Highlights

--  Operated a record 110 days without a fatality, with good progress made
    on safety across the business.
--  Gold production at 1.25Moz, 5% higher than prior quarter, and 3% above
    guidance.
--  Total cash costs at $434/oz, marginally higher than the previous
    quarter, a 6% improvement on guidance.
--  Hedge book reduced by 3.15Moz during the quarter, ahead of schedule,
    with commitments now at 6.88Moz.
--  Following gold hedge book and uranium contract reductions, adjusted
    headline loss at $946m. Adjusted headline earnings (excluding such one-off
    items) at $50m -- down from $105m in the prior quarter.
--  Interim dividend declared of 50 South African cents per share and
    6.7 US cents per share, for the six months ended 30 June 2008.
    

Detail

AngloGold Ashanti reported an improved safety performance during the quarter, with the company operating a record 110 days without experiencing a fatal accident. The achievement of further safety improvements through initiatives such as the company's 'Safety is our first value' campaign remains a top priority across the business. Since the introduction of the campaign in November 2007, the company has seen a 75% reduction in fatality rates.

Operational performance saw second quarter production at 1.25Moz, 5% higher than the previous quarter and 3% better than guidance provided in May 2008, primarily due to improved performances from Mponeng and TauTona in South Africa and Geita Gold Mine in Tanzania. At its South African operations, the company achieved its target of a 5% saving of power, six months ahead of schedule, while operating at 100% production capacity.

Total cash costs for the quarter at $434/oz were marginally higher than the prior quarter and 7% better than guidance. Cost increases were driven primarily by input cost inflation, but were partially offset by improved production and stock-pile movements.

AngloGold Ashanti reported that following its successful offer to raise $1.7bn, substantial progress was made ahead of schedule in the reduction in its hedge book. The company capitalised on a weaker gold market during the quarter to execute a combination of delivery and early settlement of non-hedge derivatives, reducing total hedge commitments from 10.03Moz at the end of the March 2008 quarter to 6.88Moz at 30 June 2008.