<PAGE>



================================================================================

                                    FORM 20-F

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                           For the fiscal year ended:
                               December 31, 2002

                                   ----------

                         Commission File number 1-14212

                       ASHANTI GOLDFIELDS COMPANY LIMITED
             (Exact name of Registrant as specified in its charter)

                                       N/A
                 (Translation of Registrant's name into English)

                                Republic of Ghana
                 (Jurisdiction of incorporation or organization)

   Gold House, Patrice Lumumba Road, Roman Ridge, P.O. Box 2665, Accra, Ghana
                    (Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

                                                   Name of each exchange
           Title of each class                      on which registered
           -------------------                     ---------------------
       Global Depositary Receipts                 New York Stock Exchange
     Ordinary Shares, no par value                New York Stock Exchange
                                                (for listing purposes only)

                                   ----------

Securities registered or to be registered pursuant to Section 12(g) of the Act:
                                      None

Securities for which there is a reporting obligation pursuant to Section 15(d)
of the Act:
                                      None

Indicate the number of outstanding shares of each of the issuer's classes of
capital or common stock as of the close of the period covered by the annual
report:

                 127,453,320 Ordinary Shares of no par value and
                       1 Preference Share of no par value

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days: Yes [X] No[_]

     Indicate by check mark which financial statement item the Registrant has
elected to follow:
                             Item 17 [_] Item 18 [X]

--------------------------------------------------------------------------------






<PAGE>




TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                              Page
                                                                                              ----

<S>                                                                                            <C>
Introduction ..............................................................................      4
           Forward Looking Information ....................................................      4
           Enforceability of Civil Liabilities ............................................      5

Part I
Item 1:    Identity of Directors, Senior Management and Advisers ..........................      6
Item 2:    Offer Statistics and Expected Timetable ........................................      6
Item 3:    Key Information ................................................................      6
           A. Selected Financial Data .....................................................      6
           B. Capitalization and Indebtedness .............................................      8
           C. Reasons for the Offer and Use of Proceeds ...................................      8
           D. Risk Factors ................................................................      9
Item 4:    Information on the Company .....................................................     17
           A. History and Development of the Company ......................................     17
           B. Business Overview ...........................................................     18
           C. Organizational Structure ....................................................     61
           D. Property, Plants and Equipment ..............................................     63
Item 5:    Operating and Financial Review and Prospects ...................................     64
           A. Operating Results ...........................................................     64
           B. Liquidity and Capital Resources .............................................     75
           C. Research and Development, Patents and Licenses, etc .........................     77
           D. Trend Information ...........................................................     77
Item 6:    Directors, Senior Management and Employees .....................................     78
           A. Directors and Senior Management .............................................     78
           B. Compensation ................................................................     83
           C. Board Practices .............................................................     87
           D. Employees ...................................................................     87
           E. Share Ownership .............................................................     87
Item 7:    Major Shareholders and Related Party Transactions ..............................     88
           A. Major Shareholders ..........................................................     88
           B. Related Party Transactions ..................................................     89
           C. Interests of Experts and Counsel ............................................     90
Item 8:    Financial Information ..........................................................     91
           A. Consolidated Statements and Other Financial Information .....................     91
           B. Significant Changes .........................................................     92
Item 9:    The Offer and Listing ..........................................................     93
           A. Offer and Listing Details ...................................................     93
           B. Plan of Distribution ........................................................     96
           C. Markets .....................................................................     96
           D. Selling Shareholders ........................................................     96
           E. Dilution ....................................................................     96
           F. Expenses of the Issue .......................................................     96
</TABLE>


                                       2






<PAGE>




<TABLE>
<S>                                                                                            <C>
Item 10:   Additional Information .........................................................     97
           A. Share Capital ...............................................................     97
           B. Memorandum and Articles of Association ......................................     97
           C. Material Contracts ..........................................................    106
           D. Exchange Controls ...........................................................    114
           E. Taxation ....................................................................    114
           F. Dividends and Paying Agents .................................................    116
           G. Statement by Experts ........................................................    116
           H. Documents on Display ........................................................    116
           I. Subsidiary Information ......................................................    116
Item 11:   Quantitative and Qualitative Disclosures About Market Risk .....................    117
Item 12:   Description of Securities Other than Equity Securities .........................    127

Part II
Item 13:   Defaults, Dividend Arrearages and Delinquencies ................................    128
Item 14:   Material Modifications to the Rights of Security Holders and Use of Proceeds ...    128
Item 15:   Controls and Procedures ........................................................    128
Item 16:   Reserved .......................................................................    128

Part III
Item 17:   Financial Statements ...........................................................    129
Item 18:   Financial Statements ...........................................................    129
Item 19:   Exhibits .......................................................................    129
</TABLE>


                                       3






<PAGE>




INTRODUCTION

We are a company incorporated under the laws of Ghana and all of our mining
operations are located in Africa. We earn our revenues in US dollars and the
majority of our transactions are in US dollars or based on US dollars. Our books
of account are maintained in US dollars and our annual and quarterly financial
statements are prepared under the historical cost convention and in accordance
with accounting principles generally accepted in the United Kingdom, or UK GAAP.
UK GAAP differs in significant respects from accounting principles generally
accepted in the United States of America, or US GAAP. This annual report
includes our consolidated balance sheets as of December 31, 2002 and 2001, and
the related consolidated profit and loss accounts, cash flow statements,
statements of total recognized gains and losses and the reconciliation of
movements in shareholders' funds for each of the three years in the period ended
December31, 2002. Note 32 to our consolidated financial statements sets forth a
reconciliation from UK to US GAAP of shareholders' equity as of December 31,
2002 and 2001 and the profit/loss attributable to shareholders for each of the
three years in the period ended December 31, 2002.

Forward-looking Information

This annual report, including the sections entitled "Risk Factors," "Operating
and Financial Review and Prospects," and "Business Overview," contains
forward-looking information. In some cases you can identify forward-looking
statements by phrases such as "in our view," "we cannot assure you," as well as
by terminology such as "may," "will," "should," "expects," "intends," "plans,"
"objectives," "goals," "aims," "projects," "forecasts," "possible," "seeks,"
"could," "might," "likely," "enable," "anticipates," "believes," "estimates,"
"predicts," "potential," or "continue," or the negative of these terms or other
comparable terminology. These statements generally constitute statements of
expectation, intent and anticipation and may turn out to be inaccurate.

We can give you no assurances that the results, including the actual production
or commencement dates, construction completion dates, costs or production output
or anticipated life of the projects and mines, projected cashflows, debt levels,
and marked-to-market values of and cashflows from the hedgebook will not differ
materially from the forward-looking statements contained in this annual report.
These forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors, many of which
are beyond our control, which may cause actual results to differ materially from
those expressed in the forward-looking statements contained in this annual
report. These risks include those relating to leverage, gold price volatility,
changes in interest rates, hedging operations, reserves estimates, exploration
and development, mining, yearly output, power supply, Ghanaian political risks,
environmental regulation, labor relations, general political risks, control by
principal shareholders, Ghanaian statutory provisions, dividends, litigation and
rights issue risk. For example, future revenues from projects or mines will be
based in part upon the market price of gold, which may vary significantly from
current levels. Any variations, if materially adverse, may impact the timing or
feasibility of the developments of a particular project or the expansion of
specified mines.

Other factors that may affect the actual construction or production commencement
dates, costs or production output and anticipated lives of mines include the
ability to profitably produce and transport gold to applicable markets, the
impact of foreign currency exchange rates, the impact of any increase in the
costs of inputs, and activities by governmental authorities where such projects
or mines are being explored or developed, including increases in taxes, changes
in environmental or other regulations and political uncertainty. Likewise
marked-to-market values of and cashflows from the hedgebook can be affected by,
amongst other things, gold price volatility, US interest rates, gold lease rates
and active management of the hedgebook.

Forward-looking statements speak only as of the date they are made, and we
undertake no obligation to update publicly any of them in light of new
information or future events, except as required by law.

Actual events or results may differ materially from any forward-looking
statement. In evaluating these statements you should specifically consider
various factors including the risks outlined under "Risk Factors." Although we
believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements.


                                       4






<PAGE>




Enforceability of Civil Liabilities

We are a public limited company incorporated under the laws of Ghana. Almost all
of our directors and officers, and the experts named in this document, reside
outside the United States, principally in Ghana and the United Kingdom. Almost
all of our assets and the assets of such persons are located outside the United
States. You may not be able, therefore, to effect service of process within the
United States upon us or these persons or to enforce, in US courts, judgments
against them, or us, obtained in those courts based upon the civil liability
provisions of the federal securities laws of the United States. Norton Rose, our
UK legal adviser, has advised us that there is substantial doubt as to the
enforceability in England and Wales, in original actions or in actions for
enforcement, of judgments of US courts based on the civil liability provisions
of the federal securities laws of the United States. Further, Tetteh & Co., our
Ghanaian legal adviser, has advised us that there is substantial doubt as to the
enforceability in Ghana, in original actions or in actions for enforcement, of
judgments of US courts based on the civil liability provisions of the federal
securities laws of the United States.


                                       5






<PAGE>




                                     PART I

ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

Not applicable.

ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3: KEY INFORMATION

A. Selected Financial Data

The selected consolidated financial data presented below should be read in
conjunction with "Operating and Financial Review and Prospects" and our
historical consolidated financial statements and the notes to those statements
included elsewhere in this annual report.

The selected consolidated financial data presented below as of December 31, 2002
and 2001 and for each of the three years in the period ended December 31, 2002,
have been derived from our audited consolidated financial statements and the
notes thereto that are included elsewhere in this annual report. The selected
consolidated financial data presented below as of December 31, 2000, 1999 and
1998 and for the years ended December 31, 1999 and 1998 has been derived from
our audited consolidated financial statements and the notes thereto that are not
included in this annual report. We prepare our consolidated financial statements
in accordance with UK GAAP, which differs in certain significant respects from
US GAAP.


                                       6






<PAGE>




<TABLE>
<CAPTION>
                                                                  12 Months       12 Months       12 Months        12 Months
                                                   12 Months     to Dec. 31,     to Dec. 31,      to Dec. 31,     to Dec. 31,
                                                  to Dec. 31,       2001             2000             1999           1998
                                                      2002      (Restated)(5)   (Restated)(5)   (Restated)(5)   (Restated)(5)
-----------------------------------------------------------------------------------------------------------------------------
                                                                          (in US$ millions except
                                                                      dividend and per share numbers)
<S>                                                 <C>             <C>            <C>              <C>             <C>
PROFIT AND LOSS ACCOUNT DATA(1)
Amounts in accordance with UK GAAP:
   Group revenue                                     467.5          477.7           582.2            582.1          600.3
   Total revenue                                     552.2          554.4           582.2            582.1          600.3
   Group operating profit/(loss)                      66.4           76.6          (126.1)            17.2           90.3
   Operating profit/(loss)                            74.3           96.8          (126.1)            17.2           90.3
   Profit/(loss) attributable to shareholders         56.2           59.9          (119.5)           (71.9)          76.0
   Earnings/(loss) per share(2)                       0.47           0.53           (1.06)           (0.65)          0.70
   Diluted earnings/(loss) per share                  0.44           0.52           (1.52)           (0.69)          0.70
   Dividends per share - (US$)(3)                       --             --              --               --           0.10
                      - (cedi)(3)                       --             --              --               --            233
Amounts in accordance with US GAAP:
   Revenue                                           492.4          474.5           582.2            582.1          600.3
   Operating (loss)/profit                          (135.1)          61.4          (407.9)          (254.4)         (74.2)
   Net (loss)/profit before cumulative
      effect of an accounting change                (182.8)          33.1          (349.1)          (335.4)          12.1
   Net (loss)/profit                                (182.8)          65.4          (349.1)          (335.4)          12.1
Earnings per share (US$):
   Basic:
   (Loss)/earnings per share before
      cumulative effect of an accounting change      (1.53)          0.30           (3.11)           (3.01)          0.11
   Cumulative effect of an accounting change            --           0.28              --               --             --
   (Loss)/earnings per share                         (1.53)          0.58           (3.11)           (3.01)          0.11

   Diluted:
   (Loss)/earnings per share cumulative effect
      of an accounting change                        (1.53)          0.29           (3.11)           (3.01)          0.11
   Cumulative effect of an accounting change            --           0.28              --               --             --
   (Loss)/earnings per share                         (1.53)          0.57           (3.11)           (3.01)          0.11
=============================================================================================================================
</TABLE>


                                       7






<PAGE>




<TABLE>
<CAPTION>
                                                          As of           As of           As of           As of
                                            As of       Dec. 31,         Dec. 31,        Dec. 31,        Dec. 31,
                                           Dec. 31,      2001              2000            1999           1998
                                            2002(4)   (Restated)(5)   (Restated)(5)   (Restated)(5)   (Restated)(5)
-------------------------------------------------------------------------------------------------------------------
                                                                    (in US$ millions except
                                                                   dividend and share numbers)
<S>                                          <C>          <C>             <C>            <C>             <C>
BALANCE SHEET DATA(1)
Amounts in accordance with UK GAAP:
   Total assets                              884.5        897.7           937.9          1,337.4         1,489.3
   Long-term borrowings                      254.2        300.6           358.5            423.2           414.3
   Net assets                                447.5        349.1           290.4            382.3           431.2
   Equity shareholders' funds                446.3        347.1           286.3            381.2           427.4
   Stated capital                            588.2        545.2           544.3            544.3           518.6
   Number of ordinary shares as adjusted
      to reflect changes in capital
      (million shares)                       119.1        112.1           112.4            111.4           108.7
Amounts in accordance with US GAAP:
   Total assets                              698.4        887.3           878.0          1,560.3         1,876.9
   Long-term borrowings                      254.2        300.6           358.5            445.2           431.3
   Net assets                                110.3        310.5           182.4            528.4           845.9
   Shareholders' equity                      109.1        308.5           178.3            527.3           842.1
===================================================================================================================
</TABLE>

NOTES:

(1)  Our consolidated financial statements are prepared in accordance with UK
     GAAP, which differs in certain significant respects from US GAAP. Details
     of the principal differences between UK GAAP and US GAAP relevant to us are
     set out in note 32 to our audited consolidated financial statements, which
     are included elsewhere in this annual report.

(2)  Based on profit after tax and minority interests and weighted average
     number of shares outstanding of 119.1 million, 112.1 million, 112.4
     million, 111.4 million and 108.7 million for the 12 months to December 31,
     2002, 2001, 2000, 1999 and 1998 respectively.

(3)  No interim dividend was paid in respect of the years ended December 31,
     2002, 2001, 2000, 1999 and 1998. No final dividend was paid for 2002 (2001:
     Nil, 2000: Nil, 1999: Nil, 1998: US$0.10). The local currency equivalents
     have been converted at the then-prevailing cedi exchange rates.

(4)  Amounts shown in accordance with US GAAP as of and for the year ended
     December 31, 2002 reflect the adoption of Statement of Financial Accounting
     Standards ("SFAS") No. 142, Goodwill and Other Intangible Assets ("SFAS
     142") on January 1, 2002. Consequently, the financial information presented
     for comparative periods has not been prepared on a consistent basis in this
     regard. The effects of adoption of SFAS 142 are discussed in note 32 to our
     consolidated financial statements.

(5)  Amounts presented for comparative periods in accordance with UK GAAP have
     been restated for the adoption of Financial Reporting Standard ("FRS")19,
     Deferred Tax ("FRS19"). The restated deferred tax assets/(liabilities) were
     US$6.9 million, US$1.7 million, US$(19.1) million and US$(131.2) million as
     of December 31, 2001, 2000, 1999 and 1998 respectively. Amounts presented
     in accordance with US GAAP for comparative periods have been restated for
     the adoption of SFAS No. 145, Rescission of FASB Statements No. 4, 44, and
     64, Amendment of FASB Statement No. 13, and Technical Corrections ("SFAS
     145") on January 1, 2002. On adoption, extraordinary items of US$0.8
     million and US$4.8 million for the years ended December 31, 1999 and 1998,
     respectively, were reclassified to non-operating income.

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.


                                       8






<PAGE>




D. Risk Factors

Because we have significant amounts of debt, our ability to exploit new business
opportunities and to avail ourselves of other funding options may be
constrained.

We remain highly leveraged. In our recent restructuring US$218.6 million
exchangeable notes and the balance of US$48 million of the previous credit
facility were replaced by an enlarged US$200 million credit facility, of which
US$149.0 million was drawn as of December 31, 2002, and US$75.0 million of
mandatorily exchangeable notes, or MENs. The MENs will be treated as debt until
their exchange into our ordinary shares. If our leverage remains high, the
availability of other financing options will be limited, our business will be
vulnerable to shortfalls in production and we may be unable to pursue other
business opportunities including further development of our existing properties.
In addition, because we have replaced the fixed interest rate existing notes
with variable rate bank debt and because of the fees payable pursuant to the
early exercise of some of our warrants, we are more exposed to an increase in
general interest rates than before that replacement. Furthermore, we have given
our lenders security interests over substantially all our assets. If they become
entitled to enforce these interests, they may liquidate our assets without our
consent.

Because our business is tied to the international market price of gold, and that
price has been volatile in the recent past, our success may fluctuate based upon
this price. Fluctuations of the gold price are not within our control.

Our profitability, viability, cash flow, ability to make capital expenditure and
carry out expansion plans can be significantly affected by changes in the market
price of gold as our revenues from mining are a product of gold production and
price.

Historically, gold prices have fluctuated and are affected by numerous industry
factors, such as sales and purchases of gold by central banks, demand for
precious metals, forward selling by producers, and production and cost levels in
major gold-producing regions. Moreover, gold prices are also affected by
macroeconomic factors such as expectations for inflation, interest rates,
currency exchange rates and global or regional political and economic
situations.

The price of gold is affected by supply and demand factors. However, these
factors may not influence the price of gold as markedly as they do in other
commodity markets owing to non-market related sales by central banks. The
potential supply of gold consists of new mine production plus existing stocks of
bullion and fabricated gold held by governments, central banks, financial
institutions, industrial organizations and individuals. The demand for gold
stems from jewelry demand, investment and industrial uses.

The price of gold has on occasion been subject to rapid short-term changes
because of a number of factors including actions taken by central banks and
financial institutions, economic conditions, announcements made by and in
respect of gold producers, movements in US interest and gold lease rates,
fluctuations in the US dollar, movements in stock market indices, speculative
activities and market concerns about peace and stability. If gold prices should
decline below our cash costs of production and remain at such levels for any
sustained period, we could determine that it is not economically feasible to
continue the commercial production of gold.

The following table sets forth the annual high, low and average of the afternoon
gold price fixed by the London Gold Market for the previous six years.

<TABLE>
<CAPTION>
                                     High   Low   Average
Year                                  US$   US$     US$
---------------------------------------------------------
<S>                                   <C>   <C>     <C>
1997                                  368   281     330
1998                                  313   273     294
1999                                  326   253     279
2000                                  313   264     279
2001                                  293   256     271
2002                                  349   278     310
</TABLE>

As at May 30, 2003, the afternoon gold price fixed by the London Gold Market
was US$361.

We conduct hedging operations to reduce the risk associated with gold price
volatility, but there is a risk that our hedging strategy will not be
successful.


                                       9






<PAGE>




Our hedging operations, which are intended to protect us against falling gold
prices, may cause us to lose the benefit of an increase in the price of gold or
obligate us to make payments to our hedge counterparties.

We engage in hedging transactions. We use various types of instruments in our
hedging activities, which include forward sales, options, and lease rate swaps.
We may not fully participate in increases in the spot price of gold on the
portion of our production that is hedged.

The cash flows from and marked-to-market values of our hedge book can be
affected by factors such as the market price of gold, gold price volatility, US
interest rates and gold lease rates, which are not under our control. In some
circumstances, we could have to make substantial payments to our hedge
counterparties.

Cash payments in respect of hedging transactions (other than those of our Geita
joint venture) will be made by our treasury company or us. Monies from the sale
of gold will be received by the mines. Where the mine is held through a
subsidiary company that has limitations on its ability to make distributions or
loans to us then, in the event of a rise in the price of gold, we may not always
be able to access the difference between the spot price of gold and the price at
which payments in respect of related hedging contracts are triggered.

Our hedging agreements can be terminated in limited circumstances. This could
require us to make substantial cash payments.

Our hedging transactions are now entitled to continuing margin-free trading
arrangements. Any existing rights to call for margin have been canceled and we
have agreed that, subject to limited exceptions, no new hedging agreements will
benefit from rights to call for margin. If these provisions and others are
breached by us, or if we are no longer in compliance with the hedge policy which
is currently in place or if the hedge policy is amended other than with the
approval of an appropriate majority of our hedge counterparties, then our hedge
counterparties will have a right to terminate their hedging agreements with us.
We cannot assure you that our affairs can be managed to prevent an event in the
future which gives rise to the right of the hedge counterparties to terminate
the hedging agreements.

Our hedging agreements also contain, among other things, events of default and
termination events which could lead to early close-outs of our hedges. These
include failure to pay, breach of the agreement, misrepresentation, default
under our loans or other hedging agreements, bankruptcy, merger without
assumption of our obligations and merger where the creditworthiness of the
resulting, surviving or transferee entity is materially weaker than us. Our
hedging agreements do not make express provisions for who would determine
whether the creditworthiness of the resulting, surviving or transferee entity in
a merger was materially weaker than us or the factors that would be taken into
consideration in such a determination. If we and the relevant hedge counterparty
or counterparties were unable to agree in this respect, the issue would be
decided by a court or arbitrator applying English law. Some of our hedging
contracts also contain optional early termination provisions pursuant to which
the relevant hedge counterparty can unilaterally elect to terminate the relevant
hedging contracts on specified dates. The first of these early termination
provisions which can apply can be exercised on June 30, 2008 and each subsequent
anniversary of the execution of the hedging contracts to which the option
applies.

In the event of an early termination of our hedging agreements, the cash flows
from the affected hedge instruments would cease and we and the relevant hedge
counterparty would settle all of our obligations at that time. In that event,
there could be a lump sum payment to be made either to or by us. The magnitude
and direction of such a payment would depend upon, among other things, the
characteristics of the particular hedge instruments that were terminated and the
market price of gold and gold price volatility, US interest rates and gold lease
rates at the time of termination. If we were required to make a sufficiently
large payment, it could materially adversely affect our financial condition.

If the negative marked-to-market value of the Geita hedgebook exceeds a
specified level, we will not be able to receive any cash from the Geita joint
venture.

Our Geita joint venture also engages in hedging transactions in respect of
production from the Geita mine. This hedging is carried out on a margin-free
basis. However, if at any time the aggregate marked-to-market value of the Geita
hedge book exceeds US$132.5 million (negative), then we will be restricted from
receiving cash from the joint venture until the marked-to-market value reduces
below that threshold. The hedging arrangements also provide for events of
default and termination events which could lead to early close-outs or lead to a
default in Geita's US$135.0 million project finance facility. The threshold of
US$132.5 million will


                                       10






<PAGE>




increase during the life of the Geita facility as principal repayments are made
and additional coverage becoming available under the political risk insurance.

Our reserve estimates may be revised downward in the future, as a result of
re-assessment or because of a fall in the price of gold, which would materially
harm our business.

We have prepared the ore reserve figures presented in accordance with industry
practice. However, these figures are estimates and there is a risk that the
indicated amount of gold might not be recovered. Reserve estimates may require
revisions based on, among other things, actual production experience, changes to
mining methods or processing techniques and changes in costs. Further, a decline
in the market price of gold may render ore reserves containing relatively lower
grades of gold mineralization uneconomical to recover and could ultimately
result in a restatement of our reserves. In recent years, we have restated our
reserves as a result of the decrease in the gold price. There is a risk that we
will have to restate our reserve estimates in the future as a result of further
decreases in the gold price or increases in costs. A downward restatement of
reserve estimates could have a negative impact on the lives of our mines and/or
future production levels which in turn could reduce future income and our
earnings.

Gold exploration is frequently unsuccessful, so we may not be able to discover
and exploit new reserves to replace those we are currently mining.

To maintain gold production into the future beyond the life of the current
reserves or to increase production materially above planned levels, we will be
required to discover further reserves. Exploration for gold is speculative in
nature, involves many risks and frequently is unsuccessful. Any gold exploration
program entails risks relating to the location of economic orebodies, the
development of appropriate metallurgical processes, the receipt of necessary
governmental permits and the construction of mining and processing facilities at
any site chosen for mining. There is a risk that our exploration efforts will
not result in the discovery of gold mineralization or that any mineralization
discovered will not result in an increase of our reserves. If we develop our
reserves, it can take a number of years and substantial expenditures from the
initial phases of drilling until production is possible, during which time the
economic feasibility of production may change. There is a risk that we will not
be able to fund future expenditure through debt or equity issues for major
developments to maintain production levels in future years. Our current proven
and probable contained gold reserves as at December 31, 2002 were approximately
27.8 million ounces, prior to making allowance for minority and joint venture
interests. There is a risk that our exploration programs will not result in the
replacement of current production with new reserves, or that our development
programs will not be able to extend the life of our existing mining operations
or result in any new commercial mining operations.

Our mines are subject to environmental and geological risks which could shut
down our operations.

The business of gold mining is subject to risks, including environmental hazards
(which could occur, for example, on the collapse of a tailings dam), geological
uncertainties and operating issues (for example, the collapse of a pit wall as
occurred at Obuasi and the collapse of the slope in the pit wall as occurred at
Bibiani), industrial accidents, discharge of toxic chemicals (such as cyanide),
fire, earthquakes and extreme weather conditions. At Obuasi, we are heavily
reliant on the availability of the KMS shaft and to a lesser extent KRS and GCS
shafts. Any serious damage to these shafts or any major mechanical failure would
have a significant impact on our revenues and any repair work could also require
significant expenditure. In Guinea, our Siguiri mine is responsible for shipping
cyanide to the mine site over land, including part of the journey by ferry
crossing over a river. Any spillage could cause environmental damage, expose us
to liability and/or slow our production at the mine. Any of these hazards could
delay production, increase production costs and result in liability for us.

We may sustain expenses related to mining risks that either exceed the values
of, or are outside the scope of, our current insurance policies.

We insure against certain risks of mining and processing. Our ability to
continue to obtain insurance at an economic price is largely dependent on the
state of the insurance market. Our insurance has monetary limits on the amount
that can be claimed and the deductibles. We may not be able to maintain the
current level of deductibles and may not be able to cover certain types of risk
currently insured. We do not currently insure against non-accidental and some
other environmental liabilities and are not able to obtain insurance for some


                                       11






<PAGE>




movements of bullion. We may become subject to liability for pollution or other
hazards against which we have not insured or cannot insure, including those in
respect of past mining activities. One of our insurers, Gerling NCM Credit and
Finance AG, who participates in the excess layer of our public liability
insurance through September 30, 2003, has recently experienced financial
difficulty. We have not instructed our brokers to replace their percentage, but
we cannot assure you that Gerling would have sufficient funds to pay any claim
made. Additionally, a large proportion of our insurance, including our main
Property and Business Interruption policy, is placed in, and re-insured with,
the African insurance market. These insurers may not have the same financial
resources as our European or American insurers and so may not be able to pay a
large claim in full. Additionally, if a Ghanaian insurance company was to become
insolvent, then due to provisions of the Ghanaian insurance and insolvency laws,
we may not be able to take full advantage of re-insurance placed in respect of
our policies.

Because we use mining contractors, we may face delays or suspensions of mining
activity that are beyond our control.

We use mining contractors to mine and deliver ore to the processing plants at a
number of our mines. We do not own all the mining equipment at these sites. We
may face disruption and incur costs and liabilities in the event any of the
mining contractors has financial difficulties or should we encounter a dispute
in renegotiating a mining contract or a delay in replacing an existing
contractor.

Our actual gold production may be below target in any given year as a result of
any one or more of numerous factors beyond our control. If so, we may have to
fund hedging payments.

Our gold production in any year will be affected by a number of factors,
including:

o    our ability to produce the required tonnages of ore;

o    the grade and type of ore available to be mined;

o    our ability to control the grade of ore;

o    the amenability of the ore to processing methods;

o    our ability to obtain the required recovery from processing;

o    availability of power;

o    disturbances affecting mining and processing (such as industrial strikes,
     fire, drought, floods and disturbances in fuel supply); and

o    delays in procurement of supplies and equipment and equipment failure.

In the past our annual gold production has been affected by these and other
factors and, as a result, there is a risk that we will not be able to produce at
budgeted levels in any financial year. In particular, a shortage of rainfall may
impact on power supplies and also lead to insufficient water to maintain full
production at our plants. Heavy rainfall, on the other hand, can adversely
impact our heap leach operations, including those at Siguiri. We might also lose
some gold through theft by employees and others. Production could be severely
disrupted by the breakdown of, or where unscheduled maintenance is required on,
certain items of mining or processing equipment.

Our hedging policy defines targeted commitment levels that are calculated as a
percentage of forecast production. If the mines suffer significant production
shortfalls then we may have to fund hedging payments which will reflect the gold
price at that time but not receive any cash from lost gold production.

Our power supplies are unreliable and have on occasion forced us to halt or
curtail activities at our mines.

Substantial portions of our mining operations in Ghana are dependent for their
electricity supply on hydro-electric power supplied by the Volta River
Authority, or VRA, an entity controlled by the Government of Ghana, although we
also have access to VRA electricity supply from a recently constructed smaller
thermal plant. The VRA's principal electricity generating facility is the
Akosombo Dam and during periods of below average inflows from the Volta
reservoir electricity supplies from the Akosombo Dam may be curtailed, as
occurred in 1998. In addition, this electricity supply has been subject to
voltage fluctuations, which can damage our equipment. Other than short-term
stand-by generators, which are not sufficient to allow us to continue mining
operations, we have no means of obtaining alternative power in the event of a
supply shortage from the VRA. The VRA also obtains power from neighboring Cote
d'Ivoire, which has recently


                                       12






<PAGE>




experienced some political instability and civil unrest. These factors may cause
interruptions in our power supply or result in increases in the cost of power
even if they do not interrupt supply.

Our mining operations in Guinea and Tanzania are dependent on power supplied by
outside contractors and for supplies of fuel being delivered by road. Our power
supply has been disrupted in the past and we have suffered resulting production
loss as a result of equipment failure. At Geita we entered into agreements under
which Rolls-Royce agreed to supply power to the mine and to sell generators to
Geita and operate them. From inception, the generators proved unreliable,
resulting in disruptions to the Geita operations and causing us to rely on
Rolls-Royce's provision of alternative power generation, at their cost.

AIDS poses risks to us in terms of productivity and costs.

The incidence of AIDS in Africa poses risks to us in terms of potentially
reduced productivity. The exact extent to which our workforce is infected is not
known. Recently, 20% of the workforce at our Freda-Rebecca mine who agreed to
voluntary testing, tested positive for HIV. Significant increases in the
incidence of AIDS infection and AIDS-related diseases among members of our
workforce in the future could adversely impact our operations and financial
condition.

If Ghana's recent political and economic stability ends, our assets may be
nationalized or our business may otherwise be harmed.

We are a Ghanaian company. Our principal operations and headquarters are in
Ghana and a substantial portion of our gold production is mined in Ghana.
Although political conditions in Ghana have been stable in comparison with those
in many other African states, it has a history of instability in both the
economy and the political system. Although presidential and parliamentary
elections were conducted under the present constitution in 1992, 1996 and 2000,
the possibility that a Ghanaian government may adopt substantially different
policies in the future, which might extend to the renationalization of
privatized assets and the adverse modification of the regulatory or fiscal
regime governing mining companies in Ghana, or the withdrawal or modification of
consents in respect of the retention and use of proceeds from the sale of gold
outside Ghana, cannot be ruled out.

Several other countries in Africa in which we operate are currently politically
and economically unstable, which may result in sudden, unpredictable change that
may be harmful to our business.

Outside Ghana, we are actively engaged in exploration projects throughout Africa
and in mining and exploration projects in Zimbabwe, Tanzania, Guinea and the
Democratic Republic of Congo. These countries may offer relatively high risk
of political and economic instability. In these countries, government policy may
be unpredictable, and the institutions of government may be unstable and may be
subject to rapid and not necessarily peaceful change. Our activities in these
countries might also be adversely affected by any sanctions against the country,
new rules against foreign investors and worker unrest as a result of any
political change. Due to conflict in the Democratic Republic of Congo, we are
currently unable to access our mine site there. At the moment Zimbabwe is going
through substantial political upheaval and economic difficulties. This upheaval
may also affect us in another way. Over the last year the price realized on the
sale of gold from our Freda-Rebecca mine to the Government of Zimbabwe was
substantially higher than the prevailing market price due to a price support
mechanism set by the Government of Zimbabwe. In 2003, at the request of the
Zimbabwe Chamber of Mines, the Reserve Bank of Zimbabwe extended the
Government's export support scheme to include gold producers thereby replacing
the gold support price mechanism which existed in 2002. The gold producers will
now receive Zimbabwe 800 dollars for every US dollar worth of gold produced.
If this price support mechanism were withdrawn or substantially reduced, the
financial results of our Freda-Rebecca mine would be harmed. In 2003, the
foreign exchange position in Zimbabwe was severely constrained and the release
of hard currency from Zimbabwe was slow. This could also impact on production
in 2003.

Because several of our mines are located in countries which are either currently
politically unstable, such as Zimbabwe, or which lack a long tradition of
political stability, we face the risk that our property and equipment may be
damaged or destroyed by general civil unrest or by sabotage, whether directed at
us or not.

Any existing or new mining project carried on by us outside Ghana will be
subject to various national and local laws, policies and regulations governing
the prospecting, developing and mining of mineral resources, taxation, exchange
controls, employee relations, health and safety, the environment and other
matters. Any


                                       13






<PAGE>




investment by us outside Ghana will also require approval under Ghanaian
exchange control regulations. Any necessary permits, authorizations and
agreements to implement planned projects, to remit monies and to maintain
foreign currency in offshore accounts may not be obtained under conditions or
within time frames that make such plans economical. Also, applicable laws or
the governing political authorities may change, having a material adverse
effect on us.

If current environmental regulations are made more stringent, we may incur
expenses associated with remediation or may be prohibited from mining in some
areas.

The countries in which we operate do not currently have fully developed systems
of environmental regulation. These countries may adopt more stringent
regulations in the future which could adversely affect our operational
flexibility and costs. Additionally, we could be required to provide for
reclamation in the form of a cash deposit or financial guarantee, as we have had
to do at our Ghanaian mines, or new environmental rules could restrict us from
mining certain areas, particularly mining in designated forest areas.
Furthermore, our lenders are increasingly requiring us to comply with higher
international environmental standards and practices.

If labor strikes are held again by our workforce or the workforce of our mining
contractors, our business will be harmed.

We and our mining contractors rely to a large degree on a unionized work force.
In 1999 we experienced strikes at our Obuasi mine, and in 2000 at our
Freda-Rebecca mine, and there is a risk that strikes or other types of conflict
with unions or employees may occur in the future.

If our wage costs and other expenses, like those of fuel and disposables,
increase, our financial performance will be harmed.

We have in the past experienced increases in some of our costs, including the
wages of our employees, the costs of fuel, power and of consumables necessary to
our business, like cyanide, cement and lime. Ghana recently experienced a 100%
increase in fuel costs and we therefore anticipate difficult negotiations over
wages with our labor unions in 2003. Also, our agreement with a power supplier,
the Volta River Authority or VRA, expired in May 2003 and negotiations are in
progress with the VRA. We expect an increase in the applicable tariff upon
renewal of that agreement. We cannot predict when, if or how much these costs
may increase, but they have historically risen when the price of gold has risen,
among other things.

Our principal shareholders have substantial control over us, which they may
exercise in their own interests as opposed to those of all shareholders.

Approximately 27.6% of our current issued share capital is held by Lonmin and
approximately 16.9% is held by the Government of Ghana. The Government of Ghana
also has a veto right in respect of some specified changes regarding us. If
Lonmin and the Government of Ghana vote in the same manner on any matter
requiring approval of a simple majority of the outstanding ordinary shares, they
will materially influence whether that matter will be approved or defeated. In
addition, Lonmin and the Government of Ghana may be able to prevent any
take-over of us. The interests that the Government of Ghana may seek to protect
may at times differ from those of our other shareholders.

Additionally, through the Ghanaian Mining Law, the Government of Ghana has the
power to object to any person becoming or remaining a "shareholder controller,"
"majority shareholder controller" or an "indirect shareholder controller" of us
if they consider that the public interest would be prejudiced. Relations with
the Government of Ghana were strained during the period of our liquidity crisis
in late 1999 and early 2000. The Government of Ghana has had substantial
influence over and continues to take a keen interest in us.

Following exchange of the MENs and as a result of outstanding put options
entered into by Lonmin with warrantholders who agreed to exercise their warrants
for our ordinary shares, there is a possibility that (if there is no take-up of
rights under our proposed rights issue, a Registration Statement on Form F-1
(No.333-101682) has been filed with the SEC) Lonmin's shareholding could rise to
a maximum of approximately 35.9% assuming a US$5.40 rights issue price. We have
also entered into undertakings with Lonmin restricting our ability to complete
some share issues without shareholder approval and restricting our ability to
effect this rights issue at more than US$5.40 per share or, if the rights issue
is effected at less than US$5.40 per share, at more than a 5% discount to the
then-current market value of an ordinary share.



                                       14






<PAGE>




Following the proposed rights issue, our directors will have a maximum of
42,000,000 of our ordinary shares authorized for issuance without the need for
prior approval of our shareholders by means of a special resolution subject to
specified limitations. To pass a special resolution, it must be approved by
holders of three quarters of the shares voted on it.

If we are unable to attract and retain key personnel our business may be harmed.

Our ability to operate our mines and to explore our portfolio of mineral rights
will depend upon the skills and efforts of a small group of management and
technical personnel, including Sam Jonah, our Chief Executive and Group Managing
Director. Factors critical to retaining our present staff and attracting
additional highly qualified personnel include our ability to provide these
individuals with competitive compensation arrangements and other benefits. If we
are not successful in attracting highly qualified individuals in key management
positions, or if we lose any of our key personnel, our business may be harmed.
We do not maintain "key man" life insurance policies on members of our executive
team.

The Ghana Company Law which regulates our activities and the Ghanaian courts
that enforce this law may not yield results predictable by the standards of
English or US law and these results may harm our business.

We are a Ghanaian company and thus regulated by Ghana law and subject to the
jurisdiction of the Courts of Ghana. Although this law is based substantially on
English company law, the decisions of the English Courts may not be followed in
reaching the judgment of an issue in Ghana. In early 2000, a legal action was
commenced against us with a view to a general meeting being convened at short
notice so as to replace the then board of directors; an injunction was also
sought to prevent us from, among other things, entering into a US$100 million
bank financing. Although initial orders made by the Ghanaian High Court to
convene an extraordinary general meeting and the grant of an injunction
prohibiting us from entering into the bank financing were later withdrawn,
rescinded and revoked by the Court, we cannot guarantee that a similar action
might not be brought in the future. In the event that another similar action is
brought, we cannot guarantee you that we will be able to defend it successfully.

If currently pending securities litigation in the US is resolved against us, our
business will be harmed if we are forced to pay substantial sums in compensatory
and punitive damages.

We are subject to litigation, including a consolidated class action lawsuit
pending in the US alleging misstatements and non-disclosures in connection with
SEC filings and other public statements made in 1999 concerning our hedging
program. The plaintiffs are seeking unspecified damages. These matters may
adversely affect our business and financial condition. The outcome of this
litigation may not be known for some time.

Our ability to obtain desirable mineral exploration projects in the future will
be adversely affected by competition from other exploration companies.

In conducting our exploration activities, we compete with other mining companies
in connection with the search for and acquisition of properties producing or
possessing the potential to produce gold. Many of these companies have
significantly greater resources than us. Existing or future competition in the
mining industry could materially and adversely affect our prospects for mineral
exploration and success in the future.

We have not paid dividends for the last several years and may not do so in the
future.

We did not pay dividends with respect to the financial years 1999, 2000, 2001 or
2002, and we currently have a substantial deficit on distributable reserves. In
light of this deficit, we do not anticipate paying dividends for the foreseeable
future.

If we fail to complete a rights issue by December 31, 2003, we may trigger an
event of default under our revolving credit facility, and would then be
obligated to repay immediately all outstanding amounts.

We have agreed with our lenders under our US$200 million revolving credit
facility to use our best efforts to complete a rights issue by December 31,
2003. If we breach this covenant, we could trigger an event of default. In that
event, we would then become obligated to repay immediately all outstanding
amounts, which were US$149 million as at May 30, 2003. On December 6, 2002 we
filed a registration statement on Form


                                       15






<PAGE>




F-1 (No 333-101682) with the SEC in connection with the proposed rights issue,
and have filed amendments thereto on January 27, 2003 and March 26, 2003. As
of the date of this report, however, this registration statement has not yet
been declared effective by the SEC and we have not yet completed this rights
issue. In view of the current discussions with AngloGold as set out below, we
also propose to apply to the lenders of the revolving credit facility (in the
event that the proposed merger does not become effective) to extend the period
for completion of the rights issue until December 28, 2004. There is no
certainty that we will receive such an extension.

Our discussions with AngloGold may not lead to a proposal being made for our
entire issued share capital.

On May 16, 2003, we issued a press release stating that our board of directors
had noted the recent movement in our share price. In that press release the
board further confirmed that it was in discussions with the board of AngloGold
regarding a proposed merger of the two companies at a ratio of 26 AngloGold
shares for every 100 of our ordinary shares of GDSs. These discussions and
related discussions with certain stakeholders are continuing. We cannot assure
you that these discussions will lead to a proposal being made for our entire
issued share capital. Pursuant to the Lonmin and Government of Ghana MENs
Subscription Agreements and the US$200 million revolving credit facility, we
agreed to use our best efforts to complete the rights issue within 18 months
from the issue date of the MENs. In view of our current discussions with
AngloGold regarding a proposed merger, the proposed rights issue has been
delayed. If a firm announcement is made in relation to the proposed merger, it
is not our intention to proceed with the rights issue. However, if the proposed
merger does not become effective by December 28, 2003 (being 18 months from the
issue date of the MENs), Lonmin has agreed that the period of 18 months is
extended until December 28, 2004. In light of the above, there is no certainty
that the rights issue will go ahead. A similar request has been made to the
Government of Ghana.

It may be difficult for you to effect service of process and enforce legal
judgments against us or our affiliates.

We are incorporated in Ghana and our directors and senior executives other than
two non-executive directors are not residents of the United States. Virtually
all of our assets and the assets of those persons are located outside the United
States. As a result, it may not be possible for you to effect service of process
within the United States upon those persons or us, although we have submitted to
the jurisdiction of New York State and the United States federal courts sitting
in New York City.

The principal statute governing proceedings before the Ghanaian courts is the
Courts Act, 1993, which includes provisions relating to the enforcement of
foreign judgments in Ghana. Under the Courts Act, it is possible to enforce a
judgment obtained outside Ghana if, among other things, the courts of the
country in which the judgment was given have been specifically recognized for
the purposes of the Courts Act. The courts of the United States are not
recognized for the purposes of the Courts Act. Apart from the legislative
provisions, at common law a judgment obtained outside Ghana, not registrable
under the Courts Act, may be enforced by bringing an action in Ghana based on
that judgment. In that case, the right to bring the action would not depend on
whether or not the foreign court in which the judgment was given has been
specifically recognized under the Courts Act. However, we have been advised by
our Ghanaian counsel that the Ghanaian courts would not directly enforce any
judgment obtained before a court in the United States. A separate action must be
brought before the Ghanaian courts in order to give effect to a United States
judgement. Furthermore, it is doubtful whether you could bring an original
action based on United States Federal securities laws in a Ghanaian court.


                                       16






<PAGE>




ITEM 4: INFORMATION ON THE COMPANY

A. History and Development of the Company

In 1897, an English company named Ashanti Goldfields Corporation Limited, or
Ashanti Goldfields, was founded and began to develop a mining concession in the
area of our current operations at Obuasi. Several years later, underground
mining began at the site and has continued to the present. In 1969, Ashanti
Goldfields became a wholly owned subsidiary of Lonrho Plc, now called Lonmin
Plc, or Lonmin, a UK listed company which at that time had interests in mining,
hotels and general trade in Africa. Following the Lonmin acquisition in 1969,
the Government of Ghana acquired 20% of Ashanti Goldfields from Lonmin in
exchange for the Government of Ghana's agreement to extend the term of Ashanti
Goldfields' mining lease over the concession area.

In 1972, the Government of Ghana formed us as a Ghanaian company to take over
the assets, business and functions formerly carried out by Ashanti Goldfields.
The Government of Ghana then held 55% of our outstanding shares, with Lonmin
holding the remaining 45%.

In 1994, as part of its divestiture policy, the Government of Ghana sold part of
its holding in us in a global offering. In connection with that offering, we
were reorganized as a Ghanaian public limited company. As at May 30, 2003, the
Government of Ghana owned approximately 16.9% and Lonmin owned approximately
27.6% of our outstanding shares.

In 1996, we expanded our operations through the acquisition of companies holding
interests in the Ayanfuri, Bibiani, Iduapriem, Siguiri, and Freda-Rebecca
properties, which were already or were subsequently developed as mines, and
acquired an interest in what was then the Geita exploration concession in
Tanzania. In 1998, we acquired SAMAX Gold Inc., the principal asset of which was
the other part of the interest in the Geita exploration concession adjacent to
our existing license area. In 1999 and 2000, we developed the Geita mine and in
2000 sold a 50% equity interest in it to AngloGold Limited. In 2000, we acquired
our interest in the Teberebie mine, which is adjacent to the Iduapriem mine.

Through the period from the end of 1999 to June 2002, commencing with a sharp
rise in the price of gold which led initially to a liquidity crisis, we were
engaged in a process of financial restructuring with our banks, hedge
counterparties and noteholders.

Recent Restructuring

In June 2002, we completed a financial restructuring which involved:

o    entering into a new enlarged revolving credit facility of US$200 million;

o    raising approximately US$41.8 million from the early exercise of 70.3% of
     our warrants (which were previously issued to some of our banks and hedge
     counterparties and which were exchangeable for our shares);

o    agreement with our hedge counterparties for continued margin-free trading;
     and

o    raising US$75.0 million through the issue to our largest shareholder,
     Lonmin, of mandatorily exchangeable notes, or MENs.

The Government of Ghana has a call option in respect of approximately US$28.4
million of these MENs.

Recent Discussions with AngloGold

On May 16, 2003, we issued a press release stating that our board of directors
had noted the recent movement in our share price. In that press release, the
board confirmed that it was in discussions with the board of AngloGold regarding
a proposed merger of the two companies at a ratio of 26 AngloGold shares for
every 100 of our ordinary shares of GDSs. These discussions and related
discussions with certain stakeholders are continuing. We cannot assure you that
these discussions will lead to a proposal being made for our entire issued
share capital. In view of these discussions, the proposed rights issue has been
delayed. If the proposed merger is formally announced, it is not our intention
to proceed with the rights issue.




                                       17






<PAGE>




B. Business Overview

General

We are engaged in the mining and processing of gold ores and the exploration and
development of gold properties in Africa and in hedging activities in connection
with our gold production. We have interests in major gold mines in Ghana,
Guinea, Tanzania and Zimbabwe. In 2002, our gold production was 1.62 million
ounces. As at December 31, 2002, we had proven and probable contained gold
reserves of approximately 27.8 million ounces, before making any allowance for
minority and joint venture interests.

We occupy a position of strategic significance within the Ghanaian economy. We
are a major contributor of foreign exchange earnings to Ghana, Guinea, Tanzania
and Zimbabwe. In addition, we are one of the largest companies listed on the
Ghana Stock Exchange and a major employer, particularly in the Ashanti region of
Ghana.

Our priority is to explore for, develop and operate gold mines in Africa and to
remain a leading mining company in Africa, managed largely by Africans. We are
currently focusing on developing the potential of our existing mines and
increasing the efficiency of their operations. As part of this strategy, we are
engaged in development projects at three of our existing mines, Geita,
Iduapriem/Teberebie and Siguiri, each of which will be funded from internal
resources or through our revolving credit facility. At Geita and
Iduapriem/Teberebie, processing throughput is planned to be increased by 40%
and 50% respectively to between 5.6 million and 6.0 million tonnes per year
and 4.5 million tonnes per year respectively. At Siguiri, the current heap
leach operation has a capacity of 9.0 million tonnes per year (with
a metallurgical recovery of some 80%). It is planned to construct a 9.0 million
tonnes per year CIP plant which, when completed successfully, will have a
metallurgical recovery of some 93% and to continue to use the heap leach plant
but at a reduced rate of around 1.5 million tonnes per year.

We also continue to explore consolidation opportunities in the gold sector. As a
leading mining company operating solely in Africa we are offered the opportunity
to participate in a number of projects and properties throughout Africa, such as
the platinum group metal project located in South Africa in which we recently
acquired an exploration interest. We will continue to review opportunities which
have low entry costs and high expected returns and allow us to apply our
technical expertise.


                                       18






<PAGE>




                                      [MAP]

We produced a total of 1,621,919 ounces of gold in the 12 month period ended
December 31, 2002, from our gold mining operations at Obuasi, Bibiani, Iduapriem
and Ayanfuri in Ghana, Siguiri in Guinea, Geita in Tanzania and Freda-Rebecca in
Zimbabwe, compared to 1,656,784 ounces in 2001.

Our oldest mine and largest reserve is located at Obuasi in the Ashanti region
of Ghana. We have a 100% interest in Obuasi. Gold mining has been conducted at
this site for over 100 years and during that period, records show that Obuasi
has produced approximately 28 million ounces of gold. Obuasi produced 537,219
ounces of gold, principally from underground, in the 12 month period ended
December 31, 2002.

The Bibiani mine, in which we have a 100% interest, located in the Western
Region of Ghana, was an old redundant underground mine upon which we
commissioned a major open pit mine with a new CIL plant in the first quarter of
1998. Gold production for the 12 month period ended December 31, 2002 was
242,432 ounces compared to 253,052 ounces for the 12 month period ended December
31, 2001.

We have an 80% interest in the Iduapriem gold mine, owned by Ghanaian-Australian
Goldfields Limited, in the Western Region of Ghana. In June 2000, we acquired a
90% interest in the Teberebie gold mine, which is adjacent to Iduapriem. In the
12 month period ended December 31, 2002, Iduapriem/Teberebie produced 185,199
ounces of gold compared with 205,130 ounces of gold for the 12 month period
ended December 31, 2001.

The Ayanfuri mine, in which we have a 100% interest, located in central Ghana,
commenced operations in 1994. Ayanfuri had exhausted substantially all of its
gold reserves by December 31, 2000. We are currently implementing a mine closure
plan under Obuasi mine management control.

The Siguiri mine, located in the north-eastern part of Guinea, commenced
operations in the first quarter of 1998 and up until the end of 2002 had
produced a total of 1.29 million ounces of gold. We have an 85%


                                       19






<PAGE>




interest in the Siguiri mine. Production for the 12 month period ended December
31, 2002 was 269,292 ounces of gold compared to 283,199 ounces of gold for the
12 month period ended December 31, 2001.

The Geita mine in Tanzania was commissioned in June 2000 and produced a total of
176,836 ounces of gold during the year 2000. On December 15, 2000, we completed
the sale to AngloGold Limited of 50% of our interest in the Geita Mine pursuant
to both a sale and purchase agreement and a joint venture agreement signed
between the parties. In 2002, the Geita mine produced a total of 579,043 ounces
of gold (2001: 545,562 ounces).

The Freda-Rebecca gold mine, in which we have a 100% interest, began operations
in 1988. In 2002, Freda-Rebecca produced 98,255 ounces of gold, compared to
102,654 ounces of gold for 2001.

Impact of Sale of 50% Interest in Geita

In December 2000, we sold 50% of our interest in the Geita joint venture to
AngloGold Limited for US$335 million (including US$130 million from the project
financing loan). The cash received from this disposal enabled us to restructure
our balance sheet and repay some of our loans. The impact of the disposal is
that we will now only share in 50% of the profits and surplus cash flows from
Geita and we have a joint venture partner who will share the cost of funding any
further Geita expansion projects.

General

We earn all of our revenues in US dollars and the majority of our transactions
and costs are denominated in US dollars or based on US dollars. We also have
cedi and other currency denominated costs, primarily wages and local material
purchases.

Impact of Economic and Political Environment in Main Countries in Which We
Operate

Our current significant operations are primarily located in Ghana, Tanzania and
Guinea, and are therefore subject to various economic, fiscal, monetary and
political factors that affect companies operating in Ghana, Tanzania and Guinea,
as discussed elsewhere in this annual report.

Gold Production Summary

The following chart details the operating and production results from operations
for the years ended December 31, 2002, 2001 and 2000.

<TABLE>
<CAPTION>
                                                        Year to December 31,
                                                     ---------------------------
                                                       2002      2001      2000
--------------------------------------------------------------------------------
<S>                                                  <C>       <C>       <C>
Obuasi
Underground Mining
Ore production ('000 tonnes)                           2,423     2,507     2,348
Ore grade (g/t)                                         7.48      7.90      7.48
Surface Mining
Ore production ('000 tonnes)                             368        --       891
Ore grade (g/t)                                         2.71        --      4.20
Waste mined ('000 tonnes)                              2,165        --     8,907
Strip ratio                                              5.8        --      10.0
--------------------------------------------------------------------------------
Sulfide Treatment Plant
Ore processed ('000 tonnes)                            2,352     2,394     2,466
Head grade (g/t)                                        7.35      7.53      6.32
Recovery (%)                                            84.8      83.5      82.1
Gold produced (ounces)                               471,359   482,982   412,824
--------------------------------------------------------------------------------
Pompora Treatment Plant
Ore processed ('000 tonnes)                               --        --       787
Head grade (g/t)                                          --        --      8.01
Recovery (%)                                              --        --      82.4
Gold produced (ounces)                                   195     2,470   167,725
--------------------------------------------------------------------------------
</TABLE>


                                       20






<PAGE>




<TABLE>
<CAPTION>
                                                         Year to December 31,
                                                     ---------------------------
                                                       2002      2001      2000
--------------------------------------------------------------------------------
<S>                                                  <C>       <C>       <C>
Oxide Treatment Plant
Ore processed ('000 tonnes)                              435        --       245
Head grade (g/t)                                        2.06        --      2.85
Recovery (%)                                            81.2        --      74.2
Gold produced (ounces)                                23,390        --    16,683
--------------------------------------------------------------------------------
Tailings Treatment Plant
Ore processed ('000 tonnes)                            1,840     1,666     1,831
Head grade (g/t)                                        2.29      2.46      2.39
Recovery (%)                                            31.2      32.7      31.1
Gold produced (ounces)                                42,275    42,999    43,756
--------------------------------------------------------------------------------
Obuasi Total Processed
Ore processed ('000 tonnes)                            4,627     4,060     5,329
Head grade (g/t)                                        4.84      5.45      5.06
Recovery (%)                                            74.8      74.3      73.9
Gold produced (ounces)                               537,219   528,451   640,988
--------------------------------------------------------------------------------
Distribution of Obuasi Production (ounces)
Underground                                          471,554   485,452   493,926
Surface                                               23,390        --   103,306
Tailings                                              42,275    42,999    43,756
Total                                                537,219   528,451   640,988
--------------------------------------------------------------------------------
Ayanfuri
Mining
Ore production ('000 tonnes)                              --       332       884
Ore grade (g/t)                                           --      1.50      1.50
Waste mined ('000 tonnes)                                 --     1,059     2,988
Strip ratio                                               --       3.2       3.4
--------------------------------------------------------------------------------
Heap Leach
Ore stacked ('000 tonnes)                                 --       329     1,121
Head grade (g/t)                                          --      1.20      1.21
Recovery (%)                                              --      90.8      83.3
Gold produced (ounces)                                    --    11,517    36,316
--------------------------------------------------------------------------------
Iduapriem/Teberebie
Mining
Ore production ('000 tonnes)                           4,393     4,852     4,824
Ore grade (g/t)                                         1.66      1.58      1.25
Waste mined ('000 tonnes)                             15,019    13,839    14,954
Strip ratio                                              3.4       2.9       3.1
--------------------------------------------------------------------------------
CIL Plant
Ore processed ('000 tonnes)                            2,625     2,731     2,691
Head grade (g/t)                                        1.96      1.92      1.58
Recovery (%)                                            89.3      94.6      93.4
Gold produced (ounces)                               147,726   158,103   128,374
--------------------------------------------------------------------------------
Heap Leach
Ore stacked ('000 tonnes)                              1,127     2,633     2,264
Head grade (g/t)                                        1.13      0.91      0.78
Recovery (%)                                            91.3      61.7      67.5
Gold produced (ounces)                                37,473    47,027    38,518
Total gold produced (ounces)                         185,199   205,130   166,892
--------------------------------------------------------------------------------
Teberebie
Gold produced (ounces)                                    --        --    26,976
--------------------------------------------------------------------------------
</TABLE>


                                       21






<PAGE>




<TABLE>
<CAPTION>
                                                      Year to December 31,
                                               ---------------------------------
                                                  2002        2001        2000
--------------------------------------------------------------------------------
<S>                                            <C>         <C>         <C>
Bibiani
Mining
Ore production ('000 tonnes)                       2,608       2,560       2,368
Ore grade (g/t)                                     3.53        3.58        3.38
Waste mined ('000 tonnes)                         11,054      13,981      15,223
Strip ratio                                          4.2         5.5         6.4
--------------------------------------------------------------------------------
CIL Plant
Ore processed ('000 tonnes)                        2,566       2,769       2,761
Head grade (g/t)                                    3.72        3.46        3.70
Recovery (%)                                        79.0        83.7        86.7
Gold produced (ounces)                           242,432     253,052     273,711
--------------------------------------------------------------------------------
Siguiri
Mining
Ore production ('000 tonnes)                       9,464       8,517      10,804
Ore grade (g/t)                                     1.19        1.34        1.33
Waste mined ('000 tonnes)                          8,404       5,268       5,333
Strip ratio                                          0.9         0.6         0.5
--------------------------------------------------------------------------------
Heap Leach
Ore stacked ('000 tonnes)                          9,462       9,064       8,878
Head grade (g/t)                                    1.16        1.33        1.34
Recovery (%)                                        76.3        73.1        79.3
Gold produced (ounces)                           269,292     283,199     303,381
--------------------------------------------------------------------------------
Freda-Rebecca
Underground Mining
Ore production ('000 tonnes)                       1,077       1,156       1,042
Ore grade (g/t)                                     2.99        3.56        3.69
--------------------------------------------------------------------------------
Surface Mining
Ore processed ('000 tonnes)                          110          56          --
Ore grade (g/t)                                     2.26        2.10          --
--------------------------------------------------------------------------------
Processing
Ore processed ('000 tonnes)                        1,155       1,121       1,003
Head grade (g/t)                                    3.22        3.30        3.89
Recovery (%)                                        82.2        86.4        89.8
Gold produced (ounces)                            98,255     102,654     112,164
--------------------------------------------------------------------------------
Geita Joint Venture
Mining
Ore production ('000 tonnes)                       5,399       4,520       1,240
Ore grade (g/t)                                     3.52        3.80        3.00
Waste mined ('000 tonnes)                         39,729      27,215      11,852
Strip ratio                                          7.4         6.0         9.6
--------------------------------------------------------------------------------
Processing
CIL Plant
Ore processed ('000 tonnes)                        4,979       4,582       2,075
Head grade (g/t)                                    3.92        3.91        2.94
Recovery (%)                                        92.3        93.0        92.0
Gold produced (ounces)                           579,043     545,562     176,836
Ashanti's share (ounces)                         289,522     272,781     176,836
--------------------------------------------------------------------------------
Managed gold production (ounces)               1,332,397   1,384,003   1,737,264
Geita joint venture 50% (ounces)                 289,522     272,781          --
--------------------------------------------------------------------------------
Total managed gold production                  1,621,919   1,656,784   1,737,264
================================================================================
</TABLE>


                                       22






<PAGE>




Regarding "strip ratio" as used in the table above, for our open pit mines, each
commercially mineable deposit has an overall design strip ratio based on the
economically optimized and fully engineered pit layout. This strip ratio changes
from period to period depending upon the configuration of the ore body and
mining and production considerations. It is usually necessary to mine at varying
strip ratios each year in order to excavate the tonnage of ore required to be
sent to the processing plant for that period.

When compared to the produced grades, the figures for the processed grades are
different as they represent a mixture of mineralised material treated from other
areas such as underground, tailings or open pit oxides.

Total Revenues by Country

<TABLE>
<CAPTION>
                                                      Year to Dec. 31,
                                        ----------------------------------------
                                            2002          2001          2000
                                            US$m          US$m          US$m
--------------------------------------------------------------------------------
<S>                                     <C>     <C>   <C>     <C>   <C>     <C>
Ghana                                   301.7    55%  271.1    49%  320.1    55%
Isle of Man(1)                           45.8     8%   98.6    18%   97.0    17%
Guinea                                   83.9    15%   76.6    14%   85.2    15%
Tanzania                                 90.1    16%   74.1    13%   48.6     8%
Zimbabwe                                 30.7     6%   34.0     6%   31.3     5%
--------------------------------------------------------------------------------
Total Revenues                          552.2   100%  554.4   100%  582.2   100%
================================================================================
</TABLE>

NOTES:

1.   Revenues from the Isle of Man relate solely to hedging activities.

Operating and Production Information

<TABLE>
<CAPTION>
                                                                     Year to Dec. 31,
                                                           ---------------------------------
                                                              2002        2001        2000
--------------------------------------------------------------------------------------------
<S>                                                        <C>         <C>         <C>
Total gold produced (ounces)                               1,621,919   1,656,784   1,737,264
Average realized price per ounce (US$)                           340         335         335
Average spot price per ounce (US$)                               312         275         279
Cash operating costs of production per ounce (US$)               199         190         187
Royalties per ounce (US$)                                          9           8           8
Corporate administration cost per ounce (US$)                     10          13          15
Depreciation, depletion and amortisation per ounce (US$)          54          55          65
Total cost of gold production per ounce (US$)                    272         266         275
--------------------------------------------------------------------------------------------
</TABLE>

The above amounts are stated before exceptional items of US$14 per ounce (2001:
Nil; 2000: US$124).

Cash operating costs are operating costs before corporate administration,
exploration and other costs, which we discuss more fully under "Operating and
Financial Review and Prospects".


                                       23






<PAGE>

Reserves

The summary of proven and probable contained gold reserves at our major mining
properties at the end of each of the last two annual reporting periods is set
out in the table below. Individual proven and probable contained gold reserve
tables for each mine are set out in Mining Operations.

<TABLE>
<CAPTION>
                                                               As at December  31, 2002
------------------------------------------------------------------------------------------------------
                                                                                    %
                                 Estimated                            Total        of
                                  Average                           Contained     Total       Gold in
                               Metallurgical      Ore                  Gold     Contained    Stockpile
                                  Recovery       Tonnes     Grade     Ounces      Gold        Ounces
Location                          per cent.    (millions)    g/t    (million)     Ounce     (millions)
------------------------------------------------------------------------------------------------------
<S>                                  <C>         <C>         <C>      <C>         <C>           <C>
Ghana   Obuasi
        Underground                  84           40.5       8.0      10.4         37            --
        Surface                      90            0.9       6.1       0.2          1            --
        Tailings                     29           19.4       2.0       1.3          5            --
------------------------------------------------------------------------------------------------------
           Sub-total
           Obuasi                                 60.8       6.1      11.9         43            --
------------------------------------------------------------------------------------------------------
Ghana Iduapriem (80%) /
   Teberebie (90%) - Surface         94           49.0       1.7       2.7         10            --
Ghana Bibiani - Underground          85            1.2       4.6       0.2          1            --
Ghana Bibiani - Surface              85            5.4       2.8       0.5          2           0.1
Ghana Bibiani - Tailings             60            4.8       1.1       0.1         --            --
Guinea Siguiri (85%) -
   Surface                           80           55.4       1.2       2.1          8           0.1
Zimbabwe Freda-Rebecca -
   Underground                       85            4.8       2.5       0.4          1            --
Tanzania Geita (50%) -
   Surface                           90           70.4       4.2       9.4         33           0.1
Burkina Faso Youga (45%) -
   Surface                           85            4.8       3.3       0.5          2            --
------------------------------------------------------------------------------------------------------
Total                                            256.6       3.4      27.8        100           0.3
======================================================================================================

<CAPTION>
                                                As at December 31, 2001
--------------------------------------------------------------------------------------
                                                                    %
                                                      Total        of
                                                    Contained     Total       Gold in
                                   Ore                 Gold     Contained    Stockpile
                                  Tonnes    Grade     Ounces      Gold        Ounces
Location                       (millions)    g/t    (million)     Ounce     (millions)
--------------------------------------------------------------------------------------
<S>                               <C>        <C>       <C>         <C>         <C>
Ghana   Obuasi
        Underground                42.3      8.0       10.9         42          --
        Surface                     1.3      5.2        0.2          1          --
        Tailings                   20.4      2.1        1.3          5          --
--------------------------------------------------------------------------------------
           Sub-total
           Obuasi                  64.0      6.0       12.4         47          --
--------------------------------------------------------------------------------------
Ghana Iduapriem (80%) /
   Teberebie (90%) - Surface       38.6      1.7        2.1          8          --
Ghana Bibiani - Underground          --       --         --         --          --
Ghana Bibiani - Surface            12.3      2.2        0.9          3         0.1
Ghana Bibiani - Tailings             --       --         --         --          --
Guinea Siguiri (85%) -
   Surface                         56.7      1.2        2.1          8          --
Zimbabwe Freda-Rebecca -
   Underground                      5.4      2.5        0.4          2          --
Tanzania Geita (50%) -
   Surface                         62.7      3.8        7.7         29         0.1
Burkina Faso Youga (45%) -
   Surface                          5.0      3.2        0.5          2          --
--------------------------------------------------------------------------------------
Total                             244.6      3.3       26.1        100         0.2
======================================================================================
</TABLE>

Data in the above reserves table may not compute exactly due to rounding.

These reserves have been estimated in compliance with the United States
Securities and Exchange Commission Industry Guide 7 and do not take into account
metallurgical losses.

For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining.

The reserves reported represent 100% of the reserves at the respective
properties. No allowance has been made for minority or joint venture interests.
Ashanti has 100% ownership in all its properties except:

o    Iduapriem, in which it has an 80% interest,

o    Teberebie, in which it has a 90% interest,

o    Siguiri, in which it has an 85% interest,

o    Geita, in which it has a 50% interest and

o    Youga, in which it has a 45% interest.

Cut-off grades are applied to geological data when assessing mineralized
material in order to ensure that material never likely to be economic is not
included in the reserves. The tonnage, grade and contained gold profiles for
each deposit are interrogated at various cut-off grades to enable the engineers
to clearly understand the characteristics of the mineralization and to focus on
developing exploitation strategies that will optimize the net present value of
the deposits. The cut off grade that we have chosen for reporting purposes is
the lowest grade that can be exploited at break even for the highest envisaged
gold price.

Classification of proven and probable reserves is based on a number of criteria
including drill density, geological continuity, integrity of the data, ore
accessibility and economic parameters.

Pursuant to a stock purchase agreement with Bogoso Gold Limited and Golden Star
Resources Limited, we sold our interest in the Mampon property near Obuasi for a
purchase price of US$9.5 million which will be effective from July 4, 2003 (or
a later date as the parties may agree), reducing our "Total Contained Gold
Ounces" by 136,821 ounces. This sale is subject to receiving Ghanaian mining
regulatory approval by July 4, 2003 (or a later date as the parties may agree).

The costs used in evaluating the economic operating profile for each ore block
are based on actual costs incurred in the operation over the past year adjusted
wherever appropriate for any inflation and exchange


                                       24






<PAGE>




rate variances forecast for the coming year or cost decreases due to
productivity improvements. Where new projects are concerned, the costs are
based on actual materials prices, labor costs and engineering feasibility
design parameters and are benchmarked wherever practical with similar
operations elsewhere within our group or with peer operators nationally or
internationally.

The bulk of the mining and processing consumables used in our operations is
imported and is costed in United States dollars based on world market or
contracted prices. At Obuasi and some other operations, we have a policy of
fixing our wage packages in US dollars and paying in local currency at the
ruling exchange rate. To this effect, operations are costed in US dollars. There
are certain areas where imports and costs are in other currencies such as
Pounds sterling, Deutschmarks and Australian dollars, which may affect ultimate
costs since our revenue stream is from gold sold in US dollars. Trends in
variances between these currencies are periodically analyzed by management which
examines the cost implications and then ensures that supply orders are placed on
the most cost efficient source wherever possible and advantageous. Wherever
significant and relevant, local currency conversion factors are applied to cost
projections, but in general these are not significant.

Future metal prices used for estimating purposes are decided upon by us, based
on information taken from internationally respected gold price analysts.

At a gold price of US$275 per ounce, we estimated that the total 2002 ore
reserve of 27.8million ounces of gold would decrease by approximately 5% and at
a gold price of US$325 per ounce, we estimate that the ore reserves would
increase by approximately 2%.

Gold in stockpiles is processed during the life of a mining operation and will
be processed completely by the time the operations cease. Amounts shown under
"Gold in stockpiles" are included in amounts shown under "Total contained gold."

Mining Operations
Obuasi -- Ghana

     Introduction

The Obuasi mine conducts underground mining of gold and until recently conducted
surface mining of gold at Obuasi in Ghana. Obuasi has historically been an
underground mine although large scale surface mining was undertaken between 1990
and 2000. The Sulfide Treatment Plant, or STP, and the Oxide Treatment Plant, or
OTP, were commissioned during this period to cater for increased tonnage from
surface operations. During the period of surface mining, there were four
treatment plants to treat oxide ore, sulfide ore, transition ore and tailings.
In 2000, when surface operations ceased due to poor economics and a low gold
price, the OTP and the Pompora Treatment Plant, or PTP, were closed down and put
on care and maintenance. Prior to its closure, PTP processed the bulk of the
underground ore. STP is now the sole processing plant for underground ore at
Obuasi. In the fourth quarter, a SAG mill, previously installed at the Pompora
Treatment Plant, was relocated to STP to provide additional capacity and
operational flexibility. Tailings are treated through the Tailings Treatment
Plant, or TTP. We are currently evaluating surface deposits within a 50
kilometer radius and if economically viable will be considered for mining and
processing at the OTP and STP plants. A small amount of such material has been
processed through OTP during 2002.

The restructuring of the ore sourcing during 2000 has resulted in a smaller
operation. Redundancies of some 1,340 workers during that year were necessary
due to the closure of the surface mining operations. The underground operation
is forecast to continue to produce at a rate of 2.5 million tonnes per annum, or
mtpa. Based on the information currently available, annual gold production from
underground mining is forecast to remain at around 500,000 ounces for in excess
of ten years, whilst tailings retreatment is forecast to provide an additional
30,000 ounces per annum over the same period. We may not be able to achieve or
maintain these production levels. Encouraging exploratory drilling results at
the lowest levels of the underground workings have outlined the extension in
depth of high grade mineralized material. The mine plan, based on current
reserves, is expected to sustain production at a rate of 2.5 mtpa to at least
2012.

Over the two years ended December 31, 2001, the Obuasi mine made progress in
reducing costs. We achieved an improvement in costs in 2000 and 2001 through
closure of the high cost surface operations as well as cost control measures and
the re-engineering of mining and processing operations. In 2002 costs increased
as a result of the mining and processing of a higher tonnage of lower grade
material. The cash operating cost at


                                       25






<PAGE>

Obuasi in 2002 was US$198 per ounce as compared to the 2001 cost of US$192 per
ounce and the 2000 cost of US$208 per ounce.

     Reserves

The proven and probable contained gold reserves at Obuasi as at December 31,
2002 and 2001 are set out below:

<TABLE>
<CAPTION>
                                                    As at December 31, 2002               As at December 31, 2001
-----------------------------------------------------------------------------------------------------------------------
                                Estimated
                                 Average                                Contained                             Contained
                              Metallurgical       Ore                     Gold          Ore                     Gold
                                 Recovery       Tonnes                   Ounces       Tonnes                   Ounces
                                    %         (millions)   Grade g/t   (millions)   (millions)   Grade g/t   (millions)
-----------------------------------------------------------------------------------------------------------------------
<S>                                 <C>          <C>          <C>         <C>          <C>          <C>         <C>
UNDERGROUND
Proven reserves                     84            4.6         7.4          1.1          5.0         7.9          1.3
Probable reserves                   84           35.9         8.1          9.3         37.3         8.0          9.6
-----------------------------------------------------------------------------------------------------------------------
Total underground reserves          84           40.5         8.0         10.4         42.3         8.0         10.9
-----------------------------------------------------------------------------------------------------------------------
SURFACE
Proven reserves                     90            0.9         6.1          0.2          1.3         5.2          0.2
Probable reserves                   90             --          --           --           --          --           --
-----------------------------------------------------------------------------------------------------------------------
Total surface ore reserves          90            0.9         6.1          0.2          1.3         5.2          0.2
-----------------------------------------------------------------------------------------------------------------------
TAILINGS
Proven reserves                     29           14.5         2.0          0.9         15.1         2.0          1.0
Probable reserves                   29            4.9         2.2          0.4          5.3         2.2          0.3
-----------------------------------------------------------------------------------------------------------------------
Total tailings ore reserves         29           19.4         2.0          1.3         20.4         2.1          1.3
-----------------------------------------------------------------------------------------------------------------------
TOTAL ORE RESERVES                               60.8         6.1         11.9         64.0         6.0         12.4
=======================================================================================================================
</TABLE>

For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining. Metallurgical losses are excluded from the calculation of
contained gold ounces.

The tailings proven reserves are those which have been drilled. The probable
reserves are based on plant information from the time the tailings were
deposited.

Pursuant to a stock purchase agreement with Bogoso Gold Limited and Golden Star
Resources Limited, we sold our interest in the Mampon property near Obuasi for
a purchase price of US$9.5 million which will be effective from July 4, 2003
(or a later date as the parties may agree), reducing our "Total Contained Gold
Ounces" by 136,821 ounces. This sale is subject to receiving Ghanaian mining
regulatory approval by July 4, 2003 (or a later date as the parties may agree).

     Geology

The gold deposits at Obuasi are part of a prominent gold belt of Proterozoic
(Birimian) volcano-sedimentary and igneous formations which extend for a
distance of approximately 300kilometers in a northeast-south-west trend in south
western Ghana. Obuasi mineralization is shear zone related and there are three
main structural trends hosting gold mineralization: the Obuasi trend, the
Gyabunsu trend and the Binsere trend, which contribute to the ounces produced at
Obuasi.

In general, there are two main ore types at Obuasi which are being mined:

Quartz veins -- Quartz veins consist mainly of quartz with free gold in
association with lesser amounts of various metal sulfides such as iron, zinc,
lead and copper. The gold particles are generally fine grained and occasionally,
are visible to the naked eye. This ore type is generally non-refractory.

Sulfide ore -- Sulfide ore is characterized by the inclusion of gold in the
crystal structure of a sulfide material. The gold in these ores is fine grained
and often locked in arsenopyrite. Higher gold grades tend to be associated with
finer grained arsenopyrite crystals. Other prominent minerals include quartz,
chlorite and sericite. Sulfide ore is generally refractory.



                                       26






<PAGE>




     Underground Mining Operations

Mining operations began at Obuasi in 1897. Since 1907, the underground mine has
been in almost continuous production. Over the years, underground mining at
Obuasi has expanded, and underground operations are currently conducted along
a strike length of 8 kilometers and to a depth of 1,600 meters below the
surface.

The underground mine at Obuasi expanded from a production rate of 4,500 tonnes
of ore per year in 1907 to approximately 800,000 tonnes of ore per year in the
early 1980s. The tonnage from underground mining has more than doubled within a
seven year period from 1.14 mtpa achieved in 1994 to 2.5 mtpa achieved in 2001.
In the same period the grade has reduced from 10.5 g/t to 7.9 g/t. The grade
reduction is due to the increase in production from the lower grade more
refractory sulfide ore blocks.

The mining operations at Obuasi are split into three operating sections:

o    The Northern Section of the mine is the oldest and the workings are the
     deepest. The ore type is predominantly quartz. A project to recover ore
     from the high grade Adansi shaft pillar began in 2000. This has been placed
     on hold temporarily while the potential to access the shaft below the 50
     level is being evaluated. The production rate in the north part of the mine
     averages from 35,000 to 40,000 tonnes per month.

o    The Central Section is serviced by the Kwesi Mensah Shaft, or KMS, which
     accesses a depth of 1,500 meters. The ore type is predominantly made up of
     lower grade sulfide material and generally the mining blocks are wide
     ranging from 6 meters to 20 meters. Production ranges from 80,000 to 85,000
     tonnes per month. The 41 level haulage system (at a depth of 1,230 meters
     below surface), serves the central mining blocks with all rock hoisted at
     KMS.

o    The South Section is the newest mining area, and is the section from which
     the majority of Obuasi mine's ore will be sourced over the coming years.
     The ore type is generally sulfide in nature, but is often associated with
     quartz material. The ore structure is complex with up to four different ore
     zones running parallel to each other. In the past, the predominant mining
     method has been cut and fill, but safety and cost considerations have
     resulted in a change to open stoping methods in recent years. The section
     is served by Kwesi Renner Shaft, or KRS, and Sansu Shaft for hoisting of
     rock and George Cappendell Shaft, or GCS, for men and material. The Brown
     Sub Vertical Shaft, or BSVS, which has been sunk to 52 level, is currently
     being equipped (which will continue to be equipped in 2003) to provide
     rock, men and material handling services to the lower levels of the South
     Section of the mine.


                                       27






<PAGE>




Infrastructure

                                       SHAFTS/RAMPS AT OBUASI

<TABLE>
<CAPTION>
                                                                   Current Hoisting Capacity
                                                                           Ore/Waste
Shafts                                           Service               (tonnes per month)
--------------------------------------------------------------------------------------------
<S>                                       <C>                             <C>
Kwesi Mensah Shaft ("KMS")                Men, material and rock            140,000
Kwesi Renner Shaft ("KRS")                Rock                               90,000
Adansi Shaft                              Men, material and rock             32,000
Timber Shaft                              Men, material and rock             15,000
Ellis Shaft                               Rock                               52,000
Sansu Ventilation Shaft ("Sansu Shaft")   Men, material and rock             22,000
Brown Sub Vertical Shaft ("BSVS")         Men, material and rock                 --
West Shaft                                Men and material                       --
Waley Shaft                               Men and material                       --
Outen Shaft                               Men and material                       --
George Cappendell Shaft ("GCS")           Men and material                       --
Blackies Ventilation Shaft                Ventilation                            --
Kwesi Mensah Ventilation Shaft ("KMVS")   Ventilation                            --
Central Ventilation Shaft ("CVS")         Ventilation
Eaton Turner Shaft ("ETS")                (Decommissioned)                      n/a
--------------------------------------------------------------------------------------------
Total Hoisting Capacity (tonnes/month)                                      351,000
============================================================================================
Total Hoisting Capacity (tonnes/year)                                     4,212,000
</TABLE>

<TABLE>
<CAPTION>
                                                                          Ore/Waste
Ramps                                            Service              (tonnes per month)
--------------------------------------------------------------------------------------------
<S>                                       <C>                               <C>
Sansu Ramp                                Men, material                         --
Cote d'Or Ramp                            Men, material and rock            10,000
Timber Shaft Access Decline ("TSAD")      Men, material and rock            10,000
</TABLE>

The major underground capital project work in 2002 focussed on a shaft upgrade
at the BSVS in preparation for commencement of equipping in 2003, raise boring
of the 300 ventilation shaft and support and tracking of the 41 level haulage.
Development was completed from KMS through to the BSVS in the south of the mine
and to Blocks 5 and 6 in the north. The development of the decline to the bottom
of KMS to facilitate the removal of rock spillage was completed. At KRS,
excavation of the crusher station was also completed. A new pump station was
constructed and commissioned on 8 level in the north of the mine to
significantly improve mine pumping capacity and water control.

In the past 12 years, the Obuasi mine has spent over US$1 billion on its
investment program principally comprising new shafts, processing plants and
underground mechanization. Completed capital expenditure projects have been
financed from the cash flow from operations at Obuasi and from internal and
external funding. The Obuasi mine expects that future capital expenditure on
various projects (other than significant expenditure on projects below the 50
level) will be financed from the cash flows generated from operations at Obuasi.
In the event that such projects are not completed on schedule, the Obuasi mine
may not be able to maintain its underground production of ore as is currently
planned.

     Mining Methods

The range of mining methods currently employed includes mechanized open stoping
(60% of total); mechanized cut and fill (10% of total); sub-level retreat and
reclamation (12% of total); and stope preparation (16% of total).

     Surface Mining Operations

Apart from on-going surface rehabilitation work on landscaping and re-vegetating
the old pits and waste dumps, there was no production from surface mining
activity on the Obuasi concession in 2001. Obuasi has


                                       28






<PAGE>




US$5.7 million accrued for mine closure as at December 31, 2002 and a component
of this relates to clean up and land restoration. However, work undertaken to
date has in the past been expensed to operating costs over the years and has
averaged approximately US$0.5 million per year. Surface mining operations
recommenced with the development of the Homase concession open pit in the first
quarter of 2002. A total of 368,000 tonnes at 2.71 g/t were mined at a strip
ratio of 5.8:1. Mining is being undertaken using in-house resources while the
haulage of ore from Homase to Obuasi is being carried out by contractors.

     Processing Operations

The Obuasi mine has two normally active treatment plants: the STP to process
underground ore and the TTP to handle tailings reclamation operations. The PTP
remained closed, but the OTP has been re-commissioned to batch process oxide ore
from the Homase satellite surface mine deposit which was mined in 2002 and
continues to be mined in 2003.

A total of 4,627,000 tonnes were processed in 2002 compared to 4,060,000 tonnes
in 2001, the increase resulting from the re-commissioning of the OTP in the
third quarter of 2002 to process ores from Homase and greater throughput at the
TTP.

At the STP, a total of 2,352,000 tonnes of ore at a grade of 7.35 g/t and a
metallurgical recovery of 84.8% was processed compared to 2,394,000 tonnes at a
grade of 7.53 g/t and a metallurgical recovery of 83.5% in 2001. Gold production
in 2002 was 471,359 ounces compared to 482,982 ounces in 2001, the reduction
being due to the lower feed grade and processed tonnage. Plant throughput and
processing efficiency were affected by higher than planned maintenance downtime
on the SAG mill and persistent power outages. In the second and third quarters
the BIOX'r' section of the plant under-performed when bacterial activity was
impaired following the use of old nutrients in April. In the fourth quarter, a
SAG mill, previously installed at the Pompora Treatment Plant, was relocated to
STP to provide additional capacity and operational flexibility. Commissioning of
this mill took place in the first quarter of 2003.

OTP processed a total of 435,000 tonnes of Homase open pit ore and heap leach
tailings to produce 23,390 ounces.

Throughput at the TTP was 1,840,000 tonnes at 2.29 g/t compared to 1,666,000
tonnes at 2.46 g/t in 2001. Metallurgical recovery at 31.2% was a reduction on
the previous year's 32.7%. The lower feed grade and recovery resulted in the
production of 42,275 ounces compared to 42,999 ounces the previous year, a
reduction of 2%.

Gold recoveries in different processing facilities depend in a large measure on
the type of ore being processed. The underground ores at Obuasi are generally
refractory and metallurgically more difficult to treat than non-refractory ores.
In the refractory component of the ore, the gold is bonded with sulfide minerals
and is not optimally recoverable by either gravity or direct cyanide leaching
without additional processing. At Obuasi, the minerals associated with gold in
the refractory ore are arsenopyrite, pyrite and pyrrhotite. The gold is
encapsulated within the crystal structure of these minerals. In order to recover
the gold, these sulfide minerals are pre-concentrated and then broken down by
the BIOX'r' process, as discussed below, before the gold can be extracted
through conventional cyanide leaching.

The gold concentrate, either in the form of gravity concentrates or gold-plated
electro-winning cathodes, is sent to a smelting facility, where it is heated
with a fluxing agent in smelting furnaces and poured into briquette moulds. The
gold bars are weighed, assayed, stamped and shipped to the refiner for
refinement into gold bullion.

Water used in the processing plants is sourced from local rivers. A significant
amount of the water used in the treatment process is recycled.


                                       29






<PAGE>




     Processing Plant Capacities

<TABLE>
<CAPTION>
                                 2002 Capacity    2001 Capacity    2000 Capacity
Plant                            (tonnes/month)   (tonnes/month)   (tonnes/month)
---------------------------------------------------------------------------------
<S>                                 <C>              <C>              <C>
Sulfide Treatment Plant (STP)         210,000          210,000          210,000
Tailings Treatment Plant (TTP)        160,000          160,000          160,000
---------------------------------------------------------------------------------
Total tonnes per month                370,000          370,000          370,000
=================================================================================
Total tonnes per year               4,440,000        4,440,000        4,440,000
=================================================================================
</TABLE>

     Sulfide Treatment Plant

STP uses the BIOX'r' process patented by Gencor for the treatment of its sulfide
ores. BIOX'r' is a continuous bacterial leaching process that oxidizes sulfide
ore to enable it to be leached by conventional cyanidation techniques.

The BIOX'r' plant is arranged into trains of six tanks each. Each tank contains
a solution containing bacteria known as thiobacillus ferro-oxidans and
thiobacillus thio-oxidans. The bacteria oxidizes the sulfide ore by consuming
the elemental sulfur in the material leaving the encapsulated gold within the
material amenable to recovery by cyanide leaching.

The BIOX'r' treatment process takes four days, during which time more than 90%
of the sulfur material in the ore is oxidized. The pulp, which contains
dissolved sulfur and arsenic and gold-bearing solids, is then "washed" in
counter-current decantation thickeners to separate out the gold-bearing solids.
The gold-bearing solids are then cyanide-leached in a carbon-in-leach, or CIL,
circuit, and the gold solution is pumped to the OTP where it is electro-won onto
steel wool cathodes and smelted. The tailings residue from STP, which also
contains arsenic, is ph neutralized by the addition of lime prior to being
pumped to the Sansu tailings dam. During the BIOX'r' process, the arsenic is
fixed with iron to become ferric arsenate, a stable compound, making it safe to
deposit the tailings in the dam without risk to the environment. The bacteria
used in the BIOX'r' process require particular conditions in which to operate.
The BIOX'r' process requires fresh water and cannot use water recycled from
processing operations. The benefits of the BIOX'r' process include high overall
gold recovery and improved environmental controls, particularly with regard to
the efficient and safe treatment and disposal of the arsenic content of the ore.
Gold production from the STP in 2002 was 471,359 ounces from the processing of
2.35 million tonnes of ore at a grade of 7.35 g/t and a plant recovery of 84.8%.
This compares with 482,982 ounces from 2.39 million tonnes at a grade of 7.53
g/t and a plant recovery of 83.5% in 2001 and 412,824 ounces from 2.47 million
tonnes at a grade of 6.32 g/t and a plant recovery of 82.1% in 2000. Gold
production was lower than planned principally due to lower than usual head
grades, SAG mill liner problems which impacted mill throughput and persistent
power outages. In addition, CIL recoveries were impacted by the unavailability
of the oxide plant tanks for extended leach. BIOX'r' recoveries were affected by
draining of the BIOX'r' tanks in an attempt to recover gold lock-up. In the
fourth quarter, a SAG mill, previously installed at the Pompora Treatment Plant,
was relocated to STP to provide additional capacity and operational flexibility.
Commissioning of this mill took place in the first quarter of 2003.

     Tailings Treatment Plant

TTP was commissioned in 1988 to reprocess tailings from previous processing
operations. The TTP uses carbon-in-pulp, or CIP, technology. TTP is a relatively
simple operation, consisting of high pressure water monitoring stations to
reclaim the tailings from the dumps and pump the resulting slurry to the plant.
The material is then re-ground using ball mills and the pulp is leached by
cyanide and the gold collected by activated carbon. Loaded carbon is stripped of
gold by elution with caustic cyanide and electro-won onto steel wool cathodes
that are smelted into dore bars.

In the financial year 2002, ore throughput at the TTP was 1.84 milllion tonnes
at a grade of 2.29 g/t compared with 1.67 million tonnes at a grade of 2.46 g/t
in 2001 and 1.83 million tonnes at a grade of 2.39 g/t in 2000. The average
recovery rate in 2002 was 31.2% compared to 32.7% in 2001 and 31.1% in 2000; the
lower feed grade and recovery resulted in the production of 42,275 ounces
compared to 42,999 ounces the previous year and 43,756 ounces in 2000. At the
end of 2001, the tailings reserve increased to 1.3 million ounces of gold
following test drilling and metallurgical testwork on the Kokorteasua tailings
dam which demonstrated that the re-treatment of this material would be economic.


                                       30






<PAGE>




     Oxide Treatment Plant

The OTP was re-commissioned in the third quarter of 2002 to process ores from
Homase. The OTP processed a total of 435,000 tonnes of Homase open pit ore and
heap leach tailings to produce 23,390 ounces.

     Exploration and Development

At Obuasi a team has been set up to undertake conceptual engineering work on a
project to evaluate the options for exploitation of the recently intersected
mineralized material extending to depth below 50 level, currently the deepest
level accessible from existing mine infrastructure.

The main objectives of the underground diamond drilling program are to improve
the definition of mineralized material across the mine and the delineation of
new mineralized material in the South Section above 41 level, the North Section
of the mine above 20 level and below 50 level across the base of the mine
between the northern and southern limits of existing development.

In 2003 the BSVS shaft will be equipped to provide efficient access and hoisting
capacity for operations below 26 level in the south of the mine where a
significant portion of the mine's ore reserves are located. The shaft has
already been sunk and offshaft development is currently being undertaken while
the shaft steelwork and winders are being procured. A total of US$13 million has
been budgeted for 2002 and 2003 for the equipping of the BSVS.

Drilling below 50 level has provided consistently good results, with several
intersections above 20grams per tonne over mineable widths being made down to 66
level in the vicinity of the KMS, confirming the extension of good grade
mineralization to at least 400 meters below the 1,600meters elevation, currently
the deepest level of the existing mine infrastructure.

The table below provides recent uncut drill intersection information for Obuasi
below the 50level. The grade and width statistics listed are only a sample of
the results obtained. In total there have been over 100 intersections from
drilling below 50 level over a strike length of 2 kilometres, some with no
grade, some with higher grade and some with lower grade. The listed
intersections represent some of the more recent results and are specifically
mentioned because the drilling is primarily targeted at the definition of higher
grade material in order to demonstrate higher grade mineralisation and the
continuity of the Obuasi gold mineralisation at depth.

<TABLE>
<CAPTION>
                                          Intersected   True Width
Location         BH NO.     Grade (g/t)    Width (m)        (m)          Level
---------------------------------------------------------------------------------
<S>           <C>              <C>            <C>           <C>       <C>
50S -- 131W    UD50131W04      177.5           2.1          1.5          56 level
               UD50131W05       19.2           2.4          2.0          56 level
               UD50131W06       55.3           5.8          5.0          54 level
50S -- 173E    UD50173E12       39.5           9.0          5.5          66 level
50S -- 187E    UD50187E13       10.1           1.5          1.5          54 level
               UD50173E14       10.6           7.3          5.0          56 level
50S -- 206W   UD50206W43A       41.1          13.2          7.5      56 1/2 level
</TABLE>

     Power Supply

The Obuasi mine obtains power from the Volta River Authority, or VRA, which is
in turn controlled by the Government of Ghana. Power supplies have been subject
to outages and voltage fluctuations. The Obuasi mine also obtains some power
from the VRA that is supplied from Cte d'Ivoire, which has recently experienced
some political instability and civil unrest. We have emergency generator sets
available at Obuasi which are capable of supplying adequate power to operate the
mine's essential winder and ventilation services in the event of a major
disruption of power supply. We also have generator sets that are capable of
maintaining the BIOX'r' plant in the event of loss of normal power supplies.


                                       31






<PAGE>




     Health, Safety and Environment

Obuasi mine was awarded a three star rating by NOSA, the South African National
Occupational Safety Association in 2002. NOSA is a private association devoted
to occupational health, safety and environmental risk management concerns. A
NOSA five-star rating is the highest rating achievable in the NOSA system. NOSA
ratings are determined on the basis of annual audits which examine the safety,
health and more recently the environmental status of the operations. NOSA audits
worldwide and is a non-profit organization.

Bibiani -- Ghana

     Introduction

Bibiani is located in the Western Region of Ghana, 90 kilometers west of Kumasi.
We acquired Bibiani in 1996 when we acquired International Gold Resources
Corporation, or IGR, a Canadian-listed company, and Ghana Libyan Arab Mining
Company Limited, or GLAMCO.

The first records of gold mining at the Bibiani site date from 1902. The mine,
however, closed in 1913 after approximately 70,000 ounces of gold had been
recovered. Mining activities resumed in 1927 during the second "gold rush" and
2.2 million ounces of gold were produced between 1927 and 1961. In 1961, the
property was sold to State Gold Mining Corporation and was shut down in 1968 due
to lack of economically recoverable ore. During the period from 1927 to 1968,
approximately 8.2 million tonnes of ore were treated at an average grade of 9.5
g/t. In 1987, GLAMCO undertook a drilling program on the old tailings ponds. The
first results showed the potential to recover gold on an economic basis and a
pilot plant was commissioned. Production of gold started in 1989 but due to
difficulties in obtaining spares for plant maintenance, the plant shut down two
years later. During this period, 104,000 tonnes of gold tailings from past
mining were processed. In 1991, IGR applied for an extension of the original
concession and joined up with GLAMCO in an exploration program.

In 1996, we purchased the entire share capital of IGR and GLAMCO and commenced
the development of the Bibiani open pit mine.

The mine was fully commissioned on February 8, 1998 and the first gold was
poured on February 24, 1998. The main open pit operations are scheduled to be
completed in 2004 although mining operations could be further extended by the
introduction of underground operations or the acquisition of adjacent deposits.

In 2002, Bibiani produced 242,432 ounces at a cash operating cost of US$180 per
ounce compared to 253,052 ounces at a cash operating cost of US$170 per ounce in
2001 and 273,711 ounces at a cash operating cost of US$134 in 2000. The
reduction in gold production was due to harder ore resulting in lower plant
throughput and lower metallurgical recovery and in turn resulting in a higher
cash operating cost per ounce produced. Costs were also impacted by a water
shortage in the first quarter.

Milled throughput for 2002 was 2.57 million tonnes at a feed grade of 3.72 g/t
compared to 2.77 million tonnes at 3.46 g/t the previous year and 2.76 million
tonnes at 3.70 g/t in 2000. As was the case in the previous years, the
reconciliation between the reserve model and the actual mined grade and tonnage
showed a more positive variance than expected and the operation continued to
exceed performance level predictions. Metallurgical recovery in 2002 decreased
to 79.0% from 83.7% in 2001 (2000: 86.7%) due to the mining and processing of
more refractory ore types during the year.


                                       32






<PAGE>




     Reserves

The proven and probable contained gold reserves at Bibiani as at December 31,
2002 and 2001 are set forth in the table below:

<TABLE>
<CAPTION>
                                                    As at December 31, 2002           As at December 31, 2001
-----------------------------------------------------------------------------------------------------------------
                                  Estimated
                                   Average                            Contained                         Contained
                                Metallurgical      Ore                  Gold         Ore                  Gold
                                   Recovery       Tonnes     Grade     Ounces       Tonnes     Grade     Ounces
                                      %         (millions)    g/t    (millions)   (millions)    g/t    (millions)
-----------------------------------------------------------------------------------------------------------------
<S>                                    <C>         <C>        <C>        <C>         <C>        <C>        <C>
Proven reserves surface                86           1.9       1.8        0.1          1.4       1.9
Proven reserves tailings               60           4.4       1.1        0.1          4.4       1.1
Proven reserves total                               6.3       1.3        0.2          5.8       1.3        0.2
Probable reserves surface              86           3.5       3.3        0.4          6.1       3.2
Probable reserves tailings             60           0.4       1.0                     0.4       1.0
Probable reserves underground                       1.2       4.6        0.2
Probable reserves total                             5.1       3.1        0.6          6.5       3.1        0.7
-----------------------------------------------------------------------------------------------------------------
Total ore reserves                                 22.8       2.0        0.8         12.3       2.2        0.9
=================================================================================================================
</TABLE>

For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining. Metallurgical losses are excluded from the calculation
of contained gold ounces.

     Geology

The Bibiani gold deposit lies within Birimian metasediments and related rocks
which occur in the Proterozoic Sefwi Belt of southern Ghana. Gold and
gold-bearing sulfide mineralization occurs in quartz filled shear zones and in
altered rocks adjacent to those shears. The full strike of the Bibiani structure
is at least 4 kilometers.

For metallurgical classification there are three main ore types at Bibiani:
primary, transition and oxide. Further lithological classification gives four
ore types: quartz (generally high grade), stockwork (medium-high grade),
phyllites and porphyry (both low grade).

     Mining Methods

We conduct conventional open pit mining at Bibiani using a mining contractor.
Mining is carried out using conventional drill and blast techniques and
excavators and dump trucks. In line with the life of the open pit reserve, the
mining contract comes to an end in 2004. No additional amounts are payable by us
on termination.

     Processing Methods

Ore is processed using a conventional CIL processing system. Currently the plant
is handling 2.7 mtpa of mainly primary ore with the potential to add 0.6 mtpa of
tailings.

     Exploration and Development

During 2002 the evaluation of a trackless underground mining operation to
exploit extensions of the open pit resources at depth was completed. The report
concluded that the first phase of extending the mine should be via a ramp access
system developed from within the main pit to enable extraction within
approximately 100 metres of the base of the ultimate pit and to provide access
for exploratory drilling that will target the deeper levels.

Mining of the Mpasetia deposit, located to the north east of the Bibiani
concession, commenced in the first quarter of 2002 and contract haulage of the
ore to the Bibiani processing plant started during the second quarter of 2002.

We have also taken steps to provide the mine with more water by constructing
catchment ponds to provide backup to the reducing levels returning from the
tailings dam.


                                       33






<PAGE>




     Power Supply

Bibiani mine obtains power from the VRA. We have very limited back-up power
available and so our operations are dependent on power supplied by the VRA. In
1998 a severe drought drastically reduced the hydro-electric power produced by
the VRA, which in turn resulted in a severe disruption of our operations.
Processing was affected in the third quarter of 2002 due to persistent short
duration power outages.

     Health, Safety and Environment

In 2002, Bibiani was awarded a NOSA four-star integrated rating and received
ISO14001 accreditation. As part of an ongoing commitment to the local community
and the environment, Bibiani has initiated an award winning program of
revegetation at a former open pit mine site that was first re-filled, provided
micro finance for a variety of community business projects, sponsored education
programs and assisted in the health sector by supporting local hospitals and
clinics as well as promoting HIV/AIDS awareness and prevention programs for both
employees and the local community.

Iduapriem/Teberebie -- Ghana

     Introduction

The Iduapriem mine, which is owned by Ghanaian Australian Goldfields Limited, or
GAG, is located in the Western Region of Ghana some 70 kilometers north of the
coastal city of Takoradi, and 10 kilometers south west of Tarkwa. We acquired an
80% interest in the Iduapriem mine in 1996 when we acquired GAG's holding
company.

Mining operations at Iduapriem commenced in June 1992 with the first gold poured
in September 1992. A review of the economics of the mine was carried out in 1998
resulting in an anticipated closure of the mine at the end of 1999.

In June 2000, we acquired the entire issued share capital of Pioneer Goldfields
Limited, or Pioneer, which owns 90% of Teberebie Goldfields Limited, or TGL
(being the company which owns the mining lease to the Teberebie mine located
adjacent to Iduapriem), together with inter-company loans which amounted to an
aggregate of approximately US$20 million. The consideration was satisfied by us
as an initial cash payment of US$5 million on completion and deferred cash
payments of US$13.8 million payable in installments over a five year period. The
terms of the agreement also include the potential for contingent consideration
cash payments of up to US$5 million dependant upon minimum gold prices and
production levels. On March 19, 2003, we entered into an agreement with Pioneer
to reduce the remaining deferred consideration by US$1.1million. In exchange, we
agreed to terminate all the continuing obligations of the Pioneer group under
the original share purchase agreement. As at the date of this annual report,
we have paid US$9.1 million of the deferred consideration owned to Pioneer. On
August 23, 2000, Pioneer sold certain of the assets of TGL to Gold Fields
Ghana Limited for US$5 million in cash.

The acquisition of the Teberebie reserves thereby extended the Iduapriem mine's
life to approximately 2012. The ore from Teberebie is processed through the CIL
plant at Iduapriem.

Gold production by Iduapriem for 2002 was 185,199 ounces, compared to the
previous year's 205,130 ounces. The cash operating costs increased to US$232 per
ounce from US$214 per ounce in 2001, due to the lower gold production.

At 4.39 million tonnes, the ore mined in 2002 compared with 4.85million tonnes
the previous year, whilst the mined grade at 1.66g/t was higher than the 1.58g/t
achieved in 2001. The higher grade resulted from mining of the Teberebie ore
blocks.


                                       34






<PAGE>




     Reserves

The proven and probable contained gold reserves at Iduapriem and Teberebie as at
December 31, 2002 and 2001 are set forth in the table below:

<TABLE>
<CAPTION>
                                                    As at December 31, 2002           As at December 31, 2001
                                                -------------------------------   -------------------------------
                                  Estimated
                                   Average                            Contained                         Contained
                                Metallurgical      Ore                  Gold         Ore                  Gold
                                   Recovery       Tonnes     Grade     Ounces       Tonnes     Grade     Ounces
                                      %         (millions)    g/t    (millions)   (millions)    g/t    (millions)
-----------------------------------------------------------------------------------------------------------------
<S>                                    <C>         <C>        <C>        <C>         <C>        <C>        <C>
Proven Reserves                        94          35.1       1.7        1.9         31.4       1.7        1.7
Probable Reserves                      94          13.9       1.7        0.8          7.2       1.7        0.4
-----------------------------------------------------------------------------------------------------------------
Total Ore Reserves                     94          49.0       1.7        2.7         38.6       1.7        2.1
=================================================================================================================
</TABLE>

For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining. Metallurgical losses are excluded from the calculation of
contained gold ounces.

During 2002, the proven and probable contained gold reserves at Iduapriem /
Teberebie were re-estimated on the basis of new cost parameters based on the
upgraded and expanded CIL plant which is to be commissioned in 2003.

     Geology

The Iduapriem and Teberebie gold mines are located along the southern end of the
Tarkwa basin. The mineralization is contained in the Banket Series of rocks
within the Tarkwaian System of Proterozoic age.

The outcropping Banket Series of rocks in the mine area form prominent, arcuate
ridges extending southwards from Tarkwa, westwards through Iduapriem and
northwards towards Teberebie.

     Mining Methods

We conduct conventional open pit mining methods at Iduapriem and Teberebie.

From March 1998, ore and waste mining has been undertaken using a contract
mining company.

     Processing Methods

The open pit ore is treated at Iduapriem/Teberebie using either CIL plant or
heap leach processing technologies. A total of 185,199 ounces of gold was
produced in 2002 from the Iduapriem CIL, Iduapriem heap leach and the Teberebie
east heap leach plants, compared to 205,130 ounces in 2001. In 2002 a decision
was taken to optimize the combined Iduapriem/Teberebie properties by expanding
the capacity of the main processing plant. The processing plant is now being
upgraded to increase throughput from 2.8mtpa to 4.5mtpa with recovery in excess
of 94.5%. The project includes the installation of an additional SAG mill,
upgrading of the leach and elution circuits, conversion from CIL to CIP,
construction of a new crushed ore stockpile and reclaim conveyor system, the
relocation of crushing activities to a larger, already operational crusher which
is located adjacent to the Teberebie pits and the installation of an overland
conveyor to transfer the crushed product to the Iduapriem processing plant. The
upgrade of the processing plant was being completed and tied into the existing
plant circuits at the end of the second quarter of 2003. The crusher and
overland conveyor components of the project are expected to be completed and
commissioned during the third quarter of 2003.

     CIL Plant

The CIL plant in its present configuration is composed of a primary jaw crusher
followed by a secondary crusher and then a conveyor to transfer ore to the SAG
mill. The SAG mill normally operates in open circuit and the mill discharge is
pumped to a hydro cyclone circuit. The cyclone underflow is used as ball mill
feed to allow finer grinding of the ore. The discharge from the ball mill is
pumped to the hydro cyclone unit from where the cyclone underflow is transferred
to leach and adsorption tanks, with a nominal residence time of 16 hours.


                                       35






<PAGE>




In 2002, the CIL mill throughput was 2.63 million tonnes of ore at a grade of
1.96g/t. This compares with CIL mill throughput of 2.73 million tonnes of ore
at a grade of 1.92g/t in 2001. Gold produced from the CIL plant in 2002 was
147,726 ounces compared to 158,103 ounces in 2001, the reduction largely due
to lower throughput and metallurgical recovery.

     Heap Leach

The Iduapriem heap leach plant was commissioned in November 1996 and shut down
in mid 2002 as feed material stocks were depleted. For the heap leach operation
at Iduapriem, ore feed was either direct tipped or reclaimed from the heap leach
stockpile to a primary jaw crusher crushing at a rate of 2.4 mtpa. The product
was then either hauled or conveyed to the active cells constructed on 10 meter
high pads designed to contain 200,000 tonnes of crushed ore in each cell.

The solution from the cells was gravity fed to a series of ponds where a three
stage upgrade of the solution occurred. At Iduapriem, the solution was then
pumped to the CIL leach/adsorption tanks as process feed water solution or to
the heap leach carbon columns where gold could eventually be recovered. The
plant is currently on care and maintenance pending decommissioning and the heap
leach stacks are being rehabilitated.

Heap leach operations are now focused on the Teberebie East plant where it is
planned to continue operations until the end of 2003. At an average throughput
of 1.6 million tonnes, the plant is presently being operated well below its
design capacity. Solution is processed through the existing Teberebie gold
recovery plant.

During 2002, heap leach gold production was 37,473 ounces compared to 47,027
ounces in 2001 due to the reduction in stacked tonnage following the cessation
of crushing and stacking operations at the Iduapriem heap leach plant in 2001. A
total of 1.13million tonnes were processed solely at the Teberebie heap leach
plant compared to 2.63million tonnes at the combined facilities in 2001. The
heap leach metallurgical recovery in 2002 was 91.3% compared to 61.7% in 2001,
reflecting the recovery of gold from ores stacked but not fully leached at the
Iduapriem pads during the previous year.

     Exploration and Development

Following on from the upgrade, a new life of mine plan has been prepared for the
Iduapriem/Teberebie mines which includes the exploitation of the previously
uneconomic old Iduapriem Blocks 3W, and 5 together with the inclusion of the
Ajopa deposit. In 2002, exploration focused on the Ajopa concession and infill
drilling between Blocks 7 and 8. In 2003, a review of mineralization below the
present economic pit designs will be undertaken to assess the overall longer
term potential of the underlying banket reefs across the Iduapriem and Teberebie
properties.

     Power Supply

Iduapriem mine obtains power from the Electricity Company of Ghana, or ECG,
which is controlled by the Government of Ghana and receives its supply from the
Volta River Authority, or VRA. Power supplies have in the past been subject to
outages and voltage fluctuations. We have very limited back-up power available
and so our operations are dependent on power supplied by the VRA. In 1998 a
severe drought drastically reduced the hydro-electric power produced by the VRA,
which in turn resulted in a severe disruption of our operations. As part of the
ongoing upgrade of the processing plant, a new 33KV transmission line has been
installed to deliver the power required for the additional SAG mill.

     Health, Safety and Environment

Iduapriem was re-awarded a four-star NOSA rating during 2002 and, as with some
of our other mines, is undertaking a program targeting a five star integrated
NOSA rating and ISO 14001 accreditation. Rehabilitation work on the spent heap
leach pads, the old tailings dam and disused waste dumps have been prioritized.
The main focus of the rehabilitation program has been the planting of a variety
of species of trees germinated in the mine's nursery. Iduapriem provides
community assistance by supporting local education and medical facilities and a
variety of community projects such as the provision of boreholes and pumps for
clean water. There are programs in place to promote HIV/AIDS awareness and
prevention for both employees and the local community.


                                       36






<PAGE>




     Financing

Iduapriem is financed by US$23.4 million of bank debt (excluding accrued
interest of US$6.0 million) and, as at May 30, 2003, an additional US$4.7
million owed to Pioneer excluding contingent consideration payable upon an
increasing gold price. Under the terms of the bank financing, we are not
permitted to make any distribution to ourselves until this bank debt has
been repaid in full.

Ayanfuri -- Ghana

We acquired the Ayanfuri mine, located in the Central Region of Ghana in
1996 from Cluff Resources. Exploration leading to the establishment of the
Ayanfuri mine commenced in 1988 and following the preparation of a feasibility
study, project construction started in 1994. Construction was completed at the
beginning of October 1994 with the first gold bar poured at the end of November.
Production since start-up to December 31, 2001 has been approximately 0.32
million ounces of gold. Mining was by open pit methods and the operation
utilized heap leach processing technology in the treatment of the oxide ores.

In 2001, 329,000 tonnes at a grade of 1.2 g/t, compared with 1.12 million tonnes
in 2000 at a grade of 1.22g/t, were processed. As at December 31, 2001, 11,517
ounces of gold were produced at a cash operating cost of US$243 per ounce
compared to 36,316 ounces in 2000 at a cash operating cost of US$245 per ounce.
The reduction in gold output was due to the depletion of the mine's ore
reserves. At the end of the second quarter of 2001, the mining operations ceased
and the mine closure plan is currently being implemented.

Siguiri -- Guinea

     Introduction

The Siguiri gold mine is located in the Siguiri District in the northeast of the
Republic of Guinea, West Africa, approximately 850 kilometers from the capital
city of Conakry. The nearest important town is Siguiri (approximately 50,000
inhabitants), located on the banks of the Niger River. We own 85% of the Siguiri
gold mine and the Government of Guinea owns the remaining 15%. We acquired our
interest in Siguiri in 1996.

In 1985, Societe Aurifere de Guinee S.A., now called Societe Ashanti Goldfields
de Guinee S.A., or SAG, was formed under the laws of the Republic of Guinea to
explore the gold resources of the Siguiri concession. Initially, SAG was owned
51% by Chevaning Mining Company Limited, or CMC, and 49% by the Government of
Guinea. In 1993, Golden Shamrock Mines Ltd of Australia acquired 100% of CMC and
also renegotiated the terms of the agreement with the Government of Guinea such
that the Government's equity interest in Siguiri was reduced from 49% to 15%.

SAG carried out alluvial gold mining operations in a small part of the
concession between 1988 and mid-1992 and built substantial infrastructure in the
area, including a town site now known as Koron. After modest gold production,
these operations were discontinued. Following our acquisition of Siguiri, we
began the development of a US$55 million heap leach mine and processing facility
and the improvement of the access road to Siguiri. Operations began at Siguiri
in 1998. The life of mine plan currently projects mining until approximately
2007.

In 2002, Siguiri produced a total of 269,292 ounces at a cash cost of US$230 per
ounce, compared with 283,199 ounces at US$220 per ounce in 2001 and 303,381
ounces at US$181 per ounce in 2000. Production and cash costs were impacted by
lower than targeted gold production from the stacked material during the year
and higher mined tonnages.

A total of 9.46 million tonnes of ore were mined in 2002 compared to 8.52
million tonnes in 2001 and 10.8 million tonnes in 2000. The heap leach plant
processed a total of 9.46 million tonnes grading at 1.16g/t compared to 9.06
million tonnes at 1.33g/t the previous year and 8.88million tonnes at 1.34g/t
in 2000.



                                       37






<PAGE>


     Reserves

The proven and probable contained gold reserves at Siguiri as at December 31,
2002 and 2001 are set forth in the table below:


<TABLE>
<CAPTION>
                                                    As at December 31, 2002           As at December 31, 2001
                                                -------------------------------   -------------------------------
                                  Estimated
                                   Average                            Contained                         Contained
                                Metallurgical      Ore                  Gold         Ore                  Gold
                                   Recovery       Tonnes     Grade     Ounces       Tonnes     Grade     Ounces
                                      %         (millions)    g/t    (millions)   (millions)    g/t    (millions)
-----------------------------------------------------------------------------------------------------------------
<S>                                    <C>         <C>        <C>        <C>         <C>        <C>        <C>
Proven Reserves                        90          19.1       1.2        0.7         20.9       1.1        0.7
Probable Reserves                      90          36.3       1.2        1.4         35.8       1.2        1.4
-----------------------------------------------------------------------------------------------------------------
Total Ore Reserves                     90          55.4       1.2        2.1         56.7       1.2        2.1
=================================================================================================================
</TABLE>

For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining. Metallurgical losses are excluded from the calculation of
contained gold ounces.

     Geology

The SAG concession is dominated by Proterozoic Birimian rocks which consist of
turbidite facies sedimentary sequences.

Two main types of gold deposits occur in the Siguiri basin and are mined by SAG.
These are :

o    Laterite or CAP mineralization which occurs as aprons of colluvial or as
     palaeochannels of alluvial lateritic gravel adjacent to and immediately
     above in-situ mineralization

o    Quartz vein related mineralization hosted in meta-sediments with the better
     mineralization associated with vein stockworks that occur preferentially in
     the coarser, brittle siltstones and sandstones. The mineralized rocks have
     been deeply weathered to over 100 meters in places to form saprolite or SAP
     mineralization.

The CAP and SAP ore types are currently blended and processed using the heap
leach method.

     Mining Method

All ore and waste is mined using a mining contractor in a conventional open pit
mining operation. Due to the weathering profile of the mineralized and
associated waste zones, extensive areas can be freely dug by hydraulic
excavators, with light blasting operations conducted where required.

The primary material movement fleet is a combination of 160 tonne and 100 tonne
hydraulic excavators and 85 tonne trucks. The mining fleet includes auxiliary
equipment (dozers, graders, water carts, etc) for haul and pit access road
construction, maintenance and rehabilitation work.

Ore is hauled directly to the primary crusher or to run-of-mine stockpiles
adjacent to the primary crusher. Crushed ore from the primary crusher is
delivered by conveyor to the treatment facilities for processing. In the event
of conveyor failure, ore can be hauled to the original stockpile and crushing
facilities and fed by front end loaders as part of the ore processing operation.

     Processing Method

Ore is currently processed using the heap leach method. The heap leach facility
has a capacity of 9.0 mtpa. The facility includes the heap leach pad area, ore
crushing, agglomeration and stacking system, solution ponds and gold extraction
plant.

The CAP and SAP ores are blended, crushed and mixed with a cement binder to
agglomerate the material, which aids percolation and pH-control and gives
stability to the stacked ore. The material is then stacked in 10 meter lifts on
large plastic sheeted pads. The stack is then sprayed with a dilute cyanide
solution which percolates through the agglomerated ore, leaching out the gold in
the process. The plastic sheeting prevents the cyanide solution from
contaminating the ground and allows the gold-bearing solution to be gravitated
to collection ponds. The solution is then either re-sprayed back onto heaps or
pumped to the gold recovery section of the plants. Activated carbon is then
added to adsorb the gold from solution. This is then eluted and the gold
electro-won onto cathodes. The cathodes are smelted to produce dore bars.


                                       38






<PAGE>

Plant recovery for the year ended December 31, 2002 was 76.3%, up from 73.1% in
2001. The increased recovery reflects the cascade effect of incremental recovery
from gold stacks on the heap in 2001 but not recovered until 2002. Plant
recovery for 2001 reduced to 73.1% from 79.3% in 2000. This was largely due to
solution reticulation and third layer stacking problems which resulted in lower
than anticipated leach rates. During 2001, considerable work was undertaken to
solve these problems. The third layer stacking was suspended while the solution
management system was upgraded and the controls on blending the lateritic and
saprolitic ore types improved. In 2002, solution reticulation capacity and the
area under irrigation were increased and the locked up gold is presently being
recovered.

     Siguiri CIP Expansion Plan

We have concluded a feasibility study to provide for the processing of
predominantly SAP ores through a CIP processing plant. We expect the CIP
facility, when fully commissioned, to have a capacity of 9.0 mtpa and to
produce approximately 300,000 ounces of gold per year. The CIP plant will
consist of a primary crusher followed by a scrubber where the plus 10mm fraction
will be separated and re-directed to the heap leach agglomeration plant. The
minus 10mm product (scrubbed slurry) will go through a classifying cyclone and
the underflow will be ground in a ball mill. The milled product and cyclone
overflow will be leached through seven mechanically agitated CIP tanks and the
loaded carbon will be washed and eluted prior to electro-winning and smelting.

We plan to fund the capital costs through a combination of cashflow from
Siguiri and corporate funding. Although we expect cash operating costs to
decrease at Siguiri as a result of this expansion once it is fully commissioned,
the principal advantage of the CIP plant is that we will be able to treat SAP
ores alone. Currently the SAP ores must be blended with CAP ores in the
appropriate proportions to be processed at our current facility. As the mine
life for Siguiri has extended, and the CAP deposits in the area have been mined,
there has been a gradually reducing ratio of CAP to SAP ores available to be
treated through the heap leach facility. The change in the ratio of CAP to SAP
ores has resulted in increased processing costs and less certainty over
metallurgical recoveries because we have had to add more cement in order to
stabilize the heaps. Once the CIP plant is commissioned, heap leach processing
will be reduced to approximately 15% of the total tonnage processed, this
tonnage representing the coarser and harder fraction of the ore being screened
for grinding and CIP processing. We therefore expect production from the heap
leach plant throughput to reduce to around 1.5 million tonnes per year and gold
production to be around 50,000 ounces per year.

Engineering, design, procurement, site mobilisation and civils preparation work
for the new CIP plant progressed through the first quarter. However, we have, by
mutual agreement with the contractor, terminated the Siguiri CIP lump sum
contract due to irreconcilable differences. We are reviewing the situation and
assessing alternative options, which could impact on the project timetable and
costs.

     Exploration and Development

In 2001, our exploration around the Siguiri mine site was mainly targeted at
locating and defining CAP mineralization. Reserves were also outlined at
Sintroko, 4 kilometers south of the Kosise pit and at Sokunu. During 2002 a new
saprolite deposit was discovered at Bidini near Eureka Hill. Now that we have
decided to construct the CIP plant to treat SAP ore, we will increasingly target
future exploration for additional SAP mineralization.

     Power Supply

Siguiri mine is supplied with its power from diesel generating sets operated by
a power provider. There is no access to the national power grid at Siguiri.
Monthly consumption is presently around 3.7million kilowatt hours and the
reliability of supply is dependent upon timely deliveries of diesel. Following
commissioning of the CIP plant, power requirements will increase to around 10
million kilowatt hours per month and a new and more efficient power station is
to be constructed, rated at approximately 20 megawatt capacity, to meet this
power requirement. The new power plant, which will be owned and operated by a
power provider, will use heavy fuel oil. The existing power plant will be
maintained as a back up facility. The cost of power is presently US$0.134 per
kilowatt hour while power from the new station is expected to cost around
US$0.10 per kilowatt hour, at current oil prices.


                                       39






<PAGE>




     Health, Safety and Environment

Siguiri was awarded a five-star NOSA rating during 2002 and, as with some of our
other mines, is undertaking a training and work program targeting a five star
integrated NOSA rating and ISO 14001 accreditation. There is a comprehensive
environmental monitoring system at Siguiri in respect of dust, noise and
effluent control. A program of land restoration is in place with emphasis on
re-grassing disused dumps and the planting of a variety of indigenous trees.
Siguiri mine provides community assistance by supporting local education and
medical facilities and a variety of community projects such as the provision of
boreholes and pumps for clean water. There are programs in place to promote
HIV/AIDS awareness and prevention for both employees and the local community.

Geita -- Tanzania

     Introduction

The Geita mine is situated in northwestern Tanzania approximately 90 kilometers
from the regional capital of Mwanza and 20 kilometers south of Lake Victoria in
an area known as the Lake Victoria Goldfields. The operation is currently owned
and operated jointly by us and AngloGold Limited in a joint venture following
the purchase of a 50% interest in the project by AngloGold Limited in December
2000.

Geita covers some 373 square kilometers of prospecting licenses with the
inclusion of the AngloGold Limited Nyamulilima Hill license into the joint
venture. Within this area a special mining license has been granted covering 114
square kilometers.

The Geita deposit was first mined as an underground operation between 1938 and
1966 and it is estimated some 940,000 ounces of gold were produced at a mean
recovered grade of approximately 5.3 g/t. At this time Geita was the largest
operating gold mine in East Africa. In the late 1980s, the area became the focus
of artisanal mining. In 1991 Cluff Resources Plc, or Cluff, acquired the Geita
East and Geita West prospecting licenses, SAMAX acquired the Kukuluma
prospecting licenses and, in 1994, Cluff acquired the Geita Hill prospecting
license. Both companies commenced exploration soon after obtaining their
respective license areas. Cluff and SAMAX were acquired by us in 1996 and 1998
respectively.

A feasibility study for the project was completed by us in November 1998 which
detailed the construction of a CIL processing plant, fuel fired power plant,
mine village, services, related infrastructure and initial open pit mining
activity. Extension and infill drilling continued during the construction period
and the reserves and mine life were significantly increased with an improvement
in overall economics.

The construction of the US$165 million Geita mine began in 1999 and was
completed in 2000 on budget and ahead of schedule with gold production
commencing in June 2000. A total of 1.24 million tonnes of ore at a grade of
3.00 g/t were mined at a strip ratio of 9.6:1 in the seven months ended December
31, 2000. By the end of 2000, 176,836 ounces of gold were produced at a cash
operating cost of US$145 per ounce. In 2001, a total of 4.58 million tonnes were
processed at a grade of 3.91 g/t and a recovery of 93.0%.

In the year ended December 31, 2002, 579,043 ounces of gold were produced at a
cash operating cost of US$163 per ounce. We anticipate that production will be
lower for the next two quarters due to lower mined grades as waste stripping
continues in cut 3 at Nyankanga.

The total ore reserve at Geita increased during our period of exclusive
ownership from zero ounces at the time of purchase in early 1996 to 7.8 million
ounces at the end of 2000 when 50% of the project was acquired by Anglogold. We
raised approximately US$335 million (prior to costs of disposal) on the sale in
December 2000 of 50% of our interest in the Geita mine to AngloGold Limited.

In the last quarter of 2001, the haul road between the Kukuluma deposit and the
processing plant was completed and a haulage contract was signed to commence
production from that deposit in the first quarter of 2002.

We have upgraded the crushing system and leaching tank circuits in order to
increase plant throughput capacity and gold production to between 5.6 and 6.0
million tonnes and 600,000 ounces per year respectively. This upgrade was
completed in the first quarter of 2003.


                                       40






<PAGE>


     Reserves

The proven and probable contained gold reserves at the Geita mine, 50% of which
are attributable to us, as at December 31, 2002 and 2001 are set forth in the
table below:

<TABLE>
<CAPTION>
                                                    As at December 31, 2002           As at December 31, 2001
                                                -------------------------------   -------------------------------
                                  Estimated
                                   Average                            Contained                         Contained
                                Metallurgical      Ore                  Gold         Ore                  Gold
                                   Recovery       Tonnes     Grade     Ounces       Tonnes     Grade     Ounces
                                      %         (millions)    g/t    (millions)   (millions)    g/t    (millions)
-----------------------------------------------------------------------------------------------------------------
<S>                                    <C>         <C>        <C>        <C>         <C>        <C>        <C>
Proven Reserves                        90          30.8       3.7        3.6         37.7       3.4        4.1
Probable Reserves                      90          39.6       4.6        5.8         25.0       4.5        3.6
-----------------------------------------------------------------------------------------------------------------
Total Ore Reserves                     90          70.4       4.2        9.4         62.7       3.8        7.7
=================================================================================================================
</TABLE>

For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining. Metallurgical losses are excluded from the calculation of
contained gold ounces.

     Geology

Geita is found within the Archaean Greenstone belt terrain of Northern Tanzania
and consists of a series of Banded Ironstone Formations, or BIF, within a
generally poorly exposed sequence of felsic/intermediate volcanics. This
sequence overlies mafic volcanics. The BIF, often in the form of distinct
ridges, are complexly folded and thrust. Nearly all the gold mineralization is
found within or in close proximity to the BIF.

A number of mineralized trends occur on the Geita concessions. The five
kilometer long Nyankanga -- Lone Cone -- Geita Hill mineralized trend contains
the bulk of Geita's reserves. The western portion of the Nyankanga deposit is
hosted predominantly in an altered diorite while further east gold
mineralization is associated with the more typical BIF units. Gold is associated
with pyrite and silicic alteration and dips at 25-35 degrees to the north. At
Geita Hill and Lone Cone, gold mineralization is associated with pyrite and
silicic alteration with BIF units dipping 45-55 degrees to the north and
north-west. The Kukuluma -- Matandani -- Area 3 West deposits are located in
topographic lows incised into the ancient (Cretaceous) hill-top ferricrete
plateau. Mineralization is related to sheared and folded BIF sequences within
carbonaceous mudstones and felsic tuffs. Oxide gold mineralization extends up to
100 meters below surface while the primary gold ores are associated with pyrite
and arsenopyrite sulfides.

In the far west of the Geita concessions, Nyamulilima Hill rises above the
surrounding plains and comprises a BIF sequence flanked by felsic volcanics that
have been intruded by silicified quartz felspar porphyry (QFP). The Ridge 8,
Star and Comet and Roberts deposits are hosted in BIF and/or at the BIF/QFP
contact. Gold is associated with disseminated pyrite and silicic and sericitic
alteration.

     Mining Methods

The Geita Mine is an open pit operation with mineralized material extending
below the lowest depth of all the pits. At present there are three pits in
operation:

o    Nyankanga (the largest);

o    Lone Cone; and

o    Kukuluma:

Other pits to be mined in the future include Geita Hill, Chipaka, Matandani,
Roberts and Area 3 West.

Mining of the ore and waste is carried out using conventional open pit
techniques and is undertaken using a mining contractor. The key terms of the
contract are the quantities to be mined over the life of the mine as engineered
at the time of contract agreement and the termination agreement in which the
parties can give each other notice, subject to compensation reflecting payment
for capital spent by the contractor on plant and demobilization. At any one
time, a number of pits will be in operation to provide mining flexibility and a
blend of oxidized, transition and primary ores. The ore is hauled to the crusher
where it is either tipped

                                       41






<PAGE>


directly into the crusher or placed on the Run of Mine, or ROM, stockpile and
rehandled later by front end loaders. All technical services, mine planning,
mining contract management, survey control and geotechnical support functions
are carried out by Geita mine staff.

Over the next five years the ore and waste mining rate is programmed to be close
to 50 mtpa at a strip ratio of approximately 9:1. At the end of 2001, the mining
contractor was changed following a re-tender of the contract to accommodate an
increase in the mining rate.

The primary material movement fleet consists of a combination of Komatsu 785 and
Caterpillar 77 trucks and a combination of Komatsu PC1100 and PC1800 excavators.
The fleet comprises auxiliary equipment (dozers, graders, water carts, etc) for
haul and pit access, road construction, maintenance and rehabilitation. The
equipment is owned by the mining contractor.

     Processing Method

The Geita processing plant has a name plate capacity of approximately 4.5 mtpa.
The ore is crushed and then fed into a SAG and ball mill grinding circuit with a
recycle crushing system. The material is passed through a gravity circuit
comprising two Knelson concentrators and a "Gekko" in line leach reactor which
treats the concentrate via an intensive cyanidation process. The pulp is
thickened and then pumped into the leach tanks for leaching in cyanide. The
loaded carbon is recovered and washed before being sent to the elution section
of the plant for gold stripping and final conversion into dore. The stripping
plant includes a 14 tonne capacity elution circuit with electro-winning (using
stainless steel cathodes) and direct smelting of the calcined sludge.

We have upgraded the crushing system and leaching tank circuits in order to
increase plant throughput capacity and gold production to between 5.6 and
6.0million tonnes and 600,000 ounces per year respectively. This upgrade was
completed in the first quarter of 2003.

     Exploration and Development

During 2002, drilling continued on a number of deposits to outline additional
reserves. Drilling was undertaken at Nyankanga, Geita Hill, Lone Cone, Roberts,
Chipaka, Kukuluma, Matandani and Area 3 West. Over 88,000 metres of drilling was
undertaken during the year, targeting mainly the depth extent of Nyankanga and
the gap area between Geita Hill and Lone Cone. This demonstrated a 5kilometre
long zone of gold mineralisation from Nyankanga to Geita Hill. Reserves at Geita
Hill increased by 46% to 2.0 million ounces (20.2 million tonnes grading 3.1g/t)
and by 16% to 5.7 million ounces (33.5 million tonnes grading 5.3g/t) at
Nyankanga.

Infill drilling was also completed at Star and Comet (part of the original
Nyamulilima licence block) during the last quarter of 2002. Significant
intersection at Star and Comet included 7 metres grading 8.36g/t from
76 metres, 6 metres at 10g/t from 122 metres and 19 metres of 17.3g/t from
113 metres.

     Power Supply

Power is supplied by generators. In 2001, mechanical failures occurred on the
prime generators at the Geita power plant necessitating the importation by the
manufacturer of additional generator sets to secure power supplies. The
manufacturers of the engines used in the power plant are in the process of
rectifying the problems with these machines. Throughout this problem period, no
significant material interruptions to processing resulted from the generator
failure.

     Health, Safety and Environment

The Geita mine has been certified with an ISO1400 health and safety rating and
has been awarded a NOSA four-star integrated rating during 2002. A training and
work program is being implemented to improve safety, health and environmental
standards and to upgrade the mine's NOSA rating to five star integrated.

There is a comprehensive environmental monitoring system at Geita in respect of
dust, noise and effluent control. A program of land restoration is in place with
emphasis on re-grassing disused dumps and the planting of a variety of
indigenous trees. The Geita mine provides community assistance by supporting
local education and medical facilities and a variety of community projects such
as the provision of boreholes and pumps for clean water and financial and
technical support for local micro business enterprises. There are

                                       42






<PAGE>


programs in place to promote HIV/AIDS awareness and prevention for both
employees and the local community.

     Financing

The Geita mine is financed by shareholder loans and a US$135.0 million project
finance facility of which US$102.7 million was outstanding as at December 31,
2002. Geita is restricted from making distributions or repayments of shareholder
loans until the debt service reaches a specified level and it shall be further
restricted from making such payments if certain financial covenants are not met
or if the aggregate marked-to-market value of the hedges relating to the Geita
mine exceeds a figure which is currently US$132.5 million (negative). In
addition, Geita is obliged to make mandatory repayments of the Geita facility
whenever it pays a dividend or other distribution, including repayment of
shareholder loans.

Freda-Rebecca -- Zimbabwe

     Introduction

We acquired the Freda-Rebecca mine in 1996 with the acquisition of Cluff
Resources. The mine is located at Bindura in Zimbabwe. We now conduct
underground mining operations at Freda-Rebecca as the open pits were mined out
in 1998. The ore is processed by means of a conventional CIL plant which was
designed to treat open pit sulfide ore. The life of mine plan currently projects
mining until approximately 2005 at current production rates.

In 2000 a total of 112,164 ounces was recovered from the processing of 1.0
million tonnes of ore grading 3.89 g/t at a metallurgical recovery of 89.8%. In
2001, a total of 1.156 million tonnes of ore was mined from underground. In the
12 months ended December 31, 2001, Freda-Rebecca mine produced 102,654 ounces of
gold at a cash operating cost of US$222 per ounce compared to US$198 per ounce
in 2000. The head grade was 3.30 g/t, whilst the metallurgical recovery was
86.4%. In the year ended December31, 2002, 1.077million tonnes of ore was mined
and we produced 98,255 ounces of gold at a cash operating cost of US$214. The
headgrade was 3.22g/t and the metallurgical recovery was 82.2%. Over the past
few years the robust, higher grade, easier production ore blocks have been
mined, resulting in production being at a higher than average reserve grade. In
2002, metallurgical recovery continued to be impacted upon by mechanical
problems in the milling and leach tanks sections of the processing plant as well
as the processing of more refractory ores emanating from the western extremity
of the mine. The lower production was due to planned and unplanned maintenance
down time on the SAG mill and lower metallurgical recovery that resulted from
fluctuating throughput rates and reduced leach tank capacity. Over the last
year, due to the support price mechanism set by the Government of Zimbabwe, the
price realized per ounce on the sale of gold to the Government of Zimbabwe, when
translated at the official exchange rate, has been higher than the prevailing
market price. In 2003, at the request of the Zimbabwe Chamber of Mines, the
Reserve Bank of Zimbabwe extended the Government's export support scheme to
include gold producers thereby replacing the gold support price mechanism which
existed in 2002. The gold producers will now receive Zimbabwe 800 dollars for
every US dollar worth of gold produced. In 2003, the foreign exchange position
in Zimbabwe was severely constrained and the release of hard currency from
Zimbabwe was slow. This could also impact on production in 2003.

     Reserves

The proven and probable contained gold reserves of Freda-Rebecca as at December
31, 2002 and 2001 are set out in the table below.

<TABLE>
<CAPTION>
                                                    As at December 31, 2002           As at December 31, 2001
                                                -------------------------------   -------------------------------
                                  Estimated
                                   Average                            Contained                         Contained
                                Metallurgical      Ore                  Gold         Ore                  Gold
                                   Recovery       Tonnes     Grade     Ounces       Tonnes     Grade     Ounces
                                      %         (millions)    g/t    (millions)   (millions)    g/t    (millions)
-----------------------------------------------------------------------------------------------------------------
<S>                                    <C>         <C>        <C>        <C>         <C>        <C>        <C>
Proven Reserves                        83          3.8        2.5        0.3         4.3        2.5        0.3
Probable Reserves                      83          1.0        2.5        0.1         1.1        2.4        0.1
-----------------------------------------------------------------------------------------------------------------
Total Ore Reserves                     83          4.8        2.5        0.4         5.4        2.5        0.4
=================================================================================================================
</TABLE>


                                       43






<PAGE>


For economic studies and the determination of cut-off grades, we assumed a gold
price of US$300 per ounce.

The grade estimate is inclusive of adjustments for mining dilution and ore
losses during mining. Metallurgical losses are excluded from the calculation of
contained gold ounces.

     Geology

Freda-Rebecca mine is situated approximately in the middle of the Harare-Shamva
Archaean Greenstone Belt. Gold mineralization is controlled by both lithology
and structure and is associated with sulfides. The sulfides exhibit two styles.
The older style is of a disseminated nature and is the primary auriferous phase.
The younger style is shear-hosted and occurs in narrower widths. This style,
especially where fine-grained, is associated with higher grades. In both styles,
sulfides are fine to coarse grained. Primary sulfides are pyrite, arsenopyrite,
pyrrhotite and chalcopyrite. Mineralization is also associated with chlorite,
silicic and carbonate alteration.

     Mining Methods

In the initial phase of development, Freda-Rebecca was an open pit operation
with two pits. The Rebecca pit was mined down to a depth of 100 meters by open
pit method. We now utilize open-stoping with subsequent fill at the Rebecca pit
for underground mining. This is used to exploit the Rebecca Upper East and Lower
East. Four underground mining methods: sub-level stoping, room and pillar, ramp
in stope and panel stoping, are used at the Freda-Rebecca mine. Sub-level
stoping with troughs is now the dominant mining method.

     Processing Methods

Crushed material is conveyed into two separate milling modules, each consisting
of a SAG mill in closed circuit with a 750mm diameter cyclone (one standby) to
produce an overflow of 80%. About 30% of primary cyclone underflow is bled off
into Knelson concentrators for coarse gold recovery while the overflow is
de-watered in two cluster cyclone sets to 48-50% solid prior to gravitation into
the leach circuit. The leach train consists of three mechanically agitated
pre-leach tanks in series and nine CIL tanks providing a total residence time of
about 48 hours.

     Exploration and Development

Exploration continues to focus around the 16 square kilometer Freda-Rebecca
mining lease. At the mine site, exploratory drilling was principally directed at
the up dip extension of the Freda shear towards the old Promoter pit. Surface
extensions to the Phoenix Prince deposit are also being evaluated. On the two
square kilometers of claims on the RAN mine, which is located to the east of the
Freda-Rebecca mine, drilling intersected copper/gold mineralization over a
strike length of 500 meters and we are currently undertaking a feasibility study
to determine the economic viability of processing this copper/gold
mineralization through the Freda-Rebecca plant. We have an option to acquire any
reserves found on the RAN claims by completing a feasibility study and paying an
upfront royalty on any gold reserves delineated. Limited exploration has also
been undertaken on the Mazoe EPO which surrounds the Freda-Rebecca mining lease
where we are in joint venture with a third party.

     Economic/Political Situation

The economic and political situation in Zimbabwe during 2002 continued to pose a
series of difficult problems for the management team. The foreign exchange
constraint and the fixed exchange rate coupled with high inflation put severe
pressure on the supply function causing delays in receiving supplies.
Additionally, prices being quoted by suppliers increased, resulting in higher
operating costs. However, we have the approval of the Reserve Bank of Zimbabwe,
or RBZ, to retain a portion of our gold production offshore to meet foreign
currency operating and capital expenditure payments and to repay our debt.
Pursuant to this approval, during 2001 the Freda-Rebecca mine utilized
approximately US$7.1 million to meet overseas supplier payments and US$6.9
million was repatriated to settle debt. In 2002, a further US$8.6million was
applied to settle debt.

Revenue from Freda-Rebecca benefited in 2001 and 2002 from a support price set
by the Zimbabwean Government. This support price was set at a higher level than
the prevailing open market gold price as a concession for gold mining companies
receiving a substantial part of their bullion sales in Zimbabwe dollars


                                       44






<PAGE>




and to help counteract the high cost of operating in Zimbabwe. In 2003, at the
request of the Zimbabwe Chamber of Mines, the Reserve Bank of Zimbabwe
extended the Government's export support scheme to include gold producers
thereby replacing the gold support price mechanism which existed in 2002. The
gold producers will now receive Zimbabwe 800 dollars for every US dollar worth
of gold produced. In 2003, the foreign exchange position in Zimbabwe was
severely constrained and the release of hard currency from Zimbabwe was slow.
This could also impact on production in 2003.

     Power Supply

Freda-Rebecca mine obtains power from the Zimbabwe Electrical Supply Authority
which is in turn supplied principally from the Kariba and Cahora Bassa hydro
electric power stations in Zambia and Mozambique respectively. The Zimbabwe
national grid is however also linked into other sources including the coal fired
thermal plant at the Wankie colliery in Zimbabwe, and interconnectors to South
Africa and the Democratic Republic of Congo. In recent years the shortage of
foreign exchange has resulted in the Zimbabwe Electrical Supply Authority
accumulating significant debt to its suppliers resulting in possible future
insecurity of supply. Power supplies are sometimes unreliable with severe
voltage fluctuations and a relatively high incidence of disruptions due to
equipment failures or lightning hits on sub-stations.

     Health, Safety and Environment

Freda-Rebecca was awarded a four-star integrated NOSA rating during 2002 and, as
with some of our other mines, is undertaking a training and work program
targeting a five star integrated NOSA rating and ISO 14001 accreditation.
Rehabilitation works on the spent heap leach pads, the tailings dam and disused
waste dumps have been prioritized. The main focus of the rehabilitation program
has been the planting of a variety of species of trees germinated in the mine's
nursery. The Freda-Rebecca mine provides community assistance by supporting
local education and medical facilities and a variety of community projects such
as small scale farming enterprises. There are programs in place to promote
HIV/AIDS awareness and prevention for both employees and the local community.

Exploration

     General

Our exploration strategy to date has been to focus on gold projects only in
Africa. We have projects in the major prospective gold belts of West, Southern
and East Africa. Exploration at our existing mines is conducted by personnel at
the mine sites whereas exploration around the mines and elsewhere in Africa is
conducted by staff from Ashanti Exploration, a division of our company.

We believe that the African continent offers a wide range of exploration and
development opportunities, and that we are particularly well positioned to take
advantage of these opportunities because of our operational base in the region
and our position as an African gold mining company.

Many countries in which we are conducting exploration operations, or are
considering conducting operations, are characterized by political instability
and economic uncertainty. When deciding whether to pursue an exploration
project, we assess its geological potential, current and future political
stability of the country in which a potential project is located, its regulatory
and fiscal regime, security of title to property and economic conditions, as
well as the project area's access to infrastructure such as roads and power.

During 2002, our exploration focus continued to be on and around our existing
mining operations where the full benefit of additional reserves could be more
rapidly realized, as discussed for each mine site above. However, whilst
focusing on gold production, we would also consider significant exploration and
development opportunities in Africa in precious metals outside our current mine
sites and outside our core business area should they arise. Our platinum group
metal project in South Africa is an example.

All mine development expenditure at existing mines was provided from working
capital and cash revenues from the mines. However, we also have exploration
activities proceeding outside our existing mines, which we have funded from
corporate resources.

Set out below are details of exploration at sites other than the mine sites.


                                       45






<PAGE>




     Tanzania

Outside the Geita concessions we have continued our regional assessment of the
Lake Victoria Goldfields during the year and at the end of 2002, was granted the
2,075 kilometer Kigosi permit.

     Cote d'Ivoire

Regional geochemical soil anomalies were outlined on the Korokaha and Bondoukou
permits during the first half of the year. However, no follow up was undertaken
as a result of the political/security situation in the country during the latter
half of 2002.

     Mali

Five new Exploration Authorizations were acquired in southern Mali during 2002
and will be evaluated this year.

     D.R.Congo

During 2001, we increased our Kimin concession by 6,000 square kilometers to
8,000 square kilometers to cover most of the historically productive Kilo
greenstone gold belt of northeastern D.R.Congo. A deterioration in the security
situation in the general vicinity of this concession has delayed the
commencement of exploration activities.

     Burkina Faso

At our Youga project where we are in a 50-50 joint venture with Echo Bay Mines,
a probable open pit reserve of 5.0 million tonnes grading 3.2 grammes per tonne
(equivalent to 0.5 million ounces) has been outlined.

     Ghana

Exploration continued on a number of prospecting licenses in the gold belts of
southwest Ghana.

     South Africa

During 2002, we acquired our first non-gold exploration project in South Africa.
Tameng Mining and Exploration (Pty) Limited in which we have a 40% equity
interest was awarded through competitive bidding. Platinum Group Metal, or PGM,
mineral exploration rights were acquired on the farm M'phatlele's Location 457
KS in the northeastern limb of the Bushveld Igneous Complex. The sub-outcrops of
the Merensky and UG2 reefs, which are the principal mineralized horizons for
PGM's in the Bushveld Igneous Complex, have been mapped on M'phatlele's Location
over a strike length of eight kilometers. In January 2003, we entered into a
shareholder agreement with a black empowerment company which will govern the
operation of the project. This agreement is subject to various conditions
including the issue of the prospecting licence by June 30, 2003 (or a later
date as the parties may agree). Exploration of this site is expected to
commence in 2003.

Refining Contracts and Marketing

We derive the majority of our income from the sale of gold produced by our mines
which we sell under agreements with gold refiners.

We have separate gold refining and purchasing arrangements for each of our
mining properties. As of the date of this annual report they are as follows:

<TABLE>
<CAPTION>
Mine             Refiner
--------------------------------------------------------------------------------
<S>              <C>
Obuasi:          N.M. Rothschild & Sons
Bibiani:         Societe Generale
Iduapriem:       UBS AG, Zurich
Siguiri:         Bank of Nova Scotia
Freda-Rebecca:   Reserve Bank of Zimbabwe
Geita:           Societe Generale de Paris
</TABLE>

Gold is shipped to a refiner and upon receipt the relevant company is normally
credited with funds representing the value of 99% of the gold received within
three business days. The remaining 1% balance is credited after adjusting for
any differences between our assay and the refiner's assay and refining charges.
These amounts are paid directly into accounts in London, with the exception of
those payable to Freda-


                                       46






<PAGE>




Rebecca of which approximately 80% is paid within Zimbabwe. For our Ghanaian
mines, portions of these receipts are repatriated to Ghana through the Bank of
Ghana. Risk passes to the refiner either on delivery to the designated airport
or to the refiner, depending on the contract. Currently, like many other
Ghanaian gold mining companies, we cannot obtain insurance coverage for the
transported gold until it reaches the airport.

Gold bars produced by mining companies can be of any size and we typically
produces bars averaging about 800 ounces in weight. It is general practice for
the refiner to recognize the value of the silver contained in the gold bar and
we are credited accordingly. The refinement process upgrades the gold to 99.99%
purity by a process of electrolysis.

The Gold Market

Gold is used primarily for fabrication and bullion investment. Fabricated gold
has a wide variety of uses including jewelry (the largest fabrication use for
gold), electronics, dentistry, decorations, medals, medallions and official
coins. Some purchasers of official gold coins and of high-carat, low mark-up
jewelry may be motivated by investment, so that the net private gold bullion
purchases alone do not necessarily represent the total investment activity in
gold. Central banks buy, sell and hold gold bullion as part of their national
investment strategies.

The gold bullion market is deep and liquid. Purchases and sales of gold take
place around the globe in all sizes and forms. In London, gold trading is
conducted by a number of bullion houses, with prices set twice daily by the five
members of the "ring". The ring was originally established to determine the
price that represents the benchmark for trades and contracts. The price set is
the one at which orders to buy and sell are perfectly matched. Prices are
determined in the morning and afternoon, the so called A.M. and P.M. fixes, for
each trading day.

This market provides the foundation for many derivative instruments, including
futures, options, warrants and swaps. Substantial producers and purchasers use
these markets to hedge their respective positions. The process for a producer
involves the use of forward contracts and derivative instruments to hedge part
of the production against falls in the gold price. Although hedging exposes us
to risks, it is intended to help us secure a predictable cash flow which assists
in planning and forecasting future revenues, therefore helping to ensure that
financial commitments and other undertakings can be met.

Ghana

     Introduction

Ghana is located in West Africa and covers an area of approximately 238,000
square kilometers with a population of approximately 20 million. The State of
Ghana was created in 1957, when it became the first of the former colonies in
West Africa to gain independence. The official language of Ghana is English and
the country is located between the French-speaking countries of Cote d'Ivoire
and Togo.

     Political Background

The period from the granting of independence in 1957 to 1981 was turbulent in
the political history of Ghana. During this time, Ghana's governments alternated
periodically between military and civilian rules. After the military coup which
brought him into power the second time, Flight Lieutenant Jerry Rawlings and his
Provisional National Defence Council government ruled the country for 11 years,
during which time relative political stability and economic progress was
achieved. In November 1992, Jerry Rawlings was elected President in the first
democratic election in over a decade.

The principal step in the transition to the current level of democratic rule was
a referendum in April 1992 which endorsed a new constitution. The new
constitution gives the President supreme executive power in both civil and
military matters. It also provides for a fixed presidential term of office of
four years, with a maximum of two terms for any one person, and created a 200
member parliament to oversee the day-to-day functions of the Government. While
independent international observers declared that the presidential election was
fairly decided, opposition parties claimed that the election had been rigged and
boycotted the subsequent legislative elections held in December 1992.

Presidential and parliamentary elections took place in December 1996. Both
elections this time were contested and President Rawlings won again with 57.5%
of the total votes and the ruling NDC party took 132 of the 200 seats in
parliament. Elections were held again in December 2000. Jerry Rawlings was
unable


                                       47






<PAGE>



to stand for President, having completed his two terms, and there were seven
new candidates contesting the presidential election. The first round was
inconclusive, with no candidate achieving the required 50% majority. A second
round was conducted in early January 2001 between Professor J.E.A. Mills of the
National Democratic Congress and Mr. J.A. Kufuor of the New Patriotic Party,
which was won by Mr. J.A. Kufuor with 56.9% of the votes cast. The 2000
parliamentary elections also resulted in a defeat for the ruling NDC party,
with the NPP winning a total of 99 seats to the NDC's 92 seats. Smaller parties
and independent candidates hold the other nine seats. The next elections in
Ghana are scheduled for 2004.

     Political Structure

The Constitution, which came into force on January 7, 1993, and is the supreme
law of Ghana, establishes the political structure of the government and
enshrines a number of fundamental human rights and freedoms (for example,
personal liberty, non-discrimination, freedom of expression and concepts of
natural justice). The Constitution specifically preserves as current law the
written and unwritten laws of Ghana as they existed before the date of the
Constitution (except that they are to be construed in conformity with the
Constitution) and provides that, as a general matter, other than as provided in
the Constitution, the existing law is not to be affected by the adoption of the
Constitution. For this reason, and due to the different manifestations of the
Government over the years, the principal legislation includes decrees and
legislation promulgated by previous governments.

The Constitution establishes an executive branch headed by a President, a
Parliament and an independent judiciary. The President of the Republic of Ghana
acts as head of State, head of Government and commander-in-chief of the armed
forces. In determining Government policy, the President is assisted by the
Cabinet (which consists of the Vice President and between 10 and 19 Ministers of
State), as well as by non-Cabinet ministers and other senior advisers in the
office of the President. The President is also advised in relation to
legislative matters by a Council of State (which comprises a mix of presidential
appointees, representatives from the different regions of Ghana and former
holders of high office).

Parliament holds the legislative authority in Ghana. Matters are generally
decided by a simple majority vote, subject to a quorum of at least half the
members of Parliament being present. The power of Parliament to make laws is
exercised by passing the relevant bill and obtaining Presidential assent.

The judiciary is independent from the President, the legislature and the
executive and subject only to the terms of the Constitution. The judicial branch
consists of a Supreme Court, the Court of Appeal, the High Court, Regional
Tribunals, and such lower courts or tribunals as Parliament establishes.

     Economy

Ghana is comparatively well-endowed with natural and human resources. It has a
good supply of fertile land suitable for growing a broad range of agricultural
commodities, and considerable forestry, fishing and mineral resources, as well
as hydro-electric power resources. Agriculture accounts for approximately 50% of
its gross domestic product, with cocoa being the most important crop.

The unit of currency in Ghana is the cedi. The cedi has been characterized by
continuous depreciation against the US dollar over the last decade. The exchange
rate was determined by auction until 1992. Currently the exchange rate is set by
an interbank market for foreign exchange and the rates are now largely
determined on the basis of market forces. During 2000 the cedi experienced rapid
depreciation.

However, in 2001, mainly through the exercise of more prudent fiscal and
monetary policies by the new Government, the cedi was relatively stable against
almost all the major currencies with depreciation against the US dollar of only
3.7% for the year, compared with 49.5% for the corresponding period in 2000.
Inflation, which stood at 40.5% at the end of 2000 and peaked at about 42% in
March 2001, was down to 21.3% in December 2001. In January 2003, inflation
reduced further to 16.3%.

As part of the measures to promote capital and investment growth and to assist
the development of venture capital companies the Government, in its 2002 budget,
has reduced stamp duty on stated capital from 2.0% to 0.5%.



                                       48






<PAGE>



     Economic Recovery Program

Ghana experienced a protracted economic decline in the mid 1970s and
early 1980s. The decline was marked by high and accelerating inflation resulting
in overvaluation of the Cedi with the trade account moving into deficit in 1981
after several years in surplus. Lack of foreign investment, emigration of
skilled labor and Government policies favoring rapid industrialization through
import substitution all weakened the productive base of the economy. Faced with
sharply rising inflation, an economic slump and a mounting external deficit, the
Government sought outside assistance.

In April 1983, the Government introduced the Economic Recovery Programme, or
ERP. The ERP incorporated recommendations of the International Monetary Fund, or
IMF, and World Bank. The main elements of the ERP were to reduce inflation and
achieve equilibrium, to reduce the mounting budget deficit and to promote
economic growth and export recovery through a realignment of incentives towards
productive activities. The program also highlighted the need for structural
reform, economic liberalization and improving the availability of essential
consumer goods.

The ERP, and subsequent actions by the government, are widely considered to have
been generally successful in restoring Ghana's economic health. The economy is
still dependent on aid but Ghana ceased in 1991 to rely on IMF balance of
payments support, following a period of rapid economic adjustment financed by
concessional loans from the IMF. By Sub-Saharan African standards, Ghana has
achieved an impressive growth performance.

A Value Added Tax, or VAT, was successfully introduced at the end of 1998. The
Government is currently in the process of implementing various measures,
including fiscal reforms, designed to improve the economic situation. To this
effect, a national reconstruction levy was introduced in 2001.

     Highly Indebted Poor Country Initiative

With the large infusion of external loans to finance the ERP, the country's debt
carrying capacity was over-stretched without achieving the expected
corresponding export recovery. Therefore, in March 2001, the new Government
decided to take advantage of the Highly Indebted Poor Country initiative, which
provides debt relief from both bilateral and multilateral creditors. This
initiative is aimed at restoring the country to a sustainable debt carrying
capacity and to free resources for a poverty reduction program in the near-term
of 2002 to 2004.

     Mining

After going through a period of contraction for many decades, the Ghanaian
mining sector grew markedly during the 1990s. Since 1983, the Government has
introduced a number of incentives for mining companies, with the result that new
investment has increased. Encouraged by support from the World Bank, together
with the provision of debt and guarantee facilities from the International
Finance Corporation, gold mining has enjoyed a renaissance, with output more
than quadrupling since 1987. The vast majority of the output comes from
underground and open pit mines in the Western and Ashanti regions.

Regulations and Leases

     Ghana

     Minerals and Mining Law

     General

Mining activities in Ghana are primarily regulated by the Minerals and Mining
Law 1986 (P.N.D.C.L. 153), or the Mining Law.

Under the Constitution and the Mining Law, all minerals in Ghana in
their natural state are the property of the state and title to them is vested in
the President on behalf of and in trust for the people of Ghana, with rights of
prospecting, recovery and associated land usage being granted under licenses or
leases.

A license is required for the export or disposal of such minerals and the
Government has a right of pre-emption over all such minerals. The Government
of Ghana shall acquire, without payment, a 10% interest in the rights and
obligations of the mineral operations in relation to a mineral right to
reconnaissance, prospecting or mining, and shall have the option to acquire a
further 20% interest where any mineral is



                                       49






<PAGE>



discovered in commercial quantities, on terms agreed between the Government
and the holder of the mining lease subject to arbitration if the parties fail
to agree.

A license or lease granting a mineral right is required to reconnoiter or
prospect for or mine a mineral in Ghana, and the Minister of Energy and Mines
has power to negotiate, grant, revoke, suspend or renew any mineral right,
subject to a power of disallowance exercisable within 30 days of such grant,
revocation, suspension or renewal by the Cabinet. The powers of the Minister
of Mines are to be exercised on the advice of the Minerals Commission, which
is responsible for regulating and managing the utilization of natural resources
and co-ordinating policies relating to them. The grant of a mining lease by the
Minister of Mines is normally subject to parliamentary ratification unless
specifically exempted.

A mineral right is deemed a requisite and sufficient authority over the land in
respect of which the right is granted, although a separate license is required
for some other activities, including the diversion of water, and additional
consents may be required for certain developments. A mineral right or interest
therein may not be transferred, assigned or otherwise dealt with in any other
manner without the Minister of Mines' prior written approval.

     Control of Mining Companies

The Minister of Mines has the power to object to a person becoming or remaining
a "shareholder controller", a "majority shareholder controller" or an "indirect
controller" of a company which has been granted a mining lease if he considers
that the public interest would be prejudiced by the person concerned becoming or
remaining such a controller. In this context:

o    "shareholder controller" means a person who, either alone or with certain
     others, is entitled to exercise, or control the exercise of, 20% or more of
     the voting power at any general meeting of a mining company or of any other
     company of which it is a subsidiary,

o    "majority shareholder controller" means a shareholder controller in whose
     case the percentage referred to above also exceeds 50%, and

o    "indirect controller" means a person in accordance with whose directions or
     instructions the directors of a mining company, or of another company of
     which it is a subsidiary, or the shareholder controllers of that mining
     company are accustomed to act.

A person may not become a shareholder controller, a majority shareholder
controller or an indirect controller of a mining company unless he has served
written notice on the Minister of Mines of his intention to that effect and the
Minister of Mines consents to his becoming such a controller or does not object
within a period of six months.

Where a person becomes or continues to be a controller of the relevant
description after a notice of objection has been served on him, or is otherwise
in contravention of the procedures prescribed by the Mining Law, the Minister of
Mines may notify the controller that, until further notice, any specified shares
are subject to restrictions. The relevant restrictions include restrictions on
transfer, voting rights, receipt of further shares and distributions. The
Minister of Mines may apply to the High Court to order the sale of any shares
which are the subject of such a restriction. There is no legal restriction on
the foreign ownership of a mining company.

Where a person, either alone or with others, acquires an interest in 5% or more
of the voting power of a mining company he is required to notify the Minister of
Mines.

A person who is a controller of a mining company must give notice of his ceasing
to be such a controller before he disposes of his interest. In addition, the
mining company itself has to give notice to the Minister of Mines of the fact
that any person has become or ceased to be a controller. Violation of these
provisions of the Mining Law is a criminal offence. The law also gives the
Minister of Mines power to investigate and report on the ownership and control
of any mining company.

The Mining Law also gives the Government the right to acquire a special share in
a mining company in order to protect the assets of the relevant company and to
reflect and further the intentions of the provisions of the Mining Law relating
to control of a mining company. The Government holds such a share in us, called
the Golden Share.



                                       50






<PAGE>


Our Regulations also require us and our directors to comply with any order made
by the Minister of Mines under the provisions of the Mining Law and provide that
any action taken by us or our directors in pursuance of any such order shall be
final and conclusive and binding on all persons.

     Payments and Allowances

The Mining Law provides that royalties are payable by the holder of a mining
lease to the State at rates of between 3% and 12% of total minerals revenue,
depending on a formula set out in mineral royalty regulations. The formula is
determined by calculating the ratio of revenue minus operating costs, interest
and capital allowances to total revenue. A ratio of 30% or lower will attract a
royalty of 3%. For every 1% that the ratio exceeds 30%, the amount of the
royalty will increase by 0.0225% up to a maximum of 12%. The laws of Ghana
currently provide for income tax at a rate of 30%. The Mining Law provides for
an entitlement to certain specified capital allowances and various additional
fiscal and other benefits.

In 2002, the Ghanaian tax legislation was changed so that unutilized
losses and capital allowances existing at January 1, 2001 can only be carried
forwards for five years. If not used by that time they will be lost. Losses and
capital allowances incurred after January 1, 2001 can be carried forwards
without limit.

     Retention of Foreign Earnings

Holders of mining leases have certain limited rights to retain foreign exchange
earnings overseas and to use such earnings for the acquisition of machinery and
equipment as well as for certain other payments such as debt service payments
and dividends. Where the net earnings of a holder of a mining lease are in
foreign currency, the holder is permitted to retain not less than 25% of foreign
exchange earnings in an external account for acquiring machinery and equipment,
spare parts and raw materials as well as for certain other payments, such as
dividend and debt service payments. Our operations in Ghana are permitted to
retain 60% to 80% of its foreign exchange earnings in such an account. In
addition, we currently have permission from the Bank of Ghana to retain and use
outside Ghana US dollars required to meet payments to our hedge counterparties
which cannot be met from the cash resources of our treasury company.

     Leases

Mining leases may be applied for either by a prospecting license holder who has
established the existence of minerals in commercial quantities or by others who
do not hold such licenses, who establish the same to the satisfaction of the
Minister of Mines. Mining leases are normally granted for a period not exceeding
30 years and the holder may apply to the Minister of Mines for renewal, on such
conditions as the Minister of Mines may determine, for up to another 30 years.
They are to have a maximum size (subject to derogation by the President where it
is considered to be in the national interest) of 50 Km'pp'2 for any grant and
150 Km'pp'2 in aggregate. A holder may apply for an enlargement of the mining
area, which, subject to the Mining Law, the Minister of Mines may grant if
satisfied that such approval is in the national interest. The rights conferred
by mining leases include those to take all reasonable measures on or under the
surface to mine the mineral to which the mining lease relates, to erect
necessary equipment, plant and buildings, to prospect within the mining area
and to stack or dump mineral waste in an approved manner. Reconnaissance and
prospecting licenses are normally granted for up to 12 months and three years
respectively, subject to renewal.

A detailed program must be submitted for the recruitment and training of
Ghanaians with a view to achieving "localization", being the replacement of
expatriate personnel by Ghanaian personnel. In addition, the holder must give
preference to Ghanaian products and personnel, to the maximum extent possible,
consistent with safety, efficiency and economy.

Prior notification to the Minister of Mines is required for ceasing, suspending
or curtailing production. Approval to such actions may be given, subject to
conditions determined on the advice of the Minerals Commission.

There are also provisions relating to surrender, suspension and cancellation of
mineral rights in certain circumstances. The Minister of Mines may suspend or
cancel a mineral right if, among other things, the holder: fails to make
payments under the Mining Law when due; is in breach of any provisions of the
Mining Law or of the conditions of the mineral right or the provisions of any
other enactment relating to mines and minerals; becomes insolvent or bankrupt;
makes a statement to the Minister of Mines in relation to the mineral right
which he knows, or ought to have known to be false; or for any reason becomes
ineligible to apply for a mineral right under the provision of the Mining Law.
Except as otherwise provided in a specific


                                       51






<PAGE>


mining lease, all immovable assets of the holder under the mining lease vest in
the state on termination, as does all moveable property that is fully
depreciated for tax purposes. Moveable property that is not fully depreciated
is to be offered to the state at the depreciated cost.

The holder must exercise his rights subject to such limitations relating to
surface rights as the Minister of Mines may prescribe. Subject to the proper
conduct of the mining operations, the holder must affect as little as possible
the interest of any lawful occupier, whose grazing rights are retained but who
is precluded from erecting any building without the consent of the holder (or,
if such consent is unreasonably withheld, without the consent of the Minister).
An owner or occupier of any land subject to a mineral right may apply to the
holder for compensation and the amount of the compensation shall, subject to the
approval of the land valuation board, be determined by agreement between the
parties concerned (or, if they are unable to reach agreement, by the Minister of
Mines in consultation with the land valuation board). The land valuation board
has in the past increased amounts of compensation payable to owners and
occupiers.

The holder, in the exercise of his rights, is required to have due regard to the
effect of the mineral operations on the environment and is to take such steps as
may be necessary to prevent pollution of the environment as a result of such
operations. A range of activities and breaches of the Mining Law including
obstructing the Government from exercising its pre-emption right and conducting
mining, prospecting or related activities otherwise than in accordance with the
Mining Law, constitute offences punishable by fine or imprisonment. The maximum
fine is 500,000 cedis (at current exchange rate, approximately US$70), and the
maximum term of imprisonment is two years.

     Proposed amendment to Mining Law

A bill has been drafted which, if enacted, will replace and repeal the existing
Minerals and Mining Law 1986 and all other regulations under it. The bill may
never be enacted or, if enacted, might be enacted with substantial
modifications. For the most part the bill consolidates with modifications the
existing law.

The key material modifications to the current regime proposed in the current
draft are:

o    the right of the government to acquire a 10% "free carried" interest in a
     mining company is to be amended so that in future it will be acquired on
     terms prescribed or on terms to be agreed; the bill does not currently
     prescribe any terms. In addition the right of the government to acquire a
     further 20% interest in the rights and obligations of the mineral
     operations in relation to mineral rights is to be deleted;

o    there are provisions for stability agreements to be entered into by the
     Minister of Mines, on behalf of the Republic, with approval of parliament
     to ensure that the holders of mining rights are not adversely affected by
     changes in law for a period of 15 years and for development agreements to
     be entered into with approval of parliament between the Minister of Mines,
     on behalf of the Republic, and a mining company where the proposed
     investment is greater than US$500 million to deal with, in addition to
     matters relating to environmental liabilities; the exercise of discretion
     and settlement of disputes;

o    the bill sets out the compensation principles for disturbance of an owner's
     surface rights;

o    the proposed draft bill and regulations state that royalties are payable
     by the holder of a mining lease at a rate of 4% to replace the existing
     sliding scale of 3-1/2% for gold produced from its mining operations; and

o    the right of the government to be issued with a special share in a mining
     company still exists although the consent of the special shareholder will
     only be required for the disposal of mining lease and/or material assets,
     which are situated in Ghana.

     Mining Properties

     Obuasi Mining Lease

Our current mining lease for the Obuasi area was granted by the Government of
Ghana on March 5, 1994. It grants to us the mining rights to land with an area
of approximately 334 square kilometers in the Amansie East and Adansi West
districts of the Ashanti region for a term of 30 years from the date of the
agreement. In addition, the application for a mining lease over the adjacent 140
square kilometers has also been granted resulting in the total area under mining
lease conditions increasing to 474 square kilometers, the Lease Area.

                                       52






<PAGE>



We may, not less than one year before expiry of the relevant lease, apply for an
extension and if we are not in default at the time we shall be entitled to an
extension upon such terms and conditions as the parties may then agree. The
Government of Ghana also granted to us the exclusive rights to work, develop and
produce gold in the Lease Area (including the processing, storing and
transportation of ore and materials) together with the rights and powers
reasonably incidental thereto subject to the provision of the relevant lease for
that term.

We are required to pay to the Government of Ghana rent (subject to review every
five years, when the rent may be increased by up to 20%) at the rate of
approximately US$5 per square kilometer and such royalties as are prescribed by
legislation, including royalties on timber felled within the Lease Area. We are
required to pay tax and effect foreign exchange transactions in accordance with
the laws of Ghana.

Upon the termination or expiration of the agreement, immovable assets in the
lease area and all other appurtenances in pits, trenches and boreholes shall
become the property of the Government of Ghana without charge. All materials,
supplies, vehicles and other moveable assets that are fully depreciated for tax
purposes shall become the property of the Government of Ghana without charge.
Other such property shall be offered to the Government of Ghana at the
depreciated value within 60 days. If the Government of Ghana does not accept the
offer within a period of 60 days we may sell, remove or otherwise dispose of the
property during a period of 180 days after expiry of the offer. All such
property not sold, removed or otherwise disposed of shall become the property of
the Government of Ghana without charge. Upon termination or expiry of the
agreement, we shall leave the Lease Area and everything therein in a good and
safe condition and, unless the Chief Inspector of Mines otherwise directs, shall
take all reasonable measures to leave the surface of the Lease Area in good and
usable condition.

The agreement is not assignable in whole or in part by us without the consent of
the Government of Ghana. The Government of Ghana may impose such conditions
precedent to the giving of consent as it may deem appropriate in the
circumstances. No assignment however may relieve us of our obligations under the
agreement except to the extent that such obligations are actually assumed by the
assignee. When new laws and conditions coming into existence subsequent to the
date of the agreement unfairly affect the interests of either party to the
agreement, the agreement may be renegotiated at the request of the unfairly
affected party. The agreement is governed by and construed in accordance with
the laws of Ghana. Security over the Obuasi mining lease has been granted to the
lenders under the enlarged revolving credit facility by way of a fixed charge
over the Obuasi mining lease. The Government of Ghana (acting through the
Ministry of Mines) granted its consent to the creation of such security pursuant
to section 19 of the Mining Law, on June 21, 2002.

     Ayanfuri Mining Leases

We have title to the Ayanfuri and Nanankaw mining leases covering an aggregate
area of 100 square kilometers, granted on June 7, 1994 for a period of 10 years.
The terms and conditions of the leases are consistent with similar leases
granted by the Government of Ghana as detailed in the discussion above of the
Obuasi mining lease.

     Bibiani Mining Lease

Bibiani had title to a 50 square kilometer mining lease for a period of 30 years
to May 18, 2027. The terms and conditions of the lease are consistent with
similar leases granted by the Government of Ghana as detailed in the discussion
above of the Obuasi mining lease. With effect from October 1, 2001, the Bibiani
mining lease was transferred to Ashanti Goldfields Company Limited from Ashanti
Goldfields (Bibiani) Limited. Security over the Bibiani mining lease has been
granted to the lenders under the enlarged revolving credit facility by way of a
fixed charge over the Bibiani mining lease. The Government of Ghana (acting
through the Ministry of Mines) granted its consent to the creation of such
security pursuant to section 19 of the Mining Law, on June 21, 2002.

     Iduapriem Mining Lease

We have title to the 33 square kilometer Iduapriem mining lease granted on April
19, 1989 for a period of 30 years. The terms and conditions of the lease are
consistent with similar leases granted by the Government of Ghana, as detailed
in the discussion above of the Obuasi mining lease.


                                       53






<PAGE>


     Teberebie Mining Leases

Teberebie has two leases, one granted in February 1998 for a term of 30
years and another granted in June 1992 for a term of 26 years. The terms and
conditions of these leases are consistent with similar leases granted by the
Government of Ghana, as detailed in the discussion above of the Obuasi mining
lease.

     Zimbabwe

     General

All rights to minerals in Zimbabwe are vested in the President of Zimbabwe.
Issues relating to the acquisition of mining rights and operation of mines falls
under the jurisdiction of the Ministry of Mines, Environment and Tourism and are
regulated by the Mines and Minerals Act, 1996.

Applications for the acquisition of mining and exploration rights must be made
through the office of the Mining Commissioner. The application must be made by a
company registered in Zimbabwe which may be foreign owned.

All gold extracted in Zimbabwe has by law to be delivered to Fidelity Refinery,
a section of the Reserve Bank of Zimbabwe where gold is further smelted and
refined.

The holder of a mining lease may abandon his holding by applying in writing to
the Mining Commissioner and obtaining a certificate of abandonment. Forfeiture
may be enforced by the Mining Commissioner if the owner fails to obtain an
annual inspection certificate which certifies that the owner has met certain
production and development criteria.

Environmental issues are subject to the Environment Act which requires among
other things that an Environmental Impact Assessment be undertaken on the
commencement of new mining projects. At the termination of the lease the owner
has the right to freely dispose of his assets and to obtain a quittance
certificate from the Mining Commissioner.

     Freda-Rebecca Mining Leases

We have a mining lease for our Freda-Rebecca operation. The application was
originally approved in 1994 and is renewed on an annual basis with no specific
term though it may be terminated by the Government of Zimbabwe if we fail to
obtain an annual inspection certificate from the Mining Commissioner certifying
that we have met production and development criteria.

     Guinea

     General

In Guinea, all mineral substances are the property of the state. Mining
activities are primarily regulated by the Mining Code, 1995. The right to
undertake mining operations can only be acquired by virtue of one of the
following mining titles: surveying permit, small-scale mining license, mining
prospecting license, mining license or mining concession.

The holders of mining titles are guaranteed the right to dispose freely of their
assets and to organize their enterprises as they wish, the freedom to engage and
discharge staff in accordance with the regulations in force, free movement of
their staff and their products throughout Guinea and freedom to dispose of their
products in international markets.

     Siguiri Mining Leases

Our Guinea subsidiary, Societe Ashanti Goldfields de Guinee S.A., has title to
the Siguiri mining concession area which was granted on November 11, 1993 for a
period of 25 years. The agreement provides for an eventual
extension/renegotiation after 23 years for such periods as may be required to
exhaust economic ore reserves.

The original area granted encompassed 8,384 square kilometers which our
subsidiary was required to reduce to five or fewer single blocks of not less
than 250 square kilometers per block totaling not more than 1,500 square
kilometers by November 11, 1996. The retrocession actually reduced the Siguiri
concession area to four blocks totaling 1,495 square kilometers.


                                       54






<PAGE>


SAG has the exclusive right to explore and mine in the remaining Siguiri
concession area for a further 22 year period from November 11, 1996 under
conditions detailed in a Convention de Base predating the new Guinea Mining
Code.

Key elements in the Convention de Base are:

o    the Government of Guinea holds a 15% free-carried or non-contributory
     interest: a royalty of 3% is payable on the value of gold exported; a local
     development tax of 0.4% is payable on the gross sales revenues; salaries of
     expatriate employees are subject to a 10% income tax; mining goods imported
     into Guinea are exempt from all import taxes and duties for the first two
     years of commercial production;

o    our subsidiary is committed to adopt and progressively implement a plan for
     effective rehabilitation of the mining areas disturbed or affected by
     operations.

The Convention de Base is subject to early termination if both parties formally
and expressly agree to do so, if all project activities are voluntarily
suspended for a continuous period of eight months or are permanently abandoned
by our subsidiary, or if our subsidiary goes into voluntary liquidation or is
placed into liquidation by a court of competent jurisdiction.

The net outstanding balance of VAT recoverable by us from the Government of
Guinea but not yet repaid was approximately equivalent to US$5 million as at
December 31, 2002.

     Tanzania

A special mining license of 114 square kilometers for the development of the
Geita mine was issued by the Minister for Energy and Minerals of Tanzania in
June 1999, expiring in 2024. The mine is now the subject of a joint venture in
which we have a 50% interest.

Under the Tanzanian Mining Act 1998, during the period of a license, a licensee
is obliged to follow the proposals in relation to prospecting, mining and the
environment as set out in their original license application approved by the
Minister for Mining Affairs. Holders of special mining leases must develop the
mining area in compliance with the programme of mining operations and
environmental management plan approved by the Minister for Mining Affairs. The
prospecting, special mining or mining license can, by notice in writing, be
suspended or cancelled if the holder of such license fails to comply with the
Act (and any applicable regulations), the conditions of the license, a
development agreement (if applicable) or fails to pay any amount payable under
the Act. A license will not be renewed at the end of the license period if the
holder is in default of his license (which includes being declared bankrupt or
insolvent).

Current government fiscal policies are regarded as internationally competitive,
and include reasonable depreciation provisions and exemption from VAT and
customs duties. Royalties on mineral production are levied at the rate of 3% of
the net back value of the minerals. The net back value is the market value of
the minerals at the point of delivery within Tanzania. There is also a 10%
withholding tax levied on the transfer of branch profits or dividends overseas.

     Exploration Properties

In general, the exact conditions of the tenements of our exploration properties
vary depending on the country in which the tenement is located and the
historical background to the tenement application. Generally, however, the
tenements extend to us (or our joint venture partner) the right to explore for
gold (and other minerals) for a period of time which may or may not be renewable
during which time we are able to establish the existence or not of economic
mineralization, and to complete any feasibility studies, obtain any
environmental approvals and to submit an application for a mining lease.


                                       55






<PAGE>


     Royalty Payments and Terms

Following are royalty payments and related rates for the past three years:

<TABLE>
<CAPTION>
                                        Year ended December 31,
                       ------------------------------------------------------
                              2002                2001               2000
                       ------------------------------------------------------
                       Royalties          Royalties          Royalties
Country    Property      US$m      Rate      US$m     Rate      US$m     Rate
-----------------------------------------------------------------------------
<S>        <C>           <C>       <C>      <C>       <C>      <C>       <C>
Ghana      Obuasi         5.0      3.0%      4.3      3.0%      5.4      3.0%
Ghana      Ayanfuri        --      3.0%      0.1      3.0%      0.3      3.0%
Ghana      Iduapriem      1.7      3.0%      1.7      3.0%      1.4      3.0%
Ghana      Bibiani        2.3      3.0%      2.1      3.0%      2.3      3.0%
Guinea     Siguiri        2.9      3.4%      2.6      3.4%      2.9      3.4%
Tanzania   Geita          2.7      3.0%      2.2      3.0%      1.4      3.0%
-----------------------------------------------------------------------------
Total                    14.6               13.0               13.7
-----------------------------------------------------------------------------
</TABLE>

     Stripping Ratios and Related Information

The following table presents strip ratios and related information for our open
pit mines:
<TABLE>
<CAPTION>
                                Obuasi(*)   Ayanfuri   Iduapriem   Bibiani   Siguiri   Geita
---------------------------------------------------------------------------------------------
<S>                               <C>         <C>        <C>        <C>       <C>      <C>
2000 Strip ratio                   10.0         3.4         3.1        6.4       0.5      9.6
Waste mined ('000 tonnes)         8,907       2,988      14,954     15,223     5,333   11,852
Ore grade (g/t)                    4.20        1.50        1.25       3.38      1.33      3.0
Ore production ('000 tonnes)        891         884       4,824      2,368    10,804    1,240
---------------------------------------------------------------------------------------------
2001 Strip ratio                    n/a         3.2         2.9        5.5       0.6      6.0
Waste mined ('000 tonnes)           n/a       1,059      13,839     13,981     5,268   27,215
Ore grade (g/t)                     n/a        1.50        1.58       3.58      1.34     3.80
Ore production ('000 tonnes)        n/a         332       4,852      2,560     8,517    4,522
---------------------------------------------------------------------------------------------
2002 Strip Ratio                    5.8         n/a         3.4        4.2       0.9      7.4
Waste mined ('000 tonnes)         2,165         n/a      15,019     11,054     8,404   39,729
Ore grade (g/t)                    2.71         n/a        1.66       3.53      1.19     3.52
Ore production (2000 tonnes)        368         n/a       4,393      2,608     9,464    5,399
</TABLE>

(*)  Obuasi had both underground and open pit mining operations in 2000. Data
     relates to the open pit mining operations of Obuasi.
--------------------------------------------------------------------------------

Each commercially mineable deposit has an overall design strip ratio based on
the economically optimized and fully engineered pit layout. The strip ratio
changes from period to period depending upon the configuration of the ore body,
mining and production considerations. It is usually necessary to mine at varying
strip ratios each year in order to excavate the tonnage of ore required to be
sent to the processing plant for that period.

     Environmental Matters

     General

Our processing activities involve the use of substances, and generate
by-products, which can be harmful to the environment. For example, cyanide is
used in the treatment processes.

     Ghana

In 1999, the Environmental Assessment Regulations, LI 1652, were adopted in
Ghana to regulate environmental matters. These include the issue of an
environmental permit or environmental certificate and submission of reports in
respect of ongoing or proposed mining or related activities. Violations are
punishable
                                       56






<PAGE>


upon summary conviction by a fine or imprisonment not exceeding one year and a
daily fine for continuing violations.

     Environmental Permit and Report

Under the Instrument no mining operation or other activity likely to affect the
environment or public health adversely may be undertaken without a permit. An
existing mining operation must similarly obtain a permit upon notification by
the Environmental Protection Agency, or EPA, that its activity has or is likely
to have such effect. Upon receipt of an application the EPA will conduct an
initial screening and inform the applicant within 25 days of the grant or
refusal of the application or the need for the applicant to submit an
environmental impact statement or a preliminary environmental report for
consideration. Where the application is refused the activity shall not be
commenced or continued, subject to the period of public hearing or the time for
the submission of a Statement or where only a preliminary environmental report
is required by the Agency. A holder of a permit is required to submit an
environmental report covering each 12 months' operation.

     Public Hearing

The Instrument provides for a public hearing of an application for a permit in
respect of an undertaking that has generated adverse public reaction or the
undertaking is likely to result in the settlement, or dislocation of a community
or otherwise have extensive and far reaching effect on the environment.

     Validity of Permit

A permit is valid for 18 months from the date of issue after which it shall
become invalidated unless the applicant commences operations within the period
or applies for renewal.

     Environmental Certificate and Management Plan

Within 24 months of commencement of business of an undertaking for which an
environmental impact statement or a preliminary environmental report is
approved, the person responsible for such undertaking shall obtain a
Certificate. An environmental management plan of operations must also be
submitted within 18 months of commencement of operations and every three years
thereafter in respect of existing or proposed undertakings.

     Reclamation Bond

Where the EPA requires an undertaking to submit a reclamation plan for approval,
such undertaking shall post a reclamation bond in the way of a cash deposit in
support of the approved reclamation work plan. Pursuant to an agreement reached
with the Ghanaian EPA, we have posted cash deposits of US$1.1 million to January
31, 2003.

     Withdrawal of Permits and Certificates

The EPA is empowered to suspend, revoke or cancel a permit or certificate where
the holder defaults in obtaining the required authorization for the undertaking
or violates any provision in the Instrument or any other environmental
regulation or defaults in prompt payment of a required fee; or violates a
condition imposed in a permit or certificate or defaults in the mitigation
commitments in his report or management plan. Additionally the EPA may suspend
and modify a permit or certificate where a fundamental change in the environment
occurs during the implementation of such a permit or certificate.

     Grievance Procedure

A person aggrieved by a decision or act of the Agency may file a complaint with
the Minister of Environment, Science and Technology within 30 days in the
specified form. Within 14 days of receipt of the complaint, the Minister shall
refer the complaint to a five-member board of inquiry. The board is required to
give a fair hearing and determine the matter within 60 days. It may alter the
decision in issue or request the EPA to determine the application, if applicable
within a specified period or give such direction as it deems just.


                                       57






<PAGE>


     Codes of Practice, Standard and Guidelines

The EPA may publish codes of practice, standards and guidelines for any matter
contained in the Instrument or relating to the protection, development and
rehabilitation of the environment.

     Environmental Operations

We believe that we are in material compliance with applicable environmental
regulations in the jurisdictions in which we operate mines. Compliance with
these regulations in recent years has not had, and is not currently expected to
have, a material impact on our operations or capital expenditures.

Full time environmental officers are located at each of our mines. These
officers conduct regular environmental audits, training of site personnel and
the compilation of environmental impact assessments and action plans.

From 2001 integrated NOSA audits, which now include environmental monitoring as
well as the previous health and safety inspections, were undertaken at all of
our mines.

Implementation of the Ayanfuri mine closure plans commenced in 2001 and is
ongoing. The major components of the rehabilitation program were prioritized,
allocated, costed and scheduled.

At Obuasi, a new system of cyanide detoxification was successfully installed and
tested in 2001 and we plan to complete the expansion of the system by the end of
2005. Also, residual arsenic previously recovered is now being disposed of
through the BIOX'r' plant where it is re-dissolved and converted into ferric
arsenite which is stable and can be safely disposed of into the tailings dam.

In 2000 and 2001, we participated in the drafting and submission of proposed
guidelines for mining in forest reserve areas in Ghana to the relevant
government authorities for review. The Government is now reviewing applications
for mining licenses in the forest reserve areas.

     Compliance with Environmental Regulations

We have obtained environmental permits for all our operating mines and are in
compliance with these permits. We are not a party to any litigation or
administrative proceedings instituted by the EPA of Ghana or equivalent agencies
in Guinea, Tanzania or Zimbabwe, nor have any such actions by these bodies been
threatened in respect of breaches of environmental compliance or requirements.

GLOSSARY OF DEFINED TERMS

BIOX'r' Gencor's registered name for its bio-oxidation leaching process.

bio-oxidation The use of bacterial activity to oxidize sulphide minerals.

carbon-in-leach (CIL) process A modification of CIP whereby carbon is added
directly into the slurry during leaching as opposed to CIP where carbon is added
after leaching is complete.

carbon-in-pulp (CIP) process A process used to recover dissolved gold from a
cyanide leach slurry. Coarse activated carbon particles are moved
counter-current to the slurry, absorbing the gold as it passes through the
circuit. Loaded carbon is removed from the slurry by screening. The gold is
recovered from the loaded carbon by stripping in a caustic cyanide solution
followed by electrolysis or by zinc precipitation.

cash operating cost A measure of the average cost of producing an ounce of gold,
calculated by dividing the total working costs in a period by the total gold
production over the same period. Working costs represent total operating costs
less royalties and depreciation and are before corporate administration and
exploration costs.

committed ounces With regard to hedging, committed ounces represent future
obligations of the Company to deliver gold at a pre-agreed maximum price. This
includes obligations arising from sold call options and forward contracts. Sold
call options are netted against bought call options in calculating committed
ounces. Committed ounces therefore totals net call options and forward sales.

cyanide leaching The extraction of a precious metal from an ore by its
dissolution in a cyanide solution.


                                       58






<PAGE>


decline An inclined underground access way.

delta Delta is the change in the price of a derivative instrument as the price
of the underlying asset changes. Delta can practically be interpreted as the
amount of gold that would need to be bought (negative delta) or sold (positive
delta) in order to neutralize the change in the marked-to-market value of the
hedge book for a small change in the price of gold; this number can be used to
calculate the approximate change in the marked-to-market price of the hedge book
for a given change in the price of gold (assuming no other changes in the other
factors, such as volatility, lease and interest rates, that influence the
marked-to-market value of the hedge book).

diamond drilling or core drilling A drilling method, where the rock is cut with
a diamond bit to produce a core sample of rock.

dilution Rock that is of necessity moved along with ore in the mining process,
consequently lowering the grade of the ore.

electrowinning The process of depositing metals present in solution onto a
cathode by application of a direct electric current.

feasibility study A detailed technical and economic analysis of the viability of
a project covering all aspects from geology, environmental and legal matters to
mining, processing and operations.

forward sales The sale of a commodity for delivery at a specified future date
and price.

geochemical sampling Samples of soils, stream sediments or rock chips taken to
determine the quantities of trace and minor elements.

gold lease rate swaps A gold lease rate swap is a contract whereby a company and
its counterparty select a notional amount of gold, and thereafter over the life
of the contract one party pays a fixed gold lease rate based upon that amount of
gold and the other party pays a floating gold lease rate based on the same
amount of gold. The gold lease rate is the deposit or borrowing rate for gold.

gold rho Gold rho is the change in the marked-to-market value of a gold
derivative instrument as the gold interest rate changes.

gold vega Gold vega is the change in the marked-to-market value of a volatility
based derivative instrument as the volatility of gold changes.

grade The relative quality or percentage of ore metal content.

heap leaching A low-cost technique for extracting metals from ore by percolating
leaching solutions through heaps of ore placed on impervious pads. Generally
used on low-grade ores.

igneous Rocks formed by the solidification of molten material from deep below
the Earth's surface.

laterite Residual soil found in tropical countries out of which silica has been
leached.

marked-to-market value The marked-to-market value of a hedge portfolio is the
estimated value of the hedge portfolio at a specific point in time. The
calculation of the marked-to-market value involves the present value of cash
flows and valuations of all instruments in the hedge portfolio at the current
relevant market rates. Marked-to-market values vary according to the market
rates and valuation model used in the calculation. Marked-to-market value is
influenced by market rate assumptions.

milling/mill The commination of the ore, although the term has come to cover the
broad range of machinery inside the treatment plant where the gold is separated
from the ore.

mineralized zone Any mass of host rock which contains minerals, at least one of
which has commercial value occur.

mtpa Million tonnes per annum.

open pit/open cut Surface mining in which the ore is extracted from a pit. The
geometry of the pit may vary with the characteristics of the orebody.


                                       59






<PAGE>


ore Material that contains one or more minerals, at least one of which has
commercial value and which can be recovered at a profit.

orebody A continuous well defined mass of material of sufficient ore content to
make extraction economically feasible.

oxide That portion of a mineral deposit within which sulphide minerals have been
oxidized, usually by surface weathering processes.

plunge The virtual angle a linear geological feature makes with the horizontal
plane.

pre-stripping Removal of overburden in advance of beginning operations to remove
ore in an open pit operation.

probable ore reserve Reserves for which quantity and grade and/or quality are
computed from information similar to that used for proven (measured) reserves,
but the sites for inspection, sampling, and measurement are farther apart or
are otherwise less adequately spaced. The degree of assurance, although lower
than that for proven (measured) reserves, is high enough to assume continuity
between points of observation.

prospect A mineral deposit with insufficient data available on the
mineralization to determine if it is economically recoverable, but warranting
further investigation.

prospecting license An area for which permission to explore has been granted.

protected ounces With regard to hedging, protected ounces represent future sales
of gold for which the future price has either been fixed with a forward contract
or where a company has ensured a minimum sales price through its net bought
option position. The net bought put option position is the net of purchased put
options and sold put options. Protected ounces therefore totals net bought put
options combined with forward sales.

proven ore reserve Reserves for which (a) quantity is computed from dimensions
revealed in outcrops, trenches, workings or drill holes; grade and/or quality
are computed from the results of detailed sampling and (b) the sites for
inspection, sampling and measurement are spaced so closely and the geologic
character is so well defined that size shape, depth and mineral content of
reserves are well-established.

reclamation The process by which lands disturbed as a result of mining activity
are reclaimed back to a beneficial land use.

recovery A term used to indicate the proportion of valuable material obtained
during the mining or processing of an ore. The recovery is generally expressed
as a percentage of the material recovered compared to the total material
present.

SAG Semi-autogenous grinding

saprolite Soft partially decomposed rock rich in clay and remaining in its
original place.

sedimentary Secondary rock formed from materials derived from other rocks and
laid down under water. Examples are limestone, shale and sandstone.

spot price The current price of a metal for immediate delivery.

stope The underground excavation from which ore is extracted.

strike length Horizontal distance along the direction that a structural surface
takes as it intersects the horizontal.

stripping The process of removing overburden to expose ore.

strip ratio The ratio of overburden and segregable waste to ore in an open pit
operation.

sulphide A mineral characterized by the linkages of sulfur with a metal or
semi-metal, like iron sulphide. Also a zone in which sulphide minerals occur.

tailings The waste material from ore after the economically recoverable metals
or minerals have been extracted. Changes in the metal prices and improvements in
technology can sometimes make the tailings economic to reprocess at a later
date.


                                       60






<PAGE>


theta The change in the marked-to-market value of a derivative based investment
or hedge book as a result of a one day passage of time, with all other market
factors remaining the same.

transaction risk The risk of an increase or decrease in price or cash flows
relating to a particular asset, liability, or committed or anticipated
transaction. Transaction risk is reduced by a hedging transaction if an
instrument used is expected to offset the risk of such increase or decrease on
the hedged item, regardless of the impact on the enterprise as a whole.

trenching Making elongated surface excavations for the purposes of mapping and
sampling.

US rho US rho is the change in the marked-to-market value of a derivative
instrument as the US interest rate changes.

waste Rock lacking sufficient grade and/or other characteristics of ore to be
economic.

Metric Conversion

<TABLE>
<S>                   <C>        <C>
1 tonne               = 1 t      = 1.10231 tons
1 gramme              = 1 g      = 0.03215 ounces
1 gramme per tonne    = 1 g/t    = 0.02917 ounces per ton
1 hectare             = 1 ha     = 2.47105 acres
1 kilometer           = 1 km     = 0.621371 miles
1 meter               = 1 m      = 3.28084 feet
</TABLE>

Tons are short tons of 2,000 pounds

All ounces are troy ounces

C.   Organizational Structure

We operate our business through various subsidiary and affiliated companies
located in several countries.

Subsidiary undertakings and other interests

The following table contains a list of our principal subsidiary undertakings as
at March 12,2003:

<TABLE>
<CAPTION>
                                                         Class of
                                             Relevant    principal   Interest in
Company and country of incorporation           mine     activities   shares held   Percent
------------------------------------------------------------------------------------------
<S>                                         <C>           <C>          <C>           <C>
Ghana
Ashanti Goldfields (Bibiani) Limited          Bibiani       Gold       Ordinary      100
Gold House                                                Mining         No par
Patrice Lumumba Road                                                     value
Roman Ridge
PO Box 2665
Accra

Ghanaian-Australian Goldfields Limited      Iduapriem       Gold       Ordinary       80
Gold House                                                Mining         No par
Patrice Lumumba Road                                                      value
Roman Ridge
PO Box 2665
Accra

Teberebie Goldfields Limited                Teberebie       Gold       Ordinary       90
Gold House                                                Mining         No par
Patrice Lumumba Road                                                      value
Roman Ridge
PO Box 2665
Accra
</TABLE>


                                       61






<PAGE>




<TABLE>
<CAPTION>
                                                         Class of
                                            Relevant     principal   Interest in
Company and country of incorporation          mine      activities   shares held   Percent
------------------------------------------------------------------------------------------
<S>                                           <C>        <C>           <C>           <C>
Guinea
Societe Ashanti Goldfields de Guinee S.A.     Siguiri         Gold     Ordinary       85
c/o Societe Ashanti Goldfields de Guinee                    Mining
KM 4 Cameroon
PO Box 1006
Conakry
------------------------------------------------------------------------------------------

Zimbabwe
Ashanti Goldfields Zimbabwe Limited            Freda-         Gold     Ordinary      100
4 Cork Road                                   Rebecca       Mining
Belgravia
Harare
Zimbabwe
------------------------------------------------------------------------------------------

Isle of Man
Ashanti Treasury Services Limited                 N/A     Treasury     Ordinary      100
Geita Treasury Services Limited                   N/A     Treasury     Ordinary      100

3rd Floor
12-14 Ridgeway Street
Douglas
Isle of Man IM1 1EN
------------------------------------------------------------------------------------------

Cayman Islands
Ashanti Capital Limited                           N/A    Financing     Ordinary      100
Ashanti Capital (Second) Limited                  N/A    Financing     Ordinary      100
Ashanti Finance (Cayman) Limited                  N/A    Financing     Ordinary      100

M & C Corporate Services Limited
c/o Ugland House
South Church Street
PO Box 309
George Town
Grand Cayman
Cayman Islands
------------------------------------------------------------------------------------------
</TABLE>


                                       62






<PAGE>




Supplementary information on joint venture companies

The following table contains information on our Geita joint venture companies.

<TABLE>
                                                            Proportion of capital
Company and registered office address   Field of activity       held percent
---------------------------------------------------------------------------------
<S>                                     <C>                          <C>
Cluff Resources Limited                    Gold Mining               50
Masters House
107 Hammersmith Road
London W14 0QH
---------------------------------------------------------------------------------
Geita Management Company Limited        Mining Management            50
3rd Floor                                   Services
12-14 Ridgeway Street
Douglas
Isle of Man IM1 1EN
---------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
                                                As at December 31, 2002
                                       ------------------------------------------
                                       Cluff Resources Limited
                                          and its subsidiary     Geita Management
                                             undertakings            Company
                                                 US$m                  US$m
---------------------------------------------------------------------------------
<S>                                              <C>                  <C>
Issued share capital                             34.9                    --
Reserves                                         27.9                  (5.4)
Profit/(loss) after tax                          36.3                 (10.8)
Inter-company loan owed to us                    31.1                    --
Net book value shown in our accounts             91.2                  (2.7)
</TABLE>

D.   Property, plants and equipment

Obuasi. Obuasi mine covers a strike length of 8 kilometers over which surface
mining activities have been extensive and the underground has been worked to
depths of up to 1500 meters below surface. The concession covers an area of 632
square kilometers inclusive of 114 square kilometers at Homase. At present
almost all surface mining activities on the Obuasi mining concession have been
shut down. Currently there are two active processing plants, the STP, a BIOX'r'
plant for processing sulfide ore in the south, and the TTP, a tailing
reprocessing plant in the north. There are currently three major active tailings
dams: the Sansu dam in the south and the Pompora and Korkoteasua dams in the
north. Apart from the foregoing two processing plants which are the mainstay of
the mine, the oxide processing plant, or OTP, was taken off care and maintenance
and recommissioned in 2002 to cater for a limited open pit mining program,
covering 2002 and 2003, targeting small oxide deposits proximal to Obuasi.

Iduapriem/Teberebie. The Iduapriem and Teberebie properties have a combined
total of 110 square kilometers. The Iduapriem mine has five open pits and the
Teberebie mine two. There are three processing facilities: the CIL plant, and a
heap leach plant at Iduapriem and a heap leach plant at Teberebie.

Bibiani. The Bibiani property has a total lease area of 49 square kilometers.
The mine is an open pit operation constructed on top of an old underground mine
which was worked until closure in 1966. The processing plant is CIL plant.

Siguiri. The Siguiri mine has a concession of 1,495 square kilometers. There are
multiple open pits on the property. The processing is currently being carried
out using heap leach technology.

Freda-Rebecca. The Freda-Rebecca mine has a concession of 16 square kilometers.
The operation is an underground operation with a CIP processing plant and a
tailings dam. Recent exploration has led to the discovery of satellite
mineralization on the RAN property.

Geita. The Geita mine has a total lease area of 373 square kilometers in which
there is a special mining license of 114 square kilometers. The mine is a
multiple open pit operation constructed on top of an old underground mine which
was worked until the late 1960s. Open pit mining and gold production restarted
in 2000 with the commissioning of the new Geita mine complex consisting of a
mine, a township and a processing plant and associated service infrastructure.
The processing plant is a CIL facility. There is a major tailings dam located
approximately northeast of the main open pit, Nyankanga.


                                       63






<PAGE>




ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS

A. Operating Results

Critical Accounting Policies and Estimates

This discussion is based upon our consolidated financial statements. These
financial statements are prepared in accordance with UKGAAP and are reconciled
to USGAAP both of which require us to make estimates about the effect of matters
that are uncertain and to make difficult, subjective and complex judgements.
These estimates and assumptions affect the reported amounts in the financial
statements and disclosure of contingent assets and liabilities. We evaluate all
these estimates on an ongoing basis. Actual results could differ from estimates.

We believe the following represent our critical accounting policies and
estimates having considered both UK and US GAAP.

o    Revenue Recognition. We recognize revenue when gold is produced in the form
     of dore in the gold room, and is based on the quantity and spot price at
     that date. Gold is a liquid commodity that is dealt with on the
     international markets, and we have refining and purchase agreements with
     several international banks. These provide that the actual sale price is
     the spot price no later than the first working day after the date of
     delivery to the refiner and the actual quantity invoiced is the quantity
     after the gold is refined usually within one day. Consequently we process
     an adjustment on completion of the refining process to adjust revenues
     recognized at the time of producing dore to actual revenues. While this
     adjustment has historically been de minimis, any significant reduction in
     the spot price or reduction in quantity of gold before and after refining
     may have a material adverse impact on our operating results.

o    Environmental Liabilities. We are required by environmental regulations in
     the jurisdictions in which we operate and the terms of our mining licenses
     to restore mining sites to their original condition. The expected cost of
     any decommissioning or other site restoration programs incurred during the
     construction of the mine as determined by independent environmental experts
     is discounted at the weighted average cost of capital and capitalized at
     the beginning of each project and amortized over the life of the mine using
     the unit of production method. In determining these costs, assumptions are
     made based on current mining methods, statutory regulations, scope of work
     to be performed and related costs. We regularly review the adequacy of
     closure and reclamation accruals based on current estimates of future
     costs. A significant change in the assumptions underlying the estimate of
     the expected cost of decommissioning or other site restoration programs may
     result in a material adverse impact on our operating results.

o    Impairment of Long-lived Assets. Our long-lived assets include long-term
     investments, goodwill and other tangible assets. In assessing the potential
     for impairment of its long-lived assets we must make assumptions regarding
     estimated future cash flows and other factors to determine the fair value
     of the respective assets. Effective January 1, 2001, under US GAAP,
     expected future cash flows from derivative instruments are not included in
     asset impairment tests. If these estimates or their related assumptions
     change in future, we may be required to record impairment charges for these
     assets not previously recorded and this may have a material adverse impact
     on our operating results.

o    Life of Mines. At least annually, we review mining schedules, production
     levels and asset lives in our life of mine planning for all of our
     operating development properties. Significant changes in the life of mine
     plans may occur as a result of mining experience, new ore discoveries,
     changes in mining methods and rates, process changes, investment in new
     equipment and technology and gold prices. Based on the analysis we review
     our accounting estimates and adjust depreciation, amortization, deferred
     mining and reclamation costs and evaluation of each mine for impairment
     where necessary. Accordingly, such adjustments may have a material adverse
     impact on our operating results.

o    Deferred Tax. Deferred tax assets and liabilities are recognized based on
     the differences between the financial statement carrying amounts and the
     tax bases of assets and liabilities. When a deferred tax asset arises we
     review the asset for recoverability and establish a valuation allowance
     where we determine it is more likely than not that such an asset will not
     be realized. If we determine that


                                       64






<PAGE>




     additional valuation allowance is required, or there is a material change
     in the actual effective tax rates or time period within which the
     underlying temporary differences become taxable or deductible, an
     additional tax charge may arise that will increase our effective tax rate
     and result in a material adverse impact on our operating results.

o    Foreign Exchange. We earn all of our revenues in US dollars and the
     majority of our transactions and costs are denominated in US dollars or
     based on US dollars. However, any significant changes in the transactions
     and costs that are not denominated in US dollars, or based on US dollars,
     may have a material adverse impact on our operating results.

o    Ore Reserves. We estimate on an annual basis our ore reserves at our mining
     operations. There are a number of uncertainties inherent in estimating
     quantities of reserves, including many factors beyond our control. Ore
     reserve estimates are based upon engineering evaluations of assay values
     derived from samplings of drill holes and other openings. Additionally,
     declines in the market price of gold may render certain reserves containing
     relatively lower grades of mineralization uneconomic to mine. Further,
     availability of permits, changes in operating and capital costs, and other
     factors could materially and adversely affect ore reserves. We use our ore
     reserve estimates in determining the unit basis for mine depreciation and
     closure rates, as well as in evaluating mine asset impairments. Changes in
     ore reserve estimates could significantly affect these items.

Changes in Accounting Policy

We have implemented FRS 19 in our financial statements for the year ended
December 31, 2002. Under FRS 19, a basis of "full" rather than "partial"
provision is adopted for all deferred tax liabilities and assets, with assets
being recognized where it is considered more likely than not they will be
recovered. Adoption of FRS 19 required the UK GAAP comparative figures for the
tax on operating profit on ordinary activities for 2001 and 2000 to be restated
from the previously reported charges of US$6.8 million and US$8.8 million to a
charge of US$9.6 million and a credit of US$12.8 million, respectively. For the
year ended December 31, 2002, there was a tax credit under FRS 19 of
US$3.7 million compared to a tax charge of US$9.6 million in 2001.

We adopted SFAS 142 with effect from January 1, 2002. SFAS 142 requires that
goodwill and other intangible assets that have an indefinite useful life no
longer be amortized but rather be tested at least annually for impairment. SFAS
142 also required us to perform a transitional assessment of whether there is an
indication that goodwill was impaired at the date of initial application,
January 1, 2002. We are also required to review other intangible assets for
impairment and to reassess the useful lives of such assets and make necessary
adjustments. No write-down of goodwill has been made following the completion of
the transitional impairment test. Disclosures of the effects of adopting SFAS
142 in comparative periods are provided in note 32 to our consolidated financial
statements, included elsewhere in this annual report.

We adopted SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived
Assets ("SFAS 144"), effective January 1, 2002. SFAS 144 establishes a single
accounting model, based on the framework established in SFAS No. 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of ("SFAS 121"), for long-lived assets to be disposed of by sale, resolves
significant implementation issues related to SFAS 121 and establishes new rules
for reporting of discontinued operations. We did not recognize any impairments
in 2002 pursuant to SFAS 144.

We adopted SFAS 145 as of January 1, 2002. The principal change reflected in
this pronouncement is that gains or losses from extinguishment of debt which are
classified as extraordinary items by SFAS No. 4, Reporting Gains and Losses from
Extinguishment of Debt an amendment of APB Opinion No. 30, will no longer be
classified as such. We adopted SFAS 145 on January 1, 2002. No restatement of
amounts previously reported for the years ended December 31, 2001 or 2000
resulted from the adoption of SFAS 145.

Recent Accounting Pronouncements

In August 2001, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 143, Accounting for Asset Retirement Obligation ("SFAS 143"), which is
effective for financial statements issued for fiscal years beginning after June
15, 2002. The pronouncement addresses the recognition and remeasurement of


                                       65






<PAGE>




obligations associated with the retirement of a tangible long-lived asset. We
are currently reviewing this statement to determine its impact on future
financial statements.

In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with
Disposal or Exit Activities ("SFAS 146"). This statement addresses financial
accounting and reporting for costs associated with exit or disposal activities
and nullifies Emerging Issues Task Force -- Abstract No. 94-3, Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (Including Certain Costs Incurred in a Restructuring) ("EITF 94-3").
This statement requires that a liability for a cost associated with an exit or
disposal activity be recognized when the liability is incurred. Under EITF 94-3,
a liability for an exit cost as defined in EITF 94-3 was recognized at the date
of an entity's commitment to an exit plan. This statement provides that an
entity's commitment to a plan, by itself, does not create a present obligation
to others that meets the definition of a liability. Therefore, SFAS 146
eliminates the definition and requirements for recognition of exit costs in EITF
94-3 until a liability has been incurred and establishes that fair value is the
objective for initial measurement of the liability. However, this standard does
not apply to costs associated with exit activities involving entities acquired
under business combinations or disposal activities covered under SFAS 144. The
adoption of SFAS 146 will not have an impact on previous results reported.

In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based
Compensation -- Transition and Disclosure -- an amendment of FASB Statement No.
123 ("SFAS 148"). SFAS 148 amends SFAS No.123 Accounting for Stock-Based
Compensation ("SFAS 123") and provides alternative methods for accounting for a
change by registrants to the fair value method of accounting for stock-based
compensation. Additionally, SFAS 148 amends the disclosure requirements of SFAS
123 to require disclosure in the significant accounting policy footnote of both
annual and interim financial statements of the method of accounting for
stock-based compensation and the related pro-forma disclosures when the
intrinsic value method continues to be used. The statement is effective for
fiscal years beginning after December 15, 2002, and disclosures are effective
for the first fiscal quarter beginning after December 15, 2002. We do not intend
to adopt the fair value method of accounting for stock-based compensation.
Consequently SFAS 148 will not have an impact on our results of operation and
financial position.

In April 2003, the FASB issued SFAS No. 149, Amendment of SFAS No. 133 on
Derivative Instruments and Hedging Activities ("SFAS 149"). The Statement
amends and clarifies accounting for derivative instruments, including certain
derivative instruments embedded in other contracts, and for hedging activities
under SFAS 133. In particular, this Statement clarifies under what
circumstances a contract with an initial net investment meets the characteristic
of a derivative as discussed in SFAS 133. In addition, it clarifies when a
derivative contains a financing component that warrants special reporting in
the statement of cash flows. SFAS 149 amends certain other existing
pronouncements.

This Statement is effective for contracts entered into or modified after
June 30, 2003, except as stated below and for hedging relationships
designated after June 30, 2003.

The provisions of this Statement that relate to SFAS 133 Implementation Issues
that have been effective for fiscal quarters that began prior to June 15,
2003 should continue to be applied in accordance with their respective
effective dates. In addition, certain provisions relating to forward purchases
or sales of when-issued securities or other securities that do not yet exist,
should be applied to existing contracts as well as new contracts entered into
after June 30, 2003. SFAS 149 should be applied prospectively.

We will adopt the provisions of SFAS 149 on July 1, 2003. However, we do not
expect that the adoption of this Statement will have a material impact on our
results of operations and financial position.

In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity ("SFAS 150").
SFAS 150 modifies the accounting for certain financial instruments that, under
previous guidance, issuers could account for as equity. The Statement requires
that those instruments be classified as liabilities in statements of
financial position.

SFAS 150 affects an Issuer's accounting for three types of freestanding
financial instruments, namely:

o    mandatorily redeemable shares, which the issuing company is obligated to
     buy back in exchange for cash or other assets;


                                       66






<PAGE>


o    instruments, other than outstanding shares, that do or may require the
     issuer to buy back some of its shares in exchange for cash or other
     assets. These instruments include put options and forward purchase
     contracts;

o    obligations that can be settled with shares, the monetary value of which
     is fixed, tied solely or predominantly to a variable such as a market
     index, or varies inversely with the value of the issuer's shares.

SFAS 150 does not apply to features embedded in financial instruments that are
not derivatives in their entirety.

In addition to its requirements for the classification and measurement of
financial instruments within its scope, SFAS 150 also requires disclosures
about alternative ways of settling those instruments and the capital structure
of entities, all of whose shares are mandatorily redeemable.

SFAS 150 is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective at the beginning of the first interim
period beginning after June 15, 2003. It is to be implemented by reporting the
cumulative effect of a change in an accounting principle for financial
instruments created before the issuance date of the Statement and still
existing at the beginning of the interim period of adoption. Restatement is
not permitted.

We are currently evaluating the impact of SFAS 150 on our results of
operations and financial position.

In November 2002, the FASB issued Interpretation No. 45, Guarantor's Accounting
and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others ("FIN 45"). This interpretation requires certain
disclosures to be made by a guarantor in its interim and annual financial
statements about its obligations under certain guarantees that it has issued. It
also requires a guarantor to recognize, at the inception of a guarantee, a
liability for the fair value of the obligation undertaken in issuing the
guarantee. The disclosure requirements of FIN 45 are effective for interim and
annual periods after December 15, 2002 and we have adopted those requirements
for our financial statements. The initial recognition and initial measurement
requirements of FIN 45 are effective prospectively for guarantees issued or
modified after December 31, 2002. We are assessing, but at this point do not
believe the adoption of the recognition and initial measurement requirements of
FIN 45 will have a material impact on its financial position, cash flows or
results of operations.

In January 2003, the FASB issued Interpretation No. 46, Consolidation of
Variable Interest Entities -- an interpretation of ARB No. 51 ("FIN 46"). FIN 46
clarifies the application of Accounting Research Bulletin No. 51, Consolidated
Financial Statements, to certain entities in which equity investors do not have
the characteristics of a controlling financial interest or do not have
sufficient equity at risk for the entity to finance its activities without
additional subordinated financial support from other parties. FIN 46 explains
how to identify variable interest entities and how an enterprise assesses its
interest in a variable interest entity to decide whether to consolidate that
entity. It requires existing unconsolidated variable interests entities to be
consolidated by their primary beneficiaries if the entities do not effectively
disperse risks among parties involved. It also requires certain disclosures by
the primary beneficiary. FIN 46 is effective immediately to variable interest
entities created after January 31, 2003 and to variable interest entities in
which an enterprise obtains an interest after that date, and effective for the
first fiscal year or interim period beginning after June 15, 2003 to variable
interest entities in which an enterprise holds a variable interest that it
acquired before February 1, 2003. FIN 46 requires an entity to disclose certain
information regarding a variable interest entity if, when the Interpretation
becomes effective, it is reasonably possible that an enterprise will consolidate
or have to disclose information about that variable interest entity, regardless
of the date on which the variable entity interest was created. We do not expect
that, when FIN 46 becomes effective, we will have to consolidate or disclose any
information regarding variable interests.

                                      67



<PAGE>


Cash Operating Costs

Operating costs before corporate administration, exploration and other costs are
referred to as "cash operating costs." Cash operating costs per ounce are
calculated by dividing cash operating costs by ounces of gold produced. Cash
operating costs have been calculated on a consistent basis for all periods
presented.

Cash operating costs should not be considered by investors as an alternative to
operating profit or net profit attributable to shareholders, as an alternative
to other GAAP measures or as an indicator of our performance, and may not be
comparable to other similarly titled measures of other companies. However, we
believe that cash operating costs in total by mine and per ounce by mine are
useful indicators to investors and management of a mine's performance as they
provide:

o    an indication of a mine's profitability and efficiency;

o    the trend in costs as the mine matures;

o    a measure of a mine's gross margin per ounce, by comparison of the cash
     operating costs per ounce by mine to the price of gold; and

o    an internal benchmark of performance to allow for comparison against other
     mines.

A reconciliation of cash operating costs to total operating costs, as included
in our audited financial statements for each of the three years in the period
ended December 31, 2002 is presented below. In addition, we have also provided
below details of the ounces of gold produced by mine for each of those periods.

<TABLE>
<CAPTION>
                                                    12 months to December 31
                                 ---------------------------------------------------------------
                                         2002                 2001                   2000
                                 -------------------   -------------------   -------------------
                                 Total    Production   Total    Production   Total    Production
                                 (US$m)    (Ounces)    (US$m)    (Ounces)    (US$m)    (Ounces)
------------------------------------------------------------------------------------------------
<S>                               <C>      <C>          <C>      <C>          <C>      <C>
Mine
Obuasi                            106.4      537,219    101.4      528,451    133.5      640,988
Ayanfuri                             --           --      2.8       11,517      8.9       36,316
Iduapriem                          43.0      185,199     44.0      205,130     43.2      193,868
Bibiani                            43.6      242,432     43.1      253,052     36.8      273,711
Siguiri                            61.9      269,292     62.2      283,199     54.8      303,381
Freda-Rebecca                      21.0       98,255     22.8      102,654     22.2      112,164
Geita                              47.2      289,522     38.9      272,781     25.7      176,836
                                  -----    ---------    -----    ---------    -----    ---------
Total cash operating costs        323.1    1,621,919    315.2    1,656,784    325.1    1,737,264
                                           ---------             ---------             ---------
Corporate administration costs     16.5                  21.2                  25.3
Exploration costs                   3.8                   6.5                  14.2
Other                              11.3                   6.8                    --
                                  -----                 -----                 -----
Operating costs                   354.7                 349.7                 364.6
Exceptional operating costs        32.3                    --                 215.2
Royalties                          14.6                  13.0                  13.7
Depreciation and amortisation      88.4                  94.9                 114.8
                                  -----                 -----                 -----
Total costs                       490.0                 457.6                 708.3
                                  -----                 -----                 -----
</TABLE>

Our average cash operating costs in 2002 were US$199 per ounce compared with
US$190 per ounce in 2001, due to the challenging operating environment and to
lower production.


                                       68






<PAGE>




Results of Operations

12 Months Ended December 31, 2002 Compared to 12 Months Ended December 31, 2001

Revenue

Higher spot prices enabled us to achieve total revenue of US$552.2 million for
the year ended December 31, 2002, just below the US$554.4 million achieved
during the same period in 2001, despite lower production and the reduction in
release of deferred hedging income. Spot revenue amounted to US$506.4 million,
compared with US$455.8 million in 2001. The average gold price realized during
2002 was higher, at US$340 per ounce, than that realized in 2001, US$335 per
ounce.

Hedging

Net hedging income for the year totaled US$45.8 million, of which
US$11.5 million was realized from the close-outs of maturing hedging contracts
during the year and US$34.3 million was released from deferred hedging income,
i.e. income from previously closed-out hedging contracts.

In accordance with our accounting policy, income from early close-outs is
credited to revenue for the originally designated delivery period. As at
December 31, 2002, deferred hedging income carried forward to future periods
totaled US$27.8 million, compared to US$65.6 million for the corresponding
period in 2001, of which US$14.7 million and US$13.1 million will be credited to
revenue in 2003 and 2004 respectively.

The table below shows the movement in fair value of the hedge book and its
component parts (excluding Geita):

<TABLE>
<CAPTION>
                                               As at December 31,
                                             -----------------------
                                                2002        2001       Movement
-------------------------------------------------------------------------------
                                             (in US$ millions except
                                              valuation spot price)
-------------------------------------------------------------------------------
<S>                                             <C>        <C>           <C>
Forward Sales                                    (56.0)    117.6         (173.6)
-------------------------------------------------------------------------------
Puts: Bought                                      24.9      52.7          (27.8)
-------------------------------------------------------------------------------
       Sold                                         --      (1.7)           1.7
-------------------------------------------------------------------------------
Calls: Sold                                     (112.9)    (53.7)         (59.2)
-------------------------------------------------------------------------------
       Bought                                     10.2       5.4            4.8
-------------------------------------------------------------------------------
Convertible Structures                              --      10.5          (10.5)
-------------------------------------------------------------------------------
Lease Rate Swaps                                 (16.2)    (42.0)          25.8
-------------------------------------------------------------------------------
Total                                           (150.0)     88.8         (238.8)
-------------------------------------------------------------------------------
Valuation Spot Price (US$)                         345       277             68
-------------------------------------------------------------------------------
</TABLE>

The fair value of each component is based on the prevailing gold spot price, US
interest rates, gold forward rates and volatilities. The net decrease in fair
value of the hedge book in the period was primarily attributable to high spot
prices partially offset by lower US interest rates.

We account for derivative contracts using hedge accounting and therefore these
instruments are not marked-to-market on the balance sheet under UK GAAP. The
accounting treatment of these instruments under US GAAP differs from that under
UK GAAP. Details of this difference are set out in note 32 to our consolidated
financial statements included elsewhere in this annual report.

Costs

     Cash Operating Costs

Total cash operating costs were US$199 per ounce as compared to US$190 per ounce
in 2001, due to the challenging operating environment and to lower production.


                                       69






<PAGE>




Obuasi In 2002, Obuasi produced 537,219 ounces from underground and tailings
retreatment operations and from a small open pit deposit on the Homase
concession located approximately 16 kilometers to the north, compared with
528,451 ounces that the mine produced from underground and tailings retreatment
in 2001. Cash operating costs were US$198 per ounce in 2002 compared to US$192
per ounce in 2001. The higher cost resulted from the mining and processing of
higher tonnage of lower grade material.

Ayanfuri No gold was produced at Ayanfuri in 2002, as the mine ceased operations
in June 2001. Gold production at Ayanfuri was 11,517 ounces in 2001. Cash
operating costs per ounce in 2001 were US$243 per ounce.

Bibiani Bibiani produced 242,432 ounces in 2002 at a cash operating cost of
US$180 per ounce, compared to 253,052 ounces at a cash operating cost of US$170
per ounce in the previous year. The reduction in gold production was due to
processing harder ore, resulting in lower plant throughput and lower
metallurgical recovery and, in turn, this resulted in a higher cash operating
cost per ounce produced. Costs were also impacted by a water shortage in the
first quarter of 2002.

Iduapriem and Teberebie Gold production at Iduapriem/Teberebie for 2002 was
185,199 ounces, compared to 205,130 ounces in 2001. The cash operating costs
increased to US$232 per ounce in 2002 from US$214 per ounce in 2001, due to the
lower gold production primarily because of a fire at the production plant and
the tying in of the CIL expansion plant.

Siguiri In 2002, Siguiri produced a total of 269,292 ounces at a cash cost of
US$230 per ounce compared with 283,199 ounces at US$220 per ounce in 2001.
Production and cash costs were impacted by lower than targeted gold production
from the stacked material during the year and higher mined tonnages.

Freda-Rebecca Full year production in 2002 was 98,255 ounces at a cash operating
cost of US$214 per ounce, compared to 102,654 ounces at US$222 per ounce in
2001. The economic and political situation in Zimbabwe during 2002 continued to
pose a series of difficult problems for the management team, as in 2001. The
lack of foreign exchange and the fixed exchange rate coupled with high inflation
put severe pressure on the supply function, causing delays in receiving
supplies.

Geita In 2002, Geita mine produced a record total of 579,043 ounces at a cash
operating cost of US$163 per ounce, compared to 545,562 ounces at US$143 per
ounce in 2001. Cash operating costs increased principally due to higher mining
costs as a result of higher tonnages at lower ore grades. As expected, gold
production in the fourth quarter, at 122,742 ounces, was lower than the previous
quarters of the year as mining in the Nyankanga pit moved into lower grade
zones. We expect this trend will continue for the first half of 2003.

     Exploration and Corporate Administration

Exploration expenditure during 2002 was lower at US$3.8 million, compared to
US$6.5 million in 2001, due to the termination of our involvement in Pangea
Goldfield's concession in Tanzania. Corporate administration expenditure for the
year was also lower, at US$16.5 million, than the US$21.2 million in 2001.

     Depreciation

Total depreciation and amortization charges amounted to US$88.4 million in 2002,
lower than the US$94.9 million recorded in 2001, primarily due to lower
production.

     Total Costs

Total costs, including US$32.3 million of exceptional operating costs (compared
to nil in 2001) (see "Exceptional Items"), amounted to US$490.0 million in 2002,
compared with US$457.6 million in 2001. Total costs per ounce, excluding
exceptional operating costs of US$32.3 million, increased by US$6 per ounce,
from the US$276 per ounce in 2001 to US$282 per ounce in 2002, mainly due to the
increase in cash operating costs referred to above.

     Other Income

Other income of US$12.1 million comprises US$8.8 million in respect of the
transfer of a receivable from AngloGold to us for no consideration (see
"Exceptional Items") and US$3.3 million relating to additional consideration
received in respect of the sale, in 1999 of our interest in the Golden Pride
mine. This


                                       70






<PAGE>




consideration crystallised in 2002 following the gold price rally. No further
consideration is due under the terms of the sale agreement.

     Exceptional Items

Exceptional items, which have been identified separately in the profit and loss
account, comprised the following in 2002:

(i)  refinancing and restructuring costs of US$23.5 million. These include
     professional fees and financing costs for both the proposed note
     restructuring, which was later withdrawn and the cash redemption
     alternative outlined below, which was implemented in June 2002; and

(ii) as provided for in the sale and purchase agreement entered into in 2000 in
     respect of the Geita mine, AngloGold transferred the Ridge 8 property to
     Geita during the year. The consideration of US$17.6 million will be left
     outstanding until the project finance loans are fully repaid by Geita,
     AngloGold has transferred to us for no consideration, its 50% share which
     resulted in an exceptional gain of US$8.8 million. In line with our
     accounting policy on exploration costs the cost of this property has been
     expensed, thereby recording a compensating exceptional loss of US$8.8
     million.

     Financing Costs

Net interest charges fell by 23% from US$29.4 million in 2001 to US$22.6 million
in 2002. This decrease was due primarily to a reduction in net debt from
US$270.7 million at December 31,2001 to US$215.6 million at December 31, 2002.

     Taxation

Taxation for the year was a credit of US$3.7 million. This comprised a credit of
US$8.3 million in respect of prior years corporate tax offset by a current year
corporate tax charge of US$0.3 million and a deferred tax charge of US$4.3
million (net of deferred tax credit of US$7.0 million in respect of the Geita
joint venture).

Earnings

Our 2002 earnings before exceptional items were 33% higher at US$79.7 million
than the US$59.9 million in 2001. The improvement in earnings as compared to
last year was principally due to higher spot prices, lower financing costs and
lower taxation, offset partly by lower production and higher cash operating
costs. Earnings after charging exceptional refinancing and restructuring costs
of US$23.5 million (compared to nil in 2001) were US$56.2 million (compared to
US$59.9 million in 2001). Earnings per share before exceptional items for the
year, after taking into account the warrants that were exercised as part of the
refinancing in June 2002, were US$0.67, compared to US$0.53 in 2001.

Dividend

We continue to strengthen our financial position. However, we have significant
negative profit and loss account reserves as at December 31, 2002.

The Ghana Companies Code, 1963, prohibits the payment of dividends where there
are no positive balances in distributable reserves. In the light of the above,
no dividend is proposed for 2002.

Cash Flow

The net cash inflow from operating activities before exceptional items was
US$117.5 million (2001: US$95.4 million), due partly to higher spot prices. The
net cash inflow from operating activities after meeting refinancing and
restructuring costs of US$22.3 million was US$95.2 million.

Net interest paid decreased to US$18.8 million, compared with US$22.4 million in
2001, due to the reduction in net debt during the year of US$55.1 million.

Cash inflows from management of liquid resources of US$6.0 million (compared to
US$9.7 million in 2001) was primarily as a result of the release of funds of
US$8.7 million as at December 31, 2001 on deposit as collateral for a loan to
Ashanti Goldfields Zimbabwe Limited.


                                       71






<PAGE>




Cash outflows in respect of financing activities of US$19.2 million (compared to
US$40.6 million in 2001) is the net cash outflow following the debt
restructuring in June 2002 and repayments of the enlarged revolving credit
facility (see "Liquidity and Capital Resources").

     Capital Expenditure

Our capital investment in our operations increased from US$49.6 milllion in 2001
to US$64.5 million in 2002. Our capital expenditure in 2002 focussed on: (i) the
expansion of the CIL processing plants at Iduapriem and Teberebie, (ii) mining
and processing equipment, and upgrade of the shafts at the Obuasi mine, and
(iii) the mining equipment, plant and tailings dam at the Freda-Rebecca mine.

12 Months Ended December 31, 2001 Compared to 12 Months Ended December 31, 2000

Revenue

Total revenue for 2001 of US$554.4 million was 5% lower than 2000's level of
US$582.2 million, due to lower production. Spot revenue generated amounted to
US$455.8 million (2000: US$485.2 million), and hedging income totaled US$98.6
million (2000: US$97.0 million). The average gold price realized during the year
of US$335 per ounce was in line with the price realized in 2000.

Hedging

Net hedging income for the year totaled US$98.6 million, of which US$41.6
million was realized from the close-outs of maturing hedging contracts and
US$57.0 million was released from deferred hedging income i.e. income from
previously closed-out hedging contracts.

In accordance with our accounting policy, income from early close-outs is
credited to revenue for the originally designated delivery period. At December
31, 2001, deferred hedging income totaled US$65.6 million, compared to US$120.0
million for the corresponding period in 2000, of which US$35.0 million was
credited to revenue in 2002.

The table below shows the movement in fair value of the hedge book and its
component parts (excluding Geita):

<TABLE>
<CAPTION>
                                    As at December 31,
                                 ------------------------
                                     2001        2000            Movement
                                 -----------   ----------   ------------------
                                 (in US$ millions except valuation spot price)
------------------------------------------------------------------------------
<S>                                 <C>          <C>             <C>
Forward Sales                       117.6         93.3            24.3
------------------------------------------------------------------------------
Puts:  Bought                        52.7         24.5            28.2
       Sold                          (1.7)        (1.6)           (0.1)
------------------------------------------------------------------------------
Calls: Sold                         (53.7)       (55.0)            1.3
       Bought                         5.4          6.5            (1.1)
------------------------------------------------------------------------------
Convertible Structures               10.5         22.4           (11.9)
------------------------------------------------------------------------------
Lease Rate Swaps                    (42.0)       (61.0)           19.0
------------------------------------------------------------------------------
Total                                88.8         29.1            59.7
------------------------------------------------------------------------------
Valuation Spot Price (US$)            277          273               4
------------------------------------------------------------------------------
</TABLE>

The fair value of each component is based on the prevailing gold spot price, US
interest rates, gold forward rates and volatilities. The net increase in fair
value of the hedge book in the period was primarily attributable to the
reduction in US interest rates and time decay of the book.

We account for derivative contracts using hedge accounting and therefore these
instruments are not marked-to-market on the balance sheet under UK GAAP. The
accounting treatment of these instruments under US GAAP differs from that under
UK GAAP. Details of this difference are set out in note 32(e) to our
consolidated financial statements included elsewhere in this annual report.


                                       72






<PAGE>




Costs

     Cash Operating Costs

Total cash operating costs were US$190 per ounce as compared to US$187 per ounce
in 2000, due to lower production primarily at Siguiri and Bibiani. Obuasi's cash
operating costs however fell by 8% from US$208 per ounce in 2000 to US$192 per
ounce in 2001.

Obuasi Cash operating costs at Obuasi decreased from US$208 per ounce in 2000 to
US$192 per ounce in 2001, a drop of 8% due to the closure of high cost surface
operations as well as cost control measures and re-engineering of mining and
processing operations. Underground production fell marginally from 493,926
ounces in 2000 to 485,452 ounces in 2001. Tailings retreatment produced 42,999
ounces for the year ended December 31, 2001, compared to 43,756 ounces for the
corresponding period in 2000.

Ayanfuri Gold production at Ayanfuri was 11,517 ounces in 2001, compared to
36,316 ounces in 2000, as the mine ceased operations in June 2001. Cash
operating costs per ounce in 2001 were US$243 per ounce (2000: US$245 per
ounce).

Bibiani Bibiani produced 253,052 ounces, compared to 273,711 ounces in 2000, at
a cash operating cost of US$170 per ounce, compared to US$134 per ounce in 2000.
The reduction in gold production was due to the reduced mill feed grade and
lower recovery. This also resulted in higher cash operating cost per ounce.

Iduapriem and Teberebie Gold production for 2001 was 205,130 ounces, exceeding
193,868 ounces in 2000. Cash operating costs were reduced to US$214 per ounce
from US$223 per ounce in 2000.

Siguiri Siguiri produced 283,199 ounces, compared to 303,381 ounces in 2000, at
a cash operating cost of US$220 per ounce, compared to US$181 per ounce in 2000.
Production and cash operating costs were impacted by lower than expected
metallurgical recovery from the material stacked during the year.

Freda-Rebecca Full year production in 2001 was 102,654 ounces at a cash
operating cost of US$222 per ounce, compared to 112,164 ounces at US$198 per
ounce in 2000.

The economic and political situation in Zimbabwe during 2001 continued to pose a
series of difficult problems for the management team. The lack of foreign
exchange and the fixed exchange rate coupled with high inflation put severe
pressure on the supply function, causing delays in receiving supplies.

Geita The Geita mine, in its first full year of production, produced a total of
545,562 ounces at a cash operating cost of US$143 per ounce, of which 50% is
attributable to us. Following the sale of a 50% interest in Geita in December
2000, the Geita joint venture in 2001 is accounted for using the gross equity
method of accounting.

     Exploration and Corporate Administration

Exploration expenditure during the year was lower at US$6.5 million, compared to
US$14.2 million in 2000, due to rationalization of non-mine site exploration
expenditure. Corporate administration expenditure for the year was also lower by
16% at US$21.2 million, compared to US$25.3 million in 2000, due to our cost
reduction efforts.

     Depreciation

Total depreciation and amortization charges (before exceptional items) for the
year were lower at US$94.9 million, compared to US$114.8 million in 2000, due to
the asset impairment recorded at the end of 2000.

     Total Costs

Total costs before exceptional items but including depreciation and amortization
for the year amounted to US$457.6 million, compared to US$493.1 million in 2000.
The total costs per ounce fell from US$284 per ounce in 2000 to US$276 per ounce
in 2001.

     Redundancy Costs

Total costs in 2000 included redundancy costs at Obuasi of US$3.0 million. In
2001 no further employees were made redundant and no further costs were charged.


                                       73






<PAGE>




     Financing Costs

Net interest charges fell by 43% from US$51.3 million in 2000 to US$29.4 million
in 2001. This significant reduction was due primarily to lower debt levels as
compared to 2000.

     Taxation

Total taxation charged to the profit and loss account amounted to US$9.6
million, compared to a credit of US$12.8 million in 2000. This included US$6.6
million of corporate tax for the current year, US$8.2 million in respect of
prior years and a release of deferred tax of US$5.2 million.

Earnings

Earnings for the year were US$59.9 million, compared to a loss in 2000 of
US$119.5 million. The reduction in earnings was due principally to an impairment
of fixed assets totalling US$193.5 million and other one-off costs of US$21.7
million offset by a profit of US$46.6 million on the sale of 50% of our interest
in Geita. Earnings per share was US$0.53, compared to a loss of US$1.06 per
share in 2000.

Dividend

The banking covenants under our then-existing revolving credit facility
prohibited the payment of cash dividends at all times while our gross borrowings
exceeded US$300.0 million. In light of these factors and the deficit on our
reserves, we were unable to pay dividends for the year ended December 31, 2000.
These covenants, which restricted our ability to pay dividends, were released
when this revolving credit facility was refinanced on June 28, 2002. Our current
revolving credit facility dated June 28, 2002 no longer restricts our ability to
pay dividends. However, we did not pay a dividend for the year ended December
31, 2001 and will not for the year ended December 31, 2002 because of the
deficit on our reserves.

Cash Flow

The net cash inflow from operating activities was US$95.4 million, compared to
US$149.4 million in 2000. The reduction in 2001 was due principally to the
non-consolidation of Geita following the sale of a 50% interest in December 2000
and lower cash flows from other operations.

Net interest paid decreased to US$22.4 million, compared to US$56.4 million in
2000, following the reduction in amounts outstanding on our then-existing
revolving credit facility in December 2000. Capital expenditure reduced to
US$49.6 million, compared to US$145.6 million in 2000, after the completion of
the Geita project in 2000. Expenditure in 2001 comprised US$30.1 million
invested at the Obuasi mine and US$19.5 million at other mines.

Cash inflows from management of liquid resources of US$9.7 million, compared to
US$13.3 million in 2000, primarily resulted from a reduction in funds on deposit
as collateral for a loan to Ashanti Goldfields Zimbabwe Limited.

Cash outflows relating to financing activities decreased to US$40.6 million,
compared to US$186.3 million in 2000, primarily representing repayments on our
then-existing revolving credit facility, together with repayments on other
loans.

Capital Expenditure

Our capital expenditure decreased from US$145.6 million in 2000 to US$49.6
million in 2001, primarily due to the completion of the Geita project in 2000.
Our capital expenditure during 2001 included US$30.1 million at Obuasi and
US$19.5 million at the other mines, excluding Geita. Ashanti's 50% share of
Geita's 2001 capital expenditure amounted to US$7.5 million.

Differences between UK GAAP and US GAAP

The net profit for 2002 of US$56.2 million, net profit for 2001 of US$59.9
million and net loss for 2000 of US$119.5 million under UK GAAP, compare with a
net loss of US$182.8 million, net income of US$65.4 million and a net loss of
US$349.1 million, respectively, under US GAAP. Shareholders' equity for 2002 of


                                       74






<PAGE>




US$446.3 million and for 2001 of US$347.1 million, under UK GAAP, compare with
shareholders' equity of US$109.1 million and of US$308.5 million, respectively,
under US GAAP.

The differences arise principally from the differing accounting treatment for
amortization of goodwill and other intangible assets, impairment of long-lived
assets, financial instruments, warrants, write-down of non-recourse loans, asset
write-back, prepaid forward gold facility, pensions, environmental provisions
and minority interest. Details of the reconciling differences are given in note
32 to our consolidated financial statements included elsewhere in this filing.

B. Liquidity and Capital Resources

Our net debt level as at December 31, 2002 was US$215.6 million. This amount
excludes our 50% share of the US$102.7 million non-recourse Geita project
finance loan, which is fully drawn.

We also secured an extension of our working capital facilities on a voluntary
basis from our then-existing lending banks by way of extension, to December 30,
2002, of the drawdown period in our then-existing revolving credit facility in
respect of US$25.4 million of that credit facility. No drawings were made under
our then-existing revolving credit facility during 2001. The amounts outstanding
under that facility fell from US$88.8 million in 2000 to US$55.0 million in
2001. This working capital facility was cancelled in June 2002 when we entered
into our current revolving credit facility described below.

On January 25, 2002, we announced a proposed restructuring of our then-existing
exchangeable notes through a scheme of arrangement under which the exchangeable
notes would be cancelled and exchanged for approximately 14.8 million ordinary
shares and US$163 million of new exchangeable guaranteed notes.

On June 28, 2002, we announced that we had withdrawn the proposed restructuring
described above and that we had effected a refinancing of the then-existing
revolving credit facility and then-existing exchangeable notes using the
proceeds arising from an alternative cash redemption financing plan. We also
reached agreement with our hedge counter parties for continued margin-free
trading.

The cash redemption plan, which was implemented on June 28, 2002, involved the
repayment of the credit facility and the notes from the proceeds of:

     o    an enlarged US$200 million, five year revolving credit facility;

     o    the early exercise of 70.3% of our warrants previously issued to
          certain of our lenders and hedge counter parties, which raised
          approximately US$41.8 million; and

     o    US$75.0 million mandatorily exchangeable notes, which where issued to
          Lonmin at par and for cash.

The proceeds of this financial restructuring were used to repay US$219 million
of our then-existing notes, repay US$48 million of our then-existing revolving
credit facility and meet refinancing costs, with the balance being used to fund
ongoing operations. As at December 31, 2002, the new enlarged US$200 million
facility has been drawn down as to US$149.0 million.

Our recent refinancing is further detailed in "Additional Information" below.


                                       75






<PAGE>




Contractual Obligations and Commercial Commitments

Our contractual obligations and commercial commitments consist primarily of
credit facilities, as described above. The related obligations as at December
31, 2002 are set out below:

<TABLE>
<CAPTION>
                                                Payments due by period (US$ million)
                                             -------------------------------------------
                                                     Less than   1 - 2   2 - 5   After 5
Contractual Obligations                      Total     1 year    years   years    years
----------------------------------------------------------------------------------------
<S>                                          <C>        <C>        <C>   <C>      <C>
Debt (including capital lease obligations)   261.4       3.7       3.0   138.8    115.9
Capital commitments                           13.1      13.1        --      --       --
Deferred purchase consideration                8.8       3.0       3.0     2.8       --
----------------------------------------------------------------------------------------
Total Contractual Cash Obligations           283.3      19.8       6.0   141.6    115.9
----------------------------------------------------------------------------------------
</TABLE>

Off Balance Sheet Financing Arrangements

We have not entered into any off balance sheet transactions, arrangements or
other relationships with unconsolidated special purpose entities or other
persons that are reasonably likely to affect materially liquidity or the
availability of or requirements for capital resources.

Capital Expenditures

The following table sets forth our expenditures (including capitalized
exploration) on our properties for the last three years.

<TABLE>
<CAPTION>
                                                          2002   2001    2000
                                                          US$m   US$m    US$m
-----------------------------------------------------------------------------
<S>                                                       <C>    <C>    <C>
Obuasi                                                    35.1   30.1    32.6
Bibiani                                                    2.9    1.0     2.8
Siguiri                                                    9.4    7.0    11.6
Freda-Rebecca                                              6.4    6.8     4.8
Geita mine construction                                     --     --    85.7
Iduapriem                                                 10.5    3.6     2.6
Others                                                     0.2    1.1     5.5
-----------------------------------------------------------------------------
                                                          64.5   49.6   145.6
=============================================================================
</TABLE>

Capital expenditure at Obuasi related principally to the mechanization of
transportation, hoisting processes and development expenditure for the
underground operations in order to increase ore production as the high cost
surface operations were phased out.

Expenditure at Geita reflects the construction of the mine which was completed
in June 2000. Following the disposal of 50% of Geita, it is no longer our
subsidiary.

Exploration and New Business Expenditures

Our expenditures on exploration, development and new business activities for the
past three years are as follows:

<TABLE>
<CAPTION>
                                                          2002   2001    2000
                                                          ----   ----    ----
                                                                 (US$m)
-----------------------------------------------------------------------------
<S>                                                        <C>    <C>    <C>
Burkina Faso                                               0.1    0.2     0.3
Mali                                                       0.2    0.4     1.6
Ghana                                                      1.4    1.4     3.4
Guinea                                                      --     --      --
Tanzania                                                   0.5    0.8     5.6
Cote d'Ivoire                                              0.6    0.7     0.5
Zimbabwe                                                   0.1    0.4     0.7
Democratic Republic of Congo                               0.9    1.4     1.5
Other Countries                                             --    1.2     0.6
-----------------------------------------------------------------------------
Total Exploration Cost                                     3.8    6.5    14.2
=============================================================================
</TABLE>


                                       76






<PAGE>




Realization of current assets

Under UK GAAP, ore in stockpiles of US$20.1 million and US$16.2 million as at
December 31, 2002 and 2001 respectively, are recorded in current assets, within
stocks, while under US GAAP, ore in stockpiles is included in non-current
assets. Under US GAAP the classification of ore in stockpile in non-current
assets is appropriate given that, while it is management's intention to process
the stockpiled ore prior to the end of the mine life, there is not reasonable
certainty that that ore will be processed within the next 12 months.

There is estimation involved in the assessment of ore in stockpiles,
particularly as to the period in which ore in stockpiles will be processed.
There is also a possibility that changes in the economic or operating
environment as well as future changes in the mine plan could result in ore in
stockpile never being processed. However, it is our intention to process all of
our stockpiled ore that is included in stocks before the end of the life of the
mine to which the ore relates.

C. Research and Development, Patents and Licenses, etc.

Not applicable.

D. Trend Information

As announced on March 26, 2003, Ashanti expects its first and second quarter
production levels to be in the region of 375,000 ounces. This is due to the
delay in commissioning the expansion at Iduapriem/Teberebie and the ongoing
Nyankanga pit cut-back at Geita. Damage to the SAG mill pinion at Obuasi,
lower mined and stacked grades at Siguiri and power outages in Ghana could
further impact production during the second quarter. Following completion of
the Nyankanga pit cut-back at Geita, replacement of the damaged mill pinion at
Obuasi, both anticipated in July, and commissioning of the second phase of the
crusher and overland conveyor component of the Iduapriem/Telerebie expansion
towards the end of the third quarter, production levels are planned to
increase during the second half of the year in order to meet the 2003
production target of approximately 1.6 million ounces.

As also announced on March 26, 2003, the rising fuel prices, increases in
power costs and wages, depreciation of the US dollar in which our revenues are
denominated, the appreciation in currencies of countries from which we source
our major inputs and rising costs of reagents will impact adversely on our
cash operating costs this year. We are taking steps to minimize this impact
but it is still likely that cash operating costs will increase by approximately
10% this year. The reduced production levels anticipated for the first two
quarters will also have a consequential adverse impact on our unit cash
operating costs for the first two quarters, as compared to the annualised
level.


                                       77






<PAGE>




ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

The minimum number of directors is three and there is no maximum. The Companies
Code of Ghana requires that at least one director is at all times present in
Ghana. A director may hold any office or position (except that of auditor) in
conjunction with his or her office of director, for any period, any compensation
and otherwise as approved by the Board.

Our charter documents provide that directors may be appointed by ordinary
resolution of shareholders or by the Board. At each annual general meeting of
our shareholders, as near as possible to one-third of the directors will retire
by rotation and be eligible for re-election. The directors to retire will be
those who have been longest in office since their last election, but as between
those who have been in office for an equal length of time, those to retire shall
(unless they otherwise agree) be determined by lot. If appointed by the Board, a
director holds office only until the next annual general meeting and is not
taken into account in determining the directors who are to retire by rotation.
Any director appointed to the office of managing director shall not, however,
while holding that office, be subject to retirement by rotation or be taken into
account in determining the rotation of retirement of directors.

A director may be removed by ordinary resolution of our shareholders before the
expiration of his period of office, but without prejudice to any claim which
such director might have for damages or compensation for breach of any service
agreement between him and us.

The business address of each of our directors and officers is our registered
office which is Gold House, Patrice Lumumba Road, Roman Ridge, P.O. Box 2665,
Accra, Ghana.

Directors

Sam Esson Jonah (age 53). Mr. Jonah is our Chief Executive and Group Managing
Director. He joined us in 1969 and was appointed Managing Director in 1986. He
is a non-executive director of Lonmin Plc and Commonwealth Africa Investment
Fund Limited and is also Chancellor of the University of Cape Coast, Ghana. He
is a member of the UN Global Compact on Governance, and is also a Member of the
Advisory Committee, Termite Fund. Mr. Jonah is also a Member of the
International Investment Advisory Council of the President of South Africa and a
Fellow of the Ghana Institute of Engineers.

Merene Botsio-Phillips (age 45). Mrs. Botsio-Phillips is our General Counsel and
substitute director for Eleanor Darkwa Ofori Atta. She joined us in 1995 and was
appointed to the Board in October 1996. Prior to joining us, she was director of
Legal Services and Company Secretary of Ghana Airways Limited. She is a member
of the board of The Air Transport Licensing Authority of Ghana. She is also a
member of the International Bar Association, the Ghana Bar Association and the
English Bar.

Eleanor Darkwa Ofori Atta (age 59). Mrs. Ofori Atta was appointed to the Board
in March 1994. She is our Executive Director responsible for Corporate Relations
including corporate services and human resources. She joined us in 1977.

Trevor Stanley Schultz (age 61). Mr. Schultz joined the Board in October 1996
and is our Chief Operating Officer. He was formerly Senior Vice President and
Chief Operating Officer of Pegasus Gold, and also held senior positions at BHP
Minerals.

Srinivasan Venkatakrishnan (age 38). Mr. Venkatakrishnan is our Chief Financial
Officer. He joined the Board in July 2000 from Deloitte & Touche in the United
Kingdom, where he was employed as a director in the Re-organization Services
Division. He is a member of the Institute of Chartered Accountants of India.

Non-executive Directors

Michael Ernest Beckett (age 66). Mr. Beckett has been non-executive Chairman of
the Board since June 1, 2001. He joined the Board in March 1994. Formerly
managing director of Consolidated Gold Fields, and a director of Gold Fields of
South Africa and Renison Gold Fields in Australia. He is Chairman of Clarkson
PLC and Watts Blake Bearne and Company P.L.C. and a director of other public
companies.

Theophilus Ernest Anin (age 70). Mr. Anin joined our Board in July 2001. He is a
professional banker and solicitor with over 30 years' experience in banking,
financial management, and consulting in the public and


                                       78






<PAGE>




private sectors. He is also a director of the Bank of Ghana. He is a member of
the Law Society of England and Wales and is also a Fellow of the Chartered
Institute of Bankers.

The Rt. Hon. The Baroness Chalker of Wallasey PC (age 61). Baroness Chalker
joined our Board in March 2000. Baroness Chalker is an advisory director of
Unilever PLC & NV, non-executive director and President of The South African
Business Initiative, President and Chairman of the Boards of Management of the
British Executive Service Overseas and the London School of Hygiene and Tropical
Medicine, and a director of other public companies. She is also a member of the
Institute of Directors.

Dr. Chester Arthur Crocker (age 62). Dr. Crocker joined our Board in February
2000. Dr. Crocker is a professor of strategic studies at Georgetown University's
School of Foreign Service. He is also the Chairman of the Board of the United
States Institute of Peace and adviser on strategy and negotiations to a number
of US and European companies. He served as a US Assistant Secretary of State for
African Affairs between 1981 and 1989. He is also a member of the Council on
Foreign Relations, the American Academy of Diplomacy and the International
Institute of Strategic Studies.

Thomas Richard Gibian (age 49). Mr. Gibian joined our Board in March 2000. He is
Managing Director of Emerging Markets Partnership and Chief Operating Officer of
AIG, African Infrastructure Fund. He is also a director of InterWave
Communications.

Gordon Edward Haslam (age 59). Mr. Haslam was appointed to our Board in March
2002. Mr. Haslam is a director and Chief Executive of Lonmin plc and a director
of other public companies.

Dr. Michael Peter Martineau (age 58). Dr. Martineau joined our Board in February
2000. He is the Executive Deputy Chairman of Eurasia Mining plc. He has served
as a director of several mining and exploration companies in Africa, Australia,
Canada and the United Kingdom, including Cluff Resources Plc and SAMAX Resources
Limited. He is also a Fellow of each of the Institute of Mining and Metallurgy,
the Society of Economic Geologists and the Society of Geologists.

Nicholas Jeremy Morrell (age 55). Mr. Morrell joined the Board in February 1997.
He was a former director and Chief Executive of Lonmin plc.

Other and former directorships of our directors

The following table shows, in respect of each of our directors, the names of all
companies and partnerships outside of our group of which he or she has, at any
time in the five years prior to the date of this annual report, been a director
or partner, as appropriate (excluding subsidiaries of any such companies):

<TABLE>
<CAPTION>
Director                     Company Name                                                 Status
--------------------------   --------------------------------------------------------   --------
<S>                          <C>                                                        <C>
Michael Beckett              Clarkson PLC                                                Current
                             Watts Blake Bearne and Company P.L.C.                       Current
                             Oxus Resources Corporation                                  Current
                             London Clubs International plc                              Current
                             BPB Public Limited Company                                  Current
                             Queens Moat Houses plc                                      Current
                             F & C Income Growth Investment Trust plc                    Current
                             Egypt Trust Limited                                         Current
                             Northam Platinum Ltd                                        Current
                             Orica Ltd                                                   Current
                             Endeavour Financial Corporation                             Current
                             Learning Technology Plc                                    Resigned
                             Greycoat Limited                                           Resigned
                             British Borneo Oil & Gas plc                               Resigned
                             Viglen Technology plc                                      Resigned
                             Costain Group PLC                                          Resigned
                             Monarch Resources Ltd                                      Resigned
                             North Limited                                              Resigned
------------------------------------------------------------------------------------------------
Theophilus Anin              Bank of Ghana                                               Current
------------------------------------------------------------------------------------------------
Merene Botsio-Phillips       Air Transport Licensing Authority of Ghana                  Current
                             Ghana Airways Limited                                      Resigned
------------------------------------------------------------------------------------------------
</TABLE>


                                       79






<PAGE>




<TABLE>
<CAPTION>
Director                     Company Name                                                 Status
--------------------------   --------------------------------------------------------   --------
<S>                          <C>                                                        <C>
The Rt. Hon. The Baroness
Chalker of Wallasey PC       Africa Matters Limited                                      Current
                             Group Five (Pty) Limited                                    Current
                             DCI Limited                                                 Current
                             Freeplay Foundation                                         Current
                             Freeplay Energy P.L.C.                                      Current
                             London School of Hygiene and Tropical Medicine              Current
                             The South African Business Initiative                       Current
                             African Medical And Research Foundation (United Kingdom)    Current
                             Landell Mills Limited                                       Current
                             Ditchley Foundation (The)                                   Current
                             British Executive Service Overseas                          Current
                             Capital Shopping Centres Plc                               Resigned
------------------------------------------------------------------------------------------------
Dr Chester Crocker           ASA Limited                                                 Current
                             US Institute of Peace                                       Current
                             Crocker Group                                               Current
                             First Africa Holdings Limited                               Current
                             Minorco SA                                                 Resigned
------------------------------------------------------------------------------------------------
Thomas Gibian                Interwave Communications                                    Current
------------------------------------------------------------------------------------------------
Gordon Edward Haslam         Lonmin Plc                                                  Current
                             Furuya Metals Company Limited                               Current
                             International Platinum Association                         Resigned
------------------------------------------------------------------------------------------------
Sam Jonah                    Lonmin Plc                                                  Current
                             Commonwealth Africa Investment Fund Limited                 Current
                             African Banking Corporation                                 Current
                             Ecobank Transnational Incorporated                         Resigned
                             Ghana Airways Limited                                      Resigned
                             First Atlantic Bank                                        Resigned
                             Metropolitan Insurance Company Ltd                         Resigned
                             African Selection Mining Corporation                       Resigned
                             New African Investment Limited                             Resigned
------------------------------------------------------------------------------------------------
Dr Michael Martineau         Carpathian Gold Limited                                     Current
                             Eurasia Mining plc                                          Current
                             Axmin Inc.                                                  Current
                             Angus and Ross plc                                          Current
                             Adryx Mining & Metals Limited                              Resigned
                             SAMAX Gold Inc                                             Resigned
                             Rayrock Resources Inc.                                     Resigned
------------------------------------------------------------------------------------------------
Nicholas Morrell             Lonmin Plc                                                 Resigned
------------------------------------------------------------------------------------------------
Eleanor Ofori Atta           Nil                                                             Nil
------------------------------------------------------------------------------------------------
Trevor Schultz               Kenor ASA                                                   Current
                             Diamond Fields International Limited                       Resigned
                             BHP Minerals International                                 Resigned
                             Aurtex                                                     Resigned
                             Newcrest Mining Limited                                    Resigned
------------------------------------------------------------------------------------------------
Srinivasan Venkatakrishnan   Nil                                                             Nil
================================================================================================
</TABLE>

None of our directors has:

o    any unspent convictions in relation to indictable offences;

o    been declared bankrupt or has entered into any individual voluntary
     arrangement;

o    been a director with an executive function of any company at the time of or
     within the 12 month period preceding any receivership, compulsory
     liquidation, creditors' voluntary liquidation, administration, company
     voluntary arrangement or any composition or arrangement with such company's
     creditors generally or any class of creditors of such company;



                                       80






<PAGE>

o    been a partner of any partnership at the time of or within the 12 month
     period preceding any compulsory liquidation, administration or partnership
     voluntary arrangement of such partnership;

o    held assets which have been the subject of a receivership;

o    been a partner of any partnership at the time of or within the 12 month
     period preceding any receivership of the assets of such partnership;

o    been publicly criticized by any statutory or regulatory authorities
     (including recognized professional bodies); or

o    been disqualified by a court from acting as a director of any company or
     from acting in the management or conduct of the affairs of any company.

Officers

Ernest Abankroh (age 42). Mr. Abankroh is our Company Secretary. He joined us in
1989 and was appointed Company Secretary in May 1999, having previously served
as Assistant Company Secretary from December 1996 and in various roles within
our accounts department. He holds a Bachelor of Commerce (Hons) degree and a
Diploma in Education from the University of Cape Coast and is a Fellow of the
Institute of Chartered Secretaries and Administrators (UK).

Martin Awuku Ahorney (age 44). Mr. Ahorney is our Controller-Group Budget &
Planning. He joined us in 1987 and was appointed to his present position in July
2000, having previously worked in other key positions within our finance
department. Before joining us, Mr. Ahorney worked with Ghana Consolidated
Diamonds Limited and Ayew Agyemang and Co., Chartered Accountants. He has an MBA
from the University of the Witwatersrand (RSA), and a BSc (Hons) degree in
Mineral Processing from Camborne School of Mines (UK) and is a member of the UK
Chartered Institute of Management Accountants.

Kwaku Akosah-Bempah (age 43). Mr. Akosah-Bempah is General Manager, Corporate
Finance and special assistant to the Chief Executive. Prior to assuming his
current position in 2001 he was Finance Director of Freda-Rebecca mine in
Zimbabwe, having previously held several senior roles within the Finance
Department of the Obuasi mine and Corporate Head Office. He holds a Bachelor of
Commerce (Hons) Degree and a Diploma in Education from the University of Cape
Coast, Ghana and an MBA from the Columbia Business School, USA. He is also a
Chartered Accountant and a member of the Ghana Institute of Chartered
Accountants and the Ghana Institute of Taxation.

James Kwamena Anaman (age 56). Mr. Anaman is our Managing Director, Public
Affairs with responsibility for investor, government and public relations
matters. Prior to joining us in 1994, he was the Minister-Counsellor for
Information at the Ghana High Commission in London. A graduate of the University
of Ghana, he has also served as a press secretary to the Head of State from 1975
to 1979. He is currently the president of the Ghana Chamber of Mines and a
member of both the Investor Relations Society in the UK and the Institute of
Public Relations in Ghana.

Mark Arnesen (age 42). Mr. Arnesen is Managing Director, International Treasury.
He joined us in January 2000. Prior to joining us, he was Corporate Treasurer of
Billiton Plc. He has over 17 years' experience in financial management, of which
11 years were spent in treasury and corporate financing with the Gencor and
Billiton groups. He is a member of the South African Institute of Chartered
Accountants. He also holds a Bachelor of Commerce and Bachelor of Accounting
degree from the University of the Witwatersrand.

Kweku Awotwi (age 42). Mr. Awotwi is Managing Director of Strategic Planning and
New Business Development. Before joining us, he was Manager of Business Planning
and Analysis for Kaiser Aluminium & Chemical Corporation in Pleasanton,
California, where he worked for eight years. He trained as an electrical
engineer and has worked for GE/RCA as well as ITT, both in the USA. He has a BSc
degree from Yale University and an MBA from Stanford's Graduate School of
Business.

Peter Cowley (age 55). Mr. Cowley is Managing Director of Ashanti Exploration
and has over 30 years of experience in precious and base metals exploration,
development and production, mainly in Africa. He joined us in 1996 from Cluff
Resources where he was Group Technical Director for seven years. His previous
experience includes positions with Exxon Minerals Company and Anglo American
Corporation. He holds an
                                       81






<PAGE>

MSc degree from the Royal School of Mines and an MBA degree from the Strathclyde
Business School. He is also a Fellow of the Institute of Materials, Minerals and
Mining.

Alex Darko (age 50). Mr. Darko is Managing Director of Group Information &
Telecommunications. He joined us in November 1996 from Dun & Bradstreet, the
business information group, where he held a number of finance positions
including Director, European Accounting and Re-engineering. He holds an MSc
degree in Management Information Systems and is a Fellow of the UK Association
of Chartered and Certified Accountants.

Rolin P. Erickson (age 46). Mr Erickson is Managing Director of Societe Ashanti
Goldfields de Guinee. He joined us in 2002 following a successful career in the
USA. He has experience of deep underground mining, large scale heap leaching,
milling and owner mining. He received a bachelor's degree in Mining Engineering
in 1985 from the Montana College of Mineral Sciences and Technology and has
supplemented this degree with advanced courses in mining and finance.

Brent Horochuk (age 41). Mr. Horochuk is the Managing Director of the Bibiani
mine having previously been Managing Director of the Iduapriem/Teberebie
operations. He joined us in March 1995 and has held various mining positions in
Obuasi and Zimbabwe and was General Manager for the Iduapriem mine. He holds a
BSc in Mining Engineering and a Tech Diploma in Mining Engineering.

Abel Ntini (age 45). Mr. Ntini is the Managing Director of Ashanti Goldfields
(Zimbabwe) Limited. He joined us in 1998. He was previously Vermiculite
Operations Manager with Palabora Mining Company based in South Africa. He has a
degree in Mining Engineering from the Imperial College of Science and Technology
in London. He is also a fellow of the Institute of Mining and Metallurgy.

Daniel Monney Akwafo Owiredu (age 45). Mr. Owiredu is the managing director of
the Obuasi mine. He was previously managing director of the Bibiani mine which
he managed as a project prior to its commissioning. He has over 17 years of
service with us and was appointed to his present position in 2002. He had
previously served as Chief Engineer for underground mining operations at the
Obuasi mine, and was instrumental in the setting up of our BIOX'r' plant from
inception to commissioning. Prior to his current appointment, he was managing
director of Societe Ashanti Goldfields de Guinee. He holds a BSc degree in
Mechanical Engineering from the Kwame Nkrumah University of Science &
Technology, Kumasi and an MBA degree from Strathclyde Business School in
Scotland, UK.

George Potter (age 45). Mr. Potter is the Managing Director, Group Metallurgy.
He joined us in 1994 as Metallurgical Superintendent at the PTP, Obuasi. He has
acted as Mill Manager on all three major Metallurgical Plants at the Obuasi mine
and has also served as Manager, Metallurgical Services. Prior to his current
appointment, he was General Manager, Processing, at the Obuasi mine, and has had
previous experience with RTZ in Zimbabwe and Rand Mines of South Africa. He
holds a Diploma in Mineral Processing & Extractive Metallurgy and is a member of
the South African Institute of Materials, Minerals and Mining and Metallurgy.

David Renner (age 38). Mr. Renner joined us in 1991 and is Managing Director of
operations at Iduapriem/Teberebie. He was previously Senior Manager, Group
Strategic Planning; prior to that he was the Project Manager for the Geita
project in Tanzania, after serving as Section Geotechnical Engineer at both the
surface and underground operations of the Obuasi mine and as Special Assistant
to the Chief Executive. He holds a BSc (Hons) degree in Civil Engineering from
the Kwame Nkrumah University of Science & Technology, Kumasi, and MSc in
Geotechnical Engineering from the University of Newcastle-upon-Tyne (UK) and an
MBA from the University of the Witwatersrand. He is a Member of the Institute of
Soil & Rock Mechanics and an Associate of the Ghana Institution of Engineers.

Gary Townsend (age 45). Mr. Townsend is Group Financial Controller. He joined us
in 1996 and was previously Group Chief Accountant of Unigate Plc. He is a Fellow
of the Institute of Chartered Accountants of England and Wales and a member of
the Institute of Taxation (UK).

Ken Tshribi (age 43). Mr. Tshribi is General Manager, Legal. He joined us from
CAL Merchant Bank in 1996. He holds an LLB (Hons) degree from the University of
Ghana and is a Member of the Ghana Bar Association. He has also been involved in
the teaching of law.


                                       82






<PAGE>




B. Compensation

Our objective is to provide senior management, including executive directors,
with a competitive remuneration package which will attract and retain executives
of the highest caliber and will encourage and reward superior performance in a
manner consistent with the interests of our shareholders.

Executive Directors

On February 28, 2003, Ashanti Capital Limited, or Ashanti Capital, one of our
wholly owned subsidiaries, entered into a service agreement with Mr. Jonah at an
annual salary of 'L'450,000, subject to annual review. The service agreement
can be terminated on three years' written notice given by Ashanti Capital. Mr
Jonah is also entitled to receive: a bonus of such amount as the Board may
determine; in lieu of pension an amount of 'L'200,000 for the period until
October 31, 2003 and from that date an annual gratuity in the amount of 20% of
his basic annual salary; private medical insurance; emergency evacuation
insurance; a company car; certain flights; accommodation and staff; and the cost
of education of his dependant children. On termination of his employment,
Ashanti Capital reserves the right to give Mr Jonah pay in lieu of notice of
termination (whether notice is given by Ashanti Capital or by Mr. Jonah). This
amount would consist of Mr. Jonah's basic salary and any bonus or other benefits
referable to his employment. Mr. Jonah is also entitled to terminate his service
agreement if we cease to be listed on the New York Stock Exchange or the London
Stock Exchange unless, if we become a subsidiary of another company, that
company offers Mr. Jonah the position of Chief Executive of the enlarged group
on terms at least as beneficial to Mr. Jonah.

We have entered into individual service agreements with Mr. Venkatakrishnan
(dated September 20, 2000), Mrs. Botsio-Phillips (dated December 29, 1999) and
Mrs. Ofori Atta (dated December 29, 1999) at respective annual salaries of
'L'220,000 (approximately US$342,000), US$125,000 (payable in Cedis) and
US$110,000 (payable in Cedis), all subject to annual review. The service
agreements of Mr. Venkatakrishnan and Mrs. Botsio-Phillips may be extended by us
from January 1 each year for a further period of one year to expire three years
thereafter or be terminated, subject to two years' notice. Their service
agreements are currently due to expire on December 31, 2005. Mrs. Ofori Atta's
service agreement runs until December 31, 2003 when she will take her normal
retirement. We entered into a service agreement with Mr. Schultz on December 29,
1999, under which he is entitled to an annual salary of 'L'230,000
(approximately US$358,000). This service agreement expired on December 31, 2002,
and has been replaced by a service agreement dated March 27, 2002, under which
Mr. Schultz will serve as Chief Operating Officer for the period January 1, 2003
until December 31, 2003. Mr. Schultz will receive an annual salary of US$360,000
for this period. These executive directors are also entitled to receive a bonus
of such amount as the Board may determine, an annual gratuity in lieu of a
pension in the amount of 20% of their basic annual salary, private medical
expenses insurance, emergency evacuation insurance, a company car and
accommodation. In addition, Mr. Schultz and Mr. Venkatakrishnan also receive
the costs of education of their children until they reach the age of 21 years.
On termination of employment, we reserve the right to give such executive
directors pay in lieu of notice of termination (whether given by us or the
executive director). The amount will consist of such executive director's
basic salary for their relevant notice period. In accordance with Mr. Schultz's
service agreement for the period January 1, 2003 until December 31, 2003, any
pay in lieu of notice will also include any bonus, commission or other benefit
referable to his employment as we, or the Board, may, in our sole discretion,
decide.

Non-executive Directors

We have entered into appointment letters with each of Dr. Martineau and Dr.
Crocker with effect from February 22, 2000, with Mr. Gibian and The Rt. Hon.
Baroness Chalker of Wallasey P.C. with effect from March 24, 2000, with Mr. Anin
with effect from October 27, 2001, with Mr. Haslam with effect from March 8,
2002, and with Mr. Morrell with effect from February 28, 1997. We have also
entered into similar appointment letters with Mr. Beckett with effect from
March 5, 1994. Each such director's appointment letter is for a period of
approximately three years (subject at all times to the retirement by rotation
provisions) and renewable on the same terms.

Save for Mr. Beckett, the Chairman of the Board, who is entitled to a retainer
of US$75,000 per year as of June 1, 2002, each non-executive director is
entitled to a retainer of US$30,000 per year and a Board committee Chairman is
entitled to an additional US$5,000 per year. Each non-executive director is
also entitled to an attendance fee of US$1,000 for each Board meetin attended
in person and, if the meeting is


                                       83






<PAGE>


attended in person outside their country of domicile, then that director is
also entitled to a travel fee of US$1,500. Each non-executive director is also
entitled to be reimbursed all reasonable expenses incurred while working on
our business as well as those expenses incurred in attending Board meetings.

In the fiscal year 2002, the aggregate amount of compensation comprising salary,
bonuses and other payments, as well as benefits in kind, paid by us to all of
our directors and senior management was approximately US$5.4 million and to
senior management was US$2.5 million. This does not include the part of the
remuneration of Mr. Jonah which, prior to termination of the Replacement
Technical Services Agreement on February 28, 2003, was paid by Lonmin. We
separately paid Lonmin, under the Replacement Technical Services Agreement, for
technical services it rendered to us, including the services of Mr. Jonah. In
the financial year ended December 31, 2002, we paid US$0.8 million to Lonmin for
these technical services.

As at May 30, 2003, the interests of the directors (and interests of persons
connected with them within the meaning of section 346 of the UK Companies Act
1985 which would, if the connected person were a director, be required to be
disclosed, and the existence of which is known to or could with reasonable
diligence be ascertained by the relevant director whether or not held through
another party) in our securities were:

<TABLE>
<CAPTION>
                                                                  Number of        Number of
                                                                    Shares       Shares under
Name                                               Beneficial   Non-Beneficial   option/award
------------------------------------------------   ----------   --------------   ------------
<S>                                                  <C>              <C>           <C>
Michael Beckett                                       1,873           0                   0
Theophilus Anin                                          53           0                   0
Merene Botsio-Phillips                                  100           0              70,426
The Rt. Hon. The Baroness Chalker of Wallasey PC          0           0                   0
Chester Crocker                                           0           0                   0
Thomas Gibian                                        20,000           0                   0
Gordon Haslam                                             0           0                   0
Sam Jonah                                            59,690           0             410,404
Michael Martineau                                         0           0                   0
Nicholas Morrell                                          0           0                   0
Eleanor Ofori Atta                                      553           0              63,999
Trevor Schultz                                       31,245           0             195,912
S Venkatakrishnan                                         0           0             200,775
---------------------------------------------------------------------------------------------
</TABLE>

No director exercised any share options during 2002 and up to May 30, 2003.

Save for the interests of Mr. Jonah in the Replacement Technical Services
Agreement (which was terminated on February 28, 2003), none of our directors has
or had any interest in any transaction which is or was unusual in its nature or
conditions or is or was significant to our business and which has been effected
by us during the current or immediately preceding financial year or which was
effected by us during any earlier financial year and remains in any respect
outstanding or unperformed.

There are no outstanding loans granted by us to any of our directors, nor any
guarantees provided by us for the benefit of any of our directors.


                                       84






<PAGE>




As at May 30, 2003, the interests of our senior management in our securities
were:

<TABLE>
<CAPTION>
Name                                                            Number of Shares
-------------------------------------------------------------   ----------------
<S>                                                                    <C>
Ernest Abankroh                                                        *
Martin Awuku Ahorney                                                   *
Kwaku Akosah-Bempah                                                    *
James Kwamena Anaman                                                   *
Mark Arnesen                                                           *
Kweku Awotwi                                                           *
Peter Cowley                                                           *
Alex Darko                                                             *
Rolin P. Erickson                                                      *
Brent Horochuk                                                         *
Abel Ntini                                                             *
Daniel Monney Akwafo Owiredu                                           *
George Potter                                                          *
David Renner                                                           *
Gary Townsend                                                          *
Ken Tshribi                                                            *
--------------------------------------------------------------------------------
</TABLE>

*=   owns less than 1% of our outstanding capital stock.

Incentive Schemes

The AGC Senior Management Share Option Scheme

The exercise price per share for options granted under this scheme is set at the
average of the closing middle market quotations for our shares on the LSE on the
5 dealing days immediately preceding the date of grant of the option. The
exercise price will be denominated in US dollars but may, at the election of
participants, be paid in cedis (translated from US dollars at the average of the
closing buying and selling spot rates ruling two days before exercise of the
option).

Options will normally be exercisable at any time between the third and tenth
anniversaries of the date of grant. The right to exercise an option will
generally be forfeited shortly after a participant leaves employment. Special
provisions apply however if:

o    the participant's employment terminates by reason of death, injury,
     disability, retirement or redundancy or any other reasons at the Management
     Development and Remuneration Committee's discretion;

o    in the case of an expatriate employee, on expiry without renewal of his
     fixed-term contract of employment;

o    in the event of a person becoming a "majority shareholder controller" (as
     defined in section 84 of the Mining Law); or

o    on a reconstruction or liquidation of us.

Options have previously been granted subject to performance conditions. However,
as one of the primary objectives of the option scheme is to help us retain key
personnel, options granted after April 25, 2001 are not subject to performance
conditions.

There is a limit on the number of shares which may be subject to options granted
under this scheme. The number of our shares which may be issued or become
issuable pursuant to options granted on any date, when added to the number of
shares issued and remaining issuable in respect of outstanding options granted
in the previous 10 years under this scheme and any other share schemes operated
by us, may not exceed 10% of the number of our shares at that date.

No option may be granted under this scheme after April 25, 2011.


                                       85






<PAGE>




The Ashanti Bonus Co-Investment Plan

Under this plan, executive directors and key employees who receive an annual
bonus and are recommended by the Management Development and Remuneration
Committee are offered the right to purchase certain of our shares. These shares
have already been issued and purchased by an employee trust, which is funded by
us on terms agreed by the Board. These shares are designated "Invested Shares"
for the purposes of this plan. If participants choose to purchase Invested
Shares then, without having to pay any further amounts, participants are granted
the right to receive an additional number of shares equal to the number of
Invested Shares purchased. These additional shares are designated "Matching
Shares" for the purposes of this plan. Normally, so long as the participant does
not sell the Invested Shares within a two-year period following their purchase,
the Matching Shares will be released to him in equal installments on the first
and second anniversaries of the making of the award. Rights to receive Matching
Shares will normally lapse if the participant leaves employment with us or sells
the Invested Shares within two years of their purchase date.

Awards made under this plan have been allowed to run their course and we do not
currently intend to make any further awards under this plan.

The AGC 1994 Employee Share Scheme

Under this scheme, executive directors and key employees receive our shares for
free if we achieve specified challenging internal and/or performance conditions
within a three-year period. Previously, ordinary shares have been conditionally
awarded to employees nominated by us, and transferred to employees following the
employee's completion of three years' service from the date of the award,
provided the performance targets are met. Awards made in 2002 were, and
subsequent awards will be, subjected to granting conditions and held for 3 years
from the date of award and on the expiry of which they will be released free of
charge. Awards generally lapse if participants leave employment with us, but
special termination provisions apply if:

o    the participant's employment terminates by reason of death, injury,
     disability, retirement or redundancy, or other reasons at the discretion of
     the trustee of this scheme;

o    in the case of an expatriate employee, on expiry without renewal of his
     fixed-term contract of employment;

o    in the event of a person becoming a "majority shareholder controller" as
     defined in section 84 of the Mining Law; or

o    on a reconstruction or liquidation of us.

The Ashanti Performance Share Plan

All executive directors and key employees are eligible to participate in this
plan. Awards are made in the form of a contingent right to receive a specified
number of our shares at no cost to the participant. Receipt of shares is subject
to the satisfaction of performance criteria over a three year period. Awards
generally lapse if the participant leaves our employment but special termination
provisions apply if the participant's employment terminates by reason of death,
injury, disability, retirement or on a reconstruction or liquidation of us.
Awards made under this plan will be allowed to run their course, but we do not
currently intend to make any further awards.

Long-Term Performance Plan

All directors and employees are eligible to participate in this plan but, as
yet, no awards have been made under it. Each award will have a three year
performance period, and payment will generally be conditional on the executive
remaining with us for the duration of that period. The maximum amount receivable
will normally be 100% of annual basic salary at the award date. At the end of
the three year period, we will make payments according to the level of our
performance measured against performance targets set when the award was made.


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<PAGE>




C. Board Practices

Audit and Finance Committee

The Audit and Finance Committee reviews and reports to the Board on the
compliance, integrity and major judgmental aspects of our published financial
statements, the scope and quality of the internal and external audit and the
adequacy of our internal controls. The members of the Audit and Finance
Committee are: Mr. Beckett (Chairman), Mr. Anin, Dr. Crocker, Mr. Gibian and Mr.
Morrell.

Management Development and Remuneration Committee

The Management Development and Remuneration Committee is responsible for the
appointment of directors, the determination of the level and structure of
executive directors' remuneration and the review of their performance and
service agreements. It makes recommendations to the Board on these matters in
accordance with its terms of reference and reviews and approves succession
programs with respect to top management. The members of the Management
Development and Remuneration Committee are: Dr. Crocker (Chairman), Mr. Anin,
Mr. Beckett, Mr. Gibian, Dr. Martineau and Mr. Morrell.

Risk Management Committee

The Risk Management Committee reviews and monitors the execution of risk
management policies with particular focus on financial risks, including hedging,
and, where necessary, makes recommendations to the Board. The members of the
Risk Management Committee are Mr. Jonah (Chairman), Mr. Schultz and
Mr. Venkatakrishnan.

Corporate Governance Committee

The Corporate Governance Committee is responsible for the monitoring of the
general conduct of directors in line with best practice and screens individuals
proposed for appointment to the Board. It is also responsible for the
non-financial aspects of our safety, health and environmental issues and makes
recommendations, as appropriate, to the Board. The members of the Corporate
Governance Committee are: The Rt. Hon. The Baroness Chalker of Wallasey PC
(Chairman), Mr. Anin, Dr. Martineau and Dr. Crocker.

D. Employees

The average number of employees of our group for the three years ended December
31, 2002 was as follows:

<TABLE>
<CAPTION>
                                December 2002   December 2001   December 2000
-----------------------------------------------------------------------------
<S>                                 <C>            <C>             <C>
Underground mining                  4,602           4,777           4,854
Surface mining and processing       2,425           2,439           2,565
Administration                      2,914           2,973           3,010
-----------------------------------------------------------------------------
Total                               9,941          10,189          10,429
=============================================================================
</TABLE>

The "Administration" category in the table above includes environmental,
finance, human resources, purchasing, stores, general administration and mine
village services departments.

In the table above, the Geita joint venture employees are not included in the
breakdowns for dates after December 31, 2000.

In Ghana, the terms of employment and remuneration for junior staff are
determined by collective bargaining agreements, ("Collective Agreements")
entered into between us and the Ghana Mine Workers Union. The Collective
Agreements have a term of three years and levels of pay are negotiated annually.

E. Share Ownership

No individual listed under 6B owns as much as 1% of the ordinary shares.


                                       87






<PAGE>

ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

As of May 30, 2003, our issued capital consisted of 130,289,386 ordinary
shares (excluding treasury shares) and one special rights redeemable
preference share or golden share.

Lonmin is the beneficial owner of 27.6% of our outstanding ordinary shares and
the Government of Ghana owns 16.9% of our outstanding ordinary shares. The
Government of Ghana has been issued with the golden share entitling it to the
following rights which no other shareholder possesses:

o    The holder is entitled to receive notice of and to attend and speak at any
     general meeting of the members or at any separate meeting of the holders of
     any class of shares, although without the right to vote the "golden share".

o    The golden share may only be issued to, held by or transferred to a
     Minister of the Government of Ghana or any person acting on behalf of the
     Government and authorized in writing by such Minister.

o    On a return of assets in a winding-up or liquidation of us, the holder of
     the golden share is entitled to the sum of one thousand cedis in priority
     to any payment to other members, but the golden share confers no further
     right to participate in our profits or assets. The golden share has no
     right to dividend and no right to participate in any offer of securities to
     existing shareholders or in any capitalization issue.

o    The holder of the golden share may require us to redeem it at any time in
     consideration of the payment of one thousand cedis. The golden share is not
     redeemable at our option.

o    Each of the following matters are accordingly only effective upon the
     written consent of the holder of the golden share:

          (i)  any amendment to or removal of the rights of the golden share,

          (ii) a voluntary winding-up or voluntary liquidation of us,

          (iii) the redemption of or purchase by us of the golden share,

          (iv) the disposal of any mining lease held by us or any subsidiary,
               and

          (v)  any disposal (other than a disposal in the ordinary course of the
               business) which, alone or when aggregated with any other disposal
               or disposals forming part of, or connected with, the same or a
               connected transaction, constitutes a disposal of the whole or a
               material part of our assets taken as a whole.

Additionally, pursuant to the Mining Law, the Ghanaian Minister of Mines has the
power to object to a person becoming or remaining a "shareholder controller", a
"majority shareholder controller" or an "indirect controller" of us.

Based on information available to us, on May 30, 2003, there were 49 record
holders of our ordinary shares in the United States, who held approximately 0.4%
of our ordinary shares then issued and outstanding.

The following sets forth information regarding the beneficial ownership of our
ordinary shares as of May 30, 2003, by:

o    any person whom the directors are aware as at May 30, 2003, who is
     interested directly or indirectly in 3% or more of our ordinary shares;

o    each of our directors; and

o    all of our executive officers and directors as a group.

Beneficial ownership is determined in accordance with the rules of the
Securities and Exchange Commission, or SEC, and generally includes voting or
investment power with respect to securities. Ordinary shares issuable pursuant
to the exercise of options, to the extent the options are currently exercisable
or are exercisable within 60 days of May 30, 2003, are treated as outstanding
for computing the percentage of the person holding these securities but are not
treated as outstanding for computing the percentage of any other person.


                                       88






<PAGE>




Unless otherwise noted, each person or group identified possesses sole voting
and investment power with respect to the shares, subject to community property
laws where applicable.

Unless otherwise indicated, the address of each of the parties listed in the
table below is our registered office which is Gold House, Patrice Lumumba Road,
Roman Ridge, P.O. Box 2665, Accra, Ghana.

<TABLE>
<CAPTION>
                                                         Shares Owned
                                                   -------------------------
Holder                                               Number        Percent
------------------------------------------------   ----------   ------------
<S>                                                <C>              <C>
Sam Esson Jonah                                             *          *
Srinivasan Venkatakrishnan                                  *          *
Michael Ernest Beckett                                      *          *
Merene Botsio-Phillips                                      *          *
Eleanor Darkwa Ofori Atta                                   *          *
Trevor Stanley Schultz                                      *          *
Theophilus Ernest Anin                                      *          *
The Rt. Hon. The Baroness Chalker of Wallasey PC            *          *
Dr. Chester Arthur Crocker                                  *          *
Thomas Richard Gibian                                       *          *
Gordon Edward Haslam                                        *          *
Dr. Michael Peter Martineau                                 *          *
Nicholas Jeremy Morrell                                     *          *
Lonmin plc                                         36,000,000       27.6
   4 Grosvenor Place
   London SW1X 7YL
Government of Ghana                                21,978,104       16.9
   Room 403, Ministry of Finance
   Accra, Ghana
M&G Investment Managers                            10,270,760        7.9
   Laurence Pountney Hill
   London EC4R 0MM
Genesis Asset Managers Limited                      8,878,164        6.8
   21 Knightsbridge
   London SW1X 7LY
All directors and executive officers                        *          *
* = less than 1%
</TABLE>

BNY (Nominees) Limited holds 63,304,999 of our ordinary shares in their capacity
as depositary under our GDR program. Capita IRG Trustees Limited is the
registered holder of 64,803,697 of our ordinary shares in its capacity as
trustee under our Ashanti Depositary Interest program (of which BNY (Nominees)
Limited is a participant). Neither of these parties fulfil the SEC's
requirements for "beneficial ownership" as they do not hold voting or investment
power with respect to the relevant shares.

Save for the interests set out above, our directors are not aware of any person
who, as at May 30, 2003, will be interested directly or indirectly in 3% or
more of our issued share capital.

Lonmin has no entitlement to appoint directors to the Board. Currently there are
only two directors out of 13 who are employees and/or directors of Lonmin who
are on the Board. Consequently, we are satisfied that we are capable of carrying
on our business independently of Lonmin and have no transactions or
relationships with Lonmin other than in respect of the MENs. All transactions
and relationships between Lonmin and us are, and will be, conducted on arm's
length terms and on a normal commercial basis.

B. Related Party Transactions

We entered into a Replacement Technical Services Agreement in March 1994 with
our largest shareholder, Lonmin (then Lonrho Plc). This agreement was amended by
letter agreements dated December 1, 1995, July 30, 1998 and June 17, 1999. Under
the Replacement Technical Services Agreement, Lonmin was required to provide the
services of Mr. Jonah to us as our managing director and/or chief executive.
This


                                       89






<PAGE>




agreement was terminated effective February 28, 2003, at which time one of our
subsidiaries entered into direct service agreement with Mr. Jonah in respect of
the provision of Mr. Jonah's services as our chief executive and managing
director. The terms of this agreement are summarised in "Section 6.B" above.
Mr. Jonah is also a director of Lonmin. In addition, Mr. Haslam, the chief
executive of Lonmin, is also one of our directors.

A substantial proportion of our insurance is placed through Metropolitan
Insurance Company Limited, or Metropolitan, a Ghanaian incorporated company, as
the Ghanaian law requires many risks to be insured through a Ghanaian company.
Metropolitan re-insures a large percentage of the insurance through the Ghanaian
and international insurance market. The total premiums and other fees paid by us
to Metropolitan (after deducting amounts which it pays on as premiums to
re-insurers but adding re-insurance commissions) were US$366,945 in 2002,
US$275,432 in 2001 and US$207,095 in 2000. However these figures are subject to
final adjustment. A trust in which some members of the family of our Chief
Executive Officer, Mr. Sam Jonah, have beneficial interests, holds a majority
interest in Metropolitan. Mr. Sam Jonah holds no beneficial interest in
Metropolitan. Metropolitan is managed independently from Mr. Sam Jonah and
neither Mr. Sam Jonah nor his family are directors of, nor do they participate
in the management of, Metropolitan.

Another of our major shareholders is the Government of Ghana. We pay royalties,
corporate and other taxes and utility charges in the normal course of business
to the Government of Ghana and associated authorities. Amounts we paid during
2002 totaled approximately US$48 million. Of this amount, approximately US$9
million was attributable to royalties and the remainder to corporate and other
taxes and utility charges. The Ministry of Mines of the Government of Ghana is
also the Licensor of our mines in Ghana.

On June 28, 2002 Lonmin subscribed for US$75.0 million of MENs pursuant to the
Lonmin MENs Subscription Agreement and the Government of Ghana MENs Subscription
Agreement. The Government of Ghana has a call option in respect of US$28.4
million of the MENs.

C. Interests of Experts and Counsel

Not applicable


                                       90






<PAGE>




ITEM 8: FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

See Item 18 -- "Financial Statements".

     Legal Proceedings

Save as disclosed below, we have not been involved in any legal or arbitration
proceedings, nor, so far as our directors are aware, are there any such
proceedings pending or threatened involving us or any member of our group, which
may have or have had in the previous 12 months, a significant effect on us or
our group's financial position.

     US Class Action

Ashanti, Sam Jonah, and Mark Keatley (our former Chief Financial Officer) have
been named as defendants in a consolidated class action under the United States
federal securities laws in the United States District Court for the Eastern
District of New York alleging nondisclosures and misstatements concerning our
hedging position and program. The plaintiffs contend that Ashanti's and the
individual defendants' actions violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated under that Act. Two
of the proposed class actions that were consolidated purported to be brought on
behalf of investors who purchased our shares during the period July 28, 1999
through October 5, 1999, the 1999 Class Period, while the third purported to be
brought on behalf of investors who purchased our shares during the period April
21, 1997 through October 5, 1999, the 1997-1999 Class Period. The plaintiffs
seek unspecified damages, attorneys' and experts' fees and other relief.

The three actions were consolidated for all purposes by the Court and the court
appointed lead plaintiffs and lead counsel under the US Private Securities
Litigation Reform Act of 1995. A consolidated amended class action complaint was
filed on October 27, 2000. Pursuant to a Stipulation and Order signed by the
Court, the claims in the 1997-1999 Class Period were stayed.

We are vigorously defending the claims and moved to dismiss the consolidated
amended class action complaint. In a decision dated February 13, 2002, the Court
granted in part and denied in part that motion. Following that decision, the
plaintiffs filed a second consolidated amended class action complaint, which we
answered, and fact discovery commenced. By motions dated March 24, 2003, the
lead plaintiffs moved for leave to expand the class period to include the
1997-1999 Class Period, to file a third consolidated amended class action
complaint, and to certify the case as a class action. We filed oppositions to
those motions on April 25, 2003. Although we cannot make any assurances
regarding the ultimate outcome of this litigation, we believe that the outcome
will have no material adverse affect on our financial position.

     Kimin

A number of expatriate employees instituted an action against Kilo-Moto Mining
Company, a subsidiary of ours, and against us in the Brussels Labor Court for
arrears of salary, severance payments and payment in lieu of holiday. On
November 16, 1999, the Brussels Labor Court upheld the claims of four of the
ex-employees against Kimin for arrears of salary incurred up to October 1, 1997.
The Brussels Labor Court also held that we were jointly and severally held
liable with Kimin for the claimants' salaries and severance payments as from
October 1, 1997. Kimin and we appealed against the judgment. In October 2000,
the plaintiffs unsuccessfully instituted proceedings in Kinshasa, to enforce the
provisional judgment against Kimin in the Democratic Republic of Congo. The
Brussels Labor Court of Appeal issued its judgment on March 13, 2002. The Court
awarded a total sum of 1,501,870.34 euros (approximately US$1.35 million) plus
7% interest, in favor of the affected ex-employees as against the total amount
claimed by them of US$2.2 million plus interest.

Our liability for a further claim for payment in lieu of holiday was to be
decided late 2002. However, in July 2002, we and Kimin fully and finally settled
the claims of the four ex-employees for a total sum of 2.1 million Euros. In
addition, the settlement has effectively terminated the two unadjudicated claims
of the ex-employees and has also rendered the judgements of the Brussels Labour
Court and the Brussels Labour Court of Appeal dated 15 November 1999 and 13
March 2002 respectively void and of no legal effect. Other claims have been made
against us and Kimin by several other ex-employees, consultants and third party
creditors.


                                       91






<PAGE>




We are currently evaluating these claims. Based on information currently
available to us, we believe that this potential liability has been reasonably
provided for in our financial statements.

Dividends

We are continuing to strengthen our financial position. However, under Ghanaian
law we are unable to consider paying dividends until we have positive reserves
on our balance sheet. Our individual company accounts currently show a
substantial deficit. Unless we are able to restructure our balance sheet, we
will not be able to pay dividends in the foreseeable future.

B. Significant Changes

On December 6, 2002 we filed a Registration Statement on Form F-1 (No.
333-101682) with the SEC in connection with a proposed rights issue. On January
27, 2003 and March 26, 2003 we filed amendments thereto. Under the terms of the
RCF (discussed in Item 10C "Material Contracts" below) we are required to use
our best efforts to effect a rights issue on or before December 31, 2003. As of
the date of this report, this registration statement has not yet been declared
effective by the SEC and we have not yet completed this rights issue. On May
16, 2003, we issued a press release stating that our board of directors had
noted the recent movement in our share price. In that press release the board
further confirmed that it was in discussions with the board of AngloGold
regarding a proposed merger of the two companies at a ratio of 26 AngloGold
shares for every 100 of our ordinary shares or GDSs. These discussions and
related discussions with certain stakeholders are continuing. We cannot assure
you that these discussions will lead to a proposal being made for our entire
issued share capital. In view of our current discussions with AngloGold
regarding a proposed merger, the proposed rights issue has been delayed. If
a firm announcement is made in relation to the proposed merger, it is not our
intention to proceed with the rights issue.


                                       92






<PAGE>




ITEM 9: THE OFFER AND LISTING

A. Offer and Listing Details

Price History of Stock

Our ordinary shares and/or GDSs are listed on the following international stock
exchanges and trade under the symbols shown:

<TABLE>
<S>        <C>
Ghana      AGC (shares)
London     ASN (shares), ASND (GDSs)
New York   ASL (GDSs)
Zimbabwe   No symbol
</TABLE>

Our GDSs are traded on the London Stock Exchange, or LSE, and the New York Stock
Exchange, or NYSE, by way of a sponsored global depositary receipt, or GDR,
facility with The Bank of New York as depositary. The ratio of our GDSs to our
ordinary shares is 1:1.

On the Zimbabwe Stock Exchange, our shares are also traded by way of a sponsored
Zimbabwe depository receipt, or ZDR, facility. The ratio of ZDRs to our shares
is 100:1.


                                       93






<PAGE>




The table below sets forth for the periods indicated, the reported high and low
sales prices for our ordinary shares on the Ghana Stock Exchange.

<TABLE>
<CAPTION>
                                   Cedis per      Translated into     Average daily
                                ordinary share       US Dollars      trading volume
                                --------------    ---------------      (number of
                                 High     Low       High    Low     ordinary shares)
------------------------------------------------------------------------------------
<S>                             <C>      <C>       <C>     <C>           <C>
Financial Year

1997
January 1 - March 31, 1997      22,500   20,510    11.89   10.84           234
April 1 - June 30, 1997         22,050   21,300    11.30   10.88           185
July 1 - September 30, 1997     22,050   19,900    10.08    9.10           418
October 1 - December 31, 1997   21,100   15,400     9.40    6.85           348

1998
January 1 - March 31, 1998      17,000   16,500     7.42    7.20           564
April 1 - June 30, 1998         18,000   18,000     7.80    7.80            70
July 1 - September 30, 1998     18,000   15,300     7.74    6.58            65
October 1 - December 31, 1998   18,000   16,500     7.73    7.03           150

1999
January 1 - March 31, 1999      19,000   18,000     7.45    7.86            57
April 1 - June 30, 1999         18,700   18,700     7.39    7.39            49
July 1 - September 30, 1999     18,700   18,700     7.00    7.00            --
October 1 - December 31, 1999   18,700   18,700     5.34    5.34            40

2000
January 1 - March 31, 2000      18,700   18,700     4.57    4.57            57
April 1 - June 30, 2000         18,700   18,600     3.46    3.44             6
July 1 - September 30, 2000     18,600   18,600     2.85    2.85            --
October 1 - December 31, 2000   18,600   18,600     2.76    2.69            --

2001
January 1 - March 31, 2001      18,600   18,500     2.67    2.60             2
April 1 - June 30, 2001         18,600   18,500     2.57    2.56            --
July 1 - September 30, 2001     18,800   18,500     2.60    2.57         2,805
October 1 - December 31, 2001   18,800   18,500     2.61    2.57         1,772

2002
January 1 - March 31, 2002      18,800   18,800     2.55    2.50            28
April 1 - June 30, 2002         18,800   18,800     2.46    2.40            22
July 1 - September 30, 2002     18,807   18,800     2.33    2.23            36
October 1 - December 31, 2002   18,807   18,807     2.28    2.28         2,764
December, 2002                  18,807   18,807     2.27    2.27         9,154

2003
January, 2003                   28,100   27,000     3.34    3.21            36
February, 2003                  28,500   28,100     3.35    3.30           250
March, 2003                     28,500   28,500     3.33    3.33
April, 2003                     28,500   28,500     3.32    3.32            50
May, 2003                       28,500   28,500     3.25    3.25           446
------------------------------------------------------------------------------------
</TABLE>

NOTES:

1.   In April 1994, our ordinary shares were listed in Ghana and London. In
     1996, our GDSs were listed in New York and London, and our ordinary shares
     were listed in Australia and Toronto. We delisted from Toronto and
     Australia in 2002. In 1997, we listed Zimbabwean depositary receipts on the
     Zimbabwe Stock Exchange, one hundred of which represent one ordinary share.

2.   The cedi prices have been translated into US dollars using the average of
     the buy and sell rates of the Bank of Ghana on the date of each such high
     and low amount.


                                       94






<PAGE>




Our shares are traded on the NYSE in the form of global depository securities,
or GDSs, which are evidenced by GDRs. Each GDS represents one share. The closing
price of our GDSs on May 30, 2003, was US$5.81 per GDS. The table below sets
forth, for the periods indicated, the reported high and low trading prices for
our GDSs on the NYSE.

<TABLE>
<CAPTION>
                                   Per GDS
                                ------------       Average daily
                                High     Low      trading volume
Year                             US$     US$    (number of shares)
------------------------------------------------------------------
<S>                             <C>     <C>          <C>
1997
January 1 - March 31, 1997      15.62   11.87        134,738
April 1 - June 30, 1997         15.25   12.69        114,648
July 1 - September 30, 1997     13.63   11.69         81,733
October 1 - December 31, 1997   11.44    9.50        131,061

1998
January 1 - March 31, 1998      10.00    6.68        120,164
April 1 - June 30, 1998         11.00    7.13        122,166
July 1 - September 30, 1998      9.03    5.03        187,466
October 1 - December 31, 1998   12.00    7.05        164,892

1999
January 1 - March 31, 1999      10.69    7.69        165,249
April 1 - June 30, 1999          9.69    6.69        192,506
July 1 - September 30, 1999     10.13    5.63        186,139
October 1 - December 31, 1999    9.38    2.44        380,128

2000
January 1 - March 31, 2000       3.75    1.63        183,578
April 1 - June 30, 2000          2.56    1.38         71,668
July 1 - September 30, 2000      3.06    1.50         74,890
October 1 - December 31, 2000    2.77    1.56         67,648

2001
January 1 - March 31, 2001       3.05    1.88         45,664
April 1 - June 30, 2001          3.31    1.93        108,537
July 1 - September 30, 2001      4.18    2.99        111,781
October 1 - December 31, 2001    4.25    3.10         49,642

2002
January 1 - March 31, 2002       5.45    3.51        250,628
April 1 - June 30, 2002          6.50    4.57        399,334
July 1 - September 30, 2002      6.30    3.81        261,865
October 1 - December 31, 2002    6.58    4.91        383,555
December, 2002                   6.58    4.91        613,057

2003
January, 2003                    6.84    5.56        527,686
February, 2003                   6.75    5.75        534,016
March, 2003                      6.65    5.00        403,833
April, 2003                      5.66    5.03        333,005
May, 2003                        7.71    5.60      1,129,043
------------------------------------------------------------------
</TABLE>


                                       95






<PAGE>




The table below sets forth the closing midmarket quotations for a GDS as derived
from the Daily Official List as published by the LSE for the first dealing day
in each of the six months prior to the date of this annual report.

<TABLE>
<CAPTION>
                    Ordinary share price
Date                        (US$)
----------------------------------------
<S>                         <C>
December 2, 2002            5.25
January 2, 2003             5.60
February 3, 2003            6.05
March 3, 2003               6.25
April 1, 2003               5.75
May 1, 2003                 5.75
</TABLE>

B. Plan of Distribution

Not applicable.

C. Markets

The Company's ordinary shares are listed on the following international stock
exchanges and trade under the symbols shown:

<TABLE>
<S>        <C>
Ghana      AGC
London     AGLS
New York   ASL (CUSIP043743202)
Zimbabwe   --
</TABLE>

Ashanti delisted from the Australian Stock Exchange with effect from July 1,
2002 following the new Listing Rules introduced by that exchange.

The Company's shares are also traded on the London Stock Exchange ("LSE') and
the NYSE by way of a sponsored Global Depositary Receipt GDR facility with the
Bank of New York as depositary. The ratio of Ashanti GDRs to Ashanti Shares is
1:1.

On the Zimbabwe Stock Exchange ("ZSE"), the Company's Shares are also traded by
way of a sponsored Zimbabwe Depository Receipt ("ZDR") facility. The ratio of
ZDRs to Ashanti Shares is 100:1.

D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.


                                       96






<PAGE>




ITEM 10: ADDITIONAL INFORMATION

A. Share Capital
Not applicable.

B. Memorandum and Articles of Association

Introduction

We are subject to the provisions of the Ghanaian Companies Code of 1963, as
amended, or the Companies Code, which constitutes the principal Ghanaian
legislation regulating companies incorporated in Ghana. The Companies Code was
based on English company law at the time of its adoption but also reflects
certain provisions from the legislation of Australia, South Africa and certain
other countries. A principal feature of the Companies Code which distinguishes
it from other acts based on the English model is that it attempts to codify
company law.

The following is a description of certain provisions of our Regulations and
Ghanaian company law and includes a description of the rights attached to our
ordinary shares. It does not purport to contain all applicable qualifications
and exceptions nor does it purport to be a complete review.

Authorized Business

Pursuant to Regulation 2 of our Regulations, the businesses which we are
authorized to carry on are:

o    to act as the holding and co-ordinating company of the group of companies
     of which we are for the time being the holding company;

o    to take over with effect from 1st October, 1972 the assets, business,
     objects and functions in Ghana formerly carried on by the Ashanti
     Goldfields Corporation Limited pursuant to the Mining Operations
     (Government Participation) Decree, 1972 (N.R.C.D. 132);

o    to purchase, take concession of, lease, or otherwise acquire any mines,
     mining rights, and metalliferous land and any interest therein and to
     explore, work, exercise, develop and turn the same to account;

o    to acquire quarries and mineral lands, timber and forestry estates and
     property and land of every description developed or intended to be
     developed for the production of raw materials, crops, animal products or
     agricultural products anywhere throughout the whole world and any interest
     or concession therein and to explore, work, exercise, develop and turn the
     same to account;

o    to crush, win, get, quarry, smelt, calcine, refine, dress, amalgamate,
     manipulate and prepare for market ore, metal and mineral substances of all
     kinds;

o    to carry on in any part of the world all or any of the businesses of
     financiers, capitalist, concessionaires, commercial agents, mortgage and
     bullion brokers, discount brokers or financial agents and advisers;

o    to carry on the businesses of hoteliers, guest house managers, lodging
     housekeepers, travel agents, tickets and booking agents, charter flight
     travel contractors, forwarding and custom brokers and to facilitate tours
     and travel and to arrange hotel accommodation bookings and travelers checks
     and credit card facilities and other facilities for tourists and travelers
     and to engage in all aspects of the travel and tourist industry and to run
     holiday resorts generally;

o    to carry on all or any of the businesses of general contractors,
     engineering contractors, civil engineers, site formation and plant layout
     advisers and consultants (whether civil, mechanical, electrical,
     structural, chemical, aeronautical, mining, marine or otherwise); and

o    to carry on in any part of the world any other business of a similar nature
     or any business which may in our opinion be conveniently carried on by us
     and any other business which may seem to us capable of being conveniently
     carried on in connection with the above or calculated directly or
     indirectly to enhance the value of or render profitable any of our
     businesses.

Pursuant to Section 24 of the Companies Code of Ghana, we have, for the
furtherance of our authorized businesses, all the powers of a natural person of
full capacity except in so far as such powers are expressly excluded by our
Regulations.


                                       97






<PAGE>




Control and Management

Our control and management is divided between the members in general meeting and
the board of directors. Except for matters specifically reserved for the members
in our Regulations and the Ghanaian Companies Code, overall management of our
business is vested in the board of directors and, except to the extent that our
Regulations otherwise provide, the board of directors, when acting within its
powers, shall not be bound to obey the directions or instructions of the members
in general meeting.

The board of directors is entitled to exercise its powers through committees and
to appoint a managing director and to delegate all or any of its powers to a
managing director.

Specific powers which have been reserved for the members include matters
relating to amendments to our Regulations, the share capital and any issue of
new shares, the approval of the accounts, the distribution of profits, the
re-election of directors and the auditors, the approval of the fees,
remuneration and other interests of the directors and the authorization to
dispose of the whole, or substantially the whole, of our undertaking or assets,
although certain of these powers can also be exercised by the board of
directors.

General Meetings

     General

The Companies Code provides that shareholders shall exercise their powers in
general meeting. We are required to hold a general meeting as our annual general
meeting in each year, and not more than fifteen months from the date of the
previous annual general meeting, to consider the statutory accounts and reports
and to re-elect our directors and our auditors.

Extraordinary general meetings will be held when considered necessary by the
board of directors or when requisitioned by shareholders representing at least
one-twentieth of our issued shares.

All general meetings shall be held in Ghana unless the board of directors
decides otherwise.

     Notice of Meetings

At least 21 days' notice must be given of general meetings. The notice convening
a general meeting must state the general nature of the business to be considered
and, if the meeting is to consider a special resolution, must set out the terms
of the resolution. Any member has the right to have a resolution included in the
notice of meeting if he so requests in writing to the board of directors in time
for the matter to be included in the notice of meeting.

Our members, directors and auditors are entitled to receive notice of general
meetings. Notice of general meetings may be given by us to a member or director
either personally or by sending it by post in a pre-paid envelope addressed to
the member at his registered address or by leaving it at that address with some
person apparently over the age of sixteen.

     Voting

At a general meeting every holder of shares who is present in person (including
any corporation present by its duly authorized representative) or by proxy shall
on a show of hands have one vote and every such holder present in person or by
proxy shall on a poll have one vote for each share of which he is the holder but
no member is entitled to attend and vote in respect of any share held by him
unless all calls or other sums presently payable by him to us in respect of that
share have been paid. The holder of the golden share does not have any voting
rights. In the case of joint holders, the vote of the senior who tenders a vote,
whether in person or by proxy, shall be accepted to the exclusion of the votes
of the other joint holders.

At a general meeting a poll may be demanded by:

o    the chairman of the meeting; or

o    at least two members present in person or by proxy; or

o    any member or members present in person or by proxy and representing not
     less than one-twentieth of the total voting rights of all the members
     having the right to attend and vote on the resolution.


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In addition, where instruments of proxy have been duly lodged and have not been
revoked it shall be the duty of the chairman of the meeting to demand a poll
after any vote by show of hands unless the result on the show of hands is in
accordance with the directions, if any, given in all such instruments of proxy.

     Majorities required for resolutions

Our Regulations do not make specific provision for the majorities required to
pass particular resolutions. However, under the Companies Code, passing an
ordinary resolution requires a simple majority of votes cast by such members who
vote in person or by proxy at a general meeting to be in favor of the
resolution. A special resolution requires a majority of not less than
three-quarters of the votes cast by such members who vote in person or by proxy
at a general meeting, of which notice specifying the intention to propose the
resolution as a special resolution has been duly given, to be in favor of the
resolution.

     Proxies

A member entitled to attend and vote at a general meeting or a meeting of any of
the holders of any class of shares is entitled to appoint another person
(whether a member or not) to act as his proxy to attend and vote instead of him
and such proxy shall have the same rights as the member to speak at the meeting.

The instrument appointing a proxy (and the requisite authorities (if any)) may:
(a) be deposited at our registered office or as specified in the notice
convening the meeting or in any instrument or proxy sent out by us in relation
to the meeting, not less than 48 hours before the time of the holding of the
meeting or adjourned meeting; or (b) in the case of a poll taken more than 48
hours after it is demanded, be so deposited after the poll has been demanded and
not less than 24 hours before the time appointed for the taking of the poll; or
(c) where the poll is not taken forthwith but is taken not more than 48 hours
after it was demanded, be delivered at the meeting at which the poll was
demanded, and in default the instrument of proxy may be treated as invalid. No
instrument appointing a proxy shall be valid after the expiration of 12 months
from the date of its execution.

     Quorum

The quorum for a general meeting shall be two persons present in person or by
proxy and entitled to attend and vote at the meeting.

Variation of Rights

The Companies Code provides that if at any time our shares are divided into
different classes, the rights for the time being attached to any class of shares
shall not be varied except to the extent and in the manner provided in our
Regulations. Other than the rights attaching to the golden share, which can only
be varied with the written consent of the holder of the golden share, our
Regulations provide that the rights attaching to any class of shares may be
varied either with the consent in writing of the holders of not less than
three-quarters of the issued shares of the class or with the sanction of a
special resolution passed at a meeting of the holders of the shares of the
class. All the provisions of our Regulations as to general meetings shall apply
in like manner to such meeting, but the quorum at any such meeting shall be no
less than two members present in person or by proxy, holding at least one-third
of the total voting rights of the class in question.

Alteration to Constitutional Documents

Apart from a restriction on any amendment to, or removal of, the regulation
dealing with the rights attached to the golden share, which provision can only
be varied with the consent of the holder of the golden share, our members can,
with the prior approval of the Ghana Stock Exchange, or GSE, alter our
Regulations or adopt new regulations by special resolution subject, in the case
of certain provisions, to compliance with additional requirements.

Changes in Capital

All shares in Ghanaian companies are of no par value. All our ordinary shares of
no par value rank pari passu in all respects with each other and with all our
other shares now in issue apart from the golden share. Subject to the provisions
of the Companies Code, we, in general meeting, may from time to time by special
resolution altering our Regulations: (i) increase the number of our shares by
creating new shares, and (ii) reduce the


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number of our shares by canceling shares which have not been taken or agreed to
be taken by any person, or by consolidating our existing shares, whether issued
or not, into a smaller number of shares.

We may also, subject to the provisions of the Companies Code:

o    create preference shares which are, or at our option are liable, to be
     redeemed;

o    purchase our own shares;

o    acquire our own shares by a voluntary transfer to ourselves;

o    forfeit any shares issued for an unpaid liability for non-payment of calls
     or other sums payable in respect thereof,

and, by special resolution but subject to confirmation by a Ghanaian Court:

o    reduce our stated capital (which is the amount received in respect of every
     issue of shares together with any amounts transferred to stated capital
     from surplus);

o    extinguish or reduce the unpaid liability on any of our shares;

o    resolve to pay or return to our shareholders any of our assets which are in
     excess of our wants; or

o    alter our Regulations by canceling any of our shares.

An order of the Court confirming any reduction of stated capital may be made on
such terms and conditions as the Court thinks fit having regard to certain
provisions in the Companies Code designed to safeguard the interests of
creditors.

Issues of Shares

We may, by special resolution altering our Regulations, provide for different
classes of shares by attaching to certain of the shares preferred, deferred or
other special rights or restrictions, whether in regard to dividends, voting,
repayment or otherwise provided that, save in respect of the golden share, every
member shall have the right to attend any general meeting, and to speak and
vote, and be entitled to vote on any resolution before the meeting, and each
share shall carry the right on a poll to one vote, and to one vote only, save
that the voting rights of holders of preference shares shall be limited in the
manner authorized by the Companies Code.

Under the Companies Code, existing shareholders have a preferential right to
subscribe for further issues of shares, other than treasury shares, unless
otherwise approved in general meeting. The authority only extends to the issue
of additional shares, rather than any other class of shares.

The Companies Code also provides that no new or unissued shares or treasury
shares shall be issued to any director or past director or to any company
associated to him, or to his nominee, or to any body corporate controlled by
him, unless the shares have first been offered to all our existing shareholders,
or to all the holders of the shares of the class or classes being issued, in
proportion to their existing holdings, or to members of the public. However, in
the case of a public company whose shares are or are to be listed on the GSE,
this provision can be disapplied with the approval of an ordinary resolution.
Notwithstanding such disapplication our Regulations provide that a director may
participate in an issue of shares to employees only if he holds office in an
executive capacity and shareholders at a general meeting have approved of the
specific allotment to be made to such director. The board of directors in
issuing any such shares to directors would also need to ensure compliance with
the provisions of the UK Listing Rules.

Our Regulations additionally provide that we shall not issue shares to transfer
a controlling interest (which for this purpose is treated as being an interest
which entitles a person to exercise, or control the exercise of, more than 50%
of the voting power at any general meeting) without the prior approval of
shareholders in general meeting.

Power to Dispose of our Assets

Our business is to be managed by the board of directors, which generally
includes the power to dispose of our assets. The Companies Code and our
Regulations restrict this power so that the board of directors shall not,
without the approval of an ordinary resolution, sell, lease or otherwise dispose
of the whole, or substantially


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the whole, of our undertaking or of our assets. In addition, certain disposals
are to be treated as a variation of the rights attaching to the golden share and
shall, accordingly, be effective only with the written consent of the holder of
the golden share.

Dividends and Other Distributions

     Dividends

Subject to the provisions of the Companies Code, we may, by ordinary resolution,
declare dividends to be paid to shareholders. However, no dividend shall exceed
the amount recommended by the board of directors. Subject as aforesaid, the
board of directors may pay such interim dividends as appear to the board of
directors to be justified by our profits.

All dividends shall be declared and paid as a fixed sum per share and not as a
proportion of the amount paid in respect of a share. All dividends unclaimed for
a period of 12 years after having become due for payment shall (if the board of
directors so resolves) be forfeited and shall cease to remain owing by us.

The board of directors may at its discretion make provision to enable any member
or members to receive dividends duly declared in such currency or currencies and
at such rate or rates of exchange and on such terms and conditions as the board
of directors may in its absolute discretion determine.

Any of our resolutions lawfully declaring a dividend may, upon the
recommendation of the board of directors, direct payment wholly or partly by
distribution of securities for money, or of fully paid, but not partly paid,
shares or debentures of any other body corporate, or of fully paid debentures of
us of a nominal amount equal to the amount so directed to be paid.

Except in a winding up, by virtue of the Companies Code, we are not permitted to
pay a dividend to our shareholders or, except as referred to in "Changes in
Capital" above, make any return or distribution of any of our assets to our
shareholders unless:

o    we are able, after such payment, return or distribution, to pay our debts
     as they fall due; and

o    the amount or value of such payment, return or distribution does not exceed
     our income surplus immediately prior to the making of such payment, return
     or distribution.

Our income surplus is the amount by which our assets (other than unpaid calls
and other sums payable in respect of our shares and not including treasury
shares) less our liabilities (both as shown in our audited accounts) exceed our
stated capital, less the amounts attributable to:

o    any unrealized appreciation in the value of any of our assets, other than
     such an appreciation in the value of any asset as would, under normal
     accounting principles, be credited to profit and loss account, unless the
     amount of such appreciation shall have been transferred to stated capital;
     and

o    any balance standing to the credit of the share deals account immediately
     before the ascertainment of the income surplus.

     Distribution of assets on a winding-up

If we are wound up, the liquidator may, with the sanction of a special
resolution and any other sanction required by law, divide amongst our members in
specie or kind, the whole or any part of our assets and may, for that purpose,
set such value as he deems fair upon any such property and determine how the
division shall be carried out, and may vest the whole or any part of such assets
in trustees on such trusts for the benefit of our members as he shall determine,
but no member shall be compelled to accept any securities on which there is any
liability.

Transfer of Shares

Any member may transfer all or any of his shares by instrument of transfer in
writing in common form or in any form approved by the GSE. The instrument of
transfer must be executed by or on behalf of the transferor and (in the case of
a transfer of a share which is not fully paid up) by or on behalf of the
transferee. The transferor shall, as far as we are concerned, be deemed to
remain the holder until the transferee's name is entered in our register of
members.


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The board of directors may, without giving any reason, refuse to register the
transfer of any share:

o    on which there is an unpaid liability to a person of whom it shall not
     approve; or

o    to a person who is an infant or anyone found by a competent court in Ghana
     to be a lunatic or a person of unsound mind.

The board of directors may also decline to register a transfer unless:

o    the instrument of transfer is properly completed;

o    it is duly stamped (if so required); and

o    it is delivered for registration to us accompanied by the certificate for
     the shares to which it relates and such other evidence as the board of
     directors may reasonably require to show the right of the transferor to
     make the transfer.

Directors

     Number of directors

The minimum number of directors shall be three and there shall be no maximum
number. At least one director shall at all times be present in Ghana.

     Appointment, removal and retirement of directors

Directors may be appointed by us by ordinary resolution or by the board of
directors.

At each annual general meeting, as near as possible to one-third of the
directors will retire by rotation and be eligible for re-election. The directors
to retire will be those who have been longest in office since their last
election, but as between those who have been in office an equal length of time,
those to retire shall (unless they otherwise agree) be determined by lot. If
appointed by the board of directors, a director holds office only until the next
annual general meeting and is not taken into account in determining the
directors who are to retire by rotation. A director need not be one of our
members.

Any director appointed to the office of managing director shall not, while
holding that office, be subject to retirement by rotation or be taken into
account in determining the rotation of retirement of directors.

A director may be removed by ordinary resolution before the expiration of his
period of office (but without prejudice to any claim which such director might
have for damages or compensation or breach of any service agreement between him
and us).

We may appoint substitute directors and such a substitute director shall act as
a deputy for another named director and as his substitute in his absence. A
substitute director shall be appointed and may be removed in the same way as
directors are required to be appointed and removed, and shall not cease to be a
director by reason of the fact that the director for whom he is a substitute
ceases to be a director.

A director may, in respect of any period not exceeding six months in which he is
absent from Ghana, or in respect of any period during which he is unable for any
reason to act as a director, appoint another director or any other person
approved by a resolution of the board of directors, as an alternate director.
Such person shall be deemed to be a director and officer and not the agent of
the appointor save in the limited circumstances provided in the Companies Code.
An alternate director shall not be entitled to be remunerated otherwise than out
of the remuneration of the director appointing him.

     Age of directors

No director shall be required to vacate his office as a director by reason of
his attaining or having attained the age of 70 or any other age.

     Disclosure of interests in contracts

Subject to the provisions of the Companies Code and our Regulations, a director
may hold any other office or place of profit for us (except that of auditor or
auditor of one of our subsidiaries) in conjunction with his


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office of director, for such period and on such terms as to
remuneration and otherwise as the board of directors may arrange.

A director who is in any way (whether directly or indirectly) materially
interested in any contract or proposed contract with us shall declare the nature
of his interest at the meeting of the board of directors at which the question
of entering into the contract is first considered if he knows his interest then
exists or, in any other case, at the first meeting of the board of directors
after he knows that he is or has become so interested. A general notice given to
the board of directors by a director that he is to be regarded as having an
interest in any contract in which a specified person is interested shall be
deemed to be a sufficient disclosure in relation to such contract or proposed
contract.

A director shall not vote and shall not be counted in the quorum in relation to
any resolution of the board of directors concerning any contract or proposed
contract in which he is materially interested unless the resolution concerns
any of the following matters:

o    the giving to any director of any security or indemnity in respect of money
     lent or obligations incurred by him for the benefit of us;

o    the giving to a third party of any security in respect of a debt or
     obligation of us for which the director himself has assumed responsibility,
     in whole or in part, under a guarantee or indemnity or by the giving of
     security; or

o    any contract by a director to subscribe for our shares or debentures under
     an offer in which the director is or may be entitled to participate as a
     holder of our securities or underwrite our shares or debentures.

Subject to compliance with such provisions, no director shall be liable to
account to us for any profit or other benefit realized by any such contract and
no such contract shall be avoided, on the grounds of any such interest or
benefit. In addition no director shall, without our consent, place himself in a
position in which his duty to us conflicts or may conflict with his personal
interests or his duties to other persons and, in particular, without such
consent and notwithstanding the above, a director shall not:

o    use for his own advantage any of our money or property or any confidential
     information or special knowledge obtained by him in his capacity as
     director; or

o    be interested directly or indirectly, otherwise than merely as a
     shareholder or debentureholder in a public company, in any business which
     competes with us.

     Remuneration of directors

The fees payable to the directors shall be determined from time to time by an
ordinary resolution. The fees payable to directors may not be increased except
pursuant to an ordinary resolution passed at a general meeting, where notice of
the proposed increase has been given in the notice convening the meeting.

The directors are also entitled to be repaid all travelling and other expenses
properly incurred by them in the performance of their duties.

Fees payable to non-executive directors shall be by a fixed sum and not by a
commission or percentage of profit or turnover. Salaries payable to executive
directors may not include a commission or percentage of turnover.

Any director appointed to hold employment or executive office may, subject to
the provisions of the Companies Code, be remunerated by way of salary,
commission (other than a commission or percentage of turnover), share of
profits, participation in pension and retirement schemes, or partly in one way
and partly in another, as the board of directors may determine. However, such
director shall not be entitled to any remuneration additional to the fees to
which he is entitled as a director unless and until the terms of his appointment
to such office have been approved by ordinary resolution of our shareholders.

     Loans to directors

The Companies Code prohibits us from making a loan to any person who is a
director or a director of any associated company, or entering into any guarantee
or providing any security in connection with a loan made to such a person by any
other person.


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Borrowing Powers

The board of directors may exercise all our powers to borrow money and to
mortgage or charge our property and undertaking or any part thereof and to issue
debentures. These powers can be varied by amending our Regulations.

Accounts and Audit

The board of directors is required to cause proper books of account to be kept
with respect to our financial position and changes therein and with respect to
the control of, and accounting for, all property acquired whether for resale or
for use in our business. Books of account should give a true and fair view of
the state of our affairs and enable proper profit and loss accounts and balance
sheets to be prepared in accordance with the requirements of the Companies Code.

The board of directors shall, at least once in every calendar year and at
intervals of not more than fifteen months, cause to be prepared and sent to
every member and debenture holder a copy of our profit and loss account and
balance sheet, together with a copy of the directors' report and the auditors'
report.

Auditors must be appointed by shareholders and their duties are regulated by the
Companies Code.

Inspection of Register of Members

There are no provisions in our Regulations relating to the inspection of the
register of members. However, under the Companies Code, we are obliged, save
where our register of members is permitted to be closed under the provisions of
the Companies Code, to keep our register of members (including any branch
register) open for inspection, during business hours, subject to such reasonable
restrictions as we may impose, but so that not less than two hours in each
business day shall be allowed for inspection. We are also required to make
available a copy of the register, or part thereof, on payment of the prescribed
fee.

Untraced Shareholders

Subject to our Regulations, we may sell any shares registered in the name of a
member remaining untraced for 12 years who fails to communicate with us
following advertisement of an intention to make such a disposal. Until we can
account to the member, the net proceeds of sale will be available for use in our
business or for investment, in either case at the discretion of the board of
directors. The net proceeds will not carry interest.

Power to Purchase our Own Shares

We, being so authorized by our Regulations, are permitted under Ghanaian law to
purchase our own shares, subject to compliance with the rules of the GSE and the
UK Listing Authority. However, the Companies Code provides that, when purchasing
our own shares, we shall comply with the following conditions:

o    shares shall only be purchased out of a credit balance on our share deals
     account or out of transfers to that account; before we first purchase any
     of our shares we must transfer an amount at least equal to the costs of
     such purchase to such account from income surplus and shall debit to such
     account all costs expended on the purchase of any of our shares and shall
     credit to such account the value received on the reissue of any of our
     treasury shares;

o    redeemable preference shares shall not be purchased at a price greater than
     the lowest price at which they can be redeemed; and

o    other than in respect of redeemable preference shares we shall restrict our
     purchases of our own shares so that the total number of our shares or any
     class of shares held by persons other than us is not less than 85% of the
     total number of shares, or shares of that class, which have been issued.

Shares which are purchased by us shall be available for reissue by us unless we
by alteration of our Regulations cancel such shares. Until reissued or canceled
such shares are referred to as treasury shares.

No voting rights shall be exercised in respect of, and no dividends shall be
payable on, any treasury shares and, for most purposes, treasury shares are not
treated as issued shares for the purposes of the Companies Code.


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Before we can purchase any of our own shares, we will, in accordance with the
requirements of the UK Listing Authority, need to obtain shareholders' authority
for such purchase.

Protection of Minorities

Under Ghanaian company law a minority shareholder of a company can only in
limited circumstances bring an action, either in his own name or in ours, to
redress a wrong done to us or to himself as a shareholder. However, a Ghanaian
court may permit a minority shareholder to bring such an action if the act
complained of is illegal or beyond our corporate power or which infringes our
Regulations or constitutes a fraud on the minority shareholders.

In addition, any member or debentureholder of a company may petition the court
on the ground that our affairs are being conducted, or the powers of the
directors are being exercised, in a manner oppressive to one or more of the
members or debentureholders or in disregard to their interests, or that an act
of ours has been done or is threatened or that some resolution of the members,
debentureholders or any class of them has been passed or is proposed which
unfairly discriminates against, or is otherwise unfairly prejudicial to, one or
more of the members or debentureholders. The Ghanaian court may make such order
as it thinks fit upon such an application including an order:

o    directing or prohibiting any act or canceling or varying any transaction or
     resolution;

o    regulating our affairs in the future; or

o    providing for the purchase of shares of any members by other members or by
     ourselves with a consequential reduction in our stated capital.

A member may also bring an action against any director in respect of a breach by
such director of his fiduciary duties.

Golden Share

The Government of Ghana has been issued with a golden share entitling it to the
following rights which no other shareholder possesses:

o    The holder is entitled to receive notice of and to attend and speak at any
     general meeting of the members or at any separate meeting of the holders of
     any class of shares, but the golden share does not carry the right to vote
     the golden share.

o    The golden share may only be issued to, held by or transferred to a
     Minister of the Government of Ghana or any person acting on behalf of the
     Government and authorized in writing by such Minister.

o    On a return of assets in a winding-up or liquidation of us, the holder of
     the golden share is entitled to the sum of one thousand cedis in priority
     to any payment to other members, but the golden share confers no further
     right to participate in our profits or assets. The golden share has no
     right to dividend and no right to participate in any offer of securities to
     existing shareholders or in any capitalization issue.

o    The holder of the golden share may require us to redeem it at any time in
     consideration of the payment of one thousand cedis. The golden share is not
     redeemable at our option.

o    Each of the following matters are accordingly only effective upon the
     written consent of the holder of the golden share:

     (i)  any amendment to or removal of the rights of the golden share;

     (ii) a voluntary winding-up or voluntary liquidation of us;

     (iii) the redemption of or purchase by us of the golden share;

     (iv) the disposal of any mining lease held by us or any subsidiary; and

     (v)  any disposal (other than a disposal in the ordinary course of the
          business) which, alone or when aggregated with any other disposal or
          disposals forming part of, or connected with, the same or a


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          connected transaction, constitutes a disposal of the whole or a
          material part of our assets taken as a whole.

Securities Industry Law

The Securities Industry Law of Ghana was introduced in 1993 and was amended by
the Securities Industry (Amendment) Act 2000. It regulates the stock market and
trading in securities.

This law introduced certain offences relating to trading in securities. Offences
have been created for, amongst others, false trading and market rigging
transactions, stock market manipulation, the making of false or misleading
statements, fraudulently inducing persons to deal in securities, short selling
and insider dealing. Specific exemptions have been created for the acts of short
selling on or through a stock market outside Ghana and the stabilization of the
price of securities on a stock market outside Ghana in compliance with any
relevant regulations applying thereto. However, since our shares are shares in a
Ghanaian company the provisions of the law generally apply to such transactions
or actions wherever effected. Contravention of these provisions of the
Securities Industry Law is a criminal offence; liability on conviction can
result in imprisonment for a term not exceeding three years and/or a fine not
exceeding 5.0 million cedis (approximately US$620).

In addition, since the new ordinary shares are or are to be listed on the
Official List of the LSE, the insider dealing provisions and the criminal
sanctions of the UK Criminal Justice Act 1993 also apply as do the provisions of
the UK Financial Services and Markets Act 2000 prohibiting behavior amounting to
"market abuse."

C. Material contracts

Save for the contracts described below, we have not entered into any contracts
(not being contracts entered into in the ordinary course of business) within the
two years immediately preceding the date of this annual report which are or may
be material or have a significant effect on the financial position of our group.
Nor have any such contracts been entered into at an earlier time that contain
provisions under which any member of our group has any obligation or entitlement
that is material to our group at the date of this document.

Geita Gold Mine Financing Arrangements

On December 12, 2000, Geita Gold Mining Limited (formerly Ashanti Goldfields
Tanzania Limited), or Geita Gold, entered into a US$135.0 million project
financing facility, or the Geita facility, with a syndicate of international
banks arranged by NM Rothschild & Sons, Barclays Capital and Dresdner Kleinwort
Wasserstein. We own (through a number of intermediate companies) 50% of Geita
Gold. The remaining 50% is owned (also through intermediate companies) by
AngloGold Limited, or AngloGold.

The Geita facility was drawn down in a single advance on December 15, 2000. It
is to be repaid in 12 semi-annual installments each of US$10.8 million and a
further final installment of US$6 million. The first installment was paidon
December 31, 2001 in accordance with the Geita facility agreement.

The interest rate applicable to the Geita facility increases over the life of
the loan. The interest rate is as follows:

o    until December 31, 2001 - LIBOR plus 1.20%;

o    January 1, 2002, until September 30, 2002 - LIBOR plus 1.45%;

o    October 1, 2002, until December 12, 2003 - LIBOR plus 1.70%;

o    December 13, 2003 until December 12, 2005 - LIBOR plus 1.95%; or

o    December 13, 2005 until October 30, 2007 - LIBOR plus 2.20%.

The Geita facility was provided to Geita Gold to repay and refinance a US$100
million bridge loan facility previously borrowed by Geita Gold on February 21,
2000 from a syndicate of lenders arranged by Barclays Capital, to repay certain
inter-company loans provided to Geita Gold, to pay fees and expenses in
connection with the Geita facility and to finance the remaining construction and
development costs of the Geita mine.


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Until September 30, 2002, the Geita facility was guaranteed jointly and
severally by AngloGold and Samax Resources Limited, or SRL. This guarantee was
referred to as the Completion Guarantee. Geita Gold satisfactorily reached
technical completion of the construction of the Geita mine as of September 30,
2002. Satisfaction of the physical, financial and operational tests has resulted
in the Completion Guarantee being discharged in full and correspondingly the
obligations of AngloGold Limited and SRL as completion guarantors being
discharged in full.

Following completion, the Geita facility is now guaranteed by Cluff Mineral
Exploration Limited, or Cluff Mineral, Cluff Resources Limited, Cluff Oil
Limited, or Cluff Oil, SRL and Geita Management Company Limited, or Geita
Management, on a joint and several basis. AngloGold and ourselves each own
(through subsidiaries) 50% of the shares of these companies. Except in the case
of Geita Management, these companies own no significant assets other than an
indirect interest in the Geita mine. Geita Management's only significant assets
are hedging contracts entered into in respect of the Geita mine.

AngloGold and ourselves together act as sponsors to the project.

Geita Gold is obliged to make a mandatory prepayment of the Geita facility
whenever it pays a dividend or distribution to its shareholders, including
repayment of shareholder loans. Each prepayment will be of an amount equal to
half of the total distribution paid at that time. There is a cap on mandatory
prepayments so that the maximum amount that Geita Gold can ever be required to
prepay is an amount sufficient to reduce the final repayment date for the Geita
facility by 24 months. In addition, Geita Gold will be required to make a
mandatory prepayment if it holds more than US$25 million in its proceeds account
on any principal repayment date. In such circumstance, the prepayment will be
equal to one third of the excess over the US$25 million threshold.

Geita Gold is required to fulfil financial covenants in respect of loan life,
project life, reserve tail and debt service cover ratios. Failure to maintain
these ratios at above specified levels can result in an event of default.

Geita Gold is obliged to maintain a debt service reserve account with a minimum
balance equal to the next scheduled repayment of principal together with all
interest, fees and political risk insurance premia falling due and payable in
the next six months from that repayment date. This account is funded solely by
revenues produced from the Geita mine or, if Geita Gold chooses, from an
irrevocable letter of credit.

Political Risk Insurance, or PRI, has been provided by New Hampshire Insurance
(a subsidiary of AIG) and Steadfast Insurance Company (a subsidiary of Zurich
International) in favor of the lenders and hedging counterparties covering,
amongst other things, the risk of confiscation, expropriation, nationalization,
currency inconvertibility, political violence, war, terrorism, civil commotion,
insurrection, rebellion, sabotage, selective discrimination, forced abandonment
and other political risks. The lenders are the beneficiaries of the PRI and the
PRI premium is paid by Geita Gold.

Geita Gold is required to ensure that at least 50% of the Geita mine's
anticipated production during the life of the Geita facility is hedged.

In order to carry out this hedging, a special purpose vehicle, Geita Management,
has been established in the Isle of Man. Geita Management carries out all
necessary hedges with appropriate hedging counterparties (a syndicate bank or an
affiliate or subsidiary of a syndicate bank) to ensure that the financial ratios
are met on an ongoing basis. The hedges are carried out on a margin-free basis.
However, if at any time the aggregate marked-to-market value of the hedges
exceeds US$132.5 million (negative), then Geita Gold is prohibited from making
any further distributions until the negative marked-to-market value reduces to
an amount less than US$132.5 million. The threshold of US$132.5 million will
increase during the life of the Geita facility as principal repayments are made
and additional coverage becomes available under the PRI.

All of the hedged contracts and proceeds from those contracts have been assigned
to the lenders under a hedging assignment. This hedging assignment agreement
forms part of the security package given by Geita Gold to the lenders.

The security package consists of a fixed and floating charge over all the assets
of SRL, Cluff, Cluff Mineral, Cluff Oil and Geita Management as guarantors under
the Geita facility, a mortgage over the shares of Geita Management's holding
company and a mortgage of any cash held by Geita Gold.


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Geita Joint Venture Agreement

Under the terms of the joint venture agreement dated December 15, 2000 relating
to the Geita mine, or the Geita Joint Venture Agreement, we and AngloGold Geita
Holdings Limited, or AngloGold Geita, have exactly the same rights and interests
in Cluff Resources Plc, or Cluff, and its subsidiary undertakings, or the Cluff
Group, and in the management of the development, financing, construction,
operation, maintenance and associated exploration of the Geita mine, or the
Geita Project. Accordingly, the benefits of the Geita Project are enjoyed, and
the obligations borne, equally by the parties. The agreement therefore provides
for the unanimous agreement of both parties (acting through their nominated
representatives) to any material action, including the agreement of annual
budgets and amendments to the business plan, taken by any member of the Cluff
Group or in relation to the Geita Project.

In relation to the Geita Project, a management committee has been established,
to which both parties have the right to appoint (and remove) four
representatives. The management committee may only take action with the
favorable vote of at least one representative of each of ourselves and AngloGold
Geita. The committee has a chairman, who is not entitled to a casting vote. The
chairmanship rotates on an annual basis. The current chairman is our
representative. A similar position applies in relation to the directorships of
the members of the Cluff Group.

It is intended that any funding required to sustain the Geita Project will be
met by the cash flow from the project. In the event that the Geita Project (or
any Cluff Group member) requires additional funding beyond the amount of the
Geita facility, neither ourselves nor AngloGold Geita shall be obliged to
provide such funding unless it, in its sole discretion, elects to do so. We did
not have sole responsibility for any aspect of the joint venture going forward
except for bearing costs of up to US$2.0 million for the construction of a haul
road. This item formed part of the capital expenditure budget for the Geita
Project but actual construction had been deferred until 2001 and has now been
completed. AngloGold is a party to the agreement as guarantor of AngloGold
Geita's obligations.

In the event that either party wishes to dispose of its interest in the Geita
Project other than intra-Group, this may only be effected through a sale of its
shares (and the related shareholder loans) in Cluff. In this event the other
party shall have rights of pre-emption in relation to such a sale. Neither party
may dispose of part only of its interest. A change of control of either
shareholder shall not be considered to be a deemed disposal which would trigger
these pre-emption rights. Neither party may charge its interest to any third
party without the consent of the other party.

The Geita mine is operated by its existing staff who were initially provided by
us but its staff is supplemented by AngloGold employees when vacancies arise.
The day to day operation of the mine is in the hands of the current mine chief
operating officer appointed by AngloGold. All key decisions in relation to the
Geita mine's development, operation and financing must be agreed unanimously by
AngloGold Geita and ourselves. In the event that the management committee cannot
agree whether to take any action, the matter will be referred to the chief
executives of the respective groups who will endeavor to agree the issue,
failing which it may not be implemented.

February 2000 Amended Warrant Deed Poll

Our wholly-owned subsidiary, Ashanti Warrants Limited, or Ashanti Warrants,
issued unregistered warrants, or Warrants, to subscribe for our ordinary shares
to our hedge counterparties in November 1999. The rights attaching to the
Warrants are set out in a deed poll dated November 2, 1999, as amended on
February 21, 2000.

Warrants to purchase a total of 19,835,001 of our ordinary shares were issued in
three equal tranches (being, respectively, the "A", "B" and "C" tranches) with
expiry dates for each tranche as follows:

o    "A" Warrants -April 28, 2004;

o    "B" Warrants -October 28, 2004; and

o    "C" Warrants -April 28, 2005.

As at May 30, 2003, 17,338,175 warrants have been exercised. Only 2,496,826
warrants now remain.


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Each Warrant carries the right to subscribe in cash at any time up to the expiry
period in respect of each tranche set out above at the subscription price of
US$3 for one zero-coupon mandatorily exchangeable note, or MES, in Ashanti
Warrants. Each MES has a principal amount of US$3. Any MES subscribed for
automatically and mandatorily exchanges into one of our ordinary shares.
Warrants may be exercised, in whole or in part, at any time during the
subscription period in accordance with the procedure set out in the deed poll.

The subscription price can be adjusted upon the occurrence of circumstances
including (but not limited to) the following:

o    consolidation of our share capital;

o    capitalization of our profits; or

o    scrip issues.

The Warrants are transferable, in whole or in part, subject to applicable
securities law.

In the event that we are wound-up (except a winding-up sanctioned by
warrantholders), the outstanding warrantholders will be treated as if their
unexercised rights had been exercised in full immediately prior to the
winding-up. The unexercised subscription rights and exchange rights shall be
deemed to have been exercised in full and we shall be deemed to have received in
full the relevant subscription moneys. Accordingly, the outstanding
warrantholders will be entitled to receive such amounts out of the assets
available for distribution on a liquidation pari passu with ordinary
shareholders (after deducting a sum per ordinary share equal to the subscription
price).

Warrantholders also have certain rights in the event of an offer for our share
capital which would result in a "change of control." The warrantholders would be
entitled to receive consideration from the offeror on the basis that they had
exercised their Warrants and had become holders of our ordinary shares unless,
in the case of a share-for-share offer, the offeror offers the warrantholders
offeror warrants or offeror shares on terms which our financial advisers
consider fair and reasonable.

The warrantholders may alter the rights attached to the Warrants with the
approval of warrantholders present (in person or by proxy) at a meeting of the
warrantholders representing two-thirds of the Warrants in respect of which a
vote has been cast.

MENs Deed Poll

Under the MENs deed poll dated June 27, 2002, or the MENs Deed Poll, Ashanti
Capital (Second) Limited, or ACSL, resolved to create and issue US$75.0 million
of mandatorily exchangeable notes, or MENs, exchangeable for our ordinary
shares. The MENs are unsecured and unconditional obligations of ACSL.

We have undertaken to issue ordinary shares on the exchange of the MENs and to
keep available at all times sufficient ordinary shares for such purpose. We have
also agreed to procure that ACSL meets its obligations pursuant to the MENs Deed
Poll.

The MENs are exchangeable into ordinary shares on either of the following
events:

o    the completion of our first rights issue undertaken following the date of
     the MENs Deed Poll; or

o    us serving a notice of exchange upon the holders of the MENs at any time
     after the date falling 18 months after the issue of the MENs.

The MENs are exchangeable into ordinary shares at an exchange price of the lower
of US$5.40 and the price at which we issue ordinary shares pursuant to our
proposed rights issue that is the subject of our registration statement on Form
F-1 (No. 333-101682).

The MENs (if not already exchanged) will be redeemable for cash on the earlier
of:

o    a takeover offer for us, or a scheme of arrangement of us, becoming
     effective; or

o    the date of maturity, being June 30, 2008,

but may not be redeemed for cash before such dates unless our revolving credit
facility has been repaid in full.


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In the event that the MENs are redeemed, interest on the MENs is payable from
the date of issue of the MENs at approximately the same rate as is payable under
our revolving credit facility. In the event that we pay a dividend at any time
prior to exchange of the MENs into ordinary shares, interest will be payable at
the time the exchange occurs, equal to the amount which the holders of MENs
would have received had their MENs been exchanged at an exchange price of
US$5.40 at the dividend record date. Otherwise the MENs are non-interest
bearing.

The MENs are conditionally transferable, but no application is intended to be
made for the MENs to be listed on any stock exchange. The MENs have not been
registered under the Securities Act of 1933, as amended, or the securities laws
of any state of the United States and may not be offered, sold, delivered,
assigned, exchanged or otherwise disposed of, directly or indirectly, in the
United States or to or for the account or benefit of US persons.

Lonmin MENs Subscription Agreement

The Lonmin MENs Subscription Agreement was entered into on June 28, 2002 between
ourselves, ACSL and Lonmin. Under this agreement, ACSL issued US$46.6 million of
MENs to Lonmin.

We have agreed with Lonmin to use our best efforts to complete the rights issue
within 18 months from the issue date of the MENs. Lonmin has agreed not to take
up its rights under the rights issue unless and only to the extent that the
ordinary shares offered to it in connection with our proposed rights issue that
is the subject of our registration statement on Form F-1 (No. 333-/0/682)
exceeds the number of ordinary shares that would be issued upon exchange of
US$46.6 million of MENs.

We have further agreed that, in the event that our proposed rights issue is not
completed within 18 months of the issue date of the MENs, we will take certain
steps to convene a shareholders' meeting to consider resolutions to approve the
exchange of any MENs (whether or not held by Lonmin) in accordance with the
voluntary exchange provisions of the MENs Deed Poll.

We have also undertaken to Lonmin that we will not, without Lonmin's prior
written consent (not to be unreasonably withheld or delayed) for so long as any
of the MENs are outstanding:

o    issue any ordinary shares by way of capitalization of profits or reserves
     or bonus issue or sub-divide or consolidate or reclassify any ordinary
     shares;

o    issue any new class of share in our capital; or

o    redeem or purchase any ordinary shares or reduce our share capital, capital
     redemption reserve or share premium account.

We have also undertaken that we will not, for so long as the MENs are
outstanding, without the prior approval of a special resolution of our
shareholders, issue more than 11,000,000 ordinary shares other than pro rata to
our shareholders.

Lonmin has also given us undertakings that it shall not lend, sell, transfer or
otherwise dispose of or deal with or charge, encumber or grant options or other
rights over its MENs or the existing 36,000,000 ordinary shares it holds in us
except with the prior consent of ourselves and ACSL (provided that Lonmin may
sell a proportion of our ordinary shares if it also sells the same proportion of
its MENs to the same buyer or if it receives confirmation from the UK Listing
Authority that, as a result of such sale, shareholder approval for exchange of
its MENs is not required). Lonmin is also entitled to sell its existing
shareholding pursuant to a recommended offer for our entire issued share
capital.

Lonmin also agreed that it will not exercise its voting rights in respect of
shares held by Lonmin and its concert parties in excess of 50% of our entire
issued share capital, except following a change of control of ourselves which
has been approved by the Minister of Mines under the Minerals and Mining Law
1986 of Ghana (as amended) or is in compliance with the provisions of the
Takeover Code of Ghana. Lonmin has also agreed to vote in favor of any
resolutions necessary to implement the rights issue, including resolutions to
increase our authorized share capital and the directors' authorization to allot
ordinary shares.

We have entered into a separate letter of undertaking with Lonmin pursuant to
which we have agreed that, for so long as any of the put options entered into by
Lonmin and certain of our warrantholders remain to be


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exercised, if we seek to effect the rights issue at less than US$5.40 per
ordinary share, we shall not, without Lonmin's approval (acting reasonably)
launch such rights issue at a subscription price of more than a 5percent
discount to the then current market value of an ordinary share.

Government of Ghana MENs Subscription Agreement

The Government of Ghana MENs Subscription Agreement was entered into on June 28,
2002 between ourselves, ACSL, Lonmin and the Government of Ghana. Under this
agreement, ACSL offered the Government of Ghana the right to subscribe for
US$28.4 million of MENs. The Government transferred this subscription right to
Lonmin in consideration for Lonmin entering into a call option (described
below). Pursuant to the Government of Ghana MENs Subscription Agreement, ACSL
issued the US$28.4 million of MENs to Lonmin.

The call option provides that the Government has a transferable call option over
our ordinary shares arising on conversion of US$28.4 million of the MENs, which
is exercisable at any time until five business days prior to the close of the
subscription period for our proposed rights issue (or 18 months from the date of
the call option, if earlier). The purchase price under the call option is the
price at which our ordinary shares are offered for subscription pursuant to our
proposed rights issue. The sale of the shares pursuant to the exercise of the
call option cannot occur until the closing date of the subscription period for
the proposed rights issue.

We have agreed with the Government to use our best efforts to complete the
proposed rights issue within 18 months from the issue date of the MENs. If a
rights issue is not completed within this period, the Government has irrevocably
undertaken to Lonmin to vote in favor of any resolution we propose seeking
independent shareholder approval to enable the exercise of our option under the
deed poll to exchange all of the MENs. The Government has undertaken not to take
up its rights under the proposed rights issue unless and only to the extent that
the ordinary shares offered to it in connection with the rights issue exceeds
the number of ordinary shares that would be issued upon exchange of US$28.4
million of MENs.

We have further agreed with the Government that we will not, for so long as any
of the MENS are outstanding, without the Government's prior written consent (not
to be unreasonably withheld or delayed):

o    issue any ordinary shares by way of capitalization of profits or reserves
     or bonus issue or sub-divide or consolidate or reclassify any ordinary
     shares;

o    issue any new class of share in our capital; or

o    redeem or purchase any ordinary share or reduce our share capital, capital
     redemption reserve or share premium account.

Lonmin has agreed that it will not transfer, charge or encumber its interest in
US$28.4 million of the MENs other than in accordance with the terms of the call
option or otherwise with our or with ACSL's prior consent.

The Government has also given undertakings to us and to ACSL that it shall not
lend, sell, transfer or otherwise dispose of or deal with, charge, encumber or
grant options or other rights over its existing holding of 21,978,104 ordinary
shares prior to the record date for the proposed rights issue, except with the
consent of ourselves and ACSL or by way of acceptance of an offer for our entire
issued share capital.

The Government has further agreed to vote in favor of any resolutions required
to implement the rights issue, including resolutions to increase our authorized
share capital and our directors' authorization to allot ordinary shares.

US$200 million Revolving Credit Facility

We entered into a US$200.0 million revolving credit facility dated June 28,
2002, or the RCF, with:

o    ABSA Bank Limited;

o    Australia and New Zealand Banking Group Limited;

o    Bank of Nova Scotia;

o    Barclays Capital (the investment banking division of Barclays Bank PLC);


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o    Bayerische Hypo-und Vereinsbank Aktiengesellschaft;

o    CIBC World Markets plc;

o    Ghana International Bank plc;

o    HSBC Bank USA;

o    Investec Bank (UK) Limited;

o    NM Rothschild & Sons Limited;

o    The Royal Bank of Scotland plc;

o    Societe Generale;

o    Standard Bank London Limited;

o    Standard Chartered Bank; and

o    Westdeutsche Landesbank Gironzentrale, London Branch,

collectively referred to as the lenders.

The maximum principal amount of the RCF will be reduced by US$20.0 million
semi-annually commencing 12 months after the first drawdown with a further final
repayment of US$40.0 million on June 30, 2007. As at December 31, 2002,
US$149.0 million was outstanding under the RCF.

The term of the loan is five years.

The interest rate applicable to the RCF is as follows:

o    Years 1 and 2 - US LIBOR plus 1.75%; and Years

o    3, 4 and 5 - US LIBOR plus 2.00%.

The RCF is provided to our group through our subsidiary Ashanti Finance (Cayman)
Limited, or the Borrower, to pay and refinance obligations and for general
corporate purposes.

The RCF is guaranteed jointly and severally by us (as parent), Ashanti Treasury
Services Limited, or ATS, Geita Treasury Services Limited, or GTS, Societe
Ashanti Goldfields de Guinee and Ashanti Goldfields (Bibiani) Limited (as the
guarantors).

The lenders under the RCF have security over all the hedging contracts entered
into by ATS and GTS, gold refining and purchasing agreements, insurance
contracts, gold in transit and bank accounts.

Security has also been granted over substantially all the assets of Ashanti
Goldfields Company Limited and Ashanti Goldfields (Bibiani) Limited located in
Ghana including the mining leases relating to the Obuasi and Bibiani mines. We
have also agreed to use our best endeavors to give security over our shares in
Cluff Resources Limited, which owns the Geita Mine. In addition, we have
effected a political risk insurance policy, or PRI, of up to US$131.0 million in
relation only to Ghana for the benefit of the lenders who, prior to the closing
of syndication, elected to take the benefit of PRI.

The financial covenants provide that the ratio of consolidated net debt to
consolidated EBITDA (based on the definitions in the RCF) is no greater than:

o    2.50:1 for the twelve month period ending on December 31, 2002;

o    2.25:1 for the twelve month period ending on June 30, 2003;

o    2.00:1 for the twelve month period ending on December 31, 2003;

o    1.75:1 for the twelve month period ending on June 30, 2004; and

o    1.50:1 in respect of relevant 12-month periods thereafter.

The financial covenants further provide that the ratio of consolidated EBITDA to
consolidated net interest payable (based on the definitions in RCF) is not less
than:


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o    4.50:1 for the twelve month periods ending on December 31, 2002 and June
     30, 2003;

o    5.00:1 for the twelve month period ending December 31, 2003;

o    5.50:1 for the twelve month period ending June 30, 2004; and

o    6.00:1 for any twelve month period ending thereafter.

Consolidated tangible net worth is not to be less than US$415.0 million at any
time. Consolidated net debt is not to exceed 50% of the consolidated tangible
net worth for the periods ending on or before June 30, 2004 and for the relevant
periods thereafter shall not exceed 40% of the consolidated tangible net worth.

The RCF imposes commitment fees and other terms and conditions on our group
including the provision of detailed financial and other information, financial
covenants, restrictions on acquisitions, restrictions on investments and loans
to non-group companies and ring fenced project finance entities, restrictions on
the creation of security, restrictions on disposal of assets, restrictions on
making loans or providing credit, and restrictions on change of business.

The Events of Default include:

o    cross default in respect of financial indebtedness of material group
     members (excluding certain subsidiaries, such as Kimin and ring fenced
     project finance entities) in excess of US$5.0 million;

o    insolvency of material group members;

o    nationalization of certain assets of our group;

o    reduction of foreign exchange retention levels;

o    termination or amendment of the margin-free trading arrangements other than
     in accordance with the terms of the new margin free trading letter and
     termination of hedging agreements without our consent and that of our Risk
     Management Committee;

o    change of control of us which is reasonably likely to have a material
     adverse effect; and

o    material adverse change.

In addition, we have agreed that once the indebtedness of the
Iduapriem/Teberebie mine has been repaid we will arrange for security to be
granted to the banks over the assets of Iduapriem/Teberebie. We have also agreed
with the banks to use our best efforts to complete a rights issue by the end of
December, 2003. Breach of this covenant could trigger an event of default under
the RCF. In view of the current discussions with AngloGold as set out
previously, we also propose to apply to the lenders of the revolving credit
facility (in the event that the proposed merger does not become effective) to
extend the period for completion of the rights issue until December 28, 2004.
There is no certainty that we will receive such an extension.

The New Margin Free Trading Arrangements

Each of our active hedge counterparties have entered into the new margin free
trading letter, or New MFTL.

The New MFTL provides that any right that a hedge counterparty had, under any of
its hedging arrangements with us, to call for margin or otherwise require the
provision of any form of security or collateral in respect of such hedging
arrangements shall be canceled and that any new hedging arrangements entered
into shall not benefit from margin, or otherwise require the provision of any
form of security or collateral in respect of such hedging arrangements other
than in certain limited circumstances.

The hedge counterparties have a right to terminate their hedging agreements with
us on the occurrence of any of the following:

o    any subsidiary granting any person the right to call for, or require the
     provision of, margin or equivalent collateral; or

o    any person actually calling for, or requiring the provision of, margin or
     equivalent collateral from any of our group members (in circumstances where
     it is permitted to do so pursuant to its hedging agreements with
     ourselves); or


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o    any of our subsidiaries entering into a hedging arrangement with a
     cross-default threshold less than US$5.0 million; or

o    any of our subsidiaries granting any right, to any person who enters into a
     hedging arrangement with any subsidiary, analogous or superior to the
     non-disposal right granted to the hedge counterparties in connection with
     the Geita mine (or any part of it) or any member of the Geita joint venture
     group; or

o    any of our subsidiaries actually paying, posting or granting margin or
     equivalent collateral,

in each case in relation to any hedging arrangement (other than any permitted
hedging arrangement). Permitted hedging arrangements generally relate to certain
hedging arrangements in connection with project financings.

In addition, if we are no longer in compliance with our hedging policy or if we
amend our hedging policy without the prior written approval of the relevant
majority of hedge counterparties, the hedge counterparties will be entitled to
terminate their hedging arrangements with our group.

The New MFTL contains, amongst other things, financial covenants similar to
those in the RCF.

D. Exchange Controls

Ghana has a system of exchange control. The Exchange Control Act, 1961 and the
Exchange Control Regulations, 1961 provide the general statutory framework for
Ghanaian exchange control. Through them the Government of Ghana exercises its
policy of exchange control with respect to foreign investment in Ghanaian
companies and all dealings by residents of Ghana in securities with
non-residents and in foreign currency. The Mining Law modifies the exchange
control provisions that apply to holders of mining leases in Ghana. Holders of
mining leases, if permitted by the Bank of Ghana, have limited rights to retain
certain foreign exchange earnings overseas and to use such earnings for the
acquisition of mining inputs, which would not otherwise be readily available
without the use of such earnings. Where the net earnings of a holder of a mining
lease are in foreign currency, the holder is permitted to retain not less than
25% of foreign exchange earnings in an external account for acquiring machinery
and equipment, spare parts and raw materials as well as for certain other
payments, including dividend and debt service payments. Our operations in Ghana
are permitted to retain 60% to 80% of their foreign exchange earnings in such an
account. We remit the remainder of our foreign exchange earnings to Ghana and
convert them to cedis. Historically, this amount has equated approximately with
the amount of expenses we incur in cedis, though we cannot be certain that this
will always be the position in the future.

The consent of the Bank of Ghana has been given under the exchange control
regime for the free transferability of the our ordinary shares and our GDSs, the
payment of dividends in US dollars and the payment of dividends to external
residents. The consent applies equally to sales of rights to ordinary shares and
rights to GDSs. However, Ghanaian residents will require the consent of the Bank
of Ghana to remit any proceeds of sale and dividends received in US dollars.
There are no regulations in Ghana that would restrict or affect the remittance
of dividends to non-resident holders of securities.

E. Taxation

United States

The following is a summary of material United States federal income tax
considerations that may be relevant to a holder of Shares or GDSs who is a
citizen or resident of the United States or is a US domestic corporation or who
otherwise will be subject to US federal income tax on a net income basis in
respect of Shares or GDSs (a "US holder"). The summary is based on laws,
regulations, rulings and decisions now in effect, all of which are subject to
change. The summary does not purport to be a comprehensive description of all
the tax considerations that may be relevant to a holder of Shares or GDSs. In
particular, the summary deals only with US holders who will hold Shares or GDSs
as capital assets, and does not address the tax treatment of investors who are
subject to special tax rules, such as banks, insurance companies, securities
dealers, persons holding Shares or GDSs as part of an integrated investment
(including a "straddle") comprised a Share or GDS and one or more other
positions, and persons who have a functional currency other than the US dollar.

We urge holders to consult their own advisers regarding the tax consequences of
an investment in Shares or GDSs, including, in particular, the effect of any
state, local or other national laws.


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In general, for US federal income tax purposes, holders of GDSs will be treated
as the owners of the Shares represented by those GDSs.

     Dividends on the Shares or GDSs

The gross amount of any distribution (that is, the amount before reduction for
Ghanaian withholding tax) paid to a US holder generally will be subject to US
federal income taxation as foreign source dividend income to the extent such
distribution is paid out of the Company's current or accumulated earnings and
profits (as determined for US federal income tax purposes). Any such
distribution will not be eligible for the dividends received deduction. If a US
holder elects to receive the distribution in the form of stock or other
property, then the amount of the distribution will be equal to the fair market
value of such distribution on the date of distribution. To the extent that a
distribution exceeds a US holder's allocable share of the Company's current and
accumulated earnings and profits, such excess will be applied first to reduce
the holder's basis in the Shares or GDSs, and then any remaining such excess
will constitute a gain from the deemed sale of the Shares or GDSs. See "Sale or
other Disposition of Shares or GDSs" below.

Ghanaian tax withheld from dividend distributions will be treated as a foreign
income tax that US holders may elect to deduct in computing their taxable income
or, subject to generally applicable limitations, credit against their US federal
income tax liability. The credit is subject to specific statutory limitations
and restrictions. The cost base of any dividend securities acquired for capital
gains purposes will be equivalent to the cash equivalent amount of the
securities received.

The above does not address the United States income tax implications if, in
relation to a particular US holder, Ashanti is to be treated as a passive
foreign investment company ("PFIC") under the Internal Revenue Code of 1986 as
amended.

     Sale or other Disposition of Shares or GDSs

A US holder will generally recognize a gain or loss on any sale, exchange or
other disposition of the Shares or GDSs equal to the difference between the
amount of cash (and the fair market value of any other property) received and
the holder's tax basis in the Shares or the GDSs. Gain or loss realized on the
sale or other disposition of Shares or GDSs will be a capital gain or loss if
the US holder held the Shares or GDSs as a capital asset and will be a long term
capital gain or loss if the Shares or GDSs were held for more than one year. In
general, gain from a sale or exchange of Shares or GDSs by a US holder will be
treated as United States source income.

Deposits and withdrawals of Shares by US holders in exchange for GDRs will not
result in the realization of gain or loss for US federal income tax purposes.

Ghana

There is currently no tax treaty between the United States and Ghana.

     Ghanaian Withholding Tax on Dividends

Under current Ghanaian legislation, tax is withheld from dividend payments by
the Company at the rate of 10%. No further tax is payable on dividends received.
The Government of Ghana has confirmed that any person who has an interest in, or
is a beneficial owner of, a GDS will be treated for Ghanaian tax purposes as the
beneficial owner of the underlying Shares to which the GDS relates, and will
thereby be treated as beneficially entitled to the dividends arising on those
Shares for all Ghanaian tax purposes. Withholding tax of 10% is also withheld
from dividend payments made by the Company in the form of stock.

     Capital Gains

Capital gains arising on a disposal of securities listed on the Ghana Stock
Exchange are exempt from Ghanaian capital gains tax until October 31, 2005. The
Government of Ghana has confirmed that the disposal of an interest in a GDS will
be treated as a disposal of the underlying Shares for Ghanaian capital gains tax
purposes and will thereby be exempt from Ghanaian capital gains tax under
current law and practice.


                                      115






<PAGE>




     Gift Taxation

Liability to gift tax may arise on the transfer by gift of Shares in the Company
or interests in GDSs if the open market value of the Shares at the time of the
gift exceeds c50,000 (approximately US$6) (subject to certain exemptions). The
tax is payable by the donee of the gift.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Experts

Not applicable.

H. Documents on Display

Exhibits attached to this Form 20-F are also available for viewing during normal
business hours on any weekday (Saturday, Sunday and public holidays excepted) at
our registered office at Gold House, Patrice Lumumba Road, Roman Ridge, Accra,
Ghana.

I. Subsidiary Information

Not applicable.


                                      116






<PAGE>

ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

GOLD PRICE RISK

Our principal business is the mining and processing of gold. Our revenues and
cash flows are therefore strongly influenced by the price of gold, which can
fluctuate widely and over which we have no control.

Our principal market risk exposure relates to changes to the market price of
gold and gold lease rates. We also have limited exposure to currency risk and
interest rate risk.

Like many other gold producers, we engage in hedging activities to protect our
cash flows against the risk of decreases in the gold price. Prior to its
amendment in February 2000, our previous revolving credit facility required us
to hedge certain amounts of gold. Whilst this requirement was deleted as part of
an amendment in February 2000, our new revolving credit facility and margin-
free trading letter require us to comply with our strategies outlined in the
current hedging policy. The hedging instruments employed by us are discussed in
more detail below.

  OBJECTIVES

Our gold hedging program has the primary objective of providing us with
sufficient gold price protection to enable us to meet our cashflow obligations
as they fall due. This objective takes into account the level of commitments, in
terms of operating costs, capital expenditure and debt service obligations,
relative to the potential fluctuations in the gold price. We pursue our
objective in a manner that is intended to preserve, to the extent that is
reasonably possible, our ability to benefit from potential increases in the gold
price.

  STRATEGY AND POLICY

The major goal of our hedging policy, which are monitored and reviewed by our
Risk Management Committee, are to:

o limit our commitments to a maximum of 50% of attributable production.
  Attributable production normally includes all the proven and probable reserves
  of mines in which we or our subsidiaries hold an interest of more than 50%
  and otherwise the relevant percentage of proven and probable reserves where we
  or our subsidiaries hold at least a 20% interest in the relevant mine.
  However, there will be excluded from this calculation production from certain
  project financed assets (although, with the approval of the relevant majority
  of hedge counterparties, production following the planned date for repayment
  of such project financing may be included) and, subject to certain exceptions,
  production from other mines where the physical assets of the mine are secured
  in favor of our senior lenders,

o limit our aggregate commitments and those of our project financed entities
  (for so long as any person has recourse to us in relation to a project
  financing) to a maximum of 75% of attributable production (excluding any
  production attributable to such project financed entities),

o for so long as any person has recourse to us in relation to a project
  financing, limit (without the approval of the relevant majority of hedge
  counterparties) the aggregate commitments relating to all project financed
  entities (where there is a recourse to us in respect of such entities) to not
  more than 4.50 million ounces, and

o ensure that all hedging transactions (other than hedging transactions of
  project financed entities) are entered into so as to move towards certain
  defined target limits for (i) "protection" contracts (being hedging contracts
  providing us with the right or obligation to sell gold at set prices e.g. by
  use of forward contracts or put options); (ii) "commitment" contracts (being
  hedging contracts which commit us to provide gold or cash equivalent at an
  agreed price as a contractual obligation or at the counterparty's option e.g.
  by use of forward contracts, sold call options or other cash settlement
  arrangements) and (iii) gold lease rate exposures.

The table below compares, as at December 31, 2002, the contents of the hedge
book with the goals set by our current hedge policy.

                                      117






<PAGE>




<TABLE>
<CAPTION>
                    Existing Hedge Book            Hedge Policy
                   --------------------   ------------------------------
                      % of                                    (Outside)/
                    forecast    million             million     within
                   production    ounces              ounces     policy
------------------------------------------------------------------------
<S>                   <C>         <C>     <C>         <C>        <C>
Committed ounces       48%        6.5     Maximum     6.4        (0.1)
Protected ounces       37%        5.0     Minimum     3.8         1.2
Lease rate swaps      n/a         2.6     Maximum     2.4        (0.2)
</TABLE>

<TABLE>
<S>                                                         <C>
Forecast gold production over the life of the hedge book
(excluding Geita production for the period of the
project finance i.e. 2002-2007):                            13.6 million ounces
Total proven and probable reserves (excluding Geita):       17.0 million ounces
</TABLE>

The existing hedge book column shows the number of committed ounces, protected
ounces and lease rate swap ounces of the hedge book as at December 31, 2002,
both in ounces and as a percentage of forecast production. The hedge policy
column shows the amount of committed ounces, protected ounces and lease rate
swap ounces, which would be called for by the target limits of our current hedge
policy. The final column shows the difference between the contents of the hedge
book and the revised policy's target limits as at December 31, 2002.

The table above shows that protection levels are fully implemented as set out in
the hedging policy. Commitment ounces and lease rate ounces need to be reduced
by the amount shown on the table for full implementation. There are no set
deadlines for compliance with these goals, as our ability to affect
restructurings is dependant upon market conditions.

Our hedging transactions are entered into by Ashanti Treasury Services Limited
and Geita Treasury Services Limited and on behalf of the Geita joint venture by
Geita Management Company Limited. When payments have to be made to hedge
counterparties in respect of hedges, which normally only happens when the spot
gold price or lease rate rises above hedged gold price or lease rate as at the
date of close-out or lease rate fixing, as applicable, of the relevant contract,
these payments will be made by the relevant treasury company. If these payments
exceed that company's available resources then we, in the case of our hedges,
and Geita Gold Mining Limited, in the case of the Geita hedges, will have to
make the payments. We currently have approval from the Bank of Ghana to retain
and use US dollars held outside Ghana to meet such payments. The Bank of
Tanzania has given its approval to Geita Gold Mining Limited for paying US
dollars offshore to Geita Management Company Limited for application to hedging
liabilities. Under our hedging policy, attributable production includes 100% of
the production of the Iduapriem/Teberebie mine. In the event that payments have
to be made in respect of hedges, we will normally be benefiting from an
increased spot price in respect of gold deliveries. However, to the extent that
we, or our treasury company, have to make payments in respect of the
Iduapriem/Teberebie mine we will not be able to access the cash flow received
from the sale of gold from the mine until full repayment of Iduapriem's bank
debt. Likewise, if payments are received in respect of the hedges which relate
to Iduapriem/Teberebie production, we are not obliged to (and therefore do not)
account to, or pay these proceeds to Iduapriem/Teberebie.

     Margin-Free Arrangements

     Hedging other than Geita

Under our previous margin-free trading letter we would have benefited from
margin-free trading with our hedge counterparties until December 31, 2002 and
from increased margin thresholds until December 31, 2004, subject in each case
to compliance with covenants and no event of default being declared. However, in
order to implement the refinancing, we needed to enter into appropriate
continuing margin-free arrangements in respect of our hedging activities for the
period after December 31, 2002. We achieved this by the execution of the interim
margin-free agreements (which have now terminated) and the new margin-free
trading letter which has now become effective and replaces the interim
margin-free arrangement.

The new margin-free trading letter provides for margin-free trading on an
ongoing basis. The existing counterparties have agreed that, amongst other
things, any rights to call for margin are canceled and that no new hedging
agreements will benefit from rights to call for margin. If these provisions and
other provisions are breached, or if we are no longer in compliance with the
hedge policy which is currently in place or if the


                                      118






<PAGE>




hedge policy is amended other than with the approval of an appropriate majority
of the hedge counterparties, then the hedge counterparties will have a right to
terminate their hedging agreements with us.

     Geita hedging

Our Geita joint venture also engages in hedging transactions in respect of its
production. The hedges are carried out on a margin-free basis. However, if at
any time the aggregate marked-to-market value of the Geita hedge book exceeds
US$132.5million (negative), we will be restricted from receiving cash from the
joint venture until the marked-to-market value of the hedge book reduces below
that threshold. The hedging arrangements also provide for events of default and
termination events which could lead to early close-outs or lead to a default in
Geita's US$135.0 million project finance facility. The threshold of US$132.5
million will increase during the life of the Geita facility as principal
repayments are made and additional coverage becomes available under the
political risk insurance. While we have not directly guaranteed the Geita joint
venture's obligations under either the hedges or the project finance facility,
any early close-outs of the hedges or a default under the project finance would
reduce revenues to us from the Geita joint venture and/or reduce the value of
its assets as stated in our balance sheet.

Hedging as at December 31, 2002

As at December 31, 2002, our hedge book, excluding Geita, had a negative
marked-to-market value of US$150.0 million based on a spot price of US$345 per
ounce (2001: US$88.8 million positive based on a spot price of US$277 per
ounce). The decrease in the marked-to-market value was primarily due to high
spot prices partially offset by lower US interest rates. As at December 31,
2002, our share of the Geita hedge book was marked-to-market negative at US$44.3
million (2001: US$2.4 million negative)

As at December 31, 2002, our hedge book, excluding Geita, had 5.0 million ounces
of protection at an average price of US$358 per ounce and 6.5 million ounces of
commitments at an average price of US$346 per ounce. As at December 31, 2002, we
had 48% of our forecast production over the life of the hedge book committed and
37% protected (excluding production for Geita for the 2003-2007 period of the
project financing).

During the year the principal restructurings of the hedge book included:

o    The conversion of all convertible structures into vanilla options resulting
     in a simpler structure and additional protection of 128,000 ounces at a
     strike price of US$350 per ounce.

o    150,000 ounces of sold puts with strikes at US$270 per ounce were removed
     from the hedge book.

o    Exposure to floating lease rates was reduced from a total of 5.0 million
     ounces to 2.6 million ounces.


                                       119






<PAGE>




The following table sets out our hedge portfolio as at December 31, 2002:

<TABLE>
<CAPTION>
                                  2003        2004        2005        2006        2007        2008       2009      2010
------------------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>         <C>         <C>         <C>         <C>         <C>         <C>       <C>
Forward Sales     (ounces)       899,392     529,992     520,996     410,000     340,000     279,125   334,250   304,250
                  (US$/ounce)        344         352         347         355         357         367       358       367
------------------------------------------------------------------------------------------------------------------------
Puts:
Bought            (ounces)        50,000     111,200     111,200     111,200     111,200      79,200    79,200    79,200
                  (US$/ounce)        354         370         370         370         370         378       378       378
------------------------------------------------------------------------------------------------------------------------
Calls:
Sold              (ounces)       640,692     628,972     425,528     312,056     391,076     349,535   123,970    84,250
                  (US$/ounce)        337         339         344         376         372         374       383       384
------------------------------------------------------------------------------------------------------------------------
Bought            (ounces)       240,000     280,000      60,000     172,996     172,996          --        --        --
                  (US$/ounce)        429         444         380         418         418          --        --        --
------------------------------------------------------------------------------------------------------------------------
Subtotal          (ounces)       400,692     348,972     365,528     139,060     218,080     349,535   123,970    84,250
------------------------------------------------------------------------------------------------------------------------
Lease Rate Swap
   ounces due     (ounces)           430          --          --          --          --          --        --        --
Summary:
------------------------------------------------------------------------------------------------------------------------
Protected         (ounces)       948,962     641,192     632,196     521,200     451,200     358,325   413,450   383,450
------------------------------------------------------------------------------------------------------------------------
Committed         (ounces)      1,299,65     878,964     886,524     549,060     558,080     628,660   458,220   388,500
------------------------------------------------------------------------------------------------------------------------
Lease Rate Swap   (ounces)     2,367,000   2,587,000   2,251,000   1,915,000   1,579,000   1,318,000   982,000   646,000
------------------------------------------------------------------------------------------------------------------------
Total committed ounces as a percentage of total forecast production (excluding Geita for the period of the project
   financing ie 2003 - 2007)
------------------------------------------------------------------------------------------------------------------------
Deferred
Hedging Income
   (US$m)                             15          13          --          --          --          --        --        --
------------------------------------------------------------------------------------------------------------------------

<CAPTION>
                                                             Marked-     Marked-
                                                            to-market   to-market
                                                              value       value
                                                              2002        2001
                                                              (US$        (US$
                    2011     2012      2013      Total       million)    million)
---------------------------------------------------------------------------------
<S>               <C>       <C>       <C>       <C>          <C>          <C>
Forward Sales     268,250   215,313   186,500   4,288,068     (56.0)      117.6
                      367       374       365         355
---------------------------------------------------------------------------------
Puts:
Bought                 --        --        --     732,400      24.9        52.7
                       --        --        --         371
---------------------------------------------------------------------------------
Calls:
Sold               84,250    77,188    28,000    3,145,51    (112.9)      (53.7)
                      384       387       401         357
---------------------------------------------------------------------------------
Bought                 --        --        --     925,992      10.2         5.4
                       --        --        --         427
---------------------------------------------------------------------------------
Subtotal           84,250    77,188    28,000   2,219,525
---------------------------------------------------------------------------------
Lease Rate Swap
   ounces due          --        --        --         430
Summary:
---------------------------------------------------------------------------------
Protected         268,250   215,313   186,500   5,020,038
---------------------------------------------------------------------------------
Committed         352,500   292,500   214,500   6,507,162
---------------------------------------------------------------------------------
Lease Rate Swap   310,000   130,000        --   2,587,000     (16.2)      (42.0)
---------------------------------------------------------------------------------
Total committed ounces as a percentage of total forecast
   production (excluding Geita for the period of the
   project financing ie 2003 - 2007)                             48%         61%
---------------------------------------------------------------------------------
Deferred
Hedging Income         --        --        --          28
   (US$m)
---------------------------------------------------------------------------------
</TABLE>

NOTES:

Under US GAAP, following the implementation of SFAS 133 during 2001, these
instruments are all marked-to-market and reported at fair market value.

Protected ounces include net bought put options plus forward sales.

Committed ounces include net call options sold plus forward sales (there is thus
some overlap between the figures for 'protected' and 'committed' ounces).

Convertible structures in the hedgebook are represented as either protection
and/or commitments as defined above.

Details of Hedging Contracts outstanding at December 31, 2002

     Forward Sales:

Forward sales contracts are entered into to lock in the future price of gold for
the anticipated sale of our production. Since we are exposed to the risk of
fluctuations in the future price of gold, forward sales contracts are employed
as part of our hedging strategy to minimize the risk of future gold prices
falling. At December 31, 2002, we held contracts for the forward sale of
4.29 million ounces at an average price of US$355 per ounce.

     Put Options:

We held purchased put options that gave us the right, but not the obligation, to
sell 732,400 ounces of gold at certain strike prices. The average strike price
was US$371 per ounce.

     Call Options:

We held written call options that gave the counterparty the right, but not the
obligation, to buy 3.15 million ounces of gold at an average strike price of
US$357 per ounce. As a partial offset, we bought 0.93 million ounces of call
options at an average strike price of US$427 per ounce which began maturing in
2002.

     Gold Lease Rate Swaps:

A gold lease rate swap is a contract whereby we and a counterparty select a
notional amount of gold, and thereafter over the life of the contract one party
pays a fixed lease rate based on that amount of gold and the other party pays a
floating lease rate based on the same amount of gold.

Lease rate swaps are entered into in conjunction with forward sales contracts to
hedge the anticipated sales of our gold production. The forward price for gold
is derived, in part, from the current spot rates plus a premium derived from
LIBOR-based interest rates less the fixed gold lease rates for a term consistent
with the term of the forward contract. Lease rate swaps alter the fixed gold
lease rate in the gold forward price to a


                                       120






<PAGE>




floating gold lease rate. The combination of a lease rate swap and a forward
contract creates a forward contract with a floating forward rate that adjusts
for changes in the short term gold lease rates.

As of December 31, 2002, a maximum of 2.59 million ounces of our hedged
production will be exposed to the floating 3month lease rate at any one time.
The lease rate swaps can be broken down into the following types (under all of
these contracts we receive a certain lease rate income, which can be regarded as
compensation for the lease rate exposure that we took on).

<TABLE>
<CAPTION>
                                                                                      Fixed     Volume
Description                                                                            Rate    (ounces)
-------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>    <C>
We pay a quarterly floating rate and receive a weighted average quarterly
   fixed rate of 1.81%                                                                 1.81   2,412,000
-------------------------------------------------------------------------------------------------------
We pay a quarterly floating rate and receive a fixed amount of dollars at maturity.
The quarterly amount is rolled until maturity of each forward contract.
The fixed amount for each contract is calculated using the formula:
Volume*YearsToMaturity*302*2.00%.                                                      2.00     360,000
-------------------------------------------------------------------------------------------------------
Total                                                                                         2,772,000
-------------------------------------------------------------------------------------------------------
</TABLE>

     Marked-to-market Valuations

On December 31, 2002, the portfolio had a negative marked-to-market value of
US$150.0 million. This valuation was based on a spot price of US$345 per ounce
and the then prevailing applicable US interest rates, gold forward rates and
volatilities. The delta at that time was 5.9 million ounces. This implies that a
US$1 increase in the price of gold would have had a US$5.9 million negative
impact (approximate) on the marked-to-market valuation of the hedge book.
Movements in US interest rates, gold lease rates, volatilities and time will
also have a sizeable impact on the marked-to-market. Movements in US interest
rates, gold lease rates and volatilities can change significantly over short
time periods and can consequently materially affect the marked-to-market
valuation.

The approximate breakdown by type of the marked-to-market valuation at December
31, 2002 and 2001 was as follows:

<TABLE>
<CAPTION>
                                                                 2002    2001(1)
                                                                 US$m      US$m
--------------------------------------------------------------------------------
<S>                                                             <C>      <C>
Forward contracts                                                (56.0)   117.6
European Put options (net bought)                                 24.9     51.0
European Call options (net sold)                                (102.7)   (48.3)
Convertible structures                                              --     10.5
Lease rate swaps                                                 (16.2)   (42.0)
--------------------------------------------------------------------------------
                                                                (150.0)    88.8
--------------------------------------------------------------------------------
</TABLE>

(1)  Under US GAAP, following the implementation of SFAS 133 during 2001, these
     instruments are all marked-to-market and reported at fair market value. The
     related net unrealized gains or losses are reported as a component of net
     income, except for the transitional adjustment at January 1, 2001, which is
     reported as accumulated other comprehensive income.

     Hedge Book Sensitivities

All of the projections set out below are forward-looking statements and have
been prepared to provide supplementary information, based on the assumptions and
sensitivities set out below and the hedge book as at December 31, 2002.
Accordingly, the actual realized prices, cash flows, marked-to-market values and
portfolio sensitivities could differ materially from those set out below as a
result of a number of factors including changes in market conditions and active
management of the hedge book.

     Marked-to-market Projections

The following table shows projected marked-to-market of the portfolio for
specified dates at specified spot gold prices. These marked-to-market values are
calculated using mid-rates, and no volatility skew for options


                                       121






<PAGE>




is assumed. Note also that there is one lease rate swap that is not paid out
immediately but is paid out in line with forward sales -- for this a fixing rate
of 2% is assumed. All amounts are in US$ millions.

<TABLE>
<CAPTION>
Spot     US$250/oz   US$275/oz   US$300/oz   US$325/oz   US$350/oz   US$375/oz   US$400/oz
------------------------------------------------------------------------------------------
<S>        <C>         <C>         <C>         <C>        <C>         <C>         <C>
Dec 03     331.53      230.36      125.47      15.46      (100.27)    (220.69)    (343.72)
Dec 04     297.47      212.89      125.92      35.67       (58.23)    (155.14)    (254.02)
Dec 05     258.41      189.51      119.08      46.64       (28.10)    (105.06)    (183.80)
Dec 06     221.97      165.88      108.63      49.65       (11.55)     (75.10)    (140.66)
Dec 07     187.58      142.52       96.82      50.07         1.80      (48.32)    (100.32)
Dec 08     155.48      118.99       82.12      44.78         6.85      (31.74)     (71.01)
Dec 09     116.10       89.66       62.92      35.73         8.01      (20.24)     (49.00)
Dec 10      75.65       58.67       41.52      24.01         5.97      (12.77)     (32.24)
Dec 11      46.15       35.86       25.51      15.02         4.24       (6.94)     (18.60)
Dec 12      20.48       15.64       10.79       5.92         1.01       (3.99)      (9.12)
Dec 13         --          --          --         --           --          --          --
------------------------------------------------------------------------------------------
</TABLE>

     Cash Flow Projections

The following table shows a breakdown of the cash flows that would be received
or paid under specified spot and lease rate assumptions. The specified lease
rates are used for all rate-sets, i.e. three month. The specified spot price is
used to cash-settle all contracts. All amounts are in US$ millions.

<TABLE>
<CAPTION>
Spot                US$250/oz                  US$275/oz                  US$300/oz
Lease Rate     1%       2%       3%       1%       2%       3%       1%       2%       3%
-------------------------------------------------------------------------------------------
<S>          <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
2003          93.28    90.65    88.03    69.77    66.88    63.99    46.26    43.10    39.95
2004          72.26    66.39    60.53    56.70    50.25    43.80    41.14    34.10    27.07
2005          68.37    62.94    57.52    52.98    47.02    41.05    37.60    31.09    24.58
2006          60.04    55.26    50.47    47.37    42.10    36.83    34.69    28.94    23.20
2007          52.93    48.79    44.64    41.94    37.37    32.81    30.94    25.96    20.98
2008          45.73    42.09    38.46    36.99    32.99    29.00    28.25    23.89    19.53
2009          48.62    45.54    42.45    38.44    35.04    31.65    28.25    24.55    20.85
2010          46.12    43.65    41.18    36.62    33.90    31.18    27.11    24.14    21.17
2011          32.67    30.80    28.93    25.97    23.92    21.86    19.27    17.03    14.78
2012          27.49    26.06    24.63    22.04    20.48    18.91    16.60    14.89    13.18
2013          21.79    20.51    19.23    17.03    15.62    14.21    12.27    10.73     9.19
-------------------------------------------------------------------------------------------
Total        569.30   532.68   496.07   445.85   405.57   365.29   322.38   278.42   234.48
-------------------------------------------------------------------------------------------

<CAPTION>
Spot                US$325/oz                  US$350/oz
Lease Rate     1%       2%       3%       1%      2%       3%
----------------------------------------------------------------
<S>          <C>      <C>      <C>      <C>     <C>      <C>
2003          21.30    17.88    14.47   (9.51)  (13.18)  (16.86)
2004          24.32    16.70     9.08    2.91    (5.30)  (13.51)
2005          22.22    15.17     8.12    2.01    (5.59)  (13.18)
2006          22.01    15.79     9.56    9.09     2.38    (4.32)
2007          19.94    14.55     9.15    7.91     2.10    (3.71)
2008          19.51    14.79    10.06   10.06     4.98    (0.11)
2009          18.07    14.06    10.05    7.89     3.57    (0.75)
2010          17.60    14.39    11.17    8.10     4.63     1.17
2011          12.57    10.14     7.71    5.87     3.25     0.63
2012          11.16     9.31     7.45    5.72     3.72     1.72
2013           7.50     5.84     4.17    2.74     0.94    (0.85)
----------------------------------------------------------------
Total        196.20   148.62   100.99   52.79     1.50   (49.77)
----------------------------------------------------------------
</TABLE>


                                      122






<PAGE>




<TABLE>
<CAPTION>
Spot                  US$375/oz                     US$400/oz
Lease Rate      1%        2%        3%        1%        2%        3%
-----------------------------------------------------------------------
<S>          <C>       <C>       <C>       <C>       <C>       <C>
2003          (47.61)   (51.55)   (55.49)   (84.69)   (88.89)   (93.09)
2004          (27.19)   (35.99)   (44.78)   (54.70)   (64.08)   (73.46)
2005          (20.85)   (28.99)   (37.13)   (43.09)   (51.77)   (60.45)
2006           (4.74)   (11.92)   (19.10)   (19.13)   (26.80)   (34.46)
2007           (5.22)   (11.45)   (17.67)   (19.72)   (26.36)   (33.00)
2008           (0.84)    (6.29)   (11.74)   (13.91)   (19.73)   (25.54)
2009           (3.00)    (7.63)   (12.26)   (12.90)   (17.84)   (22.77)
2010           (2.12)    (5.83)    (9.54)   (10.55)   (14.51)   (18.46)
2011           (1.54)    (4.34)    (7.15)    (8.95)   (11.94)   (14.93)
2012           (0.25)    (2.39)    (4.53)    (6.23)    (8.51)   (10.79)
2013           (2.03)    (3.95)    (5.87)    (6.79)    (8.84)   (10.89)
-----------------------------------------------------------------------
Total        (115.39)  (170.33)  (225.26)  (280.66)  (339.27)  (397.84)
-----------------------------------------------------------------------
</TABLE>

     Portfolio Sensitivities

The following table shows the sensitivity of the portfolio to certain market
rate movements as at December 31, 2002. A description of each sensitivity is
given below.

<TABLE>
<S>               <C>      <C>
Delta              (5.9)   (Ounces million)
Gold Rho            8.2       (US$ million)
US Rho            (17.6)      (US$ million)
Gold Vega          (3.5)      (US$ million)
Theta (per day)    0.16       (US$ million)
</TABLE>

Delta       The delta shows the gold ounces that we would have to buy to
            neutralize the hedge book position. The delta could also be
            interpreted as the change in marked-to-market value that would
            result from a US$1 move in the spot gold price, i.e. a US$1 increase
            in spot would reduce the marked-to-market by US$5.9 million.

Gold Rho    The gold rho figure shows the change in marked-to-market value that
            would result from a 25 basis point parallel shift in the gold
            interest rate curve, i.e. a 0.25% rise in gold interest rate across
            the gold curve would increase the marked-to-market by US$8.2
            million.

US Rho      The US rho figure shows the change in the marked-to-market value
            that would result from a 25 basis point parallel shift in US
            interest rates, i.e. a 0.25% rise in US interest rates across the US
            interest rate curve would decrease the marked-to-market value by
            US$17.6 million.

Gold Vega   The gold vega figure shows the change in marked-to-market value that
            would result from a 1% parallel shift in the gold volatility curve,
            i.e. a 1% rise in the gold volatility curve would decrease the
            marked-to-market value by US$3.5 million.

Theta       The theta figure shows the change in marked-to-market value owing to
            the passing of one day, with everything else remaining constant,
            i.e. if all market parameters stay the same, the marked-to-market
            value would increase by US$0.16 million for the next day.


                                      123






<PAGE>




     Geita Hedging

The table below shows Ashanti's portion of hedging commitments for Geita
as at December 31, 2002. The table represents half of Geita's hedge
commitments.

<TABLE>
<CAPTION>
                                      2003      2004      2005      2006      2007     Total
---------------------------------------------------------------------------------------------
<S>                   <C>           <C>       <C>       <C>        <C>      <C>       <C>
Forward Sales         (ounces)      189,598   195,558   174,828    94,576   120,938   775,498
                      (US$/ounce)       285       289       294       296       298       291
---------------------------------------------------------------------------------------------
Puts
Bought                (ounces)       26,735    25,586    24,350    18,115    23,390   118,176
                      (US$/ounce)       291       291       291       291       292       291
---------------------------------------------------------------------------------------------
Lease Rate Proceeds   (ounces)          400        --        --        --        --       400
---------------------------------------------------------------------------------------------
Summary:
Protected             (ounces)      215,933   221,144   199,178   112,691   144,328   893,274
---------------------------------------------------------------------------------------------
Committed             (ounces)      189,198   195,558   174,828    94,576   120,938   775,098
---------------------------------------------------------------------------------------------
Lease Rate Swap       (ounces)      156,301   116,774    76,301    41,420        --        --
---------------------------------------------------------------------------------------------
</TABLE>

     Marked-to-market Valuation

On December 31, 2002 the Geita portfolio had a negative marked-to-market value
of US$88.6 million (our portion: US$44.3 million). This valuation was based on a
spot price of US$345 and the then prevailing US interest rates, gold forward
rates, volatilities and guidelines provided by our risk management committee.

     Hedging since December 31, 2002

Higher spot prices and gold volatility levels since December 31, 2002 have
allowed us to make the following principal changes to our hedge book:

o    666,000 ounces of bought call options with strike prices greater than
     US$430 per ounce were re-struck lower to 232,652 ounces of bought call
     options with strike prices of US$320 per ounce and US$330 per ounce;

o    Protected ounces were increased by 50,400 with strike prices of US$354 per
     ounce and US$375 per ounce; and

o    401,000 ounces of sold call options were re-struck lower to match 682,400
     ounces of bought put options, thereby converting the put and call options
     into forward sales. We used value generated through this restructure to
     purchase a further 232,666 ounces of call options with a strike price of
     US$330 per ounce.

Although the total number of bought call ounces has been reduced, the above
restructurings have the following advantages:

o    Owing to the lower strike prices the cashflow effect from the new bought
     call structure is comparably beneficial to us up to gold prices of
     approximately US$500 per ounce with respect to these contracts;

o    The bought call options now have strike prices and value dates that match
     individual sold call options or forward sales;

o    Converting bought put and sold call options into forward sales, simplifies
     the management of the hedge book;

o    The number of protected ounces has increased by 50,400 at favourable strike
     prices;

o    The average committed price over the life of the book has improved by US$11
     per ounce from US$346 per ounce to US$357 per ounce; and

o    Commitments for 2003 have been reduced allowing more participation in
     higher spot prices: as at March 31, 2003 commitments stood at 879,072
     ounces, which is a reduction of 420,582 ounces (or 32%) as compared to the
     position as at December 31, 2002 of 1,299,654 ounces.


                                      124






<PAGE>




The table below shows the hedge position as at March 31, 2003:

<TABLE>
<CAPTION>

                              2003       2004        2005       2006        2007       2008      2009        2010
<S>                        <C>        <C>         <C>        <C>         <C>         <C>       <C>         <C>
Forward Sales
(ounces)                   628,997    657,992     648,996    538,000     451,200     358,325   413,450     383,450
(US$/ounce)                    345        355         352        359         360         370       362         366
Calls:
Sold (ounces)              378,025    496,180     498,728    210,256     291,076     260,535    70,970      28,250
Sold (US$/ounce)               341        341         350        366         363         365       368         350
Bought (ounces)            127,950    101,880     134,000     49,432     125,396           -         -           -
Bought (US$/ounce)             348        359         352        370         370           -         -           -
Subtotal (ounces)          250,075    394,300     364,728    160,824     165,680     260,535    70,970      28,250
Summary:
Protected (ounces)         628,997    657,992     648,996    538,000     451,200     358,325   413,450     383,450
Committed (ounces)         879,072  1,052,292   1,013,724    698,824     616,880     618,860   484,420     411,700
Total committed ounces as a percentage of total forecast production (excluding
Geita production for the period of the project finance, 2003-2007)
Lease Rate Swap (ounces) 2,367,000  2,587,000   2,251,00   1,915,000   1,579,000   1,318,000   982,000     646,000
Deferred Hedging Income (US$m)  10         11

<CAPTION>

                                  2011        2012        2013     Totals
<S>                            <C>         <C>         <C>        <C>
Forward Sales
(ounces)                       268,250     215,313     186,500    4,750,473
(US$/ounce)                        367         374         365          359
Calls:
Sold (ounces)                   84,250      77,188      28,000    2,423,458
Sold (US$/ounce)                   384         387         401          355
Bought (ounces)                      -           -           -      538,658
Bought (US$/ounce)                   -           -           -          358
Subtotal (ounces)               84,250      77,188      28,000    1,884,800
Summary:
Protected (ounces)             268,250     215,313     186,500    4,750,473
Committed (ounces)             352,500     292,500     214,500    6,635,272
Total committed ounces as a percentage of total forecast production (excluding
Geita production for the period of the project finance, 2003-2007)      50%
Lease Rate Swap (ounces)       310,000     130,000           -
Deferred Hedging Income (US$m)                                          21

</TABLE>

There have been no significant changes to lease rate swap ounces or the Geita
hedge book, apart from maturing contracts.

Currency Risk

We earn all of our revenue in US dollars and the majority of our costs,
including capital expenditure, are based in US dollars. We have some local
denominated costs, principally in Ghana, Guinea, Tanzania and Zimbabwe. Although
these countries have recently experienced high inflation, this has been offset
by the devaluation of the respective currencies against the US dollar. Movements
in exchange rates should therefore not have any significant impact on earnings.

Our total borrowings at December 31, 2002 (excluding the 50% share of the
US$102.7 million Geita project finance loan) were US$256.9 million, compared to
US$325.9 million at December 31, 2001, which was predominately US dollar
denominated. An analysis of the maturity of the borrowings as at December 31,
2002 is set out in Note 19 to the financial statements. Cash at December 31,
2002 totaled US$41.3 million, which was predominantly US dollar denominated.
Cash is held in other currencies for local payments, principally in Ghana,
Guinea, Tanzania and Zimbabwe.

Our reporting currency is the US dollar. In all locations in which we operate,
including Ghana, Guinea, Tanzania and Zimbabwe, substantially all revenues are
billed in US dollars and predominantly all expenses are incurred in or indexed
to the US dollar.

The table below provides an analysis between US dollars and other currencies of
revenues and expenses together with borrowings and cash as at and for the year
ended December 31, 2002:

<TABLE>
<CAPTION>
                                                                        Other
                                                          US Dollar   Currencies
--------------------------------------------------------------------------------
<S>                                                         <C>          <C>
% of revenues                                               100%         --
% of expenditures                                            80%         20%
% of borrowings                                              99%          1%
% of cash                                                    95%          5%
--------------------------------------------------------------------------------
</TABLE>

We settle expenses in local currencies through the conversion of US dollar
revenues into such local currencies. In several countries in which we operate,
existing mining agreements mandate the remittance by us of certain revenues back
to the country of operation for conversion into the local currency. Once
converted, these funds are used to settle, in local currency, certain
expenditures which are primarily wages. These wages are, however, generally
indexed to the US dollar.

Interest Rate Risk

Following the completion of the recent restructuring in June 2002, our debt
position has changed significantly. The table below shows our net debt position
by maturity including unamortized issue costs of US$4.5 million as at
December 31, 2002:


                                       125






<PAGE>




<TABLE>
<CAPTION>
                                        Fixed Rate   Floating Rate      Total
                                       US$ million    US$ million    US$ million
--------------------------------------------------------------------------------
<S>                                         <C>          <C>            <C>
Borrowings                                  --           256.9          256.9
Repayments falling due:
Between one and two years                   --             2.0            2.0
Between two and five years                  --           136.3          136.3
After five years                            --           115.9          115.9
--------------------------------------------------------------------------------
After more than one year                    --           254.2          254.2
Within one year                             --             2.7            2.7
--------------------------------------------------------------------------------
Gross debt                                  --           256.9          256.9
Cash                                        --           (41.3)         (41.3)
--------------------------------------------------------------------------------
Net debt                                    --           215.6          215.6
--------------------------------------------------------------------------------
</TABLE>

The table shows that our debt position floats completely, and therefore
increases in US interest rates (LIBOR) will lead to higher interest costs to us.
Conversely, decreases in US interest rates will lead to lower interest costs to
us. Currently, we do not hedge this exposure, but are considering alternatives
for hedging this exposure in the future.

Based on our net debt position at December 31, 2002, the effect on earnings of a
1% change in US dollar LIBOR interest rates would result in a decrease or
increase in profit/(loss) attributable to shareholders of approximately US$2.2
million per annum.


                                       126






<PAGE>




ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.


                                       127






<PAGE>




                                     PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
         PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

Our Chief Executive Officer and Chief Financial Officer, after evaluating the
effectiveness of our disclosure controls and procedures (as defined in US
Exchange Act Rule 13a - 14(c)) within 90 days of the date of this report, have
concluded that, as of such date our disclosure controls and procedures were
effective to ensure that material information relating to us was made known to
them by others within the company particularly during the period in which this
annual report and accounts was being prepared.

There were no significant changes in our internal controls or in other factors
that could significantly affect these controls subsequent to the date the Chief
Executive Officer and Chief Financial Officer completed their evaluation, nor
were there any significant deficiencies of material weaknesses in our internal
controls requiring corrective actions.

ITEM 16. [RESERVED]


                                      128






<PAGE>




                                    PART III
ITEM 17. FINANCIAL STATEMENTS

The registrant has responded to Item 18 in lieu of responding to this item.

ITEM 18. FINANCIAL STATEMENTS

The following financial statements, together with the report of Deloitte &
Touche, are filed as part of this Annual Report.

Profit and Loss Accounts for the year to December 31, 2002, December 31, 2001
and December 31, 2000.

Balance Sheets as at December 31, 2002 and December 31, 2001.

Cash Flow Statements for the year to December 31, 2002, December 31, 2001 and
December 31, 2000.

Reconciliation of Movements in Shareholders' Funds for the year to December 31,
2002, December 31, 2001 and December 31, 2000.

Notes to the Financial Statements.

ITEM 19.EXHIBITS

1.1  Regulations of the Registrant(1).

2.1  Form of Deposit Agreement among the Registrant, The Bank of New York, as
     depositary, and owners and beneficial owners from time to time of GDRs
     issued thereunder(3).

2.2  Indenture dated March 5, 1996 from the Registrant to Bank of New York in
     respect of 5 1/2% Exchangeable Notes issued by Ashanti Capital Limited(1).

2.3  Agreement for a US$200 million 5 year revolving credit facility dated June
     28, 2002(2).

4.1  The Existing MFTL dated December 15, 2000, the Interim Margin Free
     Agreements dated March 18, 2002 and the New MFTL dated August 15, 2002
     between the Registrant and its Hedge Counterparties(2).

4.2  Obuasi Mining Lease dated March 14, 1994(1).

4.3  Geita Mining Lease dated June 24, 1999(1).

4.4  Replacement Technical Services Agreement dated March 14, 1994, between the
     Registrant and Lonmin Plc, as amended by letter dated December 1, 1995(1).

4.5  Transaction Agreement between Registrant, AngloGold Limited and AngloGold
     Geita Limited dated June 23, 2000 and the Amendment Agreement dated
     November 30, 2000(1).

4.6  Joint Venture Agreement between Registrant, AngloGold Limited and AngloGold
     Geita Limited dated December 15, 2000(1).

4.7  Amended Warrant Deed Poll(1).

4.8  MENs Deed Poll between the Registrant and Ashanti Capital (Second) Limited
     dated June 27, 2002(2).

4.9  Lonmin MENs Subscription Agreement between the Registrant, Ashanti Capital
     (Second) Limited and Lonmin plc dated June 28, 2002(2).

4.10 Government of Ghana MENs Subscription Agreement between the Registrant,
     Ashanti Capital (Second) Limited, Lonmin plc and the Republic of Ghana
     dated June 28, 2002(2).

4.11 Rules of the Bonus Co-Investment Plan(1).

4.12 Rules of the Performance Share Plan(1).

4.13 Rules of the AGC Senior Management Share Option Scheme (as amended)(1).

4.14 Rules of the AGC Employee Share Scheme (as amended for Awards made on or
     after April 25, 2001)(1).


                                       129






<PAGE>




4.15 Rules of the Ashanti Long-Term Performance Plan(1).

4.16 Service Agreement with Mr. Venkatakrishnan dated December 20, 2000(4).

4.17 Service Agreement with Ms. Botsio-Phillips dated December 29, 1999(4).

4.18 Service Agreement with Mrs. Ofori Atta dated December 29, 1999(4).

4.19 Service Agreement with Mr. Schultz dated March 27, 2002(4).

4.20 Service Agreement with Mr. Sam Jonah dated February 28, 2003.

4.21 Termination Agreement of the Replacement Technical Services Agreement dated
     February 28, 2003.

8.16 List of Principal Subsidiaries of the Registrant.

10.1 Certification Pursuant to 18 U.S.C. Section 1350.

----------
(1) Incorporated by reference to the Annual Report on Form 20-F for the year
ended December 31, 2000.

(2) Incorporated by reference to the Annual Report on Form 20-F for the year
ended December 31, 2001, filed September 24, 2001.

(3) Incorporated by reference to the Registration Statement on Form F-6, No.
333-101900, filed December 17, 2002.

(4) Incorporated by reference to the Registration Statement on Form F-1, No.
333-101682, filed December 6, 2002.


                                       130






<PAGE>




                       ASHANTI GOLDFIELDS COMPANY LIMITED
                          INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders of Ashanti Goldfields Company
Limited, Accra, Ghana.

We have audited the accompanying consolidated balance sheets of Ashanti
Goldfields Company Limited and its subsidiary undertakings as of December 31,
2002 and 2001, and the related consolidated profit and loss accounts, cash flow
statements, statements of total recognised gains and losses and the
reconciliation of movements in shareholders' funds for each of the three years
in the period ended December 31, 2002. These consolidated financial statements
are the responsibility of the Company's directors. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statements presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of Ashanti Goldfields Company Limited and its
subsidiary undertakings as of December 31, 2002 and 2001, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2002, in conformity with accounting principles generally accepted
in the United Kingdom.

Accounting principles generally accepted in the United Kingdom vary in certain
respects from accounting principles generally accepted in the United States of
America. The application of the latter would have affected the determination of
shareholders' equity at December 31, 2002 and 2001 and the profit/loss
attributable to shareholders for each of the three years in the period ended
December 31, 2002 to the extent summarized in note 32.

Deloitte & Touche
Accra, Ghana

March 5, 2003


                                       F-1






<PAGE>




Profit and Loss Accounts
For the year ended December 31

<TABLE>
<CAPTION>
                                                             2002                            2001
                                                           Interest                       Interest in
                                                  2002     in joint     2002     2001        joint
                                                  Group     venture     Total    Group    venture (1)
                                          Note    US$m     (1) US$m     US$m     US$m        US$m
-----------------------------------------------------------------------------------------------------
<S>                                        <C>   <C>        <C>        <C>      <C>         <C>
Revenue                                     2     467.5      84.7       552.2    477.7       76.7
-----------------------------------------------------------------------------------------------------
Operating costs                                  (275.9)    (47.2)     (323.1)  (276.3)     (38.9)
Other costs                                       (26.8)     (4.8)      (31.6)   (31.7)      (2.8)
Royalties                                         (11.9)     (2.7)      (14.6)   (10.8)      (2.2)
Depreciation and amortization               5     (75.1)    (13.3)      (88.4)   (82.3)     (12.6)
Exceptional operating costs                 3     (23.5)     (8.8)      (32.3)      --         --
-----------------------------------------------------------------------------------------------------
Total costs                                      (413.2)    (76.8)     (490.0)  (401.1)     (56.5)
Other income                                4      12.1        --        12.1       --         --
-----------------------------------------------------------------------------------------------------
Operating profit/(loss)                     5      66.4       7.9        74.3     76.6       20.2
Net profit on sale of businesses            6                              --
-----------------------------------------------------------------------------------------------------
Profit/(loss) on ordinary activities
   before interest                                                       74.3
Net interest payable - group                8                           (17.5)
                     - joint venture        8                            (5.1)
-----------------------------------------------------------------------------------------------------
Profit/(loss) on ordinary activities
   before taxation                                                       51.7
Taxation - group                            9                            (3.0)
         - joint venture                    9                             6.7
-----------------------------------------------------------------------------------------------------
Profit/(loss) on ordinary activities
   after taxation                                                        55.4
Equity minority interests                                                 0.8
-----------------------------------------------------------------------------------------------------
Profit/(loss) attributable to
   shareholders                                                          56.2
-----------------------------------------------------------------------------------------------------
Retained profit/(loss) for the year        24                            56.2
-----------------------------------------------------------------------------------------------------
Earnings/(loss) per share (US$)            11                            0.47
Diluted earnings/(loss) per share (US$)    11                            0.44
=====================================================================================================

<CAPTION>
                                               2001
                                              Total           2000
                                          Restated (2)    Restated (2)
                                               US$m           US$m
-----------------------------------------------------------------------
<S>                                          <C>             <C>
-----------------------------------------------------------------------
Revenue                                       554.4           582.2
-----------------------------------------------------------------------
Operating costs                              (315.2)         (324.3)
Other costs                                   (34.5)          (40.3)
Royalties                                     (13.0)          (13.7)
Depreciation and amortization                 (94.9)         (114.8)
Exceptional operating costs                      --          (215.2)
-----------------------------------------------------------------------
Total costs                                  (457.6)         (708.3)
Other income                                     --              --
-----------------------------------------------------------------------
Operating profit/(loss)                        96.8          (126.1)
Net profit on sale of businesses                 --            46.6
-----------------------------------------------------------------------
Profit/(loss) on ordinary activities
   before interest                             96.8           (79.5)
Net interest payable - group                  (21.6)          (51.3)
                     - joint venture           (7.8)             --
-----------------------------------------------------------------------
Profit/(loss) on ordinary activities
   before taxation                             67.4          (130.8)
Taxation - group                               (9.6)           12.8
         - joint venture                         --              --
-----------------------------------------------------------------------
Profit/(loss) on ordinary activities
   after taxation                              57.8          (118.0)
Equity minority interests                       2.1            (1.5)
-----------------------------------------------------------------------
Profit/(loss) attributable to
   shareholders                                59.9          (119.5)
-----------------------------------------------------------------------
Retained profit/(loss) for the year            59.9          (119.5)
-----------------------------------------------------------------------
Earnings/(loss) per share (US$)                0.53           (1.06)
Diluted earnings/(loss) per share (US$)        0.52           (1.52)
=======================================================================
</TABLE>

(1)  The separate presentation of interest in joint venture for 2002 and 2001 is
     provided in accordance with Financial Reporting Standard ("FRS") No. 9,
     Associates and joint ventures. There were no interests requiring such
     presentation in 2000.

(2)  The profit and loss account for the years ended December 31, 2001 and 2000
     have been restated for the adoption of FRS No. 19, Deferred tax ("FRS 19")
     (see note 29).

                      See notes to the financial statements


                                       F-2






<PAGE>




Balance Sheets
As at December 31

<TABLE>
<CAPTION>
                                                                               2001
                                                                     2002    Restated*
                                                             Note    US$m      US$m
--------------------------------------------------------------------------------------
<S>                                                           <C>   <C>       <C>
Fixed assets
Intangible assets                                             12      17.3      18.8
Tangible fixed assets                                         13     602.7     612.9
Investments - Geita joint venture                             14      91.2      81.7
                                                                    ------------------
            - Share of gross assets and goodwill                     205.1     190.2
            - Share of gross liabilities                            (113.9)   (108.5)
                                                                    ------------------
            - Loans to joint venture and other investments    14      32.6      32.6
--------------------------------------------------------------------------------------
                                                                     743.8     746.0
--------------------------------------------------------------------------------------
Current assets
Stocks                                                        15      76.6      73.5
Debtors due within one year                                   16      14.0      23.0
Debtors due after more than one year                          16       8.8        --
Cash and liquid resources                                     17      41.3      55.2
--------------------------------------------------------------------------------------
                                                                     140.7     151.7
--------------------------------------------------------------------------------------
Creditors: amounts falling due within one year
Creditors                                                     18    (131.1)   (155.0)
Borrowings                                                    19      (2.7)    (25.3)
--------------------------------------------------------------------------------------
                                                                    (133.8)   (180.3)
--------------------------------------------------------------------------------------
Net current assets/(liabilities)                                       6.9     (28.6)

Total assets less current liabilities                                750.7     717.4

Creditors: amounts falling due after more than one year
Creditors                                                     18     (24.0)    (49.8)
Borrowings                                                    19    (254.2)   (300.6)

Provision for liabilities and charges                         21     (25.0)    (17.9)
--------------------------------------------------------------------------------------
                                                                     447.5     349.1
======================================================================================
Capital and reserves
Stated capital                                                22     588.2     545.2
Reserves                                                      24    (141.9)   (198.1)
--------------------------------------------------------------------------------------
Equity shareholders' funds                                           446.3     347.1
Equity minority interests                                              1.2       2.0
--------------------------------------------------------------------------------------
                                                                     447.5     349.1
======================================================================================
</TABLE>

*    The Group balance sheet as at December 31, 2001 has been restated for the
     adoption of FRS 19 (see note 29).

                      See notes to the financial statements


                                       F-3






<PAGE>




Cash Flow Statements
For the year ended December 31

<TABLE>
<CAPTION>
                                                                  2002     2001     2000
                                                          Note    US$m     US$m     US$m
-----------------------------------------------------------------------------------------
<S>                                                        <C>   <C>      <C>      <C>
Cash flow from operating activities                        26      95.2     95.4    149.4
-----------------------------------------------------------------------------------------
Returns on investments and servicing of finance
Interest received                                                   0.8      2.0      4.7
Interest paid                                                     (19.6)   (24.4)   (61.1)
-----------------------------------------------------------------------------------------
Net cash outflow from returns on investments
   and servicing of finance                                       (18.8)   (22.4)   (56.4)
-----------------------------------------------------------------------------------------
Taxation
Tax paid                                                           (2.0)    (2.9)    (5.8)
-----------------------------------------------------------------------------------------
Capital expenditure and financial investment
Purchase of tangible fixed assets                                 (64.5)   (49.6)  (145.6)
Sale of tangible fixed assets                                        --       --      0.9
Purchase of investments                                              --       --     (1.5)
-----------------------------------------------------------------------------------------
Net cash outflow from capital expenditure
   and financial investment                                       (64.5)   (49.6)  (146.2)
Acquisitions                                               25        --       --     (0.5)
Disposals                                                  25        --       --    230.8
-----------------------------------------------------------------------------------------
Cash inflow before use of liquid
   resources and financing                                          9.9     20.5    171.3
Management of liquid resources                                      6.0      9.7     13.3
-----------------------------------------------------------------------------------------
Cash inflow before financing                                       15.9     30.2    184.6
Financing
Issue of ordinary shares                                           41.8       --       --
Decrease in debt                                                  (61.0)   (40.6)  (186.3)
-----------------------------------------------------------------------------------------
Net cash outflow from financing                                   (19.2)   (40.6)  (186.3)
-----------------------------------------------------------------------------------------
Decrease in cash                                                   (3.3)   (10.4)    (1.7)
=========================================================================================

Reconciliation of net cash flow to movement in net debt
Decrease in cash                                                   (3.3)   (10.4)    (1.7)
Decrease in liquid resources                                       (6.0)    (9.7)   (13.3)
-----------------------------------------------------------------------------------------
                                                                   (9.3)   (20.1)   (15.0)
Cash outflow from decrease in debt                                 61.0     40.6    186.3
Other non-cash movements                                   28       3.4      0.9     29.5
-----------------------------------------------------------------------------------------
Movement in net debt                                               55.1     21.4    200.8
Net debt at January 1                                            (270.7)  (292.1)  (492.9)
-----------------------------------------------------------------------------------------
Net debt at December 31                                    28    (215.6)  (270.7)  (292.1)
=========================================================================================
</TABLE>

                      See notes to the financial statements


                                       F-4






<PAGE>




Statements of Total Recognised Gains and Losses
For the year ended December 31

<TABLE>
<CAPTION>
                                                                      2001        2000
                                                             2002   Restated*   Restated*
                                                             US$m     US$m        US$m
-----------------------------------------------------------------------------------------
<S>                                                          <C>      <C>        <C>
Profit/(loss) for the financial year - group                 46.7     47.5       (119.5)
                                     - joint venture          9.5     12.4           --
-----------------------------------------------------------------------------------------
Total recognised gains and losses related to the year        56.2     59.9       (119.5)
                                                                      ===================
Prior year adjustment (see note 29)                           8.8
------------------------------------------------------------------
Total recognised gains and losses since last annual report   65.0
==================================================================
</TABLE>

Reconciliations of Movements in Shareholders' Funds
For the year ended December 31

<TABLE>
<CAPTION>
                                                             2001        2000
                                                   2002    Restated*   Restated*
                                                   US$m      US$m        US$m
--------------------------------------------------------------------------------
<S>                                                <C>       <C>        <C>
Retained profit/(loss) for the year                 56.2      59.9      (119.5)
New share capital issued                            43.0       0.9          --
Goodwill written back on disposal                     --        --        24.6
--------------------------------------------------------------------------------
Net additions to shareholders' funds                99.2      60.8       (94.9)
--------------------------------------------------------------------------------
Opening shareholders' funds as previously stated   338.3     274.7       391.2
Prior year adjustment (see note 29)                  8.8      11.6       (10.0)
--------------------------------------------------------------------------------
Opening shareholders' funds as restated            347.1     286.3       381.2
--------------------------------------------------------------------------------
Closing shareholders' funds                        446.3     347.1       286.3
================================================================================
</TABLE>

* The Statement of Total Recognised Gains and Losses and the Reconciliation of
Movements in Shareholders' Funds for the years ended December 31, 2001 and 2000
have been restated for the adoption of FRS 19 (see note 29).

                      See notes to the financial statements


                                      F-5






<PAGE>




1.   Summary of significant accounting policies

     The principal accounting policies adopted by Ashanti Goldfields Company
     Limited ('Ashanti') and its subsidiaries (collectively the 'Company' or
     'Group') used in the preparation of these financial statements are set out
     below. The accounting policies used in preparing the financial statements
     are consistent with those used by the Company in its financial statements
     for the periods ended December 31, 2001 and 2000 except for deferred tax
     following the implementation of FRS 19.

     Basis of accounting

     The financial statements have been prepared under the historical cost
     convention and in accordance with accounting principles generally accepted
     in the United Kingdom ("UK GAAP").

     Basis of consolidation

     The Company's financial statements comprise a consolidation of the results,
     assets and liabilities of Ashanti and its subsidiary undertakings and joint
     ventures. The results and cash flows of subsidiaries acquired or disposed
     of in the year are included in the consolidated profit and loss account and
     the consolidated cash flow statement from the date of acquisition or up to
     the date of disposal.

     Goodwill

     Goodwill arising from the purchase of subsidiary undertakings and interests
     in joint ventures represents the excess of the fair value of the purchase
     consideration over the fair value of the net assets acquired, in accordance
     with FRS No. 10, Goodwill and intangible assets ("FRS 10"). Goodwill is
     capitalized and amortized over the life of the underlying mine assets.
     Prior to January 1, 1998, goodwill was charged to reserves in the year of
     acquisition.

     On the subsequent disposal or termination of a previously acquired
     business, the profit or loss on disposal or termination is calculated after
     charging or crediting the amount of any goodwill previously charged to
     reserves or capitalised and not yet charged to the profit and loss account.

     Joint ventures

     A joint venture is an entity in which the Company holds a long-term
     interest and which is jointly controlled by the Company and one or more
     ventures under a contractual arrangement. The results of joint ventures are
     accounted for using the gross equity method of accounting.

     Transactions in other currencies

     Transactions denominated in currencies other than US dollars are translated
     at the rates ruling at the dates of the transactions. Monetary assets and
     liabilities denominated in currencies other than the US dollar are
     remeasured at the rates of exchange ruling at the year end. All
     remeasurement differences are taken to the profit and loss account.

     Revenue recognition

     Sale of bullion is recognized when dore is produced in the gold room. The
     proceeds from sales of bullion produced prior to the year end but which
     have not been received are included as 'gold in transit' within cash
     balances.

     Exploration costs

     Exploration costs incurred prior to the establishment of a commercially
     minable deposit are charged against profits.

     Tangible fixed assets

     Tangible fixed assets are recorded at cost less accumulated depreciation,
     which includes provision for impairment. Repairs and maintenance
     expenditures are charged against profits as incurred. Major improvements
     and replacements that extend the useful life of an asset are capitalized.

     Once it has been established that a commercially minable deposit exists,
     mine development costs, including interest costs, are capitalized as
     tangible fixed assets. Mine development costs consist of those expenditures
     necessary to gain access to ore bodies prior to production and to extend
     production in an existing ore body, including costs of removing overburden,
     constructing underground shaft stations, and extending tunnels.

     Tangible fixed assets are depreciated as follows:

     Development costs, plant and equipment and processing plants are
     depreciated over the life of the mine using the unit of production method,
     or on a straight-line basis over their estimated useful lives if shorter.
     Under the unit of production method, the Company estimates the amortization
     rate based on actual production over total proven and probable reserves.
     For mining operations with both underground and surface mining,
     amortization rates are calculated separately for the respective assets.
     This rate is then applied to actual costs incurred to arrive at the
     amortization expense for the period.


                                      F-6






<PAGE>




     Buildings are depreciated on a straight-line basis. Following are the
     estimated useful lives of assets that are depreciated using the
     straight-line basis:

<TABLE>
<S>                                  <C>
     Externally purchased software          3 years
     Vehicles                               5 years
     Plant and equipment              5 to 15 years
     Buildings                       up to 30 years
</TABLE>

     Estimated useful lives are reviewed on an annual basis in conjunction with
     the life-of-mine plan. Tangible fixed assets are reviewed for impairment if
     events or changes in circumstances indicate that the carrying amount may
     not be recoverable. At such time, in accordance with FRS No. 11, Impairment
     of fixed assets and goodwill, ("FRS 11") the recoverable amount, that is
     the value in use of the asset or its disposal value, if higher, is compared
     to the carrying value of the income generating unit and an impairment
     charge is recorded if necessary. The Company considers hedging gains and
     losses in calculating the net present value of expected future cash flows
     for mines, unless there are any mine-specific issues that render such
     allocation unreasonable and unsupportable.

     Stocks

     Stocks are valued at the lower of cost and net realizable value (which
     includes an appropriate proportion of production overheads).

     Costs are assigned to stocks on hand by the method most appropriate to each
     class of stock with the majority being valued on an average cost basis.
     Costs of production include fixed and variable direct costs and an
     appropriate portion of fixed overhead expenditure.

     Interest and finance costs

     Interest is capitalized in respect of mine developments as part of tangible
     fixed assets from the time that it has been determined that a commercially
     minable deposit exists up to the commencement of production. All other
     interest costs are charged against profits as incurred.

     Front-end fees, commitment fees and other costs associated with the initial
     loan are deferred and amortized over the life of the loan to give a
     constant rate of return on the outstanding loan balance.

     Derivative financial instruments

     The Company uses derivative instruments to hedge its exposures to
     fluctuations in gold prices. In order to protect against the impact of
     falling gold prices, the Company enters into hedging transactions which
     provide a minimum price for production and allow the Company to take
     advantage of increases in gold prices. Instruments are accounted for as a
     hedge when they have been entered into to manage gold prices and are within
     limits established by the Board of Directors.

     Hedging transactions are used as part of the Company's protection and
     commitment programme. Protected ounces represent future sales of gold for
     which the future price of gold has been fixed. Committed ounces represent
     future obligations of the Company to deliver gold at an agreed upon maximum
     price.

     Receipts and payments on interest rate instruments are recognized on an
     accruals basis over the life of the instrument. Gains or losses on other
     hedging contracts, including premiums receivable and payable on options are
     recognized in the profit and loss account as designated production is
     delivered. In the case of earlier settlement of hedge contracts, gains or
     losses are deferred and brought into income at the originally designated
     delivery date.

     Deferred taxation

     Following the adoption of FRS 19, the Company provides for deferred tax
     assets and liabilities arising from timing differences between the
     recognition of gains and losses in the financial statements and their
     recognition for tax purposes. Deferred tax assets are recognised only to
     the extent that it is more likely than not they will be recovered. Deferred
     tax assets and liabilities are not discounted.

     Environmental and site restoration obligations

     The expected costs of any committed decommissioning or other site
     restoration programs incurred during the construction phase, discounted at
     the weighted average cost of capital, are provided for and capitalized at
     the beginning of each project and amortized over the life of the mine using
     the units of production method. Additional provisions are recorded during
     the production phase as environmental liabilities arise with a
     corresponding charge to operating results. Such costs are estimated based
     on studies performed by independent environmental specialists and represent
     management's best current estimate of amounts that are expected to be
     incurred when the remediation work is performed within current laws and
     regulations or the terms of respective mining licenses.


                                      F-7






<PAGE>




     Pre-stripping and stripping costs

     Pre-stripping costs are the costs of removing overburden to expose ore
     after it has been determined that a commercially minable deposit exists,
     prior to the commencement of production. These costs are capitalized as
     tangible fixed assets and, upon commencement of production, depreciated
     using the unit of production method based on proved and probable reserves.

     Stripping costs are costs associated with the removal of waste materials
     after gold production has commenced. Over the life of the mine, stripping
     costs are deferred when the actual stripping ratio is above the average and
     then charged to operations when the actual stripping ratio falls below the
     average. This policy results in the smoothing of mine production costs over
     the life of the mine, which is a practice unique to the mining industry.
     The full amount of deferred stripping costs may not be expensed until the
     end of the mine.

     Stripping costs are assessed for recoverability on an annual basis based on
     current factors surrounding the mine and adjustments made to the life of
     mine plan. If the recoverable value has fallen below cost, the asset is
     written down to its recoverable value. If the actual stripping ratio falls
     below the average stripping ratio, a deferred liability is recorded.

     Leases

     Assets held under finance leases and hire purchase contracts are
     capitalized at their fair value on the inception of the leases and
     depreciated over the shorter of the period of the lease and the estimated
     useful economic lives of the assets. The finance charges are allocated over
     the period of the lease in proportion to the capital amount outstanding and
     are charged to the profit and loss account.

     Operating lease rentals are charged to the profit and loss account in equal
     annual amounts over the lease term.

2.   Revenue

<TABLE>
<CAPTION>
                                                           2002    2001    2000
                                                           US$m    US$m    US$m
     --------------------------------------------------------------------------
<S>                                                       <C>     <C>     <C>
     Group
     Bullion revenue                                      416.3   381.7   485.2
     Cash realized on maturing hedging contracts           16.9    39.0    54.4
     Deferred hedging income                               34.3    57.0    42.6
     --------------------------------------------------------------------------
                                                          467.5   477.7   582.2

     Joint venture
     Bullion revenue                                       90.1    74.1      --
     Cash (paid)/realized on maturing hedging contracts    (5.4)    2.6      --
     --------------------------------------------------------------------------
                                                           84.7    76.7      --
     --------------------------------------------------------------------------
                                                          552.2   554.4   582.2
     ==========================================================================
</TABLE>

a.   During the three-year period ending December 31, 2002 the only loss
     recognized in the profit and loss account with respect to hedging
     transactions was a US$14.7 million loss that was incurred in 2000. This
     loss is included within exceptional operating costs and is disclosed in
     Note 3.


                                      F-8






<PAGE>




3.   Exceptional operating costs

<TABLE>
<CAPTION>
                                                             2002   2001   2000
                                                             US$m   US$m   US$m
     ---------------------------------------------------------------------------
<S>                                                          <C>     <C>   <C>
     Obuasi (note a.)
        Redundancy costs                                       --    --      3.0
        Pension costs                                          --    --      4.0
     ---------------------------------------------------------------------------
                                                               --    --      7.0
     Head Office
        Refinancing and restructuring costs (note b.)        23.5    --       --
        Hedge close out (note d.)                              --    --     14.7
     Joint venture
        Share of operating loss of joint venture (note c.)    8.8    --       --
     ---------------------------------------------------------------------------
                                                             32.3    --     21.7
     Tangible fixed assets impairment (note e.)                --    --    193.5
     ---------------------------------------------------------------------------
                                                             32.3    --    215.2
     ===========================================================================
</TABLE>

a.   In conjunction with a review of the life of mine plan at the Obuasi mine, a
     provision was made for redundancy costs of US$17.0 million in 1999 and a
     further US$3.0 million was made in 2000 as a result of the decision to
     close the surface mining operations, certain treatment plants, and certain
     low capacity shafts at the Obuasi mine. Such provision relates to
     redundancies announced in the second and fourth quarters of 1999 of 2,855
     employees plus further rationalization.

     A provision of US$5.0 million in 1999 and a further provision of US$4.0
     million was made in 2000 for the total remaining liability of the Life
     Pension, a defined benefit scheme (the "Scheme"). Prior to these dates, the
     Scheme was accounted for on a cash basis. In 1999, the provision was
     calculated based on the Ghanaian Currency liability existing at that time.
     In 2000, the Scheme liability was re-estimated. The increase in the Scheme
     liability in 2000 reflects the reintroduction of the US dollar indexing.
     The Scheme was closed to new entrants prior to the periods reported in
     these financial statements.

b.   Costs incurred in refinancing the Company's debt during 2002, including
     fees paid to financial advisers, legal fees and fees relating to the
     extinguishment of the Company's previous revolving credit facility.

c.   As provided for in the sale and purchase agreement entered into in 2000 in
     respect of the Geita mine, AngloGold transferred the neighbouring Ridge 8
     property to Geita during the year. The consideration of US$17.6 million
     will be left outstanding until the project finance loans are fully repaid
     by Geita. AngloGold has transferred to Ashanti for no consideration, its
     50% share of the receivable which resulted in a gain of US$8.8 million (see
     note 4). In line with Ashanti's accounting policy on exploration costs, the
     cost of this property has been expensed (Ashanti's share US$8.8 million).

d.   In October 2000 Ashanti agreed as part of its negotiations with its banks
     and hedge counterparties during the period leading up to the Geita sale to
     close out certain hedge positions resulting in an exceptional loss of
     US$14.7 million. US$6.9 million of the loss was settled from the proceeds
     of the Geita sale and US$7.8 million was rolled up into the Revolving
     Credit Facility.

e.   A review of the carrying value of fixed assets of the Company was carried
     out under FRS 11 by comparing future projected cash flows, discounted at
     9.3%, with net asset value. The discount rate used of 9.3% is the Company's
     weighted average cost of capital and represents the Company's estimate of
     the rate that the market would expect on an investment of comparable risk.
     This resulted in an exceptional charge in 2000 of US$193.5 million,
     comprising US$150.0 million at Obuasi, US$35.0 million at Freda-Rebecca and
     US$8.5 million at Kimin.

4.   Other income

<TABLE>
<CAPTION>
                                                                                2002   2001   2000
                                                                                US$m   US$m   US$m
     ---------------------------------------------------------------------------------------------
<S>                                                                             <C>     <C>    <C>
     Head Office
        Exceptional gain arising on transfer of receivable from AngloGold for
           no consideration (see note 3c.)                                       8.8    --     --

        Additional consideration received in respect of the Golden Pride
           mine sold in 1999                                                     3.3    --     --
     ---------------------------------------------------------------------------------------------
                                                                                12.1    --     --
     =============================================================================================
</TABLE>


                                      F-9






<PAGE>




5.   Operating profit analysis by business area

     12 months to December 31, 2002

<TABLE>
<CAPTION>
                                                                          Freda-   Hedging
                                Obuasi   Iduapriem   Bibiani   Siguiri   Rebecca    Income
------------------------------------------------------------------------------------------
<S>                             <C>        <C>        <C>       <C>       <C>        <C>
US$ million
Revenue                          167.8      57.8       76.1      83.9      30.7      51.2
Operating costs                 (106.9)    (43.9)     (43.9)    (66.7)    (21.0)       --
Royalties                         (5.0)     (1.7)      (2.3)     (2.9)       --        --
Other income                        --        --         --        --        --        --
------------------------------------------------------------------------------------------
Operating cash flow               55.9      12.2       29.9      14.3       9.7      51.2
Depreciation and amortisation    (33.0)     (7.6)     (11.7)    (17.7)     (3.7)       --
Exceptional operating costs         --        --         --        --        --        --
------------------------------------------------------------------------------------------
Operating profit/(loss)           22.9       4.6       18.2      (3.4)      6.0      51.2
==========================================================================================

<CAPTION>
                                Explor-   Corp.             Geita
                                 ation    Admin.    Group   (50%)    Total
--------------------------------------------------------------------------
<S>                              <C>      <C>      <C>      <C>     <C>
US$ million
Revenue                            --        --     467.5    84.7    552.2
Operating costs                  (3.8)    (16.5)   (302.7)  (52.0)  (354.7)
Royalties                          --        --     (11.9)   (2.7)   (14.6)
Other income                       --      12.1      12.1      --     12.1
--------------------------------------------------------------------------
Operating cash flow              (3.8)     (4.4)    165.0    30.0    195.0
Depreciation and amortisation    (0.1)     (1.3)    (75.1)  (13.3)   (88.4)
Exceptional operating costs        --     (23.5)    (23.5)   (8.8)   (32.3)
--------------------------------------------------------------------------
Operating profit/(loss)          (3.9)    (29.2)     66.4     7.9     74.3
==========================================================================
</TABLE>

     12 months to December 31, 2001

<TABLE>
<CAPTION>
                                              Idua-                        Freda-
                          Obuasi   Ayanfuri   priem   Bibiani   Siguiri   Rebecca
---------------------------------------------------------------------------------
<S>                       <C>        <C>      <C>      <C>       <C>       <C>
US$ million
Revenue                    143.5      3.1      55.8     68.7      76.6      34.0
Operating costs           (101.4)    (3.8)    (44.8)   (45.3)    (62.2)    (22.8)
Royalties                   (4.3)    (0.1)     (1.7)    (2.1)     (2.6)       --
---------------------------------------------------------------------------------
Operating cash flow         37.8     (0.8)      9.3     21.3      11.8      11.2
Depreciation and
   amortization            (37.5)    (0.5)     (4.9)   (13.8)    (18.6)     (3.9)
---------------------------------------------------------------------------------
Operating profit/(loss)      0.3     (1.3)      4.4      7.5      (6.8)      7.3
=================================================================================

<CAPTION>
                          Hedging   Explor-   Corp.             Geita
                           income    ation    admin.    Group   (50%)   Total
------------------------------------------------------------------------------
<S>                         <C>       <C>     <C>      <C>      <C>     <C>
US$ million
Revenue                     96.0        --       --     477.7    76.7    554.4
Operating costs               --      (6.5)   (21.2)   (308.0)  (41.7)  (349.7)
Royalties                     --        --       --     (10.8)   (2.2)   (13.0)
------------------------------------------------------------------------------
Operating cash flow         96.0      (6.5)   (21.2)    158.9    32.8    191.7
Depreciation and
   amortization               --      (1.9)    (1.2)    (82.3)  (12.6)   (94.9)
------------------------------------------------------------------------------
Operating profit/(loss)     96.0      (8.4)   (22.4)     76.6    20.2     96.8
==============================================================================
</TABLE>

     12 months to December 31, 2000

<TABLE>
<CAPTION>
                                                         Idua-                       Freda-
                                     Obuasi   Ayanfuri   priem   Bibiani   Siguiri   Rebecca
--------------------------------------------------------------------------------------------
<S>                                  <C>        <C>      <C>      <C>       <C>       <C>
US$ million
Revenue                               179.5     10.1      53.9     76.6      85.2      31.3
Operating costs                      (133.5)    (8.9)    (43.2)   (36.8)    (54.8)    (22.2)
Royalties                              (5.4)    (0.3)     (1.4)    (2.3)     (2.9)       --
--------------------------------------------------------------------------------------------
Operating cash flow                    40.6      0.9       9.3     37.5      27.5       9.1
Depreciation and amortization         (45.6)    (4.8)     (3.2)   (15.6)    (19.8)    (11.7)
Exceptional operating costs
- Redundancy and pension costs         (7.0)      --        --       --        --        --
- Hedge close out                        --       --        --       --        --        --
- Tangible fixed assets impairment   (150.0)      --        --       --        --     (35.0)
--------------------------------------------------------------------------------------------
Operating(loss)/profit               (162.0)    (3.9)      6.1     21.9       7.7     (37.6)
============================================================================================

<CAPTION>
                                     Geita    Hedging   Explor-   Corp.
                                     (100%)   income     ation    admin.   Total
---------------------------------------------------------------------------------
<S>                                  <C>       <C>       <C>      <C>      <C>
US$ million
Revenue                               48.6      97.0        --       --     582.2
Operating costs                      (25.7)       --     (14.2)   (25.3)   (364.6)
Royalties                             (1.4)       --        --       --     (13.7)
---------------------------------------------------------------------------------
Operating cash flow                   21.5      97.0     (14.2)   (25.3)    203.9
Depreciation and amortization        (11.6)       --      (0.4)    (2.1)   (114.8)
Exceptional operating costs
- Redundancy and pension costs          --        --        --       --      (7.0)
- Hedge close out                       --     (14.7)       --       --     (14.7)
- Tangible fixed assets impairment      --      (8.5)       --       --    (193.5)
---------------------------------------------------------------------------------
Operating(loss)/profit                 9.9      82.3     (23.1)   (27.4)   (126.1)
=================================================================================
</TABLE>


                                      F-10






<PAGE>




6.   Net profit on sale of businesses

<TABLE>
<CAPTION>
                                                                     2002   2001   2000
                                                                     US$m   US$m   US$m
     ----------------------------------------------------------------------------------
<S>                                                                   <C>    <C>   <C>
     Profit on disposal of 50% interest in Cluff Resources Limited
        ("Cluff') to AngloGold                                        --     --    51.2
     Loss on disposal of 50% interest in Carmeuse Lime Products
        (Ghana) Ltd to Carmeuse SA                                    --     --    (4.6)
     ----------------------------------------------------------------------------------
                                                                      --     --    46.6
     ==================================================================================
</TABLE>

     The cash effect of the disposal of 50% in Cluff is given in note 25.

7.   Employees

<TABLE>
<CAPTION>
                                                                       2002     2001     2000
                                                                        No.      No.      No.
     -----------------------------------------------------------------------------------------
<S>                                                                    <C>     <C>      <C>
     The average number of employees during the year was as follows:
     Underground mining                                                4,602    4,777    4,854
     Surface mining                                                      447      543      859
     Processing                                                        1,978    1,896    1,706
     Administration                                                    2,914    2,973    3,010
     -----------------------------------------------------------------------------------------
                                                                       9,941   10,189   10,429
     =========================================================================================
</TABLE>

     Remuneration paid to directors of Ashanti (excluding amounts paid to Lonmin
     Plc in respect of Technical Services and the services of Mr S E Jonah)
     amounted to US$2.9 million (2001: US$2.5 million; 2000: US$3.3 million).
     The amount, for 2000, includes a one-time payment of US$1.0 million to a
     director who left the Company during 2000.

8.   Net interest payable

<TABLE>
<CAPTION>
                                                              2002   2001   2000
                                                              US$m   US$m   US$m
     ---------------------------------------------------------------------------
<S>                                                           <C>    <C>    <C>
     Interest payable on Exchangeable Notes                    6.3   12.0   12.0
     Interest payable on Enlarged Revolving Credit Facility    2.9     --     --
     Interest payable on Revolving Credit Facility             3.3    8.0   29.0
     Interest payable on other loans                           6.8    7.0   19.4
     ---------------------------------------------------------------------------
                                                              19.3   27.0   60.4
     Interest capitalized                                       --     --   (4.4)
     ---------------------------------------------------------------------------
                                                              19.3   27.0   56.0
     Interest receivable                                      (1.8)  (5.4)  (4.7)
     ---------------------------------------------------------------------------
                                                              17.5   21.6   51.3
     Share of interest payable by joint venture                5.1    7.8     --
     ---------------------------------------------------------------------------
                                                              22.6   29.4   51.3
     ===========================================================================
</TABLE>


                                      F-11






<PAGE>




9.   Taxation

<TABLE>
<CAPTION>
                                                             2001       2000
                                                    2002   Restated   Restated
                                                    US$m     US$m       US$m
     -------------------------------------------------------------------------
<S>                                                 <C>      <C>        <C>
     Corporate tax - Current year - group            0.2      6.6         0.5
                                  - joint venture    0.1       --          --
                   - Prior years  - group           (8.5)     8.2         4.5
                                  - joint venture    0.2       --          --
     Deferred tax - group                           11.3     (5.2)      (20.8)
                  - joint venture                   (7.0)      --          --
     Tax on profit on disposal of Geita               --       --         3.0
     -------------------------------------------------------------------------
     Tax (credit)/charge for the year               (3.7)     9.6       (12.8)
     =========================================================================
</TABLE>

     Deferred tax assets are recognized to the extent that it is considered more
     likely than not that there will be suitable taxable profits from which the
     future reversal of the underlying timing differences can be deducted. In
     certain circumstances where it is expected to take some time for tax losses
     to be relieved, it may not be appropriate to recognize the deferred tax
     assets at all. The total amount of deferred tax assets in respect of tax
     losses not recognised as at December 31, 2002 amounted to US$46.1 million
     (2001: US$60.1 million, 2000: US$60.4 million).

     No deferred tax is recognised on the unremitted earnings of overseas
     subsidiaries and joint ventures.

     Reconciliation of total corporate tax

     The standard rate of tax for the year, based on the Ghanaian tax rate for
     listed companies is 30% for 2002 and 2001 and 35% for 2000. The difference
     from the standard corporate tax charge and the total actual current
     corporate tax charge is set out in the following reconciliation.

<TABLE>
<CAPTION>
                                                                          2002    2001    2000
                                                                          US$m    US$m    US$m
     ------------------------------------------------------------------------------------------
<S>                                                                      <C>     <C>     <C>
     Profit/(loss) on ordinary activities before tax                      51.7    67.4   (130.8)
     Tax on profit/(loss) on ordinary activities at standard rate         15.5    20.3    (45.8)
     ------------------------------------------------------------------------------------------
     Factors affecting charge for the period
     Capital allowances for the period in excess of depreciation          (1.9)   (1.0)    77.0
     Other short term timing differences                                   0.3     2.5      2.7
     Tax losses (utilised)/not relieved in the period                     (3.7)    6.8      5.9
     Profits arising in foreign jurisdictions with different tax rates   (12.9)  (29.1)   (17.4)
     Group goodwill amortisation                                           1.9     2.2       --
     Capital allowance uplifts                                            (1.0)   (0.1)    (7.7)
     Deferred tax on acquisitions/dividends                                 --      --     (9.8)
     Other permanent differences                                           2.1     5.0     (4.4)
     ------------------------------------------------------------------------------------------
     Total actual current corporate tax                                    0.3     6.6      0.5
     ==========================================================================================
</TABLE>

10.  Dividend

     No dividends were paid or proposed for the years 2002, 2001 and 2000.

11.  Earnings per share

     The calculation of earnings per share is based on earnings after tax and
     minority interests and the weighted average number of shares outstanding
     during the year (after deducting treasury shares which do not qualify for
     dividends) of 119.1 million (2001: 112.1 million, 2000: 112.4 million).

     Diluted earnings per share is calculated by adjusting the weighted average
     number of ordinary shares in issue on the assumption of conversion of all
     dilutive potential ordinary shares. The Company has three categories of
     dilutive potential ordinary shares being, warrants (under the agreement
     with the Company's hedge counterparties), share options (under the Senior
     Management Share Option Scheme) where the exercise price is more than the
     average price of Ashanti's ordinary shares during each of the reporting
     periods, and shares issued free of charge to senior management, pursuant to
     the employee share incentive plans, provided certain criteria are met.


                                      F-12






<PAGE>




<TABLE>
<CAPTION>
                                                                         2002    2001    2000
                                                                         US$m    US$m    US$m
     -----------------------------------------------------------------------------------------
<S>                                                                     <C>     <C>     <C>
     Basic and diluted earnings attributable to ordinary shareholders    56.2    59.9   (119.5)

     Weighted average number of ordinary shares (millions)              119.1   112.1    112.4
     Dilutive share options (millions)                                    5.3     0.8    (31.1)
     Dilutive warrants (millions)                                         1.6     0.8     (2.8)
     Dilutive employee share plans (millions)                             0.6     0.5       --
     -----------------------------------------------------------------------------------------
     Adjusted weighted average number of ordinary shares (millions)     126.6   114.2     78.5
     -----------------------------------------------------------------------------------------
     Basic earnings/(loss) per share (US$)                               0.47    0.53    (1.06)
     Diluted earnings/(loss) per share (US$)                             0.44    0.52    (1.52)
     =========================================================================================
</TABLE>

12.  Intangible assets

<TABLE>
<CAPTION>
                                                                        Goodwill
     Cost                                                                 US$m
     ---------------------------------------------------------------------------
<S>                                                                         <C>
     At January 1, 2001 and December 31, 2001                               21.9
     Additions                                                               0.2
     ---------------------------------------------------------------------------
     At December 31, 2002                                                   22.1
     ===========================================================================
     Amortization
     At January 1, 2001                                                      0.4
     Charge for the year                                                     2.7
     ---------------------------------------------------------------------------
     At December 31, 2001                                                    3.1
     Charge for the year                                                     1.7
     ---------------------------------------------------------------------------
     At December 31, 2002                                                    4.8
     ===========================================================================
     Net book value
     At December 31, 2002                                                   17.3
     At December 31, 2001                                                   18.8
     ---------------------------------------------------------------------------
</TABLE>

     The balance as at December 31, 2002 of US$17.3 million is in respect of
     the acquisition of Pioneer Goldfields Company Limited ("Pioneer"). The
     additional goodwill in 2002 relates to additional consideration which has
     become payable in respect of the acquisition of Pioneer Goldfields Limited
     (Teberebie mine) in 2000. Further consideration may become payable in the
     future depending on the gold price level.


                                      F-13






<PAGE>




13.  Tangible fixed assets

<TABLE>
<CAPTION>
                            Mine shafts,
                             development                                          Assets in
                              and pre-     Plant and   Processing               the course of
                             production    equipment     plants     Buildings    construction    Total
                                US$m          US$m        US$m        US$m          US$m          US$m
     --------------------------------------------------------------------------------------------------
<S>                             <C>          <C>          <C>         <C>           <C>         <C>
     Cost
     At January 1, 2001         800.5        529.4        414.3        90.9           8.5       1,843.6
     Additions                   29.8          6.4          0.8         0.2          10.1          47.3
     Disposals                     --         (3.8)        (0.1)         --            --          (3.9)
     Transfers                    6.0          5.9          4.3          --         (16.2)           --
     --------------------------------------------------------------------------------------------------
     At December 31, 2001       836.3        537.9        419.3        91.1           2.4       1,887.0
     ==================================================================================================
     Additions                   29.5         11.1          2.4         0.4          21.1          64.5
     Disposals                   (2.8)        (0.7)          --        (1.4)           --          (4.9)
     Transfers                  (21.5)         2.3         16.0        13.9         (10.7)           --
     --------------------------------------------------------------------------------------------------
     At December 31, 2002       841.5        550.6        437.7       104.0          12.8       1,946.6
     ==================================================================================================
     Depreciation
     At January 1, 2001         569.8        339.3        238.2        50.5            --       1,197.8
     Charges                     23.1         28.2         21.9         6.4            --          79.6
     Disposals                     --         (3.3)          --          --            --          (3.3)
     --------------------------------------------------------------------------------------------------
     At December 31, 2001       592.9        364.2        260.1        56.9            --       1,274.1
     ==================================================================================================
     Charges                     19.0         27.7         20.2         6.5            --          73.4
     Disposals                   (1.9)        (0.7)          --        (1.0)           --          (3.6)
     --------------------------------------------------------------------------------------------------
     At December 31, 2002       610.0        391.2        280.3        62.4            --       1,343.9
     ==================================================================================================
     Net book value
     At December 31, 2002       231.5        159.4        157.4        41.6          12.8         602.7
     At December 31, 2001       243.4        173.7        159.2        34.2           2.4         612.9
     --------------------------------------------------------------------------------------------------
</TABLE>

The net book value of tangible fixed assets includes US$3.5 million (2001:
US$4.1 million) in respect of assets held under finance leases included within
buildings.

<TABLE>
<CAPTION>
     --------------------------------------------------------------------------------------------------
                                                                                     2002          2001
                                                                                     US$m          US$m
     --------------------------------------------------------------------------------------------------
<S>                                                                                  <C>            <C>
     Capital commitments
     Contracts placed but not provided for                                           13.1           2.7
     ==================================================================================================
</TABLE>

14.  Investments

     The Group's investment in joint ventures is in respect of its 50% interest
     in the Geita Mine in Tanzania. This interest is accounted for as a joint
     venture under the gross equity basis of accounting.

<TABLE>
<CAPTION>
                                              Investment in   Loans to joint      Other
                                             joint ventures      ventures      investments   Total
                                                  US$m             US$m           US$m        US$m
     ---------------------------------------------------------------------------------------------
<S>                                               <C>              <C>             <C>       <C>
     At January 1, 2001                           69.3             31.1            1.5       101.9
     Share of retained profit for the year        12.4               --             --        12.4
     ---------------------------------------------------------------------------------------------
     At December 31, 2001                         81.7             31.1            1.5       114.3
     =============================================================================================
     At January 1, 2002                           81.7             31.1            1.5       114.3
     Share of retained profit for the year         9.5               --             --         9.5
     ---------------------------------------------------------------------------------------------
     At December 31, 2002                         91.2             31.1            1.5       123.8
     =============================================================================================
</TABLE>


                                      F-14






<PAGE>




     The Company's share of net assets of joint ventures can be analyzed as
     follows:

<TABLE>
<CAPTION>
                                                                   2002    2001
                                                                   US$m    US$m
     ---------------------------------------------------------------------------
<S>                                                               <C>     <C>
     Goodwill                                                      54.8    59.2
     Share of fixed assets                                        103.5   103.4
     Share of current assets                                       46.8    27.6
     Share of liabilities due within one year                     (30.5)  (23.9)
     Share of liabilities due after more than one year            (83.4)  (84.6)
     ---------------------------------------------------------------------------
     Share of net assets                                           91.2    81.7
     ===========================================================================
</TABLE>

     The principal subsidiary undertakings are:

<TABLE>
<CAPTION>
                                                       Class of          Interest in
     Company and country of incorporation        principal activities    shares held   per cent
     ------------------------------------------------------------------------------------------
<S>                                                   <C>               <C>              <C>
     Ghana
                                                                            Ordinary
     Ashanti Goldfields (Bibiani) Limited             Gold Mining       No par value     100
                                                                            Ordinary
     Ghanaian-Australian Goldfields Limited           Gold Mining       No par value      80
                                                                            Ordinary
     Teberebie Goldfields Limited                     Gold Mining       No par value      90
     ------------------------------------------------------------------------------------------
     Guinea
     Societe Ashanti Goldfields de Guinee S.A.        Gold Mining           Ordinary      85
     ------------------------------------------------------------------------------------------
     Zimbabwe
     Ashanti Goldfields Zimbabwe Limited              Gold Mining           Ordinary     100
     ------------------------------------------------------------------------------------------
     Isle of Man
     Ashanti Treasury Services Limited                   Treasury           Ordinary     100
     Geita Treasury Services Limited                     Treasury           Ordinary     100
     ------------------------------------------------------------------------------------------
     Cayman Islands
     Ashanti Capital Limited                            Financing           Ordinary     100
     Ashanti Finance (Cayman) Limited                   Financing           Ordinary     100
     Ashanti Capital (Second) Limited                   Financing           Ordinary     100
     ==========================================================================================
</TABLE>

15.  Stocks

<TABLE>
<CAPTION>
                                                                    2002   2001
                                                                    US$m   US$m
     ---------------------------------------------------------------------------
<S>                                                                 <C>    <C>
     Mine stores                                                    51.1   52.6
     Ore in stock piles (note a.)                                   20.1   16.2
     Gold in process                                                 5.4    4.7
     ---------------------------------------------------------------------------
                                                                    76.6   73.5
     ===========================================================================
</TABLE>

     a.   Ore is only mined and sent to the stockpile if it is considered that
          the ore will have future economic benefit. This is assessed by
          reviewing the estimated grade of the stockpile, the current spot gold
          price and the estimated costs of processing the stockpile. These
          criteria are used consistently from period to period.


                                      F-15






<PAGE>




16.  Debtors

<TABLE>
<CAPTION>
                                                                          2001
                                                                 2002   Restated
                                                                 US$m     US$m
     ---------------------------------------------------------------------------
<S>                                                              <C>      <C>
     Due within one year:
     Sundry debtors                                              10.3     10.8
     Prepayments                                                  3.7      2.4
     Deferred expenses                                             --      2.9
     Deferred tax                                                  --      6.9
     ---------------------------------------------------------------------------
                                                                 14.0     23.0
     Due after more than one year:
     Sundry debtors                                               8.8       --
     ---------------------------------------------------------------------------
                                                                 22.8     23.0
     ===========================================================================
</TABLE>

     Sundry debtors due after one year of US$8.8 million (2001: nil) is a
     receivable from AngloGold which arose from the transfer of the Ridge 8
     property by AngloGold to the Geita mine. This amount is only due after the
     Geita project finance loans are fully repaid by the Geita mine in 2007.

17.  Cash

<TABLE>
<CAPTION>
                                                                     2002   2001
                                                                     US$m   US$m
     ---------------------------------------------------------------------------
<S>                                                                  <C>    <C>
     Cash at bank and in hand                                        17.1   32.8
     Gold and cash in transit                                        24.2   22.4
     ---------------------------------------------------------------------------
                                                                     41.3   55.2
     ===========================================================================
</TABLE>

     Cash at bank includes nil (2001: US$8.7 million) on deposit with Standard
     Chartered Bank in Ghana as collateral for a loan to Ashanti Goldfields
     Zimbabwe Limited.

18.  Creditors

<TABLE>
<CAPTION>
                                                                    2002    2001
                                                                    US$m    US$m
     ---------------------------------------------------------------------------
<S>                                                                <C>     <C>
     Amounts falling due within one year:
     Trade creditors                                                45.2    40.5
     Deferred purchase consideration (note a.)                       3.0     7.3
     Deferred hedging income (note b.)                              14.7    34.7
     Mining related accruals                                        12.9    10.5
     Accrued interest                                                8.0    10.0
     Taxation                                                        4.4    15.4
     Pensions                                                        7.8     7.9
     Other accruals                                                 35.1    28.7
     ---------------------------------------------------------------------------
                                                                   131.1   155.0
     ===========================================================================
     Amounts falling due over one year:
     Deferred purchase consideration (note a.)                       5.8     8.8
     Deferred hedging income (note b.)                              13.1    30.9
     Other accruals                                                  5.1    10.1
     ---------------------------------------------------------------------------
                                                                    24.0    49.8
     ===========================================================================
</TABLE>

a.   The total deferred purchase consideration at December 31, 2002 of US$8.8
     million is in respect of the acquisition of Teberebie. This is a fixed
     amount payable that is not subject to any form of contingency.

b.   Deferred hedging income arises from the early close-out of hedging
     contracts.


                                      F-16






<PAGE>




19.  Borrowings

<TABLE>
<CAPTION>
                                                     2002       2001
                                                     US$m       US$m
     ---------------------------------------------------------------
<S>                                                 <C>        <C>
     Mandatorily Exchangeable Notes (note a.)        75.0         --
     Enlarged Revolving Credit Facility (note b.)   144.5         --
     Project finance loans (note c.)                 23.4       25.0
     5 1/2% Exchangeable Notes (note d.)               --      217.5
     Revolving Credit Facility                         --       55.0
     Bank loans and overdrafts                        8.2       21.6
     Finance leases                                   3.5        4.1
     Aviation loans                                   2.3        2.7
     ---------------------------------------------------------------
                                                    256.9      325.9
     ---------------------------------------------------------------
     Repayments falling due:
     Between one year and two years                   2.0      267.7
     Between two and five years                     136.3       31.9
     After five years                               115.9        1.0
     ---------------------------------------------------------------
     After more than one year                       254.2      300.6
     Within one year                                  2.7       25.3
     ---------------------------------------------------------------
                                                    256.9      325.9
     ===============================================================
</TABLE>

     a.   On June 28, 2002 the Company issued US$75.0 million of Mandatorily
          Exchangeable Notes ("MENS") which were used in part to repay the
          existing 5 1/2% Exchangeable Notes. MENs are exchangeable into
          Ordinary Shares on either of the following events:

          (i)  automatically on the completion date of the first rights issue
               ("Rights Issue") by the Company undertaken following the date of
               the MENs Deed Poll of June 27, 2002; or

          (ii) Ashanti serving a notice of exchange upon the holders of the MENs
               at any time after the date falling 18 months after the issue of
               the MENs on June 28, 2002.

          The MENs are exchangeable into Ordinary Shares at an exchange price of
          the lower of US$5.40 and the price at which the Company issues
          Ordinary Shares pursuant to the proposed Rights Issue.

          The MENs (if not already exchanged) will be redeemable for cash on the
          earlier of:

          (i)  a takeover offer for the Company, or a scheme of arrangement of
               the Company, becoming effective; or

          (ii) the date of maturity, being June 30, 2008.

          Interest on the MENs is being accrued at the rate of the Enlarged
          Revolving Credit Facility ("Enlarged RCF") but such interest only
          becomes payable if the MENs are redeemed for cash following one of the
          two events above. Any interest accrued will be deemed to be part of
          the consideration upon conversion of the MENs into equity.

     b.   As of December 31, 2002, US$149.0 million was drawn down under the
          US$200 million Enlarged RCF entered into on June 28, 2002. Offset
          against this were deferred loan fees of US$4.5 million which are being
          amortised over the term of the loan (5 years). The Enlarged RCF
          replaced the Revolving Credit Facility outstanding at December 31,
          2001 and was used in part to repay the existing 5 1/2% Exchangeable
          Notes. A total of US$190 million was drawn down at the inception of
          the Enlarged RCF of which US$41 million has been repaid as at December
          31, 2002. The terms of the US$200 million Enlarged RCF require minimum
          repayments of eight semi-annual instalments of US$20 million starting
          June 30, 2003 with a final instalment of US$40 million.

          The interest rate applicable to the Enlarged RCF increases over the
          life of the loan. The interest rate is as follows:

          (i)  Years 1 and 2 -- US dollar London Interbank Offer Rate ("US
               LIBOR") plus 1.75%; and

          (ii) Years 3, 4 and 5 -- US LIBOR plus 2.00%.

          Financial covenants provide that the ratio of consolidated net debt to
          consolidated EBITDA (based on the definitions in the Enlarged RCF) is
          no greater than 2.50:1 for the 12-month period ended on December 31,
          2002, decreasing incrementally to 1.50:1 for any 12-month period
          ending after June 30, 2004 and that the ratio of consolidated EBITDA
          to consolidated net interest payable (based on the definitions in the
          Enlarged RCF) is not less than 4.50:1 for the 12-month period ended
          December 31, 2002, increasing incrementally to 6.00:1 for any 12-month
          period ending after June 30, 2004.


                                      F-17






<PAGE>




          Additionally, consolidated tangible net worth is not to be less than
          US$415.0 million at any time, and consolidated net debt is not to
          exceed 50% of the consolidated tangible net worth for the periods
          ending on or before June 30, 2004 and for the relevant periods
          thereafter shall not exceed 40% of the consolidated tangible net
          worth. The Enlarged RCF also contains default provisions, including
          cross-default provisions.

          The lenders under the Enlarged RCF have security over all the hedging
          contracts entered into by Ashanti Treasury Services Limited and Geita
          Treasury Services Limited, gold refining and purchasing agreements,
          insurance contracts, gold in transit and bank accounts. Security has
          also been granted over substantially all the assets of the Company and
          Ashanti Goldfields (Bibiani) Limited located in Ghana including the
          mining leases relating to the Obuasi and Bibiani mines. At
          December 31, 2002, the book value of these securing assets amounted
          US$720.0 million. Ashanti also agreed to use its best endeavours to
          give security over its shares in Cluff Resources Limited, which owns
          the Geita Mine. In addition, Ashanti has effected a political risk
          insurance policy, or PRI, of up to US$131.0 million in relation only
          to Ghana for the benefit of the lenders who, prior to the closing of
          syndication, elected to take the benefit of PRI.

          Under its Enlarged RCF, the Company had undrawn committed borrowing
          facilities of US$51.0 million as at December 31, 2002.

     c.   The project finance loans of US$23.4 million (2001: US$25.0 million)
          are in respect of loans provided to subsidiaries Ghanaian-Australian
          Goldfields Limited and Teberebie Goldfields Limited and are secured by
          fixed and floating charges over their respective assets. At
          December 31, 2002, the book value of these securing assets amounted
          to US$52.0 million (2001: US$45.8 million).

     d.   The balance outstanding on the 5 1/2% Exchangeable Notes of US$217.5
          million (net of deferred loan fees of US$1.1 million) which were to
          mature on March 15, 2003 unless converted or redeemed earlier, were
          redeemed in full in August 2002 and have been cancelled.

20.  Financial instruments

     Debtors and creditors arising directly from the Company's operations and
     gold in transit are excluded from the following disclosures.

     Interest rate profile of financial liabilities

     The interest rate profile of the Company's financial liabilities at
     December 31, 2002 and 2001 which are predominately US dollar denominated
     were as follows:

<TABLE>
<CAPTION>
                                                                         Fixed rate borrowings
                                                                    -------------------------------
                                                                                         Weighted
                                                                        Weighted       average time
                         Floating rate   Fixed rate   Total gross   average interest    for which
                           borrowings    borrowings   borrowings          rate         period fixed
                              US$m          US$m         US$m               %              Years
     ----------------------------------------------------------------------------------------------
<S>                          <C>            <C>          <C>              <C>               <C>
     December 31, 2002       256.9             --        256.9             --                --
     ----------------------------------------------------------------------------------------------
     December 31, 2001       108.4          217.5        325.9            5.5               1.2
     ----------------------------------------------------------------------------------------------
</TABLE>

     Interest on floating rate borrowings are determined primarily by reference
     to US LIBOR.

     Interest rate profile of financial assets

     The interest rate profile of the Company's financial assets at December 31,
     2002 and 2001 which are predominately US dollar denominated were as
     follows:

<TABLE>
<CAPTION>
                         Fixed rate   Floating rate   Interest free   Total
                            US$m          US$m             US$m        US$m
     ----------------------------------------------------------------------
<S>                          <C>          <C>              <C>         <C>
     December 31, 2002       --           16.5             0.6         17.1
     ----------------------------------------------------------------------
     December 31, 2001       --           32.0             0.8         32.8
     ----------------------------------------------------------------------
</TABLE>

     The financial assets of the Company comprise cash at bank and in hand.

     Currency exposures

     The Company had no significant currency exposures given that all revenues
     are US dollar denominated as are the majority of its costs, monetary assets
     and financial liabilities.


                                      F-18






<PAGE>




Fair values of financial assets and liabilities

Set forth below is management's best estimate of fair value of financial
instruments.

<TABLE>
<CAPTION>
                                  Dec 31,    Dec 31,   Dec 31,    Dec 31,
                                   2002       2002      2001       2001
                                   Fair     Carrying    Fair     Carrying
                                   value      value     value      value
                                   US$m       US$m       US$m      US$m
     --------------------------------------------------------------------
<S>                               <C>        <C>       <C>        <C>
     Cash at bank                   17.1       17.1      24.1       24.1
     Cash held as collateral          --         --       8.7        8.7
     European put options           24.9         --      51.0         --
     European call options        (102.7)        --     (48.3)        --
     Convertible structures           --         --      10.5         --
     Forward contracts             (56.0)        --     117.6         --
     Lease rate swaps              (16.2)        --     (42.0)        --
     Long term convertible debt       --         --    (178.4)    (217.5)
     Other long term borrowings   (254.2)    (254.2)    (83.1)     (83.1)
     Short term borrowings          (2.7)      (2.7)    (25.3)     (25.3)
     ====================================================================
</TABLE>


                                      F-19






<PAGE>




     Fair value is the amount at which a financial instrument could be exchanged
     in an arm's length transaction between informed and willing parties. The
     following methods and assumptions were used by the Company in estimating
     its fair value disclosure for financial instruments:

     Cash at bank and cash held as collateral -- The estimated fair value of
     these financial instruments approximates their carrying values due to their
     short maturities.

     Derivative financial instruments -- Market values have been used to
     determine the fair value of lease rate swaps, call and put options,
     convertible structures and forward contracts based on estimated amounts the
     Company would receive or have to pay to terminate the agreements, taking
     into account the current interest rate environment or current rates for
     similar instruments.

     Long-term debt -- The estimated fair values of the Company's long-term debt
     are based on current interest rates available to the Company for debt
     instruments with similar terms and remaining maturities.

     Short term borrowings. -- The estimated fair value of these financial
     instruments approximate to their carrying values due to their short
     maturities.

     Hedging

     The Company hedges the risk of movements in the gold price using several
     types of derivative financial instruments.

     Gains and losses on instruments used for hedging the gold price are not
     recognized until the exposure that is being hedged is itself recognized.
     Unrecognised gains and losses on the instruments used for hedging and the
     movements therein, are as follows:

<TABLE>
<CAPTION>
                                                                                                 Net Gains/
                                                                                Gains   Losses    (Losses)
                                                                                US$m     US$m       US$m
     ------------------------------------------------------------------------------------------------------
<S>                                                                             <C>      <C>        <C>
     Unrecognized gains/(losses) on hedges at January 1, 2001                   124.5    (4.5)      120.0
     Gains arising in previous years recognized in the year                     (54.4)     --       (54.4)
     ------------------------------------------------------------------------------------------------------
     Gains/(losses) arising before January 1, 2001 not recognized in the year    70.1    (4.5)       65.6
     Gains/(losses) arising in the year and not recognized                         --      --          --
     ------------------------------------------------------------------------------------------------------
     Unrecognized gains/(losses) on hedges at December 31, 2001                  70.1    (4.5)       65.6
     ------------------------------------------------------------------------------------------------------
     Gains/(losses) expected to be recognized within one year                    34.7      --        34.7
     Gains/(losses) expected to be recognized after one year                     35.4    (4.5)       30.9
     ======================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                                 Net Gains/
                                                                                Gains   Losses    (Losses)
                                                                                US$m     US$m       US$m
     ------------------------------------------------------------------------------------------------------
<S>                                                                             <C>      <C>        <C>
     Unrecognized gains/(losses) on hedges at January 1, 2002                    70.1     (4.5)      65.6
     Gains arising in previous years recognized in the year                     (34.7)      --      (34.7)
     ------------------------------------------------------------------------------------------------------
     Gains/(losses) arising before January 1, 2002 not recognized in the year    35.4     (4.5)      30.9
     Gains/(losses) arising in the year and not recognized                        2.9     (6.0)      (3.1)
     ------------------------------------------------------------------------------------------------------
     Unrecognized gains/(losses) on hedges at December 31, 2002                  38.3    (10.5)      27.8
     ------------------------------------------------------------------------------------------------------
     Gains/(losses) expected to be recognized within one year                    20.0     (5.3)      14.7
     Gains/(losses) expected to be recognized after one year                     18.3     (5.2)      13.1
     ======================================================================================================
</TABLE>


                                      F-20






<PAGE>




21.  Provisions for liabilities and charges

<TABLE>
<CAPTION>
                                                    Deferred        Site
                                                      tax      rehabilitation   Classified as   Total
                                                      US$m          US$m           debtors      US$m
     ------------------------------------------------------------------------------------------------
<S>                                                  <C>            <C>             <C>          <C>
     At January 1, 2001 as restated (see note 29)     (1.7)         14.6             1.7         14.6
     Charge for the year                             (15.2)          3.3             5.2          3.3
     ------------------------------------------------------------------------------------------------
     At December 31, 2001                             (6.9)         17.9             6.9         17.9
     ================================================================================================
     At January 1, 2002 as restated (see note 29)     (6.9)         17.9             6.9         17.9
     Charge for the year                              11.3           2.7            (6.9)         7.1
     ------------------------------------------------------------------------------------------------
     At December 31, 2002                              4.4          20.6              --         25.0
     ================================================================================================
</TABLE>

     The Company's provision for site rehabilitation as at December 31, 2002 is
     US$20.6 million. These costs are expected to be paid over a 20-year period
     as the mines come to the end of their useful lives, commencing with the
     currently envisaged closure of the Bibiani (provision of US$3.5 million)
     and Freda-Rebecca (provision of US$2.7 million) mines during 2007 and 2006,
     respectively. The remaining significant components of the provision
     comprise of US$5.7 million and US$5.2 million related to the Obuasi and
     Iduapriem mines, respectively; with the majority of such costs expected to
     be paid subsequent to 2007. Deferred taxation comprises:

     Deferred taxation comprises:

<TABLE>
<CAPTION>
                                                                          2002
                                                                          US$m
     --------------------------------------------------------------------------
<S>                                                                      <C>
     Liability arising on fixed assets                                    141.9
     Asset arising from other timing differences                           (5.3)
     Asset arising from tax losses carried forward                       (132.2)
     --------------------------------------------------------------------------
     At December 31, 2002                                                   4.4
     --------------------------------------------------------------------------
     At December 31, 2001                                                  (6.9)
     ==========================================================================
</TABLE>

     The deferred tax asset as at December 31, 2001 of US$6.9 million is
     included in debtors (see note 16).

22.  Stated capital

<TABLE>
<CAPTION>

                                                                    Number of shares
     -------------------------------------------------------------------------------
<S>                                                                    <C>
     Authorised
     200,000,000 ordinary shares of no par value                       200,000,000
     1 special rights redeemable preference share of no par value                1
     -------------------------------------------------------------------------------
                                                                       200,000,001
     ===============================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                               Issued      Stated capital
                                                                               shares          US$m
     ----------------------------------------------------------------------------------------------------
<S>                                                                          <C>               <C>
     Allotted and fully paid
     At January 1, 2002:
     Ordinary shares of no par value in issue                                112,716,640       545.2
     Issue of shares at US$3.00 in respect of the exercise of the warrants    13,945,122        41.8
     Issue of shares at US$4.88 in respect of an Employee Share Plan             234,571         1.2
     ----------------------------------------------------------------------------------------------------
     At December 31, 2002:
     Ordinary shares of no par value in issue                                126,896,333       588.2
     Ordinary shares in treasury at 1 January and 31 December 2002               556,987*         --
     1 special rights redeemable preference share of no par value                      1          --
     ----------------------------------------------------------------------------------------------------
                                                                             127,453,321       588.2
     ====================================================================================================
</TABLE>

     *The 556,987 ordinary shares held in treasury do not qualify for dividends
     and do not have voting rights.


                                      F-21






<PAGE>




     Based on the prices quoted on the New York Stock Exchange during 2002, the
     Company's share price traded between a high of US$6.58 and a low of
     US$3.51. As at December 31, 2002, the Company's market capitalisation based
     on a share price of US$5.85 on that date was US$742.3 million.

     The Government of Ghana holds the special rights redeemable preference
     share of no par value (the "Golden Share"). The Golden Share is non-voting
     but the holder is entitled to receive notice of and to attend and speak at
     any general meeting of the members or at any separate meeting of the
     holders of any class of shares. On winding up, the Golden Share has a
     preferential right to return of capital, the value of which will be 1,000
     cedis.

     The Regulations of the Company provide that certain matters, principally
     matters affecting the rights of the Golden Share, the winding up of the
     Company or the disposal of a material part of its assets, shall be deemed
     to be a variation of the rights attaching to the Golden Share and shall be
     effective only with the written consent of the holder of the Golden Share.

     All of the ordinary shares in issue rank pari passu in all respects.

     On May 28, 2002, the Company in general meeting passed a special resolution
     renewing an existing authority to make market purchases of its own shares
     up to an aggregate of 3,000,000 ordinary shares at a price per share
     (exclusive of expenses) of not more than 5% above the average of the middle
     market quotations for the shares taken from the Daily Official List of the
     London Stock Exchange for the five business days immediately before the
     date of purchase. However, the Company did not utilise this authority. The
     authority for the Company to purchase its own shares will expire on August
     28, 2003 or at the conclusion of the Annual General Meeting at which it is
     proposed to renew the authority.

     In August 2002, the Company redeemed in full its debt of US$250 million
     raised through an issue by a subsidiary of seven year 5 1/2 % Exchangeable
     Notes that were listed on the New York and London stock exchanges. The
     notes, which were to mature on March 15, 2003 unless converted or redeemed
     earlier, have been cancelled.

     In November 1999, pursuant to an agreement with the Company's hedge
     counterparties, a wholly-owned subsidiary, Ashanti Warrants Limited, issued
     unlisted warrants to subscribe for Mandatorily Exchangeable Securities
     under which the securityholders have the option of converting the
     securities into ordinary shares at a conversion price of US$3 per share.
     The warrants were issued in three equal tranches with expiry dates of April
     28, 2004, October 28, 2004 and April 28, 2005.

     As part of the Company's refinancing arrangement, 13,945,122 warrants were
     exercised at US$3.00 leaving 5,889,879 warrants.

     The conversion rights of the remaining warrants could give rise to the
     issue of up to 5,889,879 ordinary shares.

     In June 2002, the Company issued US$75.0 million of MENs which are
     exchangeable into ordinary shares at an exchange price of the lower of
     US$5.40 and the price at which Ashanti's ordinary shares will be issued
     pursuant to the proposed rights issue. At a price of US$5.40 this could
     give rise to an issue of 13.9 million Ashanti ordinary shares.

     The AGC Senior Management Share Option Scheme

     As at December 31, 2000, options granted to directors and staff over
     8,296,772 shares remained outstanding. As part of the review of the
     Company's remuneration arrangements conducted prior to the Annual General
     Meeting on April 25, 2001, option holders were invited to cancel all
     outstanding options voluntarily. The proposal was made on the basis that
     for every 10 shares then under option a new option would be granted over
     three shares.

     In the case of executive directors and certain members of the Company's
     senior management, their outstanding "underwater" options were required to
     be surrendered in order to receive any further awards under the Company's
     long-term incentive plans.

     Options over 5,364,485 shares in respect of other senior management and
     508,050 shares in respect of executive directors were cancelled in
     accordance with the invitation. Options over 2,189,787 shares lapsed in the
     year ended December 31, 2001. Options over a further 396,716 shares lapsed
     under the rules of this scheme in the year ended December 31, 2002.


                                      F-22






<PAGE>




     Following the cancellation, re-grant and lapsing of options described
     above, and subsequent award of options on August 22, 2002, the total number
     of ordinary shares over which executive directors and senior management
     held options as at December 31, 2002 is as set out below:

<TABLE>
<CAPTION>
                                                            Option       Number of
                                                             price   ordinary shares of
     Period of exercise                              Code     US$       no par value
     ----------------------------------------------------------------------------------
<S>                                                   <C>    <C>       <C>
     July 13, 2003-July 12, 2011                      A      1.66         40,000
     August 28, 2003-August 27, 2011                  B      2.55         50,000
     May 3, 2004-May 2, 2011 (Replacement Options)    C      2.29      1,445,844
     May 3, 2004-May 2, 2011                          D      2.29        906,290
     August 22, 2005-August 21, 2012                  E      4.88        599,560
     ----------------------------------------------------------------------------------
                                                                       3,041,694
     ==================================================================================
</TABLE>

     All options granted on May 3, 2001 were granted with exercise prices of
     US$2.29. They ordinarily become exercisable on May 3, 2004 and lapse on May
     2, 2011. Options granted on August 22, 2002 were granted with an exercise
     price of US$4.88 and ordinarily become exercisable on August 22, 2005 and
     lapse on August 21, 2012.

     An analysis of options held by directors as at December 31, 2002 using the
     codes shown above is set out below:

<TABLE>
<CAPTION>
                            B        C         D         E       Total
     ------------------------------------------------------------------
<S>                      <C>      <C>       <C>       <C>       <C>
     S E Jonah               --    87,000   173,664    79,700   340,364
     M Botsio-Phillips       --    13,500    18,760    14,130    46,390
     E D Ofori Atta          --    13,500    16,509    12,430    42,439
     T S Schultz             --    38,415    55,229    39,000   132,644
     S Venkatakrishnan   50,000        --    52,828    37,300   140,128
     ------------------------------------------------------------------
     Total               50,000   152,415   316,990   182,560   701,965
     ==================================================================
</TABLE>

23.  Directors' interests

     The beneficial interests, including family interests, of the directors
     holding office at the end of the year in ordinary shares of the Company are
     set out below:

<TABLE>
<CAPTION>
                                                                  Shares under
                                  Shares                             option
                                                                     Granted       Granted
                         January 1,   December 31,   January 1,    during the    December 31,
                            2002         2002           2002          year           2002
     ----------------------------------------------------------------------------------------
<S>                        <C>           <C>          <C>            <C>           <C>
     M E Beckett            1,359         1,873            --            --             --
     S E Jonah             45,302        59,690       260,664        79,700        340,364
     T E Anin                  53            53            --            --             --
     M Botsio-Phillips        100           100        32,260        14,130         46,390
     L Chalker                 --            --            --            --             --
     C A Crocker            5,000            --            --            --             --
     T Gibian              20,000        20,000            --            --             --
     G E Haslam                --            --            --            --             --
     M P Martineau             --            --            --            --             --
     N J Morrell               --            --            --            --             --
     E D Ofori Atta           553           553        30,009        12,430         42,439
     T S Schultz           23,548        31,245        93,644        39,000        132,644
     S Venkatakrishnan         --            --       102,828        37,300        140,128
     ----------------------------------------------------------------------------------------
</TABLE>

     The Ashanti Bonus Co-Investment Plan

     All shares awarded under the Bonus Co-Investment Plan vested during 2002.
     These shares included matching shares in favour of S E Jonah and T S
     Schultz comprising 14,388 and 7,697 ordinary shares respectively. It is
     currently intended that no awards will be made, in the future, under the
     Bonus Co-Investment Plan.

     Performance Share Plan and The AGC 1994 Employee Share Scheme

     Under the Performance Share Plan, executive directors and key employees
     receive free Ashanti shares, if Ashanti achieves certain performance
     conditions over a three-year period. The full number of shares to which a
     participant is entitled would only be received if Ashanti meets challenging
     internal and/or external goals. Rights to receive shares will normally
     lapse if the participant leaves the Company within three years of the grant
     of the award.

     Under the AGC 1994 Employee Share Scheme, executive directors and key
     employees receive Ashanti's shares for free if specified challenging
     internal and/or external performance conditions are achieved. For the
     awards set out under Category 'A' below, these targets must be met over the
     three year period following the making of the award. Provided those targets
     are


                                      F-23






<PAGE>




     met, the shares are then transferred to participants free of charge at the
     end of that period. In respect of awards set out under Category 'B' below,
     such targets had to be met before the awards were made after which the
     shares were awarded and are to be held in trust for three years from the
     date of award, on expiry of which they will be transferred to participants
     free of charge. On August 22, 2002, Ashanti issued, 234,571 new Ashanti
     ordinary shares under this scheme of which 129,871 ordinary shares were
     awarded to executive directors.

     As at December 31, 2002 the following awards have been made to the
     directors under the Performance Share Plan and the AGC 1994 Employee Share
     Scheme.

<TABLE>
<CAPTION>
                                                      Shares awarded under the AGC
                                                       1994 Employee Share Scheme
                             Shares awarded under
     Name                the Performance Share Plan    Category 'A'   Category 'B'
     -----------------------------------------------------------------------------
<S>                               <C>                     <C>           <C>
     S E Jonah                     6,000                      --         64,040
     M Botsio-Phillips             3,000                  12,000          9,036
     E D Ofori Atta                3,000                  10,560          8,000
     T S Schultz                   3,000                  35,328         24,940
     S Venkatakrishnan             3,000                  33,792         23,855
     -----------------------------------------------------------------------------
     Total                        18,000                  91,680        129,871
     -----------------------------------------------------------------------------
</TABLE>

     Awards made under the Performance Share Plan will be allowed to run their
     course, but it is currently intended that no further awards will be made
     under this plan in future.

     Between January 1, 2003 and March 5, 2003, there were no changes in the
     above directors' interests.

24.  Reserves

<TABLE>
<CAPTION>
                                                                          Non-
                                                                      distributable
                                                    Profit and loss    share deals
                                                        account          account      Total
                                                         US$m             US$m         US$m
     ---------------------------------------------------------------------------------------
<S>                                                     <C>                <C>        <C>
     At January 1, 2001 as restated (see note 29)       (277.0)            19.0       (258.0)
     Retained profit for 2001                             59.9               --         59.9
     ---------------------------------------------------------------------------------------
     At December 31, 2001                               (217.1)            19.0       (198.1)
     =======================================================================================
     At January 1, 2002                                 (217.1)            19.0       (198.1)
     Retained profit for 2002                             56.2               --         56.2
     ---------------------------------------------------------------------------------------
     At December 31, 2002                               (160.9)            19.0       (141.9)
     =======================================================================================
</TABLE>

     Group reserves as at January 1, 2002 have been restated for the adoption of
     FRS 19 (see note 29)

     In accordance with the Ghana Companies Code 1963 (Act 179), all
     transactions relating to the purchase and re-issue of the Company's own
     shares are recorded in a non-distributable share deals account.

     Reserves is after goodwill written off in previous years of US$476 million
     (2001: US$476 million) arising on the acquisition of subsidiary
     undertakings.


                                      F-24






<PAGE>




25.  Acquisitions and disposals

     Acquisition

     In June 2000, Ashanti acquired a 90% interest in Pioneer, the company that
     owns the Teberebie mine in Ghana, from Pioneer Gold Inc for a total
     consideration of US$14.9 million. Details of the consideration and assets
     acquired are set out below.

<TABLE>
<CAPTION>
                                             Book value     Fair value    Provisional fair
                                           at acquisition   adjustments        values
                                                US$m            US$m            US$m
     -------------------------------------------------------------------------------------
<S>                                             <C>            <C>              <C>
     Tangible fixed assets                      56.6           (56.5)            0.1
     Stock                                       4.0            (2.7)            1.3
     Cash                                        0.6              --             0.6
     Creditors                                  (0.7)             --            (0.7)
     Borrowings                                 (8.3)             --            (8.3)
     -------------------------------------------------------------------------------------
     Net assets acquired                        52.2           (59.2)           (7.0)
     Goodwill                                                                   21.9
     -------------------------------------------------------------------------------------
     Cost of acquisition                                                        14.9
     =====================================================================================
     Satisfied by:
     Cash consideration                                                          5.0
     Assets on sold                                                             (5.0)
     Cost of acquisition                                                         1.1
     Deferred consideration                                                     13.8
     -------------------------------------------------------------------------------------
     Total consideration                                                        14.9
     =====================================================================================
     Analysis of acquisition cash flows:
     Total net cash consideration                                               (6.1)
     Net cash of subsidiary acquired                                             0.6
     Assets on sold                                                              5.0
     -------------------------------------------------------------------------------------
     Total                                                                      (0.5)
     =====================================================================================
</TABLE>

     Of the deferred consideration of US$13.8 million, payments of US$2.5
     million were made in each of March 2001 and 2002. The balance is payable as
     follows: US$3.0 million in March 2003, US$3.8 million in March 2004 and
     US$2.1 million in March 2005.

     The terms of the agreement also include the potential for contingent cash
     consideration of up to US$5.0 million dependent upon minimum gold prices
     and production levels.

     The loss incurred by Pioneer for the last full financial period prior to
     acquisition was US$21.5 million.


                                      F-25






<PAGE>




     Disposal

     In December 2000 Ashanti disposed of a 50% interest in its subsidiary,
     Cluff, which owns 100% of the Geita mine in Tanzania. The net inflow in
     respect of the disposal is as follows:

<TABLE>
<CAPTION>
                                             US$m     US$m
     ------------------------------------------------------
<S>                                         <C>      <C>
     Cash paid by AngloGold Limited                   207.8
     Costs of disposal                                (27.8)
     ------------------------------------------------------
     Net cash consideration                           180.0

     Net assets at date of disposal:
     Goodwill                               127.4
     Tangible fixed assets                  205.3
     Stocks                                  11.3
     Debtors                                  1.8
     Cash                                     4.2
     Creditors                              (11.6)
     Due to the Company                     (55.0)
     Borrowings                             (75.0)
     ---------------------------------------------
                                            208.4
     ---------------------------------------------

     50% of net assets sold                          (104.2)
     Goodwill reinstated from reserves                (24.6)
     ------------------------------------------------------
     Profit on disposal                                51.2
     ------------------------------------------------------

     Analysis of disposal cash flows:
     Net cash consideration                           180.0
     Net cash disposed of with subsidiary              (4.2)
     Repayment of intercompany balance                 55.0
     ------------------------------------------------------
     Total cash inflow                                230.8
     ======================================================
</TABLE>

26.  Reconciliation of operating profit/(loss) to operating cash flows

<TABLE>
<CAPTION>
                                                  2002    2001    2000
                                                  US$m    US$m    US$m
     ------------------------------------------------------------------
<S>                                              <C>     <C>     <C>
     Operating profit/(loss)                      66.4    76.6   (126.1)
     Depreciation and amortization                75.1    82.3    114.8
     Non-cash exceptional operating costs         (7.6)     --    208.3
     Loss on disposal of fixed assets               --     0.6      5.2
     (Increase)/decrease in stocks                (3.1)    4.3    (11.8)
     Decrease in debtors                           0.2     2.0     10.8
     Decrease in creditors                        (0.7)  (16.7)   (18.0)
     Decrease in deferred hedging income         (37.8)  (57.0)   (34.6)
     Increase in provisions                        2.7     3.3      0.8
     ------------------------------------------------------------------
     Net cash inflow from operating activities    95.2    95.4    149.4
     ==================================================================
</TABLE>


                                      F-26






<PAGE>




27.  Financing

<TABLE>
<CAPTION>
                                                         2002   2001     2000
                                                         US$m   US$m     US$m
     -------------------------------------------------------------------------
<S>                                                    <C>      <C>     <C>

     5 1/2% Exchangeable Notes          - repayments   (218.6)     --       --
     Revolving Credit Facility          - repayments    (55.0)  (33.8)  (251.0)
     Bridge Facility                    - drawdowns        --      --     75.0
     Enlarged Revolving Credit Facility - drawdowns     190.0      --       --
                                        - repayments    (41.0)     --       --
     Mandatorily Exchangeable Notes     - drawdown       75.0      --       --
     Issue of ordinary shares                            41.8      --       --
     Other                              - repayments    (11.4)   (6.8)   (10.3)
     -------------------------------------------------------------------------
                                                        (19.2)  (40.6)  (186.3)
     =========================================================================
</TABLE>

28.  Analysis of net debt

<TABLE>
<CAPTION>
                                                 Other                     Other                    Other
                                                 non-                      non-                     non-
                                  At             cash      At              cash      At             cash      At
                                Jan 1,   Cash    move-   Dec 31,   Cash    move-   Dec 31,   Cash   move-   Dec 31,
                                 2000    flow    ments    2000     flow    ments    2001     flow   ments    2002
                                 US$m    US$m    US$m     US$m     US$m    US$m     US$m     US$m   US$m     US$m
     --------------------------------------------------------------------------------------------------------------
<S>                            <C>       <C>      <C>    <C>       <C>      <C>    <C>       <C>     <C>    <C>
     Cash at bank                35.3     (2.5)     --     32.8     (8.7)    --      24.1    (7.9)    --      16.2
     Bank overdraft              (4.6)     1.1      --     (3.5)    (1.7)    --      (5.2)    4.6     --      (0.6)
     --------------------------------------------------------------------------------------------------------------
     Cash                        30.7     (1.4)     --     29.3    (10.4)    --      18.9    (3.3)    --      15.6
     Short term deposits and
        collateralized cash
        (liquid resources)       54.4    (13.6)     --     40.8     (9.7)    --      31.1    (6.0)    --      25.1
     Borrowings                (578.0)   186.3    29.5   (362.2)    40.6    0.9    (320.7)   61.0    3.4    (256.3)
     --------------------------------------------------------------------------------------------------------------
     Net debt                  (492.9)   171.3    29.5   (292.1)    20.5    0.9    (270.7)   51.7    3.4    (215.6)
     --------------------------------------------------------------------------------------------------------------
</TABLE>

     Following is a detail of the 'other' line item included in the
     reconciliation of net cash flow to movement in net debt for the year ended
     December 31, 2000. For the years ended December 31, 2002 and 2001, no cash
     movements included in 'other' amounted to greater than 5% of total non-cash
     movements:

<TABLE>
<CAPTION>
                                                                                                 Year ended
                                                                                                Dec 31, 2000
                                                                                                    US$m
     -------------------------------------------------------------------------------------------------------
<S>                                                                                                <C>
     Write-down and subsequent re-instatement of non-recourse project finance loans (note a.)      (21.3)
     Loans assumed on acquisition (Note 26)                                                         (8.3)
     Transfers between accruals and long term debt                                                  (6.5)
     Debt created on close out of hedge contracts (note b.)                                         (7.8)
     Gain on extinguishment of debt                                                                   --
     Loans disposed of with subsidiary (Note 26)                                                    75.0
     Other                                                                                          (1.6)
     -------------------------------------------------------------------------------------------------------
     Total non-cash movements                                                                       29.5
     =======================================================================================================
</TABLE>

     a.   In 1998, management determined that certain non-recourse development
          loans associated with the Iduapriem mine would not be paid down and
          consequently the Company wrote-down the loans. This write-down
          followed a management decision to close the Iduapriem mine and was
          based on cash flow forecasts. In 2000, the Company acquired the
          Teberebie gold mine, which is adjacent to the Iduapriem mine. As a
          result of the acquisition, management determined that the Iduapriem
          and Teberebie mines could use a shared processing plant and
          consequently, the operations at Iduapriem were now considered
          economically feasible. Revised cash flow forecasts were prepared that
          demonstrated that the non-recourse loans which were written-down in
          1998 would now be paid; the loans were therefore reinstated.

     b.   Debt created on the close out of hedge contracts relates to contracts
          that were closed out early and rolled into the Company's Facility. The
          losses related to these contracts have been recorded as an offset to
          deferred income.


                                      F-27






<PAGE>




29.  Prior year adjustment

     The Company adopted FRS 19 for its financial statements related to the
     period beginning January 1, 2002. As a result, comparative figures have
     been restated to reflect the new accounting policy on deferred tax. The
     effects of the changed policy as compared to the Group's previous policy;
     are

          a.   the tax charge for 2002 increasing by US$1.8 million (2001:
               increase of US$2.8 million; 2000: decrease of US$21.6 million)

          b.   shareholders' funds in 2001 increasing by US$8.8 million,
               represented by a US$6.9 million increase in debtors and a US$1.9
               million reduction in provisions for liabilities and charges.

30.  Related party transactions

     The Company's principal shareholder is Lonmin (28.4%) which provides
     technical services and the services of Mr S E Jonah to the Company for
     which it received US$0.8 million (2001: US$0.7 million) for the year. The
     Technical Services agreement covering these services was terminated on
     March 1, 2003. The Company has entered into a service agreement with Mr S E
     Jonah starting on March 1, 2003.

     Another major shareholder is the Government of Ghana (17.3%). The Company
     pays royalties, corporate and other taxes and utility charges in the normal
     course of business to the Government and associated authorities. Amounts
     paid during the year totalled approximately US$48 million (2001: US$51
     million).

31.  Contingent liabilities

     US Class Actions

     The consolidated class action which was commenced in the year 2000, is
     pending against the Company and one officer and director and one former
     director under United States Federal Securities laws in the United States
     District Court for the Eastern District of New York. The complaint alleges
     non-disclosures and misstatements regarding Ashanti's hedging position and
     hedging programme. The plaintiffs contend that the Company and the
     individual defendants' actions violated Sections 10(b) and 20(a) of the
     Securities Exchange Act of 1934 and Rule 10b-5 promulgated under that Act.
     The plaintiffs seek unspecified damages, attorneys' and experts' fees and
     other reliefs.

     The Company continues to vigorously defend the action and both parties have
     completed the taking of witness depositions. Although the Company cannot
     make any assurances regarding the ultimate result of the litigation at this
     stage, it believes that the outcome will have no material adverse effect on
     the Company's financial position.

     Kimin - Employee Actions

     A number of expatriate employees instituted an action against Kilo-Moto
     Mining Corporation ("Kimin"), a subsidiary of the Company, and against the
     Company in the Brussels Labour Court for arrears of salary, severance
     payments and payment in lieu of holiday. On November 16, 1999, the Brussels
     Labour Court upheld the claims of four of the ex-employees against Kimin
     for arrears of salary incurred up to October 1, 1997. The Brussels Labour
     Court also held that the Company was jointly and severally liable with
     Kimin for the claimants' salaries and severance payments as from October 1,
     1997. Kimin and the Company appealed against the judgment. In October 2000,
     the plaintiffs unsuccessfully instituted proceedings in Kinshasa, to
     enforce the provisional judgment against Kimin in the Democratic Republic
     of Congo. The Brussels Labour Court of Appeal issued its judgment on March
     13, 2002. The Court awarded a total sum of 1.5 million euros (approximately
     US$1.4 million) plus 7% interest, in favour of the affected ex-employees as
     against the total amount claimed by them of US$2.2 million plus interest.
     The Company's liability for a further claim for payment in lieu of holiday
     was to be decided later in 2002. However, in July 2002, the Company and
     Kimin fully and finally settled the claims of the four ex-employees for a
     total sum of 2.1 million euros. In addition, the settlement has effectively
     terminated the two unadjudicated claims of the ex-employees and has also
     rendered the judgments of the Brussels Labour Court and the Brussels Labour
     Court of Appeal dated November 16, 1999 and March 13, 2002 respectively
     void and of no legal effect. Other claims have been made against the
     Company and Kimin by other ex-employees, consultants and third party
     creditors. The Company is currently evaluating these claims. Based on
     information currently available, the Company believes that this potential
     liability has been reasonably provided for in its financial statements.

32.  Summary of Differences Between UK and US Generally Accepted Accounting
     Principles

     The Company's financial statements are prepared in accordance with UK GAAP,
     which differ in certain significant respects from generally accepted
     accounting principles in the United States ("US GAAP").


                                      F-28






<PAGE>




     The following is a summary of the significant adjustments, to profit/(loss)
     attributable to shareholders and shareholders' equity when reconciling
     amounts recorded in the consolidated financial statements to the
     corresponding amounts in accordance with US GAAP, considering the
     significant differences between UK and US GAAP.

<TABLE>
<CAPTION>
                                                                          2002        2001            2000
                                                                          US$m        US$m            US$m
                                                                                  (Restated)(1)   (Restated)(1)
     ----------------------------------------------------------------------------------------------------------
<S>                                                                <C>   <C>          <C>            <C>
     Profit and loss account
     Profit/(loss) attributable to shareholders under UK GAAP(1)           56.2        59.9          (119.5)
     US GAAP adjustments:
     Amortization of goodwill and other intangibles                  a      1.7          --           (30.3)
     Depreciation on impaired tangible fixed assets                  a     12.8        12.9           (11.2)
     Impairment of long-lived assets                               b,e       --       (87.3)         (246.8)
     Equity investment in joint ventures                             c    (37.5)       (3.3)             --
     Derivative financial instruments                                e   (276.6)        5.3            60.5
     Transfer from other comprehensive income:
     - Gain on derivative financial instruments related to
       impaired assets                                               e       --        32.3              --
     - Deferred hedging income                                       e     62.7        51.2              --
     Warrants issued to non-employees                                f       --          --            (1.1)
     Write-down of non-recourse loans                                g       --          --            22.0
     Asset write-back                                                h       --          --           (20.0)
     Depreciation on asset write-back                                h      1.5         1.7             1.2
     Accounting for pensions                                         i       --         0.8             3.9
     Environmental and site restoration obligations                  j     (0.5)        1.4            (0.6)
     Compensation charge on variable plan options                    k     (3.1)       (1.2)             --
     Deferred income taxes on the above(2)                           d       --        (8.3)           (7.2)
     ----------------------------------------------------------------------------------------------------------
     (Loss)/profit attributable to shareholders under US GAAP            (182.8)       65.4          (349.1)
     ==========================================================================================================
     (Loss)/profit attributable to shareholders under US GAAP
        before the cumulative effect of an accounting change             (182.8)       33.1          (349.1)
     Cumulative effect of an accounting change                               --        32.3              --
     ----------------------------------------------------------------------------------------------------------
     (Loss)/profit attributable to shareholders under US GAAP            (182.8)       65.4          (349.1)
     ==========================================================================================================
</TABLE>

     (1)  The UK GAAP profit and loss account for the years ended December 31,
          2001 and 2000 have been restated for the adoption of FRS 19 (see
          note 29). Accordingly, the reconciling amounts for 'Deferred income
          taxes' have been restated from such amounts presented previously.

     (2)  A 100% valuation allowance is provided against deferred tax arising on
          the adjustments recorded in reconciling profit in accordance with UK
          GAAP to that in accordance with US GAAP for all periods presented.


                                      F-29






<PAGE>




<TABLE>
<CAPTION>
                                                                               2002     2001    2000
                                                                               US$m     US$m    US$m
     ------------------------------------------------------------------------------------------------
<S>                                                                           <C>      <C>     <C>
     Statement of comprehensive income
     (Loss)/profit for the year                                               (182.8)   65.4   (349.1)
     Other comprehensive income, net of income tax:
        Cumulative effect of accounting change -
           adoption of SFAS 133                                                   --   146.2       --
     Transfer to earnings:
     - Gain on derivative financial instruments related to impaired assets        --   (32.3)      --
     - Deferred hedging income                                                 (62.7)  (51.2)      --
     ------------------------------------------------------------------------------------------------
                                                                              (245.5)  128.1   (349.1)
     ================================================================================================
     Earnings per share (US$):
        Basic:
        (Loss)/earnings per share before cumulative effect of an accounting
           change                                                              (1.53)   0.30    (3.11)
        Cumulative effect of an accounting change                                 --    0.28       --
     ------------------------------------------------------------------------------------------------
        (Loss)/earnings per share                                              (1.53)   0.58    (3.11)
     ================================================================================================
        Diluted:
        (Loss)/earnings per share before cumulative effect of an accounting
           change                                                              (1.53)   0.29    (3.11)
        Cumulative effect of an accounting change                                 --    0.28       --
     ------------------------------------------------------------------------------------------------
        (Loss)/earnings per share                                              (1.53)   0.57    (3.11)
     ================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                                 2001
                                                                                      2002       US$m
                                                                                      US$m    Restated(1)
     ----------------------------------------------------------------------------------------------------
<S>                                                                           <C>    <C>        <C>
     Shareholders' equity
     Equity shareholders' funds under UK GAAP(1)                                      446.3      347.1
     Impact on cost of long-lived assets (including impairment and purchase
        price adjustments)                                                    a, b     72.2       72.2
     Accumulated amortization and depreciation on long-lived assets              a   (252.4)    (266.9)
     Equity investment in joint ventures                                         c    (15.2)      22.3
     Derivative financial instruments                                            e   (122.2)     154.4
     Asset write-back                                                            h    (20.0)     (20.0)
     Accumulated depreciation on asset write-back                                h      4.4        2.9
     Environmental and site restoration obligations                              k     (4.0)      (3.5)
     ----------------------------------------------------------------------------------------------------
     Shareholders' equity under US GAAP                                               109.1      308.5
     ====================================================================================================
</TABLE>

     (1)  The UK GAAP equity shareholders' funds as at December 31, 2001 has
          been restated for the adoption of FRS 19 (see note 29).


                                      F-30






<PAGE>




<TABLE>
<CAPTION>
                                                                                   Accumulated
                                                                                      other
                                                                                     compre-
                                                                        Retained     hensive     Stated      Other
                                                                Total   earnings     income      capital   reserves
     Statement of changes in shareholders' equity               US$m      US$m        US$m         US$m      US$m
     --------------------------------------------------------------------------------------------------------------
<S>                                                            <C>       <C>          <C>          <C>       <C>
     Balance at January 1, 1999                                 527.3     (36.0)         --        544.3     19.0
     Net loss for the year                                     (349.1)   (349.1)         --           --       --
     Warrants issued to non-employees                             1.1       1.1          --           --       --
     Other                                                       (1.0)     (1.0)         --           --       --
     --------------------------------------------------------------------------------------------------------------
     Balance at December 31, 2000                               178.3    (385.0)         --        544.3     19.0
     Net profit for the year                                     65.4      65.4          --           --       --
     New share capital issued                                     0.9        --          --          0.9       --
     Compensation charge on variable plan options                 1.2       1.2          --           --       --
     SFAS 133 transition adjustment                             146.2        --       146.2           --       --
     Transfer to net income for the year                        (83.5)       --       (83.5)          --       --
     --------------------------------------------------------------------------------------------------------------
     Balance at December 31, 2001                               308.5    (318.4)       62.7        545.2     19.0
     Net loss for the year                                     (182.8)   (182.8)         --           --       --
     Reclassification of compensation expense on exercise of
        warrants                                                   --      (4.8)         --          4.8       --
     New share capital issued                                    43.0        --          --         43.0       --
     Compensation charge on variable plan options                 3.1       3.1          --           --       --
     Transfer to net income for the year                        (62.7)       --       (62.7)          --       --
     --------------------------------------------------------------------------------------------------------------
     Balance at December 31, 2002                               109.1    (502.9)         --        593.0     19.0
     ==============================================================================================================
</TABLE>

     a)   Amortization of long-lived assets

     Goodwill and Intangible assets

     For years prior to the year ending December 31, 1998, goodwill arising on
     business combinations treated as acquisitions was written off against
     retained earnings in accordance with UK GAAP. On the subsequent disposal or
     termination of a previously acquired business, the profit or loss on
     disposal is calculated after charging the amount of related goodwill
     charged to reserves. The Company adopted FRS in 1998. FRS 10 requires that
     goodwill be capitalized and amortized over its expected useful life.

     Under US GAAP, for periods ending on or before December 31, 2001 goodwill
     and identifiable intangible assets (principally mineral rights) were
     amortised under the units of production method. Goodwill and identifiable
     intangible assets were evaluated for impairment when events or changes in
     circumstances indicated that, in management's judgement, the carrying value
     of such assets might not be recoverable.

     Impairments of goodwill and identifiable intangible assets were recognised
     if expected undiscounted cash flows were not sufficient to recover the
     carrying value of the asset. If a material impairment was identified, the
     asset was written down to its estimated fair value. Fair value was
     determined based on the present value of excepted net cash flows to be
     generated, discounted using a rate commensurate with the risks involved.

     Under US GAAP, effective January 1, 2002, the Company adopted Statement of
     Financial Accounting Standards ("SFAS"), Goodwill and Other Intangible
     Assets ("SFAS 142"). That statement directs that goodwill and intangible
     assets that have indefinite useful lives will not be amortised but rather
     will be tested at least annually for impairment. Intangible assets that
     have finite lives will continue to be amortised over their useful lives,
     but without the constraint of an arbitrary ceiling. Going forward, the
     Company will carry out an annual impairment review of goodwill. No such
     impairments were recorded in 2002.

     Tangible fixed assets

     The difference on depreciation of tangible fixed assets arises from the
     impact of adjustments to historic cost in respect of impairment charges.

     b)   Impairment of long-lived assets

     Under both UK and US GAAP, impairment reviews of long-lived assets are
     performed whenever events or changes in circumstances indicate that their
     carrying amounts may not be recoverable. However, measurement differences
     arise regarding the determination of when a long-lived asset is impaired
     and the amount of impairment loss to be recognized.


                                      F-31






<PAGE>




     Under UK GAAP, the Company evaluates long-lived assets for impairment by
     comparing the carrying value less deferred hedging income to the
     recoverable amount based on discounted future cash flows. Under US GAAP,
     (i) undiscounted cash flows are used to evaluate for impairment, and (ii)
     deferred hedging income is not subtracted from the carrying value of
     long-lived assets.

     Under both UK and US GAAP, if an impairment exists, an impairment loss is
     recognized to record the long-lived assets at their recoverable amount,
     under UK GAAP, and their fair value under US GAAP. The Company estimates
     both recoverable amount and fair value using discounted cash flow
     techniques. The discount rate applied is management's estimate of the rate
     that the market would expect on an investment of comparable risk. Under UK
     GAAP, impairment losses increase accumulated depreciation; under US GAAP,
     impairment losses reduce the historical cost of the related long-lived
     asset.

     Differences arise between impairment assessments under UK GAAP and US GAAP
     as follows: (i) hedging cash flows from all derivative instruments are
     included in income generating units for impairment assessments under UK
     GAAP, while, under US GAAP, prior to January 1, 2001, hedging cash flows
     only in respect of forward contracts and gold lease rate swaps are included
     and, subsequent to that date, no expected future cash flows from derivative
     instruments are included in impairment assessments; and (ii) corporate
     overhead costs are included in US GAAP impairment assessments only to the
     extent that they are incremental costs that are directly attributable to
     the operation of the mines whereas UK GAAP permits the allocation of joint
     corporate costs that are not so directly attributable.

     Under US GAAP, the Company recorded an impairment loss for the year ending
     December 31, 2001 amounting to US$87.3 million (2000: US$428.6 million).

     The impairment loss was allocated, by segment, first to goodwill and then
     to long-lived assets. The segment analysis is as follows: US$nil (2000:
     US$331.2 million) relating to the Obuasi mine, US$54.9 million (2000:
     US$83.8 million) relating to the Siguiri mine, US$32.4 million (2000:
     US$nil) relating to the Bibiani mine, US$nil (2000: US$13.0 million)
     relating to the Freda-Rebecca mine and US$nil (2000: US$0.6 million)
     relating to the Ayanfuri mine.

     c)   Equity investment in joint ventures

     The Company's equity investment in joint ventures is in respect of its 50%
     interest in the Geita mine in Tanzania. This mine became a joint venture of
     the Company on December 15, 2000, following the Company's sale of 50% of
     its interest in this mine to AngloGold Limited.

     Under UK GAAP the results of joint ventures are accounted for using the
     gross equity method of accounting which results in the Company's share of
     net income and the net assets, together with additional disclosure
     information relating to these balances, being presented on the face of the
     profit and loss account and balance sheet.

     Under US GAAP the Company adopts the equity accounting provisions of
     Accounting Principals Board ("APB") Opinion No. 18, The Equity Method of
     Accounting for Investments in Common Stock ("APB 18"). Under APB 18 the
     Company's investment in, and advances to, the investee, which are increased
     or decreased by earnings, losses, and dividends, are combined and shown as
     a single-line item in its balance sheet. Similarly, the Company's share of
     the investee's current net earnings or losses is shown as a single-line
     item in its profit and loss account.

     Other differences arise initially from additional goodwill that is recorded
     under US GAAP on the acquisition of the investment in joint ventures and
     subsequently, from the amortization of that additional goodwill and the
     impact of adjustments required to convert the underlying accounts of the
     joint venture from UK to US GAAP. In 2002, following the adoption of SFAS
     142, additional goodwill recorded under US GAAP was US$29.1 million (2001:
     US$24.7 million). Other adjustments to convert the underlying accounts from
     UK GAAP to US GAAP relate solely to the Company's 50% share of the
     mark-to-market liability of derivative instruments held by the joint
     venture, that share being US$44.3 million (2001: US$2.4 million).

     Additional disclosures in respect of the net income and net assets of the
     joint venture are provided on the face of the profit and loss account and
     balance sheet as required under UK GAAP.

     d)   Deferred income taxes

     Under UK GAAP, FRS 19 requires that deferred tax be provided in full on all
     liabilities. Deferred tax assets are recognized to the extent that it is
     considered more likely than not that there will be suitable taxable profits
     from which the future reversal of the underlying timing differences can be
     deducted. Under US GAAP, the Company has applied SFAS No. 109, Accounting
     for Income Taxes ('SFAS 109'), for all periods presented. SFAS 109 requires
     an asset and liability method of accounting whereby deferred taxes are
     recognized for the tax consequences of all temporary differences between
     the financial statement carrying amounts and the related tax bases of
     assets and liabilities. Under US GAAP, the effect on deferred taxes of a
     change in tax rate is recognized in income in the period that includes the
     enactment date. SFAS 109 requires deferred tax assets to be reduced by a
     valuation allowance if, based on the weight of available evidence,
     including cumulative losses in recent years, it is considered more likely
     than not that some portion or all of the deferred tax assets will not be
     realized.


                                      F-32






<PAGE>




     The following are the deferred tax assets and liabilities at period end:

<TABLE>
<CAPTION>
                                                          Dec 31, 2002   Dec 31, 2001
                                                              US$m           US$m
     --------------------------------------------------------------------------------
<S>                                                          <C>            <C>
     Deferred tax liabilities:
        Long-lived assets                                      82.6          104.9
     Deferred tax assets:
        Losses carried forward                               (178.3)        (231.5)
        Other                                                  (6.5)          (5.0)
     --------------------------------------------------------------------------------
     Total deferred tax asset                                (102.2)        (131.6)
     Valuation allowance                                      106.6          124.7
     --------------------------------------------------------------------------------
     Net deferred tax liability/(asset)                         4.4           (6.9)
     ================================================================================
</TABLE>

     During the year ended December 31, 2002, US$53.2 million of losses were
     utilized or expired and the Company reduced its valuation allowance by
     US$18.1 million to adjust its deferred tax assets to estimated realizable
     value. The total valuation allowance primarily relates to the deferred tax
     assets arising from loss carryforwards as well as other temporary
     differences. At December 31, 2002, the Company had US$588.0 million in loss
     carryforwards of which US$14.0 million can be carried forward indefinitely.
     The remaining loss carryforwards amounting to US$6.9 million, US$25.6
     million, US$10.1 million and US$531.4 million expire in 2003, 2004, 2005
     and 2006, respectively.

     At December 31, 2002, based upon the level of historical taxable income and
     projections for future taxable income over the periods in which the
     temporary differences are anticipated to reverse, and prudent and feasible
     tax-planning strategies, management believes it is more likely than not
     that the Company will realize the benefits of these deductible differences,
     net of the valuation allowances. However, the amount of the deferred tax
     asset considered realizable could be adjusted in the future if estimates of
     taxable income are revised.

     The components of the tax expense/(benefit) were as follows:

<TABLE>
<CAPTION>
                                                                    Year ended     Year ended
                                                     Year ended    Dec 31, 2001   Dec 31, 2000
                                                    Dec 31, 2002       US$m           US$m
                                                        US$m       Restated(1)    Restated(1)
     -----------------------------------------------------------------------------------------
<S>                                                     <C>            <C>            <C>
     Current tax expense
        - Ghana                                         (5.7)           9.2             7.7
        - Overseas                                      (2.3)           5.6             0.3
     Deferred tax expense/(benefit) under UK GAAP
        - Group
        - Ghana                                          4.2           (0.4)          (20.3)
        - Overseas                                       7.1           (4.8)           (0.5)
        - Interest in joint venture                     (7.0)            --              --
     Deferred tax expense of applying SFAS 109            --            8.3             7.2
     -----------------------------------------------------------------------------------------
     Tax (benefit)/expense for the year on
        application of SFAS 109 to UK GAAP profit
        before tax                                      (3.7)          17.9            (5.6)
     =========================================================================================
</TABLE>

     (1)  The deferred tax expense/(benefit) under UK GAAP has been restated for
          the adoption of FRS 19.


                                      F-33






<PAGE>




     The tax expense/(benefit) recorded under US GAAP differs from the amount
     determined by applying the applicable Ghanaian statutory income tax rate to
     pre-tax profit/(loss) attributable to shareholders under US GAAP as a
     result of the following:

<TABLE>
<CAPTION>

                                                       Year ended     Year ended     Year ended
                                                      Dec 31, 2002   Dec 31, 2001   Dec 31, 2000
                                                          US$m           US$m           US$m
     -------------------------------------------------------------------------------------------
<S>                                                       <C>            <C>           <C>
     Tax expense/(benefit) at statutory rate*             (56.2)          24.4         (123.6)
     Amortization of goodwill                               0.1           10.5           54.6
     Investment allowances                                 (1.0)          (0.1)         (11.9)
     Deferred tax on acquisition and disposal                --             --           (9.8)
     Effect of foreign income taxes, net                  (12.9)         (29.1)         (17.4)
     Mark to market of hedging contracts                   76.7          (26.4)         (21.2)
     Impact of change in tax rate on deferred taxes          --            8.5             --
     Prior year tax adjustments                             3.0           11.8           11.6
     Valuation allowance                                  (18.1)          13.0          111.7
     Other permanent differences                            4.7            5.3            0.4
     -------------------------------------------------------------------------------------------
     Tax (benefit)/expense for the year                    (3.7)          17.9           (5.6)
     ===========================================================================================
</TABLE>

     *    The statutory rate for 2001 and 2002 was 30% and 35% for 2000.

     e)   Derivative financial instruments

     Under UK GAAP, the Company accounts for all derivative contracts using
     hedge accounting. The impact of accounting for derivatives under US GAAP is
     set out below.

     Position to December 31, 2000

     Under US GAAP, derivative financial instruments that are accounted for
     using hedge accounting must demonstrate a high degree of hedge
     effectiveness at the inception of the hedge relationship and on an ongoing
     basis. Hedge accounting under US GAAP additionally requires that the hedge
     relationship be designated at inception and reduce enterprise or
     transaction risk. Under US GAAP, the Company accounts for fixed forward
     sales contracts and lease rate swaps using hedge accounting.

     Under US GAAP, gains or losses (realized or unrealized) for derivative
     contracts which no longer qualify as hedges for accounting purposes are
     recognized in income immediately.

     The Company uses written and purchased put and call options, which qualify
     for hedge accounting under UK GAAP, to hedge exposure to commodity price
     risk for gold. The Company does not account for these instruments using
     hedge accounting under US GAAP.

     Specifically, written options are the writing or sale of options contracts,
     (the Company writes options with gold prices as the underlying risk), which
     obligate the writer to fulfil the contract should the holder choose to
     exercise. These contracts are not considered to reduce risk to the writer
     as the holder will only choose to exercise when it is beneficial to do so.
     In the Company's judgment, it is appropriate to treat these contracts as
     not qualifying for hedge accounting. Written options include option
     contracts sold for the purchase and sale of gold at a future date, and
     certain convertible structures, whereby the written option may convert into
     bought put options if the gold price moves below a specified barrier.

     The adjustment relating to derivative contracts that do not qualify for
     hedge accounting under US GAAP includes (i) the recognition of changes in
     market values between periods and (ii) the reversal of deferred hedging
     gains and losses that were recorded on the early close out of such
     contracts under UK GAAP.

     Position from January 1, 2001

     Effective January 1, 2001, the Company adopted SFAS No. 133, Accounting for
     Derivative Instruments and Hedging Activities ("SFAS 133"), which
     establishes accounting and reporting standards for derivative instruments,
     including certain derivative instruments embedded in other contracts and
     for hedging activities. All derivatives, whether designated in hedging
     relationships or not, are required to be recorded on the balance sheet at
     fair value. If the derivative is designated as a fair value hedge, the
     changes in the fair value of the derivative and the hedged item are
     recognized in earnings. If the derivative is designated as a cash flow
     hedge, changes in the fair value of the derivative are recorded in other
     comprehensive income (OCI) and are recognized in the profit and loss
     account when the hedged item affects earnings.


                                      F-34






<PAGE>




     Under US GAAP, all financial instruments have been marked-to-market since
     adoption of SFAS 133. Whilst all derivatives have been entered into for
     hedging purposes, they do not qualify for hedge accounting under the
     provisions of SFAS 133. Accordingly the movement in fair value of
     derivatives is included in net income for the years ended December 31, 2002
     and 2001. The following table sets out the fair value of the relevant
     derivative financial instruments at December 31, 2002 and 2001:

<TABLE>
<CAPTION>
                                                                       2002     2001
                                                                       US$m     US$m
     -------------------------------------------------------------------------------
<S>                                                                   <C>      <C>
     Forward contracts                                                 (56.0)  117.6
     European Put options (net bought)                                  24.9    51.0
     European Call options (net sold)                                 (102.7)  (48.3)
     Convertible structures                                               --    10.5
     Lease rate swaps                                                  (16.2)  (42.0)
     -------------------------------------------------------------------------------
                                                                      (150.0)   88.8
     -------------------------------------------------------------------------------
</TABLE>

     The US$122.2 million negative adjustment to shareholders' equity at
     December 31, 2002 represents (i) US$150.0 million, being the total
     adjustment to mark-to-market the relevant financial instruments at that
     date; and (ii) the reversal of the deferred hedging income balance of
     US$27.8 million recorded as a creditor under UK GAAP.

     The US$276.6 million negative adjustment to net income represents (i)
     US$238.8 million, being the net change in fair values of the relevant
     financial instruments during the year ended December 31, 2002; and (ii)
     US$37.8 million being the net change in deferred income recorded as a
     creditor under UK GAAP during the year ended December 31, 2002.

     The adoption of SFAS 133 resulted in cumulative transition adjustment gains
     after tax of US$146.2 million at January 1, 2001 which was recorded in
     accumulated other comprehensive income at that date. Of these gains US$32.3
     million was immediately reclassified into earnings on recognition of the
     impairment charge discussed in b) above. An additional US$51.2 million was
     reclassified into earnings relating to the amortization of the accumulated
     deferred hedging income balance. The remaining accumulated other
     comprehensive income of US$62.7 million, relating to deferred hedging
     income, has been reclassified into earnings in the year ended December 31,
     2002.

     The Company has performed a review for embedded derivatives and has not
     identified any embedded derivatives that need to be bifurcated under the
     provisions of SFAS 133.

     f)   Warrants issued to non-employees

     As described in Note 22, in November 1999 the Company issued warrants to
     its hedging counterparties at a conversion price of US$4.75 per share. On
     February 21, 2000, the warrants were re-priced to US$3.00. Under UK GAAP,
     as the net proceeds of the issue were US$nil, no expense was recognized in
     the financial statements. Under US GAAP, the warrants are accounted for
     using the fair value methodology inSFAS No. 123, Accounting for Stock-Based
     Compensation ("SFAS 123") in a manner consistent with equity instruments
     issued to non-employees. On the exercise of the warrants the related
     compensation charge is reclassified as Stated Capital.

     g)   Asset write-back

     In connection with the decision to close down the Iduapriem mine in 1998,
     the Company wrote down certain long-lived assets under both UK and US GAAP.
     As described above, in 2000 Ashanti acquired the Teberebie gold mine, which
     is adjacent to the Iduapriem mine. As a result of the acquisition,
     management determined that the Iduapriem and Teberebie mines could use a
     shared processing plant and, consequently the operations at Iduapriem were
     again considered economically feasible. Under UK GAAP, an element of the
     previously recognized impairment charge was reversed. Under US GAAP, the
     reversal of previously recognized impairment losses is not permitted.

     h)   Accounting for pensions

     During the years ended December 31, 2002, 2001 and 2000, the Company
     recorded pension costs amounting to US$0.9 million, US$1.2 million and
     US$3.7 million (of which US$3.0 million were classified as exceptional
     operating costs), respectively, related to the Scheme operated at the
     Obuasi mine. The Scheme provides for a monthly payment in Ghanaian currency
     (indexed to the US dollar) to retirees until death. Prior to the periods
     presented in these financial statements (i) all Scheme participants had
     retired, and (ii) the Scheme was closed to new employees. The exceptional
     operating cost recognized in 1999 represented management's best estimate of
     the total remaining liability under the Scheme as at December 31, 1999.
     This estimate was calculated based on the Ghanaian currency liability
     existing at that time. Prior to this date, the Scheme was accounted for on
     a cash basis. In 2000, the Scheme liability was re-estimated. The increase
     in the Scheme liability in 2000 reflects the re-introduction of the US
     dollar indexing in that year.

     Under US GAAP, the Scheme is accounted for in accordance with the
     provisions of SFAS No. 87, Employers' Accounting for Pensions and presented
     in accordance with SFAS No. 132, Employers' Disclosures about Pensions and
     Other Post


                                      F-35






<PAGE>




     Retirement Benefits. The benefits for the Scheme are based on years of
     service and compensation levels for the covered retirees. The Scheme is
     unfunded and accordingly, no assets related to the Scheme are recorded.
     Pension expense/(income) amounts to US$0.9 million in 2002, US$0.4 million
     in 2001 and US$(0.2) million in 2000 of which actuarial (gain)/loss was the
     only component. The projected benefit obligation for the Scheme was
     determined using a weighted average discount rate of 4.8% for each of the
     three years ended December 31, 2002.

<TABLE>
<CAPTION>
                                                                   Pension Benefits
                                                                  2002   2001   2000
                                                                  US$m   US$m   US$m
     -------------------------------------------------------------------------------
<S>                                                               <C>    <C>    <C>
     Change in benefit obligation
        Benefit obligation at beginning of year                    7.9    8.8    9.7
        Actuarial loss/(gain)                                      0.8    0.3   (0.2)
        Benefits paid                                             (0.9)  (1.2)  (0.7)
     -------------------------------------------------------------------------------
     Benefit obligation at end of year                             7.8    7.9    8.8
     ===============================================================================
 </TABLE>

     i)   Environmental and site restoration obligations

     Under UK GAAP, the expected costs of any committed decommissioning or other
     site restoration programs incurred during the construction phase are
     discounted at the weighted average cost of capital and capitalized at the
     beginning of each project and amortized over the life of the mine using the
     units of production method. Additional provisions are also recorded during
     the production phase as environmental liabilities arise with a
     corresponding charge to operating results. Under US GAAP, the cost of
     decommissioning or other site restoration programs is accrued using the
     unit-of-production method and charged to cost of sales and other direct
     production costs over the life of mine.

     It is reasonably possible that, due to uncertainties associated with
     defining the nature and extent of environmental contamination, application
     of laws and regulations by regulatory authorities, and changes in
     remediation technology, the ultimate cost of remediation could change in
     the future. The Company periodically reviews its accrued liabilities for
     such remediation costs, as evidence becomes available indicating that its
     remediation liability has potentially changed. Ashanti currently carries
     public liability insurance coverage. However, there is no specific coverage
     available for environmental liabilities which either arise gradually or
     otherwise than as a result of an insurable event.

     j)   Variable plan options

     On April 25, 2001, Ashanti implemented an option contribution plan that
     gives current option holders the ability to cancel their outstanding
     options in exchange for newly issued options. For every 10 shares under
     option which were cancelled by the option holders, a new option is granted
     over three shares. These new options require the option holder to remain
     employed by Ashanti for a period of three years from the date of grant.

     Under UK GAAP, the voluntary cancellation and re-grant of options are
     treated as separate events. At the date of grant, the option prices were
     above the market price of Ashanti's shares. Consequently, the options have
     no intrinsic value and no compensation charge has been recognized pursuant
     to Urgent Issues Task Force ("UITF") 17, Employee Share Schemes.

     Under US GAAP, the voluntary cancellation and re-grant of options are also
     treated as separate events. However, under US GAAP, Financial Accounting
     Standards Board ("FASB") Interpretation No. 44, Accounting for Certain
     Transactions Involving Stock Compensation: an Interpretation of APB Opinion
     No. 25, requires variable plan accounting for the newly granted options.
     Consequently, compensation cost in respect of options regranted during the
     year has been measured at the period end for the difference between the
     quoted market price and the option strike price to be paid by an employee.
     Such expense is being recognized over the three-year service period.

     Other disclosures

     The following information is provided as additional disclosure under US
     GAAP:

     The Company and its operations

     Ashanti Goldfields Company Limited ("the Company") and its subsidiaries
     (collectively, "the Group") are primarily engaged in the mining and
     processing of gold ores and the exploration and development of gold
     properties in Africa. The Company's operations are principally in Ghana,
     Guinea, Tanzania and Zimbabwe. Gold bullion produced by the Company is used
     primarily for fabrication and bullion investment. Fabricated gold has a
     wide variety of uses including jewelery (the largest fabrication use for
     gold), electronics, dentistry, decorations, medals, medallions and official
     coins. Gold for bullion investment is primarily sold to central banks as
     part of their national investment strategies.


                                      F-36






<PAGE>




     Adoption of new accounting standard

     In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statement
     No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical
     Corrections ("SFAS 145"). The principal change reflected in these
     pronouncements is that gains or losses from extinguishment of debt which
     are classified as extraordinary items by SFAS No. 4, Reporting Gains and
     Losses from Extinguishment of Debt an amendment of APB Opinion No. 30, will
     no longer be classified as such. The Company adopted SFAS 145 as of January
     1, 2002. No restatement of previously reported amounts, for any of the
     periods presented, resulted from the adoption of SFAS 145.

     Earnings per share

     Under US GAAP, basic earnings/(loss) per share ('EPS') is computed by
     dividing net earnings/(loss) available to common shareholders by the
     weighted average number of common shares outstanding for the year. The
     computation of diluted EPS is similar to basic EPS, except that the
     denominator is increased to include the number of additional common shares
     that would have been outstanding if the potentially dilutive common shares
     had been issued, and the numerator may be adjusted for the impact the
     outstanding security had on income available to common shareholders used in
     the basic EPS calculation.

     Diluted EPS is equal to basic EPS for each of the three years ended
     December 31, 2002 as the exercise of the Senior Management Share Options,
     Warrants, Mandatorily Exchangeable Notes and conversion of 5 1/2%
     Exchangeable Notes, are excluded from the computation of diluted EPS in
     those years as the effect of inclusion is anti-dilutive.

     The number of potentially dilutive shares that were excluded from the
     computation of diluted EPS are as follows:

<TABLE>
<CAPTION>
                                                         2002       2001       2000
                                                       millions   millions   millions
     --------------------------------------------------------------------------------
 <S>                                                     <C>        <C>        <C>
     Senior Management Share Options                      3.0        2.8        8.3
     5 1/2 % Convertible Notes                             --        8.1        8.0
     Warrants                                             5.9       19.8       19.8
     Mandatorily Exchangeable Notes                       7.0         --         --
     --------------------------------------------------------------------------------
                                                         15.9       30.7       36.1
     ================================================================================
</TABLE>

     Use of estimates

     The preparation of financial statements requires management to make
     estimates and assumptions that affect the reported amounts of assets and
     liabilities and disclosure of contingent assets and liabilities at the date
     of the financial statements and the reported amounts of revenue and
     expenses during the period. Actual results could differ from those
     estimates.

     Credit risk and concentrations of credit risk

     Credit risk represents the accounting loss that would be recognized at the
     reporting date if counterparties failed completely to perform as contracted
     and from movements in gold prices. The Company does not anticipate
     non-performance by counterparties.

     Concentrations of credit risk (whether on or off-balance sheet) that arise
     from financial instruments exist for groups of customers or counterparties
     when they have similar economic characteristics that would cause their
     ability to meet contractual obligations to be similarly affected by changes
     in economic or other conditions. Financial instruments on the balance sheet
     that potentially subject the Company to concentrations of credit risk
     consist primarily of cash and cash equivalents, receivables and derivatives
     which are recorded at fair value. The Company maintains a policy providing
     for the diversification of cash and cash equivalent investments and places
     its investments in a number of high quality financial institutions to limit
     the amount of credit risk exposure. Concentrations of credit risk with
     respect to receivables are limited due to the large, financially strong
     customers the Company does business with.

     As described in Note 1, the Company enters into certain hedging
     transactions. The Company attempts to minimize its credit exposure to
     counterparties by entering into derivative contracts with major
     international financial institutions. Although the Company's theoretical
     credit risk is the replacement cost at the then estimated fair value of
     these instruments, management believes that the risk of incurring losses is
     remote. Market risk exists due to the fact that the price of gold could
     rise above the strike price on a position thus creating an exposure in
     favour of counterparties. The counterparties may call for margin payments
     on the contracts in this instance, subject to any restrictions on margin
     calls (including margin free limits) which are contained in the contract.

     Management does not believe significant risk exists in connection with the
     Company's concentrations of credit as at December 31, 2002.


                                      F-37






<PAGE>




     Redundancy costs

     During the second quarter of 1999 the Company reached an agreement with the
     Ghana Mineworkers' Union for a labor rationalization plan involving the
     retrenchment of 2,155 permanent employees (2,000 junior shift workers and
     155 senior salaried staff). Additionally, during the fourth quarter of
     1999, the Company announced the closing of the surface mining operations at
     Obuasi by the end of 2000 together with the closure of certain shafts and
     processing plants. The surface mine closure includes the termination of 700
     employees. Under both the redundancy plans, actual employees terminated
     amounted to approximately 2,900 employees through December 31, 2000.

     Total costs charged to date are US$20 million (2001: US$20 million; 2000:
     US$20 million). A charge of US$3 million is included in operating expenses
     for the year ended December 31, 2000. Actual redundancy costs paid in 2000
     were US$8.4 million. During 2002 and 2001 no further employees were made
     redundant and no further charges were made or costs paid.

     Pro forma financial information

     In June 2000, Ashanti acquired a 90% interest in Pioneer, the Company that
     owns the Teberebie mine in Ghana (see Note 25). The acquisition was
     accounted for under the purchase method for US GAAP purposes.

     Goodwill arising as part of the acquisition amounted to US$21.9 million and
     is being amortised over the life of the underlying mine assets using the
     unit of production method. Unaudited pro forma results of operations under
     UK GAAP for the year ended December 31, 2000, as if the 90% ownership in
     the Teberebie mine had been acquired at the beginning of each reporting
     period, follow. The pro forma results include estimates and assumptions
     which management believes are reasonable. However, pro forma results do not
     include any anticipated cost savings or other effects of the planned
     integration of the Teberebie mine, and are not necessarily indicative of
     the results which would have occurred if the business combination had been
     in effect on the dates indicated or which may result in the future.

<TABLE>
<CAPTION>
                                                                      2000
                                                                   US$ million
                                                           (except per share amounts)
                                                                   (unaudited)
     --------------------------------------------------------------------------------
<S>                                                                  <C>
     Pro forma revenues                                               584.8
     Pro forma net loss                                              (151.1)
     Pro forma basic loss per share (US$)                              (1.3)
     Pro forma diluted loss per share (US$)                            (1.9)
</TABLE>

     Revenue recognition

     Under UK GAAP, the Company recognizes "estimated" revenue when gold is
     produced in dore form in the gold room based on the quantity and spot price
     at that date. Pursuant to the Company's refining and purchase agreements
     with its customers (i) the actual sales price is the spot price at the date
     of delivery, and (ii) the actual quantity invoiced is the quantity after
     the gold is refined (refining is generally completed within one day of
     delivery.) Consequently, under UK GAAP the Company processes an adjustment
     on completion of the refining process to adjust revenues recognized at the
     time of producing dore to actual revenues.

     Under US GAAP, the Company recognizes revenue from sales of gold bullion at
     the date of delivery to the refinery. At this point in time, delivery of
     third-party refined gold to the customer has occurred, the pricing is
     either fixed or determinable and collectibility is reasonably assured.
     Under US GAAP, revenues were higher by US$1.8 million for the year ended
     December 31, 2002 and lower by US$2.9 million for the year ended December
     31, 2001 and US$5.8 million for the year ended December 31, 2000. The
     difference in accounting policy is not material with respect to operating
     profit/(loss), profit/(loss) attributable to shareholders, and shareholders
     equity under US GAAP for all periods presented. Consequently, no US GAAP
     adjustments have been recorded.

     In November 1999, the United States Securities and Exchange Commission (the
     "SEC") issued Staff Accounting Bulletin No.101, Revenue Recognition ("SAB
     101"). This Bulletin sets forth the SEC Staff's position regarding the
     point at which it is appropriate for a company to recognize revenue. The
     Staff believes that revenue is realizable and earned when all of the
     following criteria are met: (i) persuasive evidence of an arrangement
     exists, (ii) delivery has occurred or service has been rendered, (iii) the
     seller's price to the buyer is fixed or determinable and (iv)
     collectibility is reasonably assured. The Company adopted SAB 101 in the
     fourth quarter of the year ended December 31, 2000 in accordance with SAB
     101. The adoption of SAB 101 had no effect on the Company's financial
     statements.

     Ashanti adopted SFAS 133 on January 1, 2001. Subsequent to the adoption of
     SFAS 133, all deferred hedging gains and losses that are recorded on the
     early close out of hedging contracts under UK GAAP are reversed in the US
     GAAP reconciliation as part of the 'Derivative financial instruments'
     adjustment as further explained in note 32(e) above.


                                      F-38






<PAGE>




     Gold realization risks

     The nature of realization risks inherent in commodity inventories for which
     revenue has already been recognized relate to the possibility of
     significant changes in the spot price for gold between the date the gold is
     poured and the delivery date and differences in quantities between the
     poured amount and the refined amount.

     The overall realization risk is mitigated by the following factors:

     o    Estimated ounces have never varied significantly from the final
          quantity declared by the refiner;

     o    Theft is covered by bullion insurance; and

     o    Gold is a liquid commodity recognized on international exchanges and,
          if a customer does not accept delivery, Ashanti can deliver to one of
          its other customers.

     Exceptional items

     For the year ended December 31, 2002 exceptional operating costs of US$32.3
     million (2001: US$nil; 2000: US$215.2 million) were recognized. In the year
     ended December 31, 2000, the Company recognized exceptional operating costs
     before operating (loss)/profit of US$215.2 million and an exceptional
     profit on sale of businesses of US$46.6 million. Under US GAAP, US$23.5
     million of these costs related to debt extinguishment and are treated as
     non-operating items (2001: nil; 2000: nil). All other amounts classified as
     exceptional items under UK GAAP are treated as operating items under US
     GAAP and not shown as exceptional items in the profit and loss account.
     There is no impact on the US GAAP net loss as a result of the treatment for
     UK GAAP. Similarly there is no impact on basic and diluted loss per share
     as such amounts have been considered in the calculation of such figures.

     Buyback and reissuance of shares

     The Company holds in treasury 556,987 of its own ordinary shares. The
     purchases of shares were accounted for in accordance with the Ghana
     Companies Code 1963 (Act 179) in a non-distributable Share deals account
     within shareholders' equity. Under US GAAP, the cost of the treasury shares
     is generally presented as a reduction of total shareholders' equity. This
     difference in presentation has no impact on shareholders' equity. The
     Company made no purchases of its own shares in any of the periods
     presented.

     Cash

     In the UK GAAP balance sheet, 'Gold-in-transit' and 'cash held as
     collateral' have been included within cash balances but have not been
     included as part of cash in preparing the UK GAAP cash flow statement in
     accordance with FRS No.1 (revised) Cash Flow Statements ("FRS1"). For cash
     flow purposes 'Gold-in-transit' and 'cash held as collateral', together
     with short-term deposits, are classified as liquid resources. Under US
     GAAP, 'Gold-in-transit' and 'cash held as collateral' are classified as
     other assets in the balance sheet and, similar to UK GAAP, would not be
     included as part of cash and cash equivalents in preparing the US GAAP cash
     flow statement.

     Furthermore, 'cash held as collateral' is classified as restricted cash,
     which forms part of other current assets under US GAAP, as it is held as
     collateral for a short-term loan to Ashanti Goldfields Zimbabwe Limited.
     'Gold-in-transit' would also be classified as other current assets.

     Employee stock options

     The Company accounts for its stock option and stock-based compensation
     plans using the intrinsic-value method prescribed in APB Opinion No. 25,
     Accounting for Stock issued to Employees ("APB 25"). Accordingly, the
     Company computes compensation costs for each employee stock option granted
     as the amount by which the fair market value of ordinary shares on the date
     of the grant exceeds the amount the employee must pay to acquire the
     shares. Accordingly, where options have been granted at exercise prices
     equal to fair market value on the date of grant, no compensation expense
     has been recognized by the Company.

     Had compensation cost for the Company's stock option plans been determined
     consistent with the fair value methodology prescribed under SFAS 123, the
     Company's net profit/(loss) attributable to shareholders and net profit per
     share under UK GAAP would have been decreased to the pro forma amounts in
     the table below:


                                      F-39






<PAGE>




<TABLE>
<CAPTION>
                                                         2001             2000
                                        2002             US$m             US$m
                                        US$m         (except per      (except per
                                    (except per      share amounts)   share amounts)
                                    share amounts)    Restated(1)      Restated(1)
     -------------------------------------------------------------------------------
<S>                                      <C>              <C>             <C>
     Net profit/(loss):
        As reported                      56.2             59.9            (115.4)
        Pro forma                        54.5             58.8            (118.6)
     Net profit/(loss) per share:
        Basic:
        As reported (US$)                0.47             0.53             (1.02)
        Pro forma (US$)                  0.46             0.52             (1.05)
        Diluted:
        As reported (US$)                0.44             0.52             (1.02)
        Pro forma (US$)                  0.43             0.51             (1.05)
</TABLE>

     (1)  Restated for the adoption of FRS 19.

The following table summarizes option plan activity:

<TABLE>
<CAPTION>
                                                        Weighted average
                                  Shares under option    Exercise price
                                     No. of shares            US$
     -------------------------------------------------------------------
<S>                                   <C>                    <C>
     Balance, January 1, 2000          8,206,772             12.58
        Granted                           90,000              2.15
     -------------------------------------------------------------------
     Balance, December 31, 2000        8,296,772             12.46
        Granted                        2,741,850              2.29
        Lapsed                        (2,334,237)            12.58
        Cancelled                     (5,872,535)            12.58
     -------------------------------------------------------------------
     Balance, December 31, 2001        2,831,850              2.29
        Granted                          606,560              4.88
        Lapsed                          (396,716)             2.34
     -------------------------------------------------------------------
     Balance, December 31, 2002        3,041,694              2.80
     ===================================================================
</TABLE>


                                      F-40






<PAGE>




     The following table summarizes information about options outstanding at
     December 31, 2002:

<TABLE>
<CAPTION>
                                      Number          Remaining                                Number
                                 outstanding as at   contractual   Exercise                exerciseable at
                                   December 31,         life        price     Fair value    December 31,
     Code       Date of Grant          2001             Years        US$         US$            2002
     -----------------------------------------------------------------------------------------------------
<S>            <C>                   <C>                <C>          <C>         <C>             <C>
     A           July 13, 2000          40,000          8.53         1.66        1.42            --
     B         August 26, 2000          50,000          8.85         2.55        2.40            --
     C             May 3, 2001       1,761,760          9.34         2.29        1.76            --
     D             May 3, 2001         980,090          9.34         2.29        1.76            --
     E         August 22, 2002         599,560          9.65         4.88        3.83            --
     -----------------------------------------------------------------------------------------------------
                                     3,041,694                                                   --
     =====================================================================================================
</TABLE>

     The weighted average fair value of options granted was US$3.83 (2001:
     US$1.76; 2000: US$1.96).

     The fair values of options granted for fiscal years ended December 31,
     2002, 2001 and 2000 have been estimated at the date of grant using the
     Black-Scholes option pricing model with the following weighted average
     assumptions:

<TABLE>
<CAPTION>
     Options                        2002   2001   2000
     --------------------------------------------------
<S>                                 <C>    <C>     <C>
     Expected option life (years)   10.0   10.0    10.0
     Risk-free interest rates(1)     4.5%   5.5%    5.0%
     Volatility(2)                  60.0%  60.0%  100.0%
     Dividend yield                   --     --      --
     ==================================================
</TABLE>

     (1)  The risk-free interest rate is based on US Government Benchmark STRIP
          at each grant date for time period being the difference between last
          exercisable date and date of grant.

     (2)  The volatility is estimated at each grant date for time period being
          the difference between last exercisable date and date of grant. The
          volatility was estimated by using historical volatility on the London
          International exchange when trading on the Ghanaian stock exchange was
          extremely light.

     The compensation cost as generated by the Black-Scholes option pricing
     model may not be indicative of the future benefit, if any, that may be
     received by the option holder.

     Cash flow statement

     For UK GAAP reporting purposes , the cash flow statement is prepared in
     accordance with FRS 1. The objective and principles of FRS 1 are similar to
     those set out in SFAS No.95, Statement of Cash Flows ("SFAS 95"). The
     principle difference between the standards relates to the classification of
     cash flows. Under FRS 1, the Company presents its cash flows for operating
     activities, returns on investments and servicing of finance, taxation,
     capital expenditure and financial investment, acquisitions and disposals,
     dividends, management of liquid resources and financing. Pursuant to SFAS
     95, however, the Company's cash flows would be analyzed between only three
     categories of cash flow activity, namely operating, investing and
     financing.

     Under SFAS 95, (i) cash flows arising from taxation, returns on investments
     and servicing of finance and 'Gold-in-transit' would be included as
     operating activities, (ii) cash flows from acquisitions and disposals would
     be included in investing activities, and (iii) dividend payments, changes
     in short-term credit facilities and management of liquid resources
     (excluding 'Gold-in-transit') would be disclosed as part of financing
     activities. In addition, under UK GAAP cash is presented net of overdrafts
     while under SFAS 95, bank overdrafts are treated as short term credit
     facilities with movements appearing within financing activities.

     A reconciliation between the consolidated statements of cash flows
     presented in accordance with UK GAAP and US GAAP is presented below for the
     year ended December 31:

<TABLE>
<CAPTION>

                                                           2002    2001    2000
                                                           US$m    US$m    US$m
     ---------------------------------------------------------------------------
<S>                                                        <C>     <C>     <C>
     Operating activities
     Cash flow from operating activities (UK GAAP)          95.2    95.4   149.4
     Movement in 'Gold-in-transit'                          (1.8)    2.9     5.8
     Corporation tax paid                                   (2.0)   (2.9)   (5.8)
     Interest received                                       0.8     2.0     4.7
     Interest paid                                         (19.6)  (24.4)  (61.1)
     ---------------------------------------------------------------------------
     Net cash provided by operating activities (US GAAP)    72.6    73.0    93.0
     ===========================================================================
</TABLE>


                                      F-41






<PAGE>




<TABLE>
<CAPTION>
                                                                     2002    2001    2000
                                                                     US$m    US$m    US$m
     --------------------------------------------------------------------------------------
<S>                                                                  <C>     <C>     <C>
     Investing activities
     Net cash outflow from capital expenditure and financial
        investment (UK GAAP)                                         (64.5)  (49.6)  (146.2)
     Acquisitions                                                       --      --     (0.5)
     Disposals                                                          --      --    230.8
     --------------------------------------------------------------------------------------
     Net cash (used in)/provided by investing activities (US GAAP)   (64.5)  (49.6)    84.1
     ======================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                               2002    2001    2000
                                                               US$m    US$m    US$m
     --------------------------------------------------------------------------------
<S>                                                            <C>     <C>     <C>
     Financing activities
     Cash outflow from financing (UK GAAP)                     (19.2)  (40.6)  (186.3)
     Change in short-term credit facilities                     (4.6)    1.7     (1.1)
     Movement in liquid resources (except 'Gold-in-transit')     7.8     6.8      7.8
     --------------------------------------------------------------------------------
     Net cash used in financing activities (US GAAP)           (16.0)  (32.1)  (179.6)
     ================================================================================
</TABLE>

     The cash inflow of US$230.8 million on disposals in the year ended December
     31, 2000 includes US$55.0 million of intercompany balances repaid. Under US
     GAAP, this amount would be separately presented within investing
     activities.

     Intangible assets

     The following reconciles the UK GAAP reported figures to US GAAP:

<TABLE>
<CAPTION>
                                                      2002   2001
                                                      US$m   US$m
     -------------------------------------------------------------
<S>                                                   <C>     <C>
     Intangible assets as at December 31, (UK GAAP)   17.3    18.8
     Brought forward US GAAP difference                0.1    25.4
     Amortization reversal                             1.7     --
     Impairment write-off                               --   (25.3)
     -------------------------------------------------------------
     Intangible assets as at December 31, (US GAAP)   19.1    18.9
     =============================================================
</TABLE>

     The Company adopted SFAS 142, with effect from January 1, 2002.

     Subsequent to adoption of SFAS 142, the Company does not amortize goodwill
     and other intangible assets that have an indefinite useful life but rather
     tests such assets at least annually for impairment. Under US GAAP, as of
     December 31, 2002, the Company had not recorded any intangible assets other
     than goodwill. The goodwill balance as of December 31, 2002 related
     exclusively to the Iduapriem mine. The aggregate amount of goodwill
     acquired in the year, being US$0.2 million, also related exclusively to
     that mine.

     The transitional provisions of SFAS 142 require disclosure of reported net
     income in all periods presented, exclusive of amortization expense
     recognized in those periods related to goodwill and the effects of other
     accounting changes pursuant to the adoption of SFAS 142. Those disclosures
     are set forth below, presented as a reconciliation from net income as
     stated.


                                      F-42






<PAGE>




<TABLE>
<CAPTION>

                                                                     12 months ended
                                                               Dec. 31   Dec. 31   Dec. 31
                                                                2002      2001      2000
     -------------------------------------------------------------------------------------
                                                                 (in US$ millions except
                                                                    per share numbers)
<S>                                                            <C>         <C>     <C>
     Net (loss)/profit before extraordinary items, as stated   (182.8)     65.4    (349.1)
     Amortization expense                                          --       6.0      35.1
     -------------------------------------------------------------------------------------
     Adjusted net (loss)/profit before extraordinary items     (182.8)     71.4    (314.0)
     =====================================================================================

     Earnings per share (US$)
     Basic
     (Loss)/earnings per share, as stated                       (1.53)     0.58     (3.11)
     Amortization expense, per share                               --      0.05      0.31
     -------------------------------------------------------------------------------------
     Adjusted (loss)/earnings per share                         (1.53)     0.63      2.80
     -------------------------------------------------------------------------------------
     Diluted
     (Loss)/earnings per share, as stated                       (1.53)     0.57     (3.11)
     Amortization expense, per share                               --      0.05      0.31
     -------------------------------------------------------------------------------------
     Adjusted (loss)/earnings per share                         (1.53)     0.62      2.80
     =====================================================================================
</TABLE>

     Fixed assets

     The following reconciles the UK GAAP reported figures to US GAAP:

<TABLE>
<CAPTION>
                                                  2002      2001
                                                  US$m      US$m
     ------------------------------------------------------------
<S>                                              <C>       <C>
     Fixed assets as at December 31, (UK GAAP)    602.7     612.9
     Brought forward US GAAP difference          (211.9)   (164.5)
     Impairment write-off                            --     (62.0)
     Asset write-back                                --        --
     Depreciation adjustment                       14.3      14.6
     ------------------------------------------------------------
     Fixed assets as at December 31, (US GAAP)    405.1     401.0
     ============================================================
</TABLE>

     Segmental analysis

     SFAS No. 131, Disclosures about Segments of an Enterprise and Related
     Information ("SFAS 131"), which requires that an enterprise report
     financial and descriptive information about its reportable operating
     segments.

     The Company is primarily engaged in the exploration, development and mining
     of gold on the African continent. The Company's operations are managed and
     internally reported on a mine-by-mine basis on which basis the Company has
     identified its reportable segments. The Company's country of domicile is
     Ghana. The location of individual mines along with the relevant financial
     disclosures required by SFAS 131, are identified in the following tables
     for the years ending December 31, 2002, 2001 and 2000 (under UK GAAP):

          12 Months to December 31, 2002

<TABLE>
<CAPTION>

                                                                                Freda-
                                                    Idua-                       Rebecca
                                           Obuasi   priem   Bibiani   Siguiri    Zim-
                                           Ghana    Ghana    Ghana    Guinea     babwe
                                            US$m    US$m     US$m      US$m      US$m
     ----------------------------------------------------------------------------------
<S>                                        <C>      <C>      <C>       <C>       <C>
     Revenue (external)                     167.8    57.8     76.1      83.9      30.7
     Operating costs                       (106.4)  (43.0)   (43.6)    (61.9)    (21.0)
     Other operating costs                   (0.5)   (0.9)    (0.3)     (4.8)       --
     Depreciation and amortization          (33.0)   (7.6)   (11.7)    (17.7)     (3.7)
     Royalties                               (5.0)   (1.7)    (2.3)     (2.9)       --
     Other income                              --      --       --        --        --
     Refinancing and restructuring costs       --      --       --        --        --
     Operating profit/(loss)                 22.9     4.6     18.2      (3.4)      6.0
     Interest payable                        (2.1)   (1.3)      --        --      (0.6)
     Interest receivable/other income          --      --      0.1        --       0.3
     Property, plant and equipment (net)    444.2    27.4     25.8      78.0      19.5
     Total assets                           485.4    44.6     49.6      92.6      35.0
     Capital expenditure                     35.1    10.5      2.9       9.4       6.4

<CAPTION>
                                                                Corporate    Geita          Total
                                                      Explor-    Admini-    Tanzania   per financial
                                           Treasury    ation     stration      50%       statements
                                             US$m      US$m       US$m        US$m         US$m
     ----------------------------------------------------------------------------------------------
<S>                                          <C>      <C>        <C>        <C>          <C>
     Revenue (external)                      51.2       --          --       84.7         552.2
     Operating costs                           --       --          --      (47.2)       (323.1)
     Other operating costs                     --     (3.8)      (16.5)      (4.8)        (31.6)
     Depreciation and amortization             --     (0.1)       (1.3)     (13.3)        (88.4)
     Royalties                                 --       --          --       (2.7)        (14.6)
     Other income                              --       --         3.3         --           3.3
     Refinancing and restructuring costs       --       --       (23.5)        --         (23.5)
     Operating profit/(loss)                 51.2     (3.9)      (38.0)      16.7          74.3
     Interest payable                          --       --       (15.3)        --         (19.3)
     Interest receivable/other income         0.2       --         1.2         --           1.8
     Property, plant and equipment (net)       --       --         7.8         --         602.7
     Total assets                            10.0       --        26.2         --         743.4
     Capital expenditure                       --       --         0.2         --          64.5
</TABLE>


                                      F-43






<PAGE>




               12 Months to December 31, 2001

<TABLE>
<CAPTION>
                                                                                            Freda-
                                                               Idua-                       Rebecca
                                           Obuasi   Ayanfuri   priem   Bibiani   Siguiri     Zim-
                                           Ghana     Ghana     Ghana    Ghana    Guinea     babwe
                                            US$m      US$m     US$m      US$m     US$m       US$m
     ---------------------------------------------------------------------------------------------
<S>                                        <C>        <C>      <C>      <C>       <C>       <C>
     Revenue (external)                     143.5      3.1      55.8     68.7      76.6      34.0
     Operating costs                       (101.4)    (2.8)    (44.0)   (43.1)    (62.2)    (22.8)
     Other operating costs                     --     (1.0)     (0.8)    (2.2)       --        --
     Depreciation and amortization          (37.5)    (0.5)     (4.9)   (13.8)    (18.6)     (3.9)
     Royalties                               (4.3)    (0.1)     (1.7)    (2.1)     (2.6)       --
     Operating profit/(loss)                  0.3     (1.3)      4.4      7.5      (6.8)      7.3
     Interest payable                        (1.3)      --      (2.2)      --        --      (0.9)
     Interest receivable/other income          --       --       0.2      0.3        --        --
     Property, plant and equipment (net)    442.6       --      22.8     32.6      86.3      17.2
     Total assets                           483.9       --      42.2     52.1     107.3      28.2
     Capital expenditure                     30.1      0.5       3.7      1.0       7.0       6.8

<CAPTION>
                                                                                         Total
                                                                                          per
                                                                Corporate     Geita    financial
                                                      Explor-    Admini-    Tanzania     state-
                                           Treasury    ation    stration       50%       ments
                                             US$m      US$m       US$m        US$m       US$m
     -------------------------------------------------------------------------------------------
<S>                                          <C>       <C>        <C>       <C>        <C>
     Revenue (external)                      96.0        --          --      76.7       554.4
     Operating costs                           --        --          --     (38.9)     (315.2)
     Other operating costs                     --      (6.5)      (21.2)     (2.8)      (34.5)
     Depreciation and amortization             --      (1.9)       (1.2)    (12.6)      (94.9)
     Royalties                                 --        --          --      (2.2)      (13.0)
     Operating profit/(loss)                 96.0      (8.4)      (22.4)     20.2        96.8
     Interest payable                          --        --       (22.6)       --       (27.0)
     Interest receivable/other income         0.6        --         4.3        --         5.4
     Property, plant and equipment (net)       --        --        11.4        --       612.9
     Total assets                            14.2       0.3       162.6        --       890.8
     Capital expenditure                       --       0.1         0.4        --        49.6
</TABLE>

               12 Months to December 31, 2000

<TABLE>
<CAPTION>
                                                                                                      Freda-
                                                               Idua-                        Geita     Rebecca
                                           Obuasi   Ayanfuri   priem   Bibiani   Siguiri   Tanzania    Zim-
                                           Ghana     Ghana     Ghana    Ghana    Guinea      100%      babwe
                                            US$m      US$m      US$m    US$m      US$m       US$m      US$m
     --------------------------------------------------------------------------------------------------------
<S>                                        <C>        <C>      <C>      <C>       <C>       <C>        <C>
     Revenue (external)                     179.5     10.1      53.9     76.6      85.2      48.6       31.3
     Operating costs                       (133.5)    (8.9)    (43.2)   (36.8)    (54.8)    (25.7)     (22.2)
     Depreciation and amortization          (45.6)    (4.8)     (3.2)   (15.6)    (19.8)    (11.6)     (11.7)
     Royalties                               (5.4)    (0.3)     (1.4)    (2.3)     (2.9)     (1.4)        --
     Operating (loss)/profit                 (5.0)    (3.9)      6.1     21.9       7.7       9.9       (2.6)
     Interest payable                        (1.5)      --      (4.3)      --      (0.3)     (5.9)      (1.5)
     Interest receivable/other income          --      0.1       0.6      0.2       0.1       0.2        0.3
     Exceptional operating costs           (157.0)      --        --       --        --        --      (35.0)
     Property, plant and equipment (net)    452.1      0.1      21.9     43.0      98.1        --       14.0
     Total assets                           500.9      0.5      38.8     64.2     120.8        --       21.6
     Capital expenditure                     32.6      1.4       2.6      2.8      11.6      85.7        4.8

<CAPTION>
                                                                                                       Amounts
                                                                                                         per
                                                                Corporate                    Recon-   financial
                                                      Explor-    Admini-                     ciling     state-
                                           Treasury    ation    stration    Other   Total    items      ments
                                             US$m      US$m       US$m      US$m     US$m     US$m      US$m
     ----------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>        <C>       <C>     <C>      <C>        <C>
     Revenue (external)                      97.0         --         --        --    582.2       --      582.2
     Operating costs                           --      (14.2)     (25.3)       --   (364.6)      --     (364.6)
     Depreciation and amortization             --       (0.4)      (2.1)       --   (114.8)      --     (114.8)
     Royalties                                 --         --         --        --    (13.7)      --      (13.7)
     Operating (loss)/profit                 97.0      (14.6)     (27.4)       --     89.1   (215.2)    (126.1)
     Interest payable                          --         --       (3.7)    (38.8)   (56.0)     4.7      (51.3)
     Interest receivable/other income          --         --         --       3.2      4.7     (4.7)        --
     Exceptional operating costs            (14.7)        --         --      (8.5)  (215.2)   215.2         --
     Property, plant and equipment (net)       --        3.2        4.5       8.9    645.8       --      645.8
     Total assets                            20.3        4.1      114.6      50.4    936.2       --      936.2
     Capital expenditure                       --        0.6        1.1       2.4    145.6       --      145.6
</TABLE>

     Sales to individual customers, amounting to 10% or more of the Company's
     consolidated revenues, are as follows for the years ended December 31:

<TABLE>
<CAPTION>
                       2002    2001    2000
                       US$m    US$m    US$m
     --------------------------------------
<S>              <C>  <C>     <C>     <C>
     Customer    1    141.8   149.1   169.5
                 2     92.8    99.6   140.5
                 3     90.7    89.5   133.6
                 4     88.7    74.7      --
</TABLE>

     Because of the active worldwide market for gold, the Company believes that
     the loss of any of these customers will not have a material impact on the
     Company.

     Deferred stripping costs

     The full amount of deferred stripping costs may not be expensed until the
     end of the life of the mine. Those amounts capitalized as at December 31,
     2000 were fully amortized in one year. The average life of mines in respect
     of which amounts relating to deferred stripping costs are capitalized, as
     at December 31, 2000, was one year. There were no deferred stripping cost
     liabilities as at December 31, 2002 and 2001.

     The strip ratio for each mine, calculated as the ratio of waste mined to
     ore production, is as follows, for the years ended December 31:

<TABLE>
<CAPTION>
           Obuasi(*)   Ayanfuri   Iduapriem   Bibiani   Siguiri   Geita
     -------------------------------------------------------------------
<S>            <C>         <C>        <C>        <C>       <C>      <C>
     2002      5.8          --        3.4        4.2       0.9      7.4
     2001      N/A         3.2        2.9        5.5       0.6      6.0
     -------------------------------------------------------------------
</TABLE>

     (*)  Obuasi has both underground and open pit mining operations. Data
          relates to the open pit mining operations of Obuasi.

     Ore in stockpiles

     Under UK GAAP, ore in stockpiles of US$20.1 million and US$16.2 million as
     at December 31, 2002 and 2001 respectively, are recorded in current assets,
     within stocks, while under US GAAP, ore in stockpiles is included in
     non-current assets. Under US GAAP the classification of ore in stockpiles
     in non-current assets is appropriate given that, while it is management's
     current intention to process the stockpiled ore prior to the end of the
     mine life, there is not reasonable certainty that that ore will be
     processed within the next 12 months.


                                      F-44






<PAGE>




     New accounting standards

     In June 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement
     Obligations ("SFAS 143"), which addresses financial accounting and
     reporting for obligations associated with the retirement of tangible
     long-lived assets and the associated asset retirement costs. It applies to
     legal obligations associated with the retirement of long-lived assets that
     result from the acquisition, construction, development and (or) the normal
     operation of a long-lived asset. SFAS 143 requires entities to record the
     fair value of a liability for an asset retirement obligation in the period
     in which it is incurred. When the liability is initially recorded, an
     entity capitalizes the cost by increasing the carrying amount of the
     related long-lived assets. Over time, the liability is accreted to its
     present value each period, and the capitalized cost is amortized over the
     useful life of the related asset. Upon settlement of the liability, an
     entity either settles the obligation for its recorded amount or incurs a
     gain or loss upon settlement. SFAS 143 is effective for financial
     statements issued for fiscal years beginning after June 15, 2002 with
     earlier application encouraged. The Company will adopt SFAS 143 in 2003.
     The Company has not yet determined the impact of this Statement on its
     financial statements.

     In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
     with Disposal or Exit Activities ("SFAS 146"). This statement addresses
     financial accounting and reporting for costs associated with exit or
     disposal activities and nullifies Emerging Issues Task Force Abstract
     No.94-3, Liability Recognition for Certain Employee Termination Benefits
     and Other Costs to Exit an Activity (Including Certain Costs Incurred in a
     Restructuring ("EITF 94-3"). This statement requires that a liability for a
     cost associated with an exit or disposal activity be recognized when the
     liability is incurred. Under EITF 94-3, a liability for an exit cost as
     defined in EITF 94-3 was recognized at the date of an entity's commitment
     to an exit plan. This statement provides that an entity's commitment to a
     plan, by itself, does not create a present obligation to others that meets
     the definition of a liability. Therefore, SFAS 146 eliminates the
     definition and requirements for recognition of exit costs in EITF 94-3
     until a liability has been incurred and establishes that fair value is the
     objective for initial measurement of the liability. However, this standard
     does not apply to costs associated with exit activities involving entities
     acquired under business combinations or disposal activities covered under
     SFAS No.144 Accounting for the Impairment or Disposal of Long-Lived Assets.
     The adoption of SFAS 146 will not have an impact on previous results
     reported.

     In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based
     Compensation - Transition and Disclosure - an amendment of FASB Statement
     No. 123, ("SFAS 148"). SFAS 148 amends SFAS 123 and provides alternative
     methods for accounting for a change by registrants to the fair value method
     of accounting for stock-based compensation. Additionally, SFAS 148 amends
     the disclosure requirements of SFAS 123 to require disclosure in the
     significant accounting policy footnote of both annual and interim financial
     statements of the method of accounting for stock-based compensation and the
     related pro-forma disclosures when the intrinisic value method continues to
     be used. The statement is effective for fiscal years beginning after
     December 15, 2002, and disclosures are effective for the first fiscal
     quarter beginning after December 15, 2002. The Company does not intend to
     adopt the fair value method of accounting for stock-based compensation.
     Consequently SFAS 148 will not have an impact on its results of operation
     and financial position.

     In November 2002, the FASB issued Interpretation No. 45, Guarantor's
     Accounting and Disclosure Requirements for Guarantees, Including Indirect
     Guarantees of Indebtedness of Others ("FIN 45"). This interpretation
     requires certain disclosures to be made by a guarantor in its interim and
     annual financial statements about its obligations under certain guarantees
     that it has issued. It also requires a guarantor to recognize, at the
     inception of a guarantee, a liability for the fair value of the obligation
     undertaken in issuing the guarantee. The disclosure requirements of FIN 45
     are effective for interim and annual periods after December 15, 2002 and
     the Company has adopted those requirements for our financial statements.
     The initial recognition and initial measurement requirements of FIN 45 are
     effective prospectively for guarantees issued or modified after December
     31, 2002. The Company is assessing, but at this point does not believe the
     adoption of the recognition and initial measurement requirements of FIN 45
     will have a material impact on its financial position, cash flows or
     results of operations.

     In January 2003, the FASB issued Interpretation No. 46, Consolidation of
     Variable Interest Entities - an interpretation of ARB No. 51 ("FIN 46").
     FIN 46 clarifies the application of Accounting Research Bulletin No. 51,
     Consolidated Financial Statements, to certain entities in which equity
     investors do not have the characteristics of a controlling financial
     interest or do not have sufficient equity at risk for the entity to finance
     its activities without additional subordinated financial support from other
     parties. FIN 46 explains how to identify variable interest entities and how
     an enterprise assesses its interest in a variable interest entity to decide
     whether to consolidate that entity. It requires existing unconsolidated
     variable interests entities to be consolidated by their primary
     beneficiaries if the entities do not effectively disperse risks among
     parties involved. It also requires certain disclosures by the primary
     beneficiary. FIN 46 is effective immediately to variable interest entities
     created after January 31, 2003 and to variable interest entities in which
     an enterprise obtains an interest after that date, and effective for the
     first fiscal year or interim period beginning after June 15, 2003 to
     variable interest entities in which an enterprise holds a variable interest
     that it acquired before February 1, 2003. FIN 46 requires an entity to
     disclose certain information regarding a variable interest entity if, when
     the Interpretation becomes effective, it is reasonably possible that an
     enterprise will consolidate or have to disclose information about that
     variable interest entity, regardless of the date on which the variable
     entity interest was created. The Company does not expect that, when FIN 46
     becomes effective, it will have to consolidate or disclose any information
     regarding variable interests.


                                      F-45






<PAGE>




                                   SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing
on Form 20-F and that it has duly caused and authorized the undersigned to sign
this annual report on its behalf.

                                           Ashanti Goldfields Company Limited
                                           (Registrant)


                                           By:/S/ Sam Esson Jonah
                                              ----------------------------------
                                           Sam Esson Jonah
                                           Chief Executive Officer

Date: June 17, 2003


                                        I






<PAGE>




                                 CERTIFICATIONS

I, Sam Esson Jonah, certify that:

1.   I have reviewed this annual report on Form 20-F of Ashanti Goldfields
     Company Limited;

2.   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a.   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this annual report
          is being prepared;

     b.   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this annual report (the "Evaluation Date"); and

     c.   presented in this annual report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

     a.   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b.   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officers and I have indicated in this
     annual report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: June 17, 2003

/s/ Sam Esson Jonah
-----------------------
Sam Esson Jonah

Chief Executive Officer


                                       II






<PAGE>




                                 CERTIFICATIONS

I, Srinivasan Venkatakrishnan, certify that:

1.   I have reviewed this annual report on Form 20-F of Ashanti Goldfields
     Company Limited;

2.   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a.   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this annual report
          is being prepared;

     b.   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this annual report (the "Evaluation Date"); and

     c.   presented in this annual report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

     a.   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b.   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officers and I have indicated in this
     annual report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: June 17, 2003

/s/ Srinivasan Venkatakrishnan
------------------------------
Srinivasan Venkatakrishnan

Chief Financial Officer


                                       III


                          STATEMENT OF DIFFERENCES

 The registered trademark symbol shall be expressed as.................. 'r'
 The British pound sterling sign shall be expressed as.................. 'L'
 Characters normally expressed as superscript shall be preceded by...... 'pp'