LONDON BULLION MARKET ASSOCIATION STAND AND DELIVER! THE WAY FORWARD FOR GOLD MINING EQUITIES

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1 LONDON BULLION MARKET ASSOCIATION STAND AND DELIVER! THE WAY FORWARD FOR GOLD MINING EQUITIES CHARLES CARTER 3 SEPTEMBER 213 Disclaimer Certain statements contained in this presentation, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti s exploration and production projects and the completion of acquisitions and dispositions, AngloGold Ashanti s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental issues, are forward-looking statements regarding AngloGold Ashanti s operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to the prospectus supplement to AngloGold Ashanti s prospectus dated 17 July 212 that was filed with the Securities and Exchange Commission ( SEC ) on 26 July 213. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein. This communication may contain certain Non-GAAP financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts information that is important to investors on the main page of its website at and under the Investors tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti. 2 London Bullion Market Association Presentation 1

2 Changing correlation between Metal and Miners Gold equities have recently underperformed bullion due to a lack of leverage 22-7: Gold equities outperformance : Gold equities underperformance 45 Performance (Rebased to 1 as of Jan. '2) Performance (Rebased to 1 as of Jan '8) Gold equities¹ Gold price Gold equities¹ Gold price Note: 1 Median of US$ denominated share price performance for Goldcorp, Newmont, Newcrest, AngloGold Ashanti, Gold Fields and Barrick Gold. and gold s recent fall and increased volatility has increased the pressure on miners. 3 London Bullion Market Association Presentation Producers outperform Juniors/explorers in volatile markets Juniors and explorers have underperformed the most Larger gold producers vs. juniors vs. explorers Performance from November 21 (introduction of GLDX) /11/4 211/1/3 211/3/4 211/5/3 211/7/2 211/8/31 211/1/3 211/12/29 212/2/27 212/4/27 212/6/26 212/8/25 212/1/24 212/12/23 213/2/21 213/4/22 213/6/21 Market Vectors Junior Gold Miners ETF Market Vectors Gold Miners ETF Global X Funds (Gold Explorers) with greater exposure to the factors that are undermining performance across the sector. 4 London Bullion Market Association Presentation 2

3 The industry has faced a myriad challenges Producers have faced a range of exogenous issues plus those of their own making PROJECT EXECUTION REGULATORY Capital overruns for major peer group >$15bn. Significant delays for key projects, with contractor management open to question. Results point to mixed execution capability, which has been seen as much in gold sector as with diversified majors. Stakeholders demanding greater accountability from extractive companies in general. Environmental standards and enforcement are in constant transition, as is broader mine regulatory framework in many jurisdictions. Pressure from countries to boost revenue has placed upward pressure in taxes and royalties, at a time when businesses are already stressed. LABOUR/COMMUNITY Skilled labour costs have soared due to scarcity within broader extractive and engineering sectors. In some jurisdictions, relationships with organised labour have become increasingly more complex. Communities are demanding greater inward investment in non-mining infrastructure and in some cases resisting mine development. CAPITAL ALLOCATION Capital allocation over last few years devoted to organic expansion with high prices able to absorb significant capital costs. Average global head grade has dropped 4% in past 15 years to 1.2 g/t today, often with more complex metallurgies in multi-metal deposits. Balanced focus on returns, rather than simply growth, is a recent phenomenon. which need to be overcome or resolved to restore investor confidence. 5 London Bullion Market Association Presentation Gold producers did not deliver the benefits from the higher gold price EBITDA margins failed to keep pace with the rising gold price Gold, GDX, and EBITDA margins Quarterly performance from Q9 2Q9 3Q9 4Q9 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 EBITDA margin (Index 1Q 9) Gold (Indexed 29) GDX (Indexed 29) Note: Gold producers analysed in the following slides include AngloGold Ashanti, Barrick, Goldcorp, Gold Fields, Harmony, Kinross, Newcrest, Newmont, Randgold & Sibanye, based on company filings. which has driven equity underperformance as investors turn to ETFs to remove margin risk. 6 London Bullion Market Association Presentation 3

4 Capital and operating cost pressures have dominated Performance has lagged due to inflationary pressure and investment commitments Costs/gold price/equity performance RHS: $/oz 7 Gold price volatility and declining real cash margins contributed to equity underperformance Q9 2Q9 3Q9 4Q9 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 All-in sustaining margin $/oz All-in cash costs margin $/oz Gold (Indexed 29) GDX (Indexed 29) 1.5 and now all-in-cost margins have shrunk dramatically given gold s retracement. 7 London Bullion Market Association Presentation Capital intensity has been rising while production has declined Capital spend has seen a significant increase, while production has been declining Peer group quarterly capital expenditures and production LHS: $/oz RHS: oz Q9 2Q9 3Q9 4Q9 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Project capex per oz SIB capex per oz Au Production further diminishing the investment appeal of gold producers. 8 London Bullion Market Association Presentation 4

5 Balance sheets also now under pressure Gold price volatility and capital overruns have put pressure on balance sheets Net/Debt to EBITDA Gold major peer group Q9 2Q9 3Q9 4Q9 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Net Debt/EBITDA with rising debt levels raising concerns about dividend levels and potential refinancing. 9 London Bullion Market Association Presentation Impairments have risen Total impairments +$36bn since 28 Yearly impairments/(reversals) since 28 $bn (.7) (.1) (.1) Other AngloGold Ashanti² Barrick Gold³ Gold Fields⁴ Kinross Newcrest⁵ Source: Company filings and FactSet (1) Represents total pre-tex impairments since 28 net of reversals divided by average market capitalisation from 31/12/7 to current (2) Represents impairment of goodwill and tangible assets (including derecognition of assets) (3) Represents impairment of goodwill and non-current assets (4) Based on Gold Fields's June fiscal year end from and December fiscal year end from No impairments were recorded from Jun-1 Dec-1 (5) Based on Newcrest's June fiscal year end 1 London Bullion Market Association Presentation 5

6 Is the industry finding religion? The industry has made a commitment to getting the basics right to deliver leverage Capital Discipline Cash Flow Optimisation No more growth at any cost Brownfield over greenfield projects Shelving projects with sub-par returns Quality over quantity Focus on all-in costs Positioning for a lower gold price Overhead costs under scrutiny Simplifying portfolios SHAREHOLDER RETURNS and is taking decisive steps to focus on returns, cash flow and consistent performance. 11 London Bullion Market Association Presentation Pathway to delivering value Controlling costs is the primary concern and converting that into cash flow Outperformer cash margins per ounce RHS: USD per ounce; LHS: Index base at 1Q Q1 2Q1 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 All-in sustaining margin $/oz All-in cash costs margin $/oz Outperformer Mkt Cap (Indexed 21) GDX (Indexed 21) provides the pathway to out performing physical gold. 12 London Bullion Market Association Presentation 6

7 Pathway to delivering value EBITDA margin growth should coincide with higher gold prices EBITDA margin progression for peer group and outperformer % Outperformer EBITDA margin Peer Group average Peer Group Market Cap performance (RHS) Outperformer Mkt Cap performance (RHS) leading to higher trading multiples as prospects improve creating further upside potential. 13 London Bullion Market Association Presentation AngloGold Ashanti s approach to delivering value Maximising sustainable free cash flow from a high-quality portfolio Revenue Enhancement New Projects >55Koz new, lower cost production in 214 Brownfield expansions ~2Koz new, lower cost ounces by 216 Remove unprofitable ounces Reassess mine plans; divesture of assets Cost Reduction ~$437- $482m targeted savings in 214 vs. 212 spend Sustaining capital savings Direct cost reductions Exploration rationalisation Corporate cost savings Maintain Optionality SA Technology Project Targeting significant productivity improvements at deep level mining operations Exploration Focused brownfield program with work on key strategic greenfield targets Shareholder Returns whilst maintaining the long-term integrity of the business. 14 London Bullion Market Association Presentation 7

8 Project capex is set to decline Key projects are nearing completion on schedule Tropicana, Kibali and CC&V (MLE2)¹ US$m kozs Project capex New production Note: 1 Current estimates; excludes roll overs; forward looking project capex still under review and subject to change. reducing capex and improving cash flow. 15 London Bullion Market Association Presentation Driving towards a lower overhead cost structure Exploration and corporate costs are being reduced $m ~$46m savings (vs. 212) (Actual) 213 (initial Guidance) 213 (revised Guidance) 214 (Mid point guidance) Expensed Exploration & Evaluation Corporate Costs to improve cash flow and streamline the business in a volatile gold market. 16 London Bullion Market Association Presentation 8

9 Building a long-term business to deliver leverage to the gold price The industry is course correcting, with AngloGold Ashanti moving decisively PROJECTS to restructure its business for sustained outperformance. 17 London Bullion Market Association Presentation 9