Brazil

AngloGold Ashanti’s two assets in Brazil are:

• AngloGold Ashanti Brasil Mineração
• Serra Grande

In 2007, these operations together produced an attributable 408,000 ounces of gold, equivalent to 7% of group production.

AngloGold Ashanti Brasil Mineração

Description: The wholly owned AngloGold Ashanti Brasil Mineração (Brasil Mineração) complex is located in south-eastern Brazil in the state of Minas Gerais, close to the city of Belo Horizonte, in the municipalities of Nova Lima, Sabará and Santa Bárbara. Ore is sourced from the Cuiabá underground mine, and then processed at the Cuiabá and Queiroz plants, and from the Córrego do Sítio heap-leach operation.

Safety: Safety levels were maintained during the course of the year with little change in the LTIFR (LTIFR 2007: 2.30; LTIFR 2006: 2.33). No fatalities were recorded.

Operating review: Production increased by 31% to 317,000 ounces in line with expectations (2006: 242,000 ounces), boosted by the commissioning and start-up of the Cuiabá Expansion Project. Although the rainy season at the start of the year hampered heap-leach activities and delayed the start up of the Cuiabá Expansion Project, by the end of the year, operating performance had improved. The Cuiabá Expansion Project, which has been undertaken at a total cost of $206 million, includes the deepening of the underground mine, the construction of new treatment and tailings storage facilities, a roaster and an acid plant. The entire circuit has now been integrated and is operational from the underground Cuiabá mine crushing area to the Queiroz processing plant. No significant problems were experienced in increasing mine throughput from 830,000 tonnes to an average of 1.3 million tonnes annually. This project will add six years to the life of mine of Brasil Mineração.

From an operational perspective, actions such as the setting of new development rates, a new ramp, improvements to mine infrastructure and layout and improved geotechnical conditions are being implemented to consolidate a sustainable long-term rate of production. A 7% increase in the volume of tonnages treated has been planned to offset a 5% decline in grades for 2008.

Total cash costs rose by 19% to $233/oz compared to $195/oz in 2006. Higher costs were largely a result of the appreciation in the local Brazilian currency (the real) against the US dollar, lower grades, the reduction in by-product credits received for sulphuric acid and an increase in the operational cycle of the mine in deeper levels in addition to a new plant at Cuiabá site.

Capital expenditure for the year totalled $117 million, significantly down on that of 2006 ($168 million) as the Cuiabá Expansion Project was completed.

Adjusted gross profit rose 2% to $88 million, largely as a consequence of a 25% increase in gold sold and 4% as a result of the improved price received, which offset the higher costs.

Growth prospects: The Córrego do Sítio Underground Sulphide Project is investigating the viability of exploiting the potential sulphide ore resources of the Córrego do Sítio underground orebodies, namely Cachorro Bravo, Laranjeira and Carvoaria. The results from the study for this project were released in 2007. This project, which is expected to produce 100,000 ounces of gold annually over 14 years from a total of 6.8Mt of ore milled, is scheduled to begin in mid-2011.

The development of a ramp and the exposure of the Cachorro Bravo orebody are continuing. The development of access drives to the Carvoaria orebody is ongoing and exposure of the Laranjeira orebody to increase the extent of the mineable resource has begun. Trial mining on the Cachorro Bravo orebody is in progress and generating data for the feasibility study.

The Lamego Project explores the orebodies on the Lamego property. This project is expected to produce approximately 500,000 ounces over nine years. However, given the geological similarity of Lamego to that of the nearby Cuiabá mine, and the lack of information regarding the deeper levels of Lamego, a more aggressive exploration programme was budgeted for in 2007 and 2008 so as to evaluate the potential of increasing current expected production at Lamego to levels similar to those of the Cuiabá operation. During 2007, development totalled 3,274 metres. A pre-feasibility study will be conducted in 2008.

Outlook: Production at Brasil Mineração in 2008 is projected to be in a range from 318,000 to 328,000 ounces, boosted by the continued ramp up of the Cuiabá expansion. In line with this, total cash costs are expected to be between $283/oz and $293/oz while capital expenditure will be approximately $70 million.

Serra Grande

Description: Serra Grande is located in central Brazil, in the state of Goiás, five kilometres from the city of Crixás. AngloGold Ashanti and the Kinross Gold Corporation are joint partners in this operation. In terms of the shareholders’ agreement, AngloGold Ashanti manages the operation and has the right to access a maximum of 50% of the earnings accrued and dividends paid by Serra Grande.

Serra Grande comprises two underground mines, Mina III and Mina Nova, and an open pit at Mina III which began operation in 2007. The processing circuit, with grinding, leaching, filtration, precipitation and smelting facilities, has a capacity of about 800,000t of ore a year.

Safety: Safety levels deteriorated during the course of the year and there was one fatality due to a rockfall in the second quarter of the year. This was the first fatality ever involving an employee of Serra Grande. Corrective action has been taken. The LTIFR for the year was 2.47 (2006: 1.76) while the FIFR was 0.49 (2006: nil).

Operating review: Attributable production at 91,000 ounces (2006: 97,000 ounces) decreased by 6% chiefly due to the lower grades mined. The open-pit, which has a resource of 210,000 ounces began operating in July 2007 and is expected to produce an average of 26,000 ounces annually.

Total cash costs increased by 33% to $263/oz, largely due to the lower grade of the material available for treatment, an appreciating local currency (the real) and inflation which affected the costs of power, labour, material and services.

Adjusted gross profit rose 4% to $27 million, as a consequence of a 17% improvement in the price received and 1% increase in the amount of gold sold which, combined, offset the higher costs.

Capital expenditure amounted to $24 million – $12 million attributable. Capital expenditure was also negatively impacted by the appreciation in the local currency. The development of the Palmeiras orebody was delayed to 2008 as agreement with landowners was only finalised in December 2007.

Growth prospects: An aggressive brownfields exploration campaign at Serra Grande aims to increase reserves and resources in and around Mina III and Mina Nova. In 2007, there was an increase in reserves at Mina Nova and Mina III (orebody 4) and a new orebody named Pequizão was discovered between Mina Nova and Mina III. In 2008, the intention is to re-evaluate resources and reserves including Pequizão and start the main access to the Palmeiras mine. The access ramp project was finished by the end of 2007 and the development should start in March.

Outlook: Attributable gold production at Serra Grande is projected to be between 82,000 and 87,000 ounces in 2008, a decrease of 4% due to lower grades. Total cash costs are expected to be around $305/oz to $315/oz and capital expenditure of $40 million ($20 million attributable to AngloGold Ashanti) is to be spent.