Ashanti Goldfields Company Merger Update

On 27 October 2003, Ashanti Goldfields Company Limited ("Ashanti") announced that the Board of Ashanti continued to recommend the revised merger proposal from AngloGold Limited ("AngloGold"). As set out in the detailed announcements of 4 August and 14 October 2003, the merger is conditional on the support of the Government of Ghana ("Government"), both in its capacity as regulator and shareholder of Ashanti. On 30 October 2003, AngloGold announced that the Government had confirmed the principal terms of the agreement that it will enter into as regulator of, and shareholder in, Ashanti. In order to allow AngloGold and the Government time to finalise the formal agreements regarding such undertakings and support, AngloGold and Ashanti have agreed to extend the date on which the transaction agreement would have otherwise terminated to 12 December 2003, or such later date as may be agreed by AngloGold and Ashanti.

There can be no assurance that a transaction with AngloGold will be completed. Consequently, shareholders of Ashanti are advised to exercise caution when dealing in the relevant securities.

Certain statements in this announcement are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.

For a discussion of the important factors and risks involved in Ashanti's business refer to Ashanti's filings with the U.S. Securities and Exchange Commission (the "Commission"), including Ashanti's amended annual report on Form 20-F/A for the year ended 31 December 2002, filed with the Commission on 17 June 2003.

Ashanti does not undertake any obligation to update publicly any forward-looking statements discussed in this announcement, whether as a result of new information, future events or otherwise.