RNS Number:2373T
Ashanti Goldfields Company Ld
12 December 2003


                            P R E S S  R E L E A S E


FOR IMMEDIATE RELEASE                                           12 December 2003

                                MERGER UPDATE


Further to the announcements by Ashanti Goldfields Company Limited ("Ashanti")
on 14 November 2003 and by AngloGold Limited ("AngloGold") and the Government of
Ghana (the "Government") on 29 and 30 October 2003, AngloGold has today
announced that it has reached agreement with the Government regarding the terms
of the Government's support for the proposed merger of Ashanti and AngloGold in
its capacity as both shareholder and regulator of Ashanti. In particular,
AngloGold has:

   * entered into a definitive support agreement with the Government in its
    role as holder of 16.8 per cent of Ashanti's issued ordinary share capital
    (the "Government Support Deed"); and

   * agreed the definitive terms of a stability agreement with the Government
    concerning certain fiscal and regulatory undertakings in its capacity as
    regulator of Ashanti (the "Stability Agreement"). AngloGold and the
    Government have agreed to enter into the Stability Agreement promptly after
    approval of such agreement by the Parliament of Ghana ("Parliament"). The
    Government has agreed to use its reasonable endeavours to obtain this
    approval prior to the implementation of the merger.

Under the Government Support Deed, the Government has agreed, amongst other
things, to vote in favour of the scheme of arrangement required to implement the
merger (the "Scheme") and to vote against any competing acquisition proposal to
acquire Ashanti or substantially all of its assets. The Government Support Deed
will automatically terminate if the Stability Agreement is not approved by
Parliament by 31 July 2004. The Government Support Deed will also terminate if
the transaction agreement entered into between AngloGold and Ashanti on 4 August
2003, as amended (the "Transaction Agreement"), is terminated in accordance with
its terms. However, the obligation of the Government to vote against any
competing acquisition proposal will survive the termination of the Government
Support Deed for a period of six months after the date of such termination (but
in no event later than 31 July 2004), unless termination of the Transaction
Agreement occurs:

   * by mutual written consent of AngloGold and Ashanti;
   * by either AngloGold or Ashanti if any action by any Governmental
    Authority (as defined in the Transaction Agreement) has the effect of making
    consummation of the Scheme illegal or otherwise prevents or prohibits
    consummation of the Scheme;
   * by either AngloGold or Ashanti if the Scheme has failed to receive the
    requisite vote of the members of Ashanti at the Scheme meeting;
   * by either AngloGold or Ashanti if the High Court of Ghana determines not
    to issue the Scheme order and issues an order to this effect; or
   * by AngloGold for any other reason.

Further details of the Government Support Deed and the Stability Agreement are
contained in the announcement made today by AngloGold.

To reflect the terms of these final agreements between AngloGold and the
Government, Ashanti and AngloGold have agreed to amend the Transaction Agreement
as follows:

   * the provision in the Transaction Agreement that provided for its
    termination in the event that formal agreements in respect of certain
    undertakings and support by the Government were not finalised before 12
    December 2003 (or such later date as may be agreed by Ashanti and AngloGold)
    has been deleted;

   * the date on or before which the conditions to the completion of the
    merger must be satisfied and/or waived has been extended to 31 May 2004 (or
    such later date as may be agreed by AngloGold and Ashanti);

   * the Scheme will be conditional on the receipt of the Parliament's
    approval of the Stability Agreement and the execution and delivery of the
    Stability Agreement by the Government; and

   * the Transaction Agreement originally provided that three Ghanaian
    citizens will be appointed to the board of AngloGold as additional directors
    on completion of the merger, one of whom would be Sam Esson Jonah (who will
    also be appointed President of AngloGold). This clause has been amended to
    provide that the other two directors will be directors recommended by the
    Government and acceptable to Ashanti and the board of AngloGold, in
    accordance with relevant applicable company laws.

There can be no assurance that a transaction with AngloGold will be completed.
The implementation of the merger remains subject to the fulfillment of the
conditions as announced on 4 August 2003. Consequently, shareholders of Ashanti
are advised to exercise caution when dealing in the relevant securities.

End

For further information contact:

Ashanti Goldfields Company Limited
Srinivasan Venkatakrishnan (Venkat)                Tel: +233 21 778 171
Kwaku Akosah-Bempah                                Tel: +233 21 778 173
Corinne Gaisie                                     Tel: +44 20 7256 9938

Grandfield
UK Investors and Media
Charles Cook                                       Tel: +44 20 7417 4170
Matthew Jervois

The Global Consulting Group
North American Contact
Allan Jordan                                       Tel: +1 646 284 9452

CIBC World Markets
Andy Quinn                                         Tel: +44 20 7234 6000


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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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