30, 2007:

On December 12, 2007, AngloGold Ashanti announced the successful closing of a $1.15 billion
syndicated revolving loan facility. The new 3-year facility will be used to refinance an existing
$700 million revolving credit facility (due January 2008), an AUD200 million facility and for general
corporate purposes.

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
currently hold a 33 percent shareholding in Cripple Creek & Victor while AngloGold Ashanti hold 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.

Note Q. Related parties

The Company, which holds an equity interest of 29.9 percent in Trans-Siberian Gold plc (TSG),
entered into a transaction during the quarter ended June 30, 2007 with TSG in which two companies
were acquired from TSG for a cash consideration of $40 million. The companies acquired consist of
Amikan (which holds the Veduga deposit, related exploration and mining licenses) and AS APK
(which holds the Bogunay deposit, related exploration and mining licenses).

Note R. Declaration of dividends

On February 12, 2007 AngloGold Ashanti declared a final dividend of 240 South African cents
(32.384 US cents) per ordinary share for the year ended December 31, 2006 with a record date of
March 9, 2007 and payment dates of March 16, 2007 for holders of ordinary shares and CDIs,
March 19, 2007 for holders of GhDSs and March 26, 2007 for holders of ADSs. In addition, on
February 12, 2007 AngloGold Ashanti declared a dividend of 120 South African cents (16 US cents)
per E ordinary share, payable on March 16, 2007 to employees participating in the Bokamoso ESOP
and Izingwe Holdings (Proprietary) Limited.

On July 30, 2007 AngloGold Ashanti declared an interim dividend of 90 South African cents
(12.435 US cents) per ordinary share for the six months ended June 30, 2007 with a record date of
August 24, 2007 and a payment date of August 31, 2007 for holders of ordinary shares and CDIs,
September 3, 2007 for holders of GhDSs and September 10, 2007 for holders of ADSs. In addition,
on July 30, 2007 AngloGold Ashanti declared a dividend of 45 South African cents (6 US cents) per
E ordinary share, payable on August 31, 2007 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.

Note S. 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 September 30, 2007 and
December 31, 2006 and for the nine months ended September 30, 2007 and 2006, 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 NINE MONTHS ENDED SEPTEMBER 30, 2007…continued

Prepared in accordance with US GAAP

Note S. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of (loss)/income

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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

1,084 2 1,209

(5)

2,290

Product sales

1,060 - 1,199

2,259

Interest, dividends and other

24 2

(5)

Costs and expenses

1,000 (50)

1,440

2,432

Production costs

598 - 739

1,337

Exploration costs

2 -

Related party transactions

(9) -

(9)

General and administrative

83 (98)

Royalties paid/(received)

- -

Market development costs

6 -

Depreciation, depletion and amortization

195 - 264

459

Interest expense

20 26

Accretion expense

7 -

Employment severance costs

3 -

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

(13) 22

(12)

(21)

(24)

Non-hedge derivative gain and other commodity contracts

108 - 243

351

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

84 52 (231)

(47)

(142)

Taxation expense

(59) (2)

(45)

(106)

Minority interest

- - (22)

(22)

Equity income/(loss) in affiliates

34 (14)

Equity (loss)/income in subsidiaries

(307) -

307

(Loss)/income from continuing operations

(248) 36 (298)

260

(250)

Discontinued operations

(4) -

(4)

(Loss)/income

(252) 36 (298)

260

(254)

Preferred stock dividends

(2) -

(3)

Net (loss)/income - applicable to common stockholders

(254) 36 (301)

265

(254)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007…continued

Prepared in accordance with US GAAP

Note S. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of (loss)/income

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

(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

1,031 31

956

(9)

2,009

Product sales

1,021 - 964

1,985

Interest, dividends and other

10 31

(8)

(9)

Costs and expenses

962 3 1,156

(12)

2,109

Production costs

540 - 623

1,163

Exploration costs

4 -

Related party transactions

9 -

General and administrative

67 (8)

(10)

Royalties paid/(received)

- -

Market development costs

6 -

Depreciation, depletion and amortization

193 - 305

498

Interest expense

24 30

Accretion expense

6 -

Employment severance costs

6 -

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

(1) (19)

(11)

Non-hedge derivative loss and other commodity contracts

108 - 106

(2)

212

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

69 28 (200)

(100)

Taxation benefit/(expense)

(2) (2)

(43)

(47)

Minority interest

- - (23)

(23)

Equity income/(loss) in affiliates

78 (2)

Equity (loss)/income in subsidiaries

(235) -

235

(Loss)/income from continuing operations

(90) 24 (266)

238

(94)

Discontinued operations

2 -

(Loss)/income

(88) 24 (266)

238

(92)

Preferred stock dividends

(4) -

(5)

Net (loss)/income - applicable to common stockholders

(92) 24 (271)

247

(92)

Condensed consolidating balance sheets

AT SEPTEMBER 30, 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

ASSETS

Current Assets

1,537 2,513

4,843

(6,843)

2,050

Cash and cash equivalents

235 69 174 -

478

Restricted cash

20 - 23 -

Receivables and other current assets

1,282

2,444

4,646

(6,843)

1,529

Trade and other receivables and deferred taxation assets

211

187

(3)

401

Inter-group balances

797 2,438

3,605

(6,840) -

Derivatives

200 - 394

594

Inventories

60 - 396

456

Materials on the leach pad

- - 49

Assets held for sale

14 - 15

Property, plant and equipment, net

1,923 -

3,452

5,375

Acquired properties, net

261 -

1,028

1,289

Goodwill and other intangibles, net

- 247

612

(267)

592

Derivatives

- -

Other long-term inventory

- - 93

Materials on the leach pad

- - 183

183

Other long-term assets and deferred taxation assets

2,720 2,460

489

(5,099)

570

Total assets

6,441 5,220 10,700

(12,209)

10,152

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

2,224 281 7,926

(6,817)

3,614

Accounts payable and other current liabilities

209 1

422

(8)

624

Inter-group balances

828 58 5,923

(6,809)

Derivatives

845 -

1,428

2,273

Short-term debt

294 219

93 -

606

Tax payable

47 3 60

110

Liabilities held for sale

1 -

Other non-current liabilities

121 - 97

(91)

127

Long-term debt

31 1,000

1,109

Derivatives

92 - 229

321

Deferred taxation liabilities

588 - 684

1,288

Provision for environmental rehabilitation

145 - 197

342

Other accrued liabilities

- - 40

Provision for pension and other post-retirement medical benefits

166 - 12

178

Minority interest

- - 58

Commitments and contingencies

- -

Stockholders’ equity

3,074 3,939

1,379

(5,318)

3,074

Stock issued

10 3,625

900

(4,525)

Additional paid in capital

5,586 69 332

(401)

5,586

Accumulated (deficit)/profit

(1,880) 245 (1,005)

760

(1,880)

Accumulated other comprehensive income

(642) -

1,152

(1,152)

(642)

Total liabilities and stockholders’ equity

6,441 5,220 10,700

(12,209)

10,152

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007…continued

Prepared in accordance with US GAAP

Note S. Supplemental condensed consolidating financial information (continued)

Condensed consolidating balance sheets

AT DECEMBER 31, 2006

(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

1,390 2,275

4,733

(6,522)

1,876

Cash and cash equivalents

180 32

259

471

Restricted cash

5 -

Receivables and other current assets

1,205 2,243

4,468

(6,522)

1,394

Trade and other receivables and deferred taxation assets

150 6

181

(10)

327

Inter-group balances

756 2,237

3,518

(6,511) -

Derivatives

225 - 425

(1)

649

Inventories

59 - 295

354

Materials on the leach pad

- -

Assets held for sale

15 -

Property, plant and equipment, net

1,790 - 3,183

4,977

Acquired properties, net

273 - 1,016

1,289

Goodwill and other intangibles, net

- 247

586

(267)

566

Derivatives

5 -

Other long-term inventory

- -

Materials on the leach pad

- - 149

149

Other long-term assets and deferred taxation assets

2,858 2,437

480

(5,193)

582

Total assets

6,316 4,959

10,216

(11,978)

9,513

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

1,769 71 7,047

(6,420)

2,467

Accounts payable and other current liabilities

182 -

310

498

Inter-group balances

778 60 5,620

(6,458)

Derivatives

712 - 1,037

1,782

Short-term debt

11 9

Tax payable

80 2

(1)

148

Liabilities held for sale

6 -

Other non-current liabilities

- - 117

(93)

Long-term debt

286 1,080

106

1,472

Derivatives

124 - 307

(34)

397

Deferred taxation liabilities

533 - 730

1,275

Provision for environmental rehabilitation

137 - 173

310

Other accrued liabilities

- -

Provision for pension and other post-retirement medical benefits

159 -

172

Minority interest

- -

Commitments and contingencies

- -

Stockholders’ equity

3,308 3,808

1,635

(5,443)

3,308

Stock issued

10 3,625

898

(4,523)

Additional paid in capital

5,539 1 357

(358)

5,539

Accumulated (deficit)/profit

(1,476) 182

(659)

477

(1,476)

Accumulated other comprehensive income

(765) -

1,039

(1,039)

(765)

Total liabilities and stockholders’ equity

6,316 4,959

10,216

(11,978)

9,513

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007…continued

Prepared in accordance with US GAAP

Note S. Supplemental condensed consolidating financial information (continued)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007…continued

Prepared in accordance with US GAAP

Note S. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of cash flows

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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

278 (193)

391

(5)

471

Net (loss)/income – applicable to common stockholders

(254) 36

(301)

265

(254)

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

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

(10) 22

(12)

(21)

Depreciation, depletion and amortization

195 -

264

459

Deferred taxation

(7) -

(33)

(40)

Other non cash items

204 (85)

540

(249)

410

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

5 -

Effect of changes in operating working capital items:

Net movement inter-group receivables and payables

(164)

Receivables

(16) (1)

(29)

(46)

Inventories

(2) - (161)

(163)

Accounts payable and other current liabilities

(1)

113

Net cash provided by/(used) in continuing operations

281

(193)

391

(5)

474

Net cash used in discontinued operations

(3)

Net cash used in investing activities (204)

(481)

(685)

Acquisition of assets

- -

(40)

Increase in non-current investments

- -

(2)

Additions to property, plant and equipment (240)

(445)

(685)

Proceeds on sale of mining assets

12 -

Proceeds of sale of discontinued assets

1 -

Proceeds on sale of investments

- -

Dividends from investments

2 -

Cash inflows from derivatives with financing

Net loans (advanced)/repaid

- -

Change in restricted cash

- -

(30)

Net cash (used)/generated in financing activities (24)

230

(2)

209

Net repayments of short-term debt

- (65)

(65)

Insurance of stock

22 68

(68)

Share issue expenses

(1) -

(1)

Net proceeds of long-term debt

- 135

105

240

Cash inflows from derivatives with financing

36 -

118

154

Dividends (paid)/received

(81) 27

(92)

(141)

Net increase/(decrease) in cash and cash equivalents 50

(92)

(5)

Effect of exchange rate changes on cash 5

Cash and cash equivalents – January 1, 180

259

471

Cash and cash equivalents – September 30, 235

174

478

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007…continued

Prepared in accordance with US GAAP

Note S. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of cash flows

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

(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

20 (115)

696

(9)

592

Net (loss)/income – applicable to common stockholders

(92) 24

(271)

247

(92)

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

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

(1) (5)

(1)

(7)

Depreciation, depletion and amortization

193

305

498

Deferred taxation

(61) -

(26)

(87)

Other non cash items

418 (11)

166

(256)

317

Net increase/(decrease) in provision for environmental rehabilitation and pension
and other post-retirement medical benefits

(16)

(14)

Effect of changes in operating working capital items:

Net movement inter-group receivables and payables

(483)

(120)

603

Receivables

24 -

(3)

Inventories

(5) - (122)

(127)

Accounts payable and other current liabilities

(3)

Net cash provided by/(used) in continuing operations

(115)

696

(9)

594

Net cash used in discontinued operations

(2)

Net cash (used)/generated in investing activities (179)

(266)

(440)

Acquisition of assets

- -

Increase in non-current investments

- (10)

(4)

(14)

Additions to property, plant and equipment (216)

(338)

(554)

Proceeds on sale of mining assets

- -

Proceeds of sale of discontinued assets

6 -

Proceeds on sale of investments

- -

Dividends from investments

- -

Cash inflows from derivatives with financing

Net loans repaid/(advanced)

1 15

(11)

Change in restricted cash

- -

Net cash generated/(used) in financing activities 325

(390)

Net repayments of short-term debt

(122)

(330) (88)

(540)

Insurance of stock

511 330

(330)

511

Share issue expenses

(5) -

(5)

Net proceeds of long-term debt

1 85

Cash inflows from derivatives with financing

51 -

Dividends (paid)/received

(111) -

(23)

(125)

Net increase/(decrease) in cash and cash equivalents 166

(25)

181

Effect of exchange rate changes on cash (22)

(7)

(29)

Cash and cash equivalents – January 1, 2

158

196

Cash and cash equivalents – September 30, 146

191

348

REVIEW OF FINANCIAL AND OPERATING PERFORMANCE FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2007 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. An
insignificant portion of its revenue is derived from the sales of silver, uranium oxide and sulfuric acid.
As a consequence, 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 such as South Africa.

As the amounts produced in any single year constitute a very small portion of the t otal 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.

The Company advises that earnings for the fourth quarter of 2007 will be impacted due to the
reassessment of year end accounting adjustments, which are likely to include, amongst others,
changes in the Company's current and deferred tax provisions, changes in effective tax rates,
impairment reviews and rehabilitation and inventory adjustments.

Impact of exchange rate fluctuations

During the first nine months of 2007 the rand strengthened against the US dollar (based on the
exchange rates of R7.00 and R6.87 per US dollar on January 1, 2007 and September 30, 2007,
respectively). However, when comparing the average exchange rates of the rand against the
US dollar of R7.12 and R6.59 during the first nine months of 2007 and 2006, respectively, the value of
the rand lost 8 percent against the US dollar.

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 9 percent against the
US dollar based on the average exchange rates of A$1.22 and A$1.34 per US dollar during the first
nine months of 2007 and 2006, respectively. The strengthening of the local currency in Brazil against
the US dollar during the nine month period ended September 30, 200 7 when compared to the same
period in 2006 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.

The Company, which holds an equity interest of 29.9 percent in Trans-Siberian Gold plc (TSG),
entered into a transaction during the quarter ended June 30, 2007 with TSG in which two companies
were acquired from TSG for a cash consideration of $40 million. The companies acquired consist of
Amikan (which holds the Veduga deposit, related exploration and mining licenses) and AS APK (which
holds the Bogunay deposit, related exploration and mining licenses).

The Company completed the acquisition of minority interests previously held by the G overnment of
Ghana (5 percent) and the International Finance Corporation (10 percent) in the Iduapriem and
Teberebie mine effective September 1, 2007 for a total cash consideration of $25 million. The
Iduapriem and Teberebie mine is now wholly-owned by the Company.

Gold market for the quarter ended September 30, 2007

From a low of $641 per ounce early in the third quarter of 2007, the gold price strengthened during the
quarter reaching a high of $745 per ounce at quarter end, on raised concerns over economic
uncertainty, rising oil prices and a weaker US dollar. For the quarter, the gold price averaged
$680 per ounce, marginally higher than the previous quarter’s $666 per ounce. Post quarter end the
gold price has continued to trade higher, eclipsing the historic high of $850 per ounce assisted by
strong investment demand and the continued weakening of the US dollar.

The stronger gold price and an unchanged rand saw the rand gold price average
R155,005 per kilogram for the quarter, up 2 percent on the previous quarter’s average of
R151,562 per kilogram. A stronger Australian dollar offset the US dollar gold price increase and the
gold price in Australian dollar terms was unchanged from the previous quarter at A$802 per ounce.

Physical market

Gold jewellery demand in the second quarter of 2007 reached an all-time record high of $14.5 billion,
which was 37 percent higher than the same quarter in 2006. In tonnage terms, demand was
22 percent higher than the second quarter of 2006, at 675 metric tonnes.

Gold jewellery consumption in emerging market economies, where demand is driven by an investment
component, was particularly robust. The key factors driving increased consumption were lower price
volatility, favorable economic conditions and a belief in possible further upside to the gold price. The
weakness of the US dollar against local currencies furthe r fuelled this demand, with prices remaining
stable or falling in local currency terms for the year to date.

In India, demand reached record levels in rupee and tonnage terms for both jewellery and retail
investment. Together these totalled 317 metric tonnes, half of global mine output for the quarter and
90 percent higher than the depressed level of a year ago. Good monsoon rains should impact
positively on the rural economy and presage strong demand for the latter part of the year and early
2008 under current price conditions. The second half of the year will also see further demand for gold
in India, as the Hindu festival of lights, Diwali, is celebrated.

Record demand was also achieved in Turkey, China (up 32 percent year on year) and the Middle East
(up 20 percent year on year). In China, growth was achieved in both the traditional 24 carat market as
well as in the 18K (K Gold) product category. In the Middle East, the Saudi Arabian market has
showed strong growth with jewellery demand in the second quarter rising 30 percent in tonnage and
38 percent in value terms.

In Russia, jewellery demand has grown strongly over recent years and in 2006 measured 70 metric
tonnes. Quarterly demand is at record levels and demand during the first half of 2007 reached almost
40 metric tonnes. Russia became the seventh largest jewellery market by size in 2006, and holds
considerable potential for the future. Increased imports have also assisted in creating a more
innovative and varied product offering.

Central bank sales

A total of 476 metric tonnes of the 500 metric tonnes available was sold in the third year of the second
Central Bank Gold Agreement (CBGA2). Sellers included Spain, France, Switzerland and the
European Central Bank, with the Swiss National Bank accounting for a substantial portion of sales.
The Swiss National Bank had announced in June 2007 that it would make an adjustment in the
composition of its reserves which will result in selling 250 metric tonnes of gold before CBGA2 expires
at the end of September 2009. However, the impact of these sales in a strong investment market
should be minimal.

Investment market

After a subdued second quarter, which saw some sales from investors, Exchange Traded Funds
(ETFs) performed well during August and September 2007. Total holdings in ETFs reached over
24 million ounces.

India recently introduced two ETF’s in February and April of this year, and both have accumulated
over one tonne of gold. A further catalyst for demand is the Shanghai Gold Exchange individual gold
bullion trading, which allows individual investors to trade gold from a minimum threshold of 100 grams.

Industrial market

The positive trends in industrial demand for gold over the last quarter continues, on the back of
buoyant demand from the electronics industry in the Far East. Industrial demand of 79.2 metric tonnes
(a 2 percent improvement over the same quarter in 2006) arose primarily from increased consumer
demand for personal computers and mobile phones, both of which contain varying amounts of gold.

Producer hedging

Following the record hedge reduction of 5.2 million ounces in the second quarter of 2007, net producer
de-hedging continues, albeit at a slower pace.

Currencies

The US dollar continued to weaken against most currencies during the quarter following increased
concerns over a slowing US econ omy, and in particular the US housing market. The large 50 basis
point rate cut in September 2007 by the US Federal Reserve and indications from China that it may
curtail its purchases of US Treasuries, in retaliation for threatened trade sanctions against China, also
helped weaken the US dollar. In contrast, increasing interest rates in South Africa and Australia have
attracted investment inflows that have seen the local currencies strengthen against the US dollar over
the quarter.

From opening levels of R7.02/$, A$0.83/$ and BRL1.92/$, the rand, Australian dollar and Brazilian
real strengthened during the quarter to close at R6.87/$, A$0.88/$ and BRL1.85/$, respectively. The
continued weakening of the US dollar since quarter end has seen these currencies strengthen further
to levels of R6.70/$, A$0.91/$ and BRL1.79/$.

Operating review for the nine months ended September 30, 2007

Presented in the table below is selected operating data for AngloGold Ashanti for the nine months
ended September 30, 2007 and 2006. The operating data gives effect to acquisitions and dispositions
as of the effective date of such acquisitions and dispositions:

Operating data for AngloGold Ashanti

Nine months ended September 30,

2007 2006

Total gold production (000 oz)

(1)

4,109

4,165

Capital expenditure ($ million)

720

557

Consolidated entities

715

554

Equity accounted joint ventures

(2)

(1)

Including equity accounted joint ventures.

(2)

Attributable portion.

Gold production

For the nine months ended September 30, 2007, AngloGold Ashanti’s total gold production decreased
by approximately 56,000 ounces, or about 1 percent, to 4.11 million ounces from 4.17 million ounces
produced in the same period in 2006. In South Africa, gold production decreased from
1,910,000 ounces produced in the nine months to September 30, 2006, to 1,766,000 ounces
produced in the same period in 2007 mainly due to lower volume mined at TauTona arising from
strategy changes and seismicity concerns and lower volume mined as a result of lower face advance
at Great Noligwa and at Kopanang, as a result of less milling shifts and lower development. Gold
production in Argentina, Ghana and Mali decreased from 172,000 ounces, 450,000 ounces and
405,000 ounces, respectively, produced in the nine months to September 30, 2006, to
152,000 ounces, 398,000 ounces and 327,000 ounces produced, respectively, in the same period in
2007. This was mainly due to lower grades at Cerro Vanguardia (in Argentina); lower grades from
underground and tailings ore at Obuasi (in Ghana) and the impact on production due to the sale of
Bibiani (in Ghana) completed in December 2006. In Mali gold production was lower compared to 2006
due to lower recovered grades at Morila and Sadiola.

The decrease in gold produced over 2007 at most mines was partially offset by an increase in gold
production in Australia, Brazil, Guinea and Tanzania from 312,000 ounces, 246,000 ounces,
178,000 ounces and 229,000 ounces, respectively, produced in the nine months to
September 30, 2006, to 450,000 ounces, 296,000 ounces, 198,000 ounces and 269,000 ounces
produced, respectively, in the same period in 2007. This was mainly due to the mining of high grade
areas at Sunrise Dam (in Australia) in 2007; at AngloGold Ashanti Brasil Mineração (in Brazil) due to a
planned production halt in 2006 as part of an upgrade of the shaft and crusher; at Siguiri (in Guinea)
due to higher volumes with the Carbon-in-pulp (CIP) plant being in full production in 2007 and, at
Geita (in Tanzania) due to the impact of adverse weather conditions, the delay in the Nyankanga pit
push-back and lower recovered grade in 2006.

In the quarter ended September 30, 2007, AngloGold Ashanti’s total gold production increased by
80,000 ounces to 1.43 million ounces, or 6 percent from 1.35 million ounces produced during the
quarter ended June 30, 2007 mainly due to increased production at most mines.

Capital expenditures

Total capital expenditure of $720 million was recorded in the nine months ended September 30, 2007
and includes $30 million relating to the fifteen-year secured capital lease for the new corporate office
(Turbine Square). Total capital expenditure on tangible assets which includes Ore reserve
development, stay-in-business and project capital during the nine months ended September 30, 2007
was $690 million compared to $557 million in the same period in 2006. This $133 million, or
24 percent, increase is mainly reflected in the $142 million increase in capital expenditure in the
Australian region from $44 million recorded in the nine months ended September 30, 2006 to
$186 million spent for the same period in 2007 mainly on the Boddington expansion project.

Comparison of financial performance on a segment basis for the nine months ended
September 30, 2007 and 2006

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. During 2007, the Company changed the method of allocating hedging to individual mines.
In prior periods, forward contracts were allocated to each reporting segment, based on the then
prevailing contractual relationship with the counterparty. Following the removal of certain counterparty
restrictions and the granting of group level guarantees during 2006, the Company has applied an
average received gold price across all reporting segments. The average received gold price for each
mine is thus similar to the Company’s average received gold price which includes realized
gains/losses on non-hedge derivatives. Where applicable, the corresponding items of segment
information for all earlier periods presented have been restated to reflect this. This information is
cons istent 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

Nine months ended September 30,

2007

2006

US dollar,

millions Percentage

US dollar,

millions Percentage

Category of activity

Product sales

2,259

1,985

Interest, dividends and other

Total revenues

2,290

2,009

Geographical area data

South Africa

1,110

49%

1,160

58%

Argentina

104

Australia

272

12%

210

10%

Brazil

229

10%

182

Ghana

272 12% 251 13%

Guinea

149

115

Mali

201

242

12%

Namibia

USA

117

Tanzania

173

145

Other, including Corporate and Non-gold producing
subsidiaries

6 - 7 -

2,672

117%

2,518

125%

Less: Equity method investments included in above

(201)

(9%)

(242)

(12%)

Less: Gains on realized non-hedge derivatives included
in above

(181)

(8%)

(267)

(13%)

Total revenues

2,290

100%

2,009

100%

Assets

At September 30, 2007

At December 31, 2006

US dollar,

millions

Percentage

US dollar,

millions

Percentage

Geographical area data

Total segment assets

South Africa

3,287

32%

3,093

32%

Argentina

233

254

Australia

1,089

11%

805

Brazil

635

544

Ghana

2,121

21%

2,058

22%

Guinea

345

357

Mali

285

(1)

3% 280

(1)

Namibia

64 -

USA

521

507

Tanzania

1,356

14%

1,382

15%

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

208

169

Total segment assets

10,152

100%

9,513

100%

(1)

Investment held.

Comparison of financial performance for the nine months ended
September 30, 2007 and 2006

Revenues

Revenues from product sales and other income increased from $2,009 million in the first nine months
of 2006 to $2,290 million in the same period of 2007, representing a 14 percent increase over the
period. This was due to the increase in the gold price in the first nine months of 2007 as the average
spot price of gold was $666 per ounce during the nine months ended September 30, 2007,
$65 per ounce, or 11 percent, higher than $601 per ounce, the average spot price of gold in the first
nine months of 2006. The majority of product sales consisted of US dollar-denominated gold sales.

Total revenues from the South African operations decreased by $50 million to $1,110 million over the
nine months ended September 30, 2007 from $1,160 million realized in the same period in 2006,
mainly as a result of a decrease in gold production, which more than offset the increase in gold price.

Tota l revenues derived from Australia, Brazil, Guinea and Tanzania increased to $272 million,
$229 million, $149 million and $173 million respectively, over the nine months ended
September 30, 2007 from $210 million, $182 million, $115 million and $145 million respectively,
realized in the same period of 2006 mainly as a result of the higher gold price and increased gold
production.

In Ghana, total revenues generated increased from $251 million realized in the first nine months of
2006 to $272 million 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.

Production costs

During the nine months ended September 30, 2007, AngloGold Ashanti incurred production costs of
$1,337 million representing an increase of $174 million, or 15 percent, from $1,163 million recorded for
the same period of 2006.

Production costs in AngloGold Ashanti’s South Africa operations increased by $57 million to
$588 million in the first nine months of 2007 from $531 million for the same period of 2006 mainly as a
result of annual wage increases and higher fuel and power costs. About 44 percent of AngloGold
Ashanti’s production costs were denominated in South African rands in the first nine months of 2007.

Production costs in AngloGold Ashanti’s operations in Ghana, Guinea, Brazil and Argentina increased
from $172 million, $60 million, $74 million and $26 million, respectively, in the first nine months of
2006 to $187 million, $92 million, $112 million and $36 million, respectively, for the same period of
2007 mainly as a result of an increase in operational costs including labor, fuel, consumables, power
and water costs as well as the strengthening of local currencies relative to the US dollar.

Exploration costs

Exploration costs increased from $43 million in the nine months ended September 30, 2006 to
$83 million in the same period in 2007 mainly due to increased exploration activities at the Tropicana
project in Australia, regional and target generation activities in Colombia and continued drilling in the
Mongbwalu region of the Democratic Republic of the Congo.

Related party transactions

Related party transactions for the nine months ended September 30, 2007 amounted to a credit
(representing purchases by related parties) of $9 million compared with an expense (representing
purchases from related parties) of $9 million for the same period of 2006. The reduction was mainly
due to lower contract work generated by development activities and to transactions with subsidiaries
of Anglo American plc no longer disclosed, following the reduction of Anglo American plc’s
shareholding in AngloGold Ashanti to less than 50 percent interest held (current holding of
17.3 percent), as a result of the sales in public offerings of some of its shares in AngloGold Ashanti
which were completed in April 2006 and October 2007, respectively. Related party transactions with
Trans-Siberian Gold plc (TSG) (see note Q “Related parties” to the condensed consolidated financial
statemen ts) amounted to $1 million for services rendered and $40 million for the acquisition of assets
during the nine months ended September 30, 2007.

General and administrative

General and administrative expenses increased from $64 million in the nine months ended
September 30, 2006 to $98 million in the same period in 2007, mainly due to increased stock
compensation expense recognized and annual salary increments. General and administrative
expenses in the third quarter of 2007 included approximately $8 million of one-off compensation and
recruitment expenses relating to the retirement of Messrs Godsell and Carvalho Silva and the
appointment of Mr. Cutifani as new Chief Executive Officer.

Royalties

Royalties paid by AngloGold Ashanti increased from $43 million in the nine months ended
September 30, 2006, to $51 million paid in the same period in 2007, 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 decreased by $39 million to $459 million in the
nine months ended September 30, 2007 when compared to $498 million recorded in the same period
in 2006. This decrease was mainly due to decreases in depreciation, depletion and amortization
expense in South Africa and Ghana from $226 million and $89 million, respectively, incurred in the
nine months ended September 30, 2006 to $197 million and $67 million, respectively, in the same
period of 2007 mainly as a result of a decrease in gold production and changes in estimated lives of
assets. This was offset by an increase in depreciation, depletion and amortization expense in Australia
which increased from $26 million incurred in the nine months ended September 30, 2006 to
$39 million in the same period in 2007.

Accretion expense

Accretion expense of $13 million was recorded in the nine months ended September 30, 2007
compared with $11 million in the nine months ended September 30, 2006. Accretion relates to the
unwinding of discounted future reclamation obligations to present values and increases the
reclamation obligations to its future estimated payout.

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

Non-hedge derivative loss

A non-hedge derivative loss of $343 million was recorded in the nine months ended

September 30, 2007 compared to a loss of $215 million in the same period of 2006 relating to the use
of hedging instruments. Non-hedge derivatives recorded in the nine months ended
September 30, 2007 and 2006 included:

Nine months ended September 30,

2007 2006

(in US Dollars, millions)

Gains on realized non-hedge derivatives (181)

(267)

Loss on unrealized non-hedge derivatives

524

482

Net loss

343

215

Other operating costs and expenses

Other operating costs and expenses, consisting of provision for loss on future deliveries of other
commodities and unrealized loss on other commodity physical borrowings amounted to an expense of
$8 million in the nine months ended September 30, 2007 compared to a net credit of $3 million in the
same period in 2006, mainly due to an increase in other commodity contracts.

Taxation expense

A net taxation expense of $106 million was recorded in the nine months ended September 30, 2007
compared to a net expense of $47 million in the same period in 2006. Net taxation expense for the
nine months ended September 30, 2007 was 74 percent of loss before tax compared to 47 percent for
the same period in 2006. Charges for deferred tax in the nine months ended September 30, 2007
amounted to a net tax benefit of $40 million compared to a net tax benefit of $87 million in the same
period in 2006.The nine months ended September 30, 2006 benefited from deferred tax credits of
$91 million on unrealized non-hedge derivative losses, compared to similar tax credits of $50 million in
the same period in 2007. Charges for current tax in the nine months ended September 30, 2007
amounted to $146 million compared to $134 million in the same period in 2006 reflecting mainly the
impact of the South Af rican tax formula on the increase in the earnings of the operations in that
country. Charges for deferred tax in the nine months ended September 30, 2007 included a tax
expense of $30 million as a result of a change to the estimated deferred tax rate in South Africa.

Equity income in affiliates

Equity income in affiliates decreased to $20 million in the nine months ended September 30, 2007
from $76 million in the nine months ended September 30, 2006, mainly as a result of an impairment
loss of $14 million being recorded on the Company’s investment held in TSG as well as decreased
earnings from operations in Mali.

Discontinued operations

A loss of $4 million was recorded in the nine months ended September 30, 2007 compared to a profit
of $2 million in the same period in 2006 due to the closure of the Ergo operations (at the end of
March 2005) as described by note H “Discontinued operations” to the condensed consolidated
financial statements.

Net loss

As a result of the factors detailed above, net loss of $254 million was recorded in the nine months
ended September 30, 2007 compared to a net loss of $92 million in the nine months ended
September 30, 2006.

Liquidity and capital resources

Net cash provided by operating activities was $471 million in the nine months ended
September 30, 2007, $121 million lower than $592 million for the comparable period in 2006, mainly
as a result of higher costs and expenses and lower production. Net cash outflow from operating
working capital items amounted to $96 million in the nine months ended September 30, 2007
compared to $21 million in the same period in 2006.

Investing activities in the nine months ended September 30, 2007 resulted in a net cash outflow of
$685 million compared with an outflow of $440 million in the nine months ended September 30, 2006.
Cash inflows resulting from the restructuring of the AngloGold Ashanti hedge book amounted to
$26 million during the first nine months of 2007 and additions to property, plant and equipment, which
included capital expenditure of $685 million compared to $554 million in the same period in 2006,
were recorded in the first nine months of 2007 for major capital projects, including Boddington in
Australia, TauTona and Mponeng in South Afric a and the expansion project at the Cuiabá mine in
south-eastern Brazil. Cash paid for the two companies acquired from TSG amounted to $40 million
during the nine months ended September 30, 2007.

Net cash generated in financing activities in the nine months ended September 30, 2007 amounted to
an inflow of $209 million, which is an increase of $180 million from an inflow of $29 million in the nine
months ended September 30, 2006, and included cash inflows from proceeds from loans of
$240 million (which included $135 million, $70 million and $30 million, respectively, under the
$700 million unsecured syndicated loan facility, the Australia and the New Zealand Banking Group
facility and short-term loans raised in South America). Proceeds from stock issued in the nine months
ended September 30, 2007 amounted to $22 million. Cash outflows during the nine months ended
September 30, 2007 comprised normal scheduled loan repayments of $37 million, the repayment of
$20 million under the $700 million unsecured syndicated loan facility and of $8 million in bank
overdraft loans. The Company made dividend payments of $141 million (45 US cents per ordinary
share) in the nine months ended September 30, 2007 compared with dividends of $125 million
(39 US cents per ordinary share) paid in the same period in 2006.

As a result of the items discussed above, at September 30, 2007, AngloGold Ashanti had $478 million
of cash and cash equivalents compared with $471 million at December 31, 2006, an increase of
$7 million, or 1 percent. At September 30, 2007, the Company had a total of $423 million available but
undrawn under its credit facilities.

AngloGold Ashanti is currently involved in a number of capital projects. As of September 30, 2007,
$641 million of AngloGold Ashanti’s future capital expenditure had been contracted for and another
approximately $560 million had been authorized but not yet contracted for, as described in
note O “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 an d 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 $606 million of AngloGold Ashanti’s debt is schedule d
to mature consisting mainly of the $700 million unsecured syndicated loan facility (refinanced during
December 2007) and the Rand denominated corporate bond of $294 million as at September 30, 2007
(due August 2008).

The Company expects to finance capital expenditure projects and the repayment of debt scheduled to
mature in 2007 from cash on hand, cash flow from operations and its existing and future debt facilities.

As discussed in note B “Accounting developments” to the condensed consolidated financial
statements, the Company recognized a $25 million increase in its net liability for unrecognized tax
benefits as a result of the adoption of FIN 48 on January 1, 2007. These liabilities are included in
Other non-current liabilities in the condensed consolidated balance sheet as of September 30, 2007,
as the Company generally does not anticipate that settlement of the liabilities will require payment of
cash within the next twelve months. The Company is not able to reasonably estimate when it would be
required to make any cash payments to settle these liabilities, but does not believe that the ultimate
settlement of these obligations will materially affect its liquidity.

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, 2 006 which was filed with
the United States Securities and Exchange Commission (SEC) on July 9, 2007.

Recently adopted pronouncements

Income taxes

The Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48,
“Accounting for Uncertainty in Income Taxes” (“FIN 48”) on January 1, 2007. FIN 48 clarifies the
accounting and reporting for uncertainties in income tax law. The interpretation prescribes a
comprehensive model for the financial statement recognition, measurement, presentation and
disclosure of uncertain tax positions taken or expected to be taken in income tax returns. Refer to
note B “Accounting developments” to the condensed consolidated financial statements for the
discussion regarding the cumulative effect of adopting FIN 48.

Recently issued pronouncements

Fair value option for financial assets and liabilities

In February 2007, the FASB issued FASB Statement No. 1 59, “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 are effective for the Company’s year ending
December 31, 2008. The Company is currently reviewing the guidance issued in SFAS159 and has
not yet determined the impact of this on the 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, a n amendment of FASB Statements No. 87, 88, 106
and 132(R)” (“SFAS158”). The recognition and disclosure requirements of SFAS158 adopted by the
Company had no material impact as of December 31, 2006, while the measurement requirements of
SFAS158, which are effective for fiscal years ending December 31, 2008, requires an entity to
measure a defined benefit post-retirement plan's assets and obligations that determine its funded
status as of the same day of the employer's fiscal year-end statement of financial position. The
Company is currently considering processes to meet these measurement requirements of SFAS158.

Fair value measurements

In September 2006, the FASB issued FASB Statement No. 157, “Fair Value Measurements”
(“SFAS157”). SFAS157 defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles, and expands disclosures about fair value measurement.
The provisions of SFAS157 are effective for the Company’s fiscal year ending December 31, 2008.
The Company is currently reviewing the guidance issued in SFAS157 and has not yet determined the
impact of this on the financial statements.

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.

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 shall be 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.

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, 2006, during the nine months ended September 30, 2007, the
Company entered into a fifteen-year secured capital lease for its new corporate office (Turbine
Square). The amount outstanding on the capital lease was $32 million as of September 30, 2007. The
Com pany also repaid $20 million and $8 million, under its $700 million unsecured syndicated loan
facility (refinanced during December 2007) and Ghanaian Cedi-based bank overdraft, respectively.
These amounts were funded from cash flow from operations. In addition, during the first nine months
of 2007 the Company drew down $135 million and $70 million, under the $700 million unsecured
syndicated loan facility and the Australia and New Zealand Banking Group facility, respectively. As of
September 30, 2007, $295 million was drawn under the $700 million unsecured syndicated loan
facility and the total amount included in short-term debt under this facility amounted to $298 million.
Advances and repayments on short-term loans in South America amounted to $30 million and
$28 million, respectively, during the nine months ended September 30, 2007. As at September
30, 2007, the estimated fair value of all derivatives making up the hedge positions was a
negative $3,519 million (at June 30, 2007: negative $2,783 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 September 30, 2007, $49 million was classified as short-term compared with
$46 million as at December 31, 2006 as AngloGold Ashanti expects the related gold to be recovered
within twelve months. As of September 30, 2007, $183 million was classified as long term compared
with $149 million as at December 31, 2006.

Hedging overview for the quarter ended September 30, 2007

The Company continues to actively manage its hedge position in a value accretive manner, whilst
actively reducing the overall hedge delta. Some minor hedge restructuring was concluded during the
quarter ended September 30, 2007.

As at September 30, 2007, the net delta hedge position was 10.58 million ounces or 329 tonnes,
representing an increas e of 1.83 million ounces compared to the quarter’s opening position. The

increase is primarily due to the closing spot gold price of $745 per ounce, which was $96 per ounce
higher than the quarter’s opening price of $649 per ounce.

The marked-to-market value of the hedge book as at September 30, 2007 was negative $3,519 million
(as at June 30, 2007: negative $2,783 million). The value was based on a gold price of
$745 per ounce, exchange rates of R6.87/$ and A$/$0.88 and the prevailing market interest rates and
volatilities at the time. The increase in the negative marked-to-market value was due to a higher spot
gold price and higher gold option volatilities at quarter end.

During 2007, the Company changed the method of allocating hedging to individual mines. In prior
periods, forward contracts were allocated to each reporting segment, based on the then prevailing
contractual relationship with the counterparty. Following the removal of certain counter party
restrictions and the granting of group level guarantees during 2006, the Company has applied an
average received gold price across all reporting segments. The average received gold price for each
mine is thus similar to the Company’s average received gold price which includes realized
gains/losses on non-hedge derivatives.

At October 31, 2007 (AngloGold Ashanti issued its IFRS results for the quarter ended
September 30, 2007 on November 1, 2007), the marked-to-market value of the hedge book was a
negative $3.81 billion based on a gold price of $783.70 per ounce and exchange rates of R6.54/$ and
A$/$0.92 and the prevailing market interest rates and volatilities at the time.

AngloGold Ashanti’s hedge position as at September 30, 2007

The following table indicates AngloGold Ashanti’s gold hedge position at a weighted average
settlement price as at September 30, 2007 (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

2007

2008

2009

2010

2011

2012-2016

Total

DOLLAR

GOLD

Forward contracts

Amount (kg)

6,695

22,817

21,738

14,462

12,931

24,307

102,950

US$ per oz

$363

$314

$316

$347

$397

$418

$357

Restructure Longs

Amount (kg)

*7,527

*7,734

*15,261

US$ per oz

$654

$645

$649

Put

options

purchased

Amount

(kg)

437

US$

per

$292

Put options sold

Amount (kg)

10,737

16,165

3,748

1,882

5,645

40,059

US$ per oz

$663

$614

$530

$410

$420

$440

$576

Call options purchased

Amount (kg)

4,422

9,813

14,235

US$ per oz

$408

$427

$421

Call options sold

Amount (kg)

20,710

55,796

45,191

35,933

37,550

61,873

257,053

US$ per oz

$577

$500

$493

$483

$500

$599

$526

RAND

GOLD

Forward contracts

Amount (kg)

*2,559

933

*1,626

Rand per kg

R129,834

R116,335

R126,227

Put

options

sold

Amount

(kg)

1,089

Rand

per

R157,860

Call options sold

Amount (kg)

2,955

2,986

11,913

Rand per kg

R164,134

R202,054

R216,522

R230,990

R203,528

A DOLLAR GOLD

Forward contracts

Amount (kg)

10,109

2,177

3,390

3,110

18,786

A$ per oz

A$762

A$659

A$645

A$688

A$717

Put

options

purchased

Amount

(kg)

7,154

per

A$837

Put options sold

Amount (kg)

10,575

1,866

12,441

A$ per oz

A$813

A$810

A$812

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)

10,575

per

A$860

Delta (kg)

(26,579)

(55,273)

(68,319)

(50,184)

(49,576)

(79,198)

(329,129)

** Total net gold:

Delta (oz)

(854,533)

(1,777,066)

(2,196,504)

(1,613,451)

(1,593,903)

(2,546,271)

(10,581,728)

Indicates a long position resulting from forward purchase contracts. The Company enters into forward
purchase contracts as part of its strategy to actively 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 September 30, 2007.

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 September 30, 2007

Year

2007

2008

2009

2010

2011

2012-2016

Total

DOLLAR

SILVER

Put options purchased

Amount (kg)

10,886

43,545

54,431

$ per oz

$7.40

$7.66

$7.61

Put options sold

Amount (kg)

10,886

43,545

54,431

$ per oz

$5.93

$6.19

$6.14

Call options sold

Amount (kg)

10,886

43,545

54,431

$ per oz

$8.40

$8.64

$8.59

The following table indicates AngloGold Ashanti’s currency hedge position at September 30, 2007

Year

2007

2008

2009

2010

2011

2012-2016

Total

RAND DOLLAR (000)

Forward contracts

Amount ($)

30,113

US$/R

R7.13

Put options purchased

Amount ($)

140,000

US$/R

R7.32

Put options sold

Amount ($)

185,000

US$/R

R7.10

Call options sold

Amount ($)

185,000

US$/R

R7.55

A DOLLAR US DOLLAR (000)

Forward contracts

Amount ($)

60,000

80,000

140,000

A$/US$

$0.84

$0.79

$0.81

Put options purchased

Amount ($)

80,000

160,000

A$/US$

$0.81

Put options sold

Amount ($)

80,000

160,000

A$/US$

$0.83

$0.84

Call options sold

Amount ($)

80,000

160,000

A$/US$

$0.79

BRAZILIAN REAL DOLLAR (000)

Forward contracts

Amount ($)

12,000

19,000

31,000

US$/BRL

BRL2.06

BRL2.05

Put options purchased

Amount ($)

9,000

US$/BRL

BRL2.04

Put options sold

Amount ($)

3,000

US$/BRL

BRL2.05

Call options sold

Amount ($)

15,000

8,000

23,000

US$/BRL

BRL2.01

BRL2.20

BRL2.08

Derivatives analysis by accounting designation as at September 30, 2007

Normal purchase

and sale

exemption

Cash flow

hedge

accounted

Non hedge

accounted

Total

US Dollars (millions)

Forward sale type agreements

(920)

(346)

(144)

(1,410)

Option contracts

(567)

–

(1,560)

(2,127)

(1)

Foreign exchange contracts

–

Foreign exchange option contracts

–

(2)

Interest rate swaps – Gold

(32)

–

Total

(1,519)

(342)

(1,658)

(3,519)

(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 February 5, 2007, AngloGold Ashanti informed the market that a partial slope failure occurred in an
intermediate footwall of the Nyankanga pit at Geita Gold Mine on Saturday, February 3, 2007. The pit
had been monitored by slope stability radar and was safely evacuated in advance of the failure. No
injury to employees or contractors occurred and there was no damage to equipment.

On February 13, 2007, the AngloGold Ashanti board approved a project to develop the Mponeng mine
below the 120 level, adding some 2.5 million ounces of gold and 8 years to the mine’s life, at a capital
cost of $252 million. Production is due to commence in 2013.

On May 4, 2007, AngloGold Ashanti announced that Mr C B Brayshaw and Mr A J Trahar retired from
the board effective May 5, 2007. AngloGold Ashanti further announced that Mrs C Carroll had been
appoi nted as a non-executive director with effect from May 5, 2007.

On June 1, 2007, AngloGold Ashanti Australia Ltd announced the commencement of a pre-feasibility
study at the Tropicana gold project in Western Australia. Tropicana, located 400 kilometers north-east
of Kalgoorlie, is a joint venture between AngloGold Ashanti Australia (70 percent) and Independence
Group NL (30 percent free carried to completion of the pre-feasibility study). The study is expected to
be completed in mid-2008 and will focus on the Tropicana and Havana zones and will only consider
open-cut resources.

On June 8, 2007, AngloGold Ashanti announced that it had sold, subject to certain conditions, to a
consortium of Mintails South Africa (Pty) Limited / DRD South African Operations (Pty) Limited Joint
Venture most of the remaining moveable and immovable assets of Ergo, the surface reclamation
operation east of Johannesburg, discontinued in March 2005. The site is currently being rehabilitated
by AngloGold Ashanti. The assets and associated liabilities were sold for R42.8 million (approximately
$6 million). The joint venture will operate, for its own account, under the AngloGold Ashanti
authorizations until new order mining rights have been obtained and transferred to the joint venture. A
specific exclusion from the sale to the joint venture is the Brakpan Tailings Storage Facility which will
continue to be rehabilitated by AngloGold Ashanti.

On July 11, 2007, AngloGold Ashanti announced that Mr A H Calver resigned from the board as
Mr W A Nairn’s alternate.

Subsequent to its announcement on July 31, 2007 in which the board of directors announced the
retirement of R M Godsell, (AngloGold Ashanti’s Chief Executive Officer) and the resignation of
R Carvalho Silva (its Chief Operating Officer – International) from the Company effective
September 30, 2007 and the appointments of Mark Cutifani as Chief Executive Officer and Neville
Nicolau, (formerly Chief Operating Officer – Africa) as Chief Operating Officer for all operations as of
October 1, 2007. Subsequently, on November 12, 2007, it was announced that due to further
operational management restructure, Neville Nicolau resigned from the board to pursue other
opportunities.

In August 2007, AngloGold Ashanti through the South African Chamber of Mines, signed a two-year
wage agreement effective from July 1, 2007, with the three recognized mining unions. This agreement
covers some 29,000 category 3 – 8 workers, miners, artisans and officials in the Company’s South
African operations and was achieved through a mediated outcome without the unions resorting to any
industrial action. In terms of the agreement: the first year increases from July 1, 2007 range from
10 percent for the lower categories of worker to 8 percent for officials or junior management and
include a special dispensation for the benefit of artisans and some skilled occupations. Some
improvements to leave conditions and housing allowances were also agreed. Second year increases
from July 1, 2008 will be determined at South African CPIX plus 1 percent with a minimum of an
8 percent increase.

The Company completed the acquisition of minority interests previously held by the Government of
Ghana (5 percent) and the International Finance Corporation (10 percent) in the Iduapriem and
Teberebie mine effective September 1, 2007 for a total cash consideration of $25 million. The
Iduapriem and Teberebie mine is now wholly-owned by AngloGold Ashanti.

On September 18, 2007, AngloGold Ashanti announced that Mr M Cutifani was appointed to the board
effective September 17, 2007, as Chief Executive Officer designate. Mr M Cutifani succeeded
Mr R M Godsell as Chief Executive Officer, on his retirement with effect from Octob er 1, 2007.

On October 1, 2007, AngloGold Ashanti noted the announcement by Anglo American plc that it
intended to offer for sale, 61 million ordinary shares of AngloGold Ashanti in the form of ordinary
shares and American Depositary Shares pursuant to the registration of such securities under

AngloGold Ashanti’s automatic shelf registration statement. Goldman Sachs International acted as
the global co-ordinator for the offering and Goldman Sachs International and UBS Investment Bank
were joint book runners for the offering.

On October 2, 2007, AngloGold Ashanti noted the announcement by Anglo American plc that Anglo
American had completed an offering of 67.1 million ordinary shares of AngloGold Ashanti in the form
of ordinary shares and American Depositary Shares (ADS) priced at US$44.00 per ADS (US$44.11
inclusive of uncertificated securities tax payable by investors in ADSs) and R300.61 per ordinary share
(exclusive of uncertificated securities tax). The offering which was launched on October 1, 2007, was
increased from the earlier announced 61 million ordinary shares. The offering price represented
discounts of 6.16 percent and 7.84 percent to the closing prices of t he ADSs and ordinary shares in
New York and Johannesburg respectively on Friday, September 28, 2007. The offering settled on
October 9, 2007. After the completion of the offering, Anglo American’s holding in AngloGold Ashanti
was 17.3 percent.

Following the settlement of the secondary offering and the consequent reduction in shareholding, all
the directors representing Anglo American plc on the AngloGold Ashanti board, namely Mrs C Carroll
and Mr R Médori, together with his alternate Mr P G Whitcutt resigned from the AngloGold Ashanti
board, effective October 9, 2007.

On December 12, 2007, AngloGold Ashanti announced the successful closing of a $1.15 billion
syndicated revolving loan facility. The new 3-year facility will be used to refinance an existing
$700 million revolving credit facility (due January 2008), an AUD200 million facility and for general
corporate purposes.

On January 14, 2008, AngloGold Ashanti announced that it ha d 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
currently hold a 33 percent shareholding in Cripple Creek & Victor while AngloGold Ashanti hold 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 January 18, 2007, AngloGold Ashanti provided operational guidance to its fourth quarter 2007
results, in which it was stated that its South African and Geita operations had experienced production
difficulties resulting in the group’s production for the quarter to be in the region of 1,368,000 ounces.

Foll owing the announcement made on January 25, 2007, in which AngloGold Ashanti advised that
Eskom (the South African electricity supply body) would be interrupting power supplies to the
Company’s South African operations, AngloGold Ashanti halted mining and gold recovery at these
operations. Subsequently, AngloGold Ashanti announced on January 29, 2008, that it had begun the
process to restart production at its South African operations following a meeting with Eskom and
industrial electricity consumers at which, Eskom had agreed to provide AngloGold Ashanti with
90 percent of its electricity demand prior to the shut down so as to return the operations to normal
production.

Forward-looking statements

Except for historical information, there may be matters discussed in this interim report that are forward-
looking statements. In particular, the statements made under “Gold market” regarding the future
performance of the gold and currency markets and “Liquidity and capital resources” regarding sources
of financing are forward-looking statements. Any such statement is only a prediction and actual
results, costs or events may differ materially. For a discussion of important factors including, but not
limited to, development of the Company’s business, the economic outlook in the gold industry,
expectations regarding gold prices and production, and other factors which could cause actual results,
costs and events to differ materially from such forward-looking statements, refer to AngloGold
Ashanti̵ 7;s annual report on Form 20-F for the year ended December 31, 2006 which was filed with the
United States Securities and Exchange Commission (SEC) on July 9, 2007. These statements speak
only as of the date they are given. AngloGold Ashanti undertakes no obligation to publicly update its
forward-looking statements, whether as a result of new information, future events or otherwise.

In connection with the proposed merger transaction involving AngloGold Ashanti and Golden Cycle Gold Corporation, AngloGold Ashanti will file with the SEC 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.

Golden Cycle Gold (GCGC) Inactive 425Business combination disclosure