Document:

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                                                                    Exhibit 4.18

JOINT VENTURE AGREEMENT

between:

AFRICAN RAINBOW MINERALS GOLD LIMITED
(Registration Number: 1997/015869/06)

and

HARMONY GOLD MINING COMPANY LIMITED
(Registration Number: 1950/038232/06)

and

CLIDET NO 383 (PROPRIETARY) LIMITED
(Registration Number: 2001/029602/07)
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                                    CONTENTS

1.   DEFINITIONS AND INTERPRETATION...................................     4
2.   SUSPENSIVE CONDITION.............................................    13
3.   THE INTERIM MANAGEMENT OF FREEGOLD...............................    13
4.   SHAREHOLDINGS IN FREEGOLD........................................    15
5.   FURTHER FINANCING................................................    21
6.   FREEGOLD'S BUSINESS..............................................    24
7.   THE BOARD........................................................    24
8.   CHAIRMAN AND DEPUTY CHAIRMAN OF THE BOARD........................    31
9.   PROFITS AND DIVIDEND POLICY......................................    32
10.  GENERAL MEETINGS OF THE COMPANY AND MATTERS REQUIRING BOTH
       SHAREHOLDERS' APPROVAL.........................................    33
11.  TRANSFERS OF SHAREHOLDER'S INTEREST..............................    34
12.  RECIPROCAL RIGHTS OF PRE-EMPTION BETWEEN THE SHAREHOLDERS........    36
13.  COME ALONG.......................................................    40
14.  TAG ALONG........................................................    42
15.  HARMONY CALL OPTIONS.............................................    42
16.  MATERIAL BREACH..................................................    44
17.  ARM AND HARMONY'S RECIPROCAL CALL OPTIONS........................    46
18.  MARKET VALUE OF THE SHAREHOLDER'S INTEREST.......................    47
19.  LENDERS' CTA.....................................................    49
20.  WINDING-UP.......................................................    50
21.  SHAREHOLDERS CONSENT.............................................    51
22.  PARTIES BOUND....................................................    51
23.  ENFORCEMENT OF THE COMPANY'S RIGHTS..............................    51
24.  SHAREHOLDERS' RIGHTS TO INFORMATION..............................    52
25.  CONFIDENTIALITY..................................................    52
26.  EXPANSION OF THE MINING AND RELATED ACTIVITIES OF FREEGOLD.......    54
27.  ARBITRATION AND DISPUTE RESOLUTION...............................    55
28.  MINE HEALTH AND SAFETY ACT APPOINTMENTS..........................    57
29.  GENERAL..........................................................    57
30.  ADDRESSES FOR LEGAL PROCESSES AND NOTICES........................    61
31.  STATUS OF THIS AGREEMENT.........................................    63

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PREAMBLE

The definitions of terms contained in clause 1 apply to this preamble.

A.   ARM and Harmony are engaged in the gold mining industry. On 13 October 2001
     they concluded a Co-operation Agreement ("the Co-operation Agreement") to
     provide for the expansion and development of their future gold mining
     operations in the Republic in conjunction with each other for the period
     and on the terms and conditions set out in the Co-operation Agreement.

B.   In terms of the Co-operation Agreement, each of ARM and Harmony ("the
     introducing party") will, with effect from the signature date of that
     agreement, refer to the other ("the accepting party"), in writing, all gold
     mining opportunities in the Republic that it becomes aware of and wishes to
     pursue, with a view to pursuing such gold mining opportunities jointly. The
     introducing party shall be obliged to simultaneously provide the accepting
     party with all information which it has relating to such gold mining
     opportunities.

C.   ARM, Harmony, AngloGold and Freegold concluded the Sale of Business
     Agreement on 24 December 2001 in terms of which inter alia:

     (i)  Freegold will manage the Businesses of Freegold for the period from 1
          January 2002 to the implementation date of the Sale of Business
          Agreement in the event that the agreement becomes unconditional or, in
          the event that the Sale of Business Agreement does not become
          unconditional, Freegold will cease to manage the Businesses of
          Freegold on the date on which the Sale of Business Agreement lapses
          due to the non-fulfilment of the conditions precedent or for any other
          reason;

     (ii) Freegold will, in the event of the Sale of Business Agreement
          becoming unconditional, acquire from AngloGold with effect form 1
          January 2002 the Businesses of Freegold on the implementation date of
          the Sale of Business Agreement; and
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     (iii)     ARM and Harmony are obliged to enter into an agreement in order
               to regulate their relationship as shareholders of Freegold on or
               before 21 January 2002.

D.   The purchase price for the Businesses of Freegold will be paid in three
     instalments, an initial payment of R1800000000 (one thousand eight hundred
     million Rand) plus the interest calculated in terms of the Sale of Business
     Agreement on the implementation date of the Sale of Business Agreement
     ("the initial payment"), a second payment of R400000000 (four hundred
     million Rand) on 1 January 2005 ("the second payment") and a third payment
     in respect of any recoupment tax, capital gains tax and any other income
     taxes payable by AngloGold in respect of the disposal of the Businesses of
     Freegold so as to ensure that AngloGold receives an aggregate consideration
     of R2200000000 (two thousand two hundred million Rand) after the taxes
     payable in respect of the disposal ("the tax payment") which payment will
     most probably be made before the second payment.

E.   On 21 January 2002 ARM and Harmony concluded a joint venture agreement
     ("the first joint venture agreement") as contemplated in (C)(iii) above to
     record and agree the terms and conditions of their relationship during the
     management period referred to in (C)(i), to regulate the relationship
     between them as shareholders of Freegold and to bind Freegold to comply
     with those terms and conditions insofar as they relate to Freegold.

F.   The Parties wish to conclude this Agreement to regulate the relationship
     between them as set out in E and to supersede the joint venture agreement.

NOW THEREFORE THE PARTIES AGREE THAT:

1.   DEFINITIONS AND INTERPRETATION

     For the purposes of this Agreement unless the context requires otherwise,
     the following terms shall have the meaning ascribed to them below:

1.1       "this Agreement" means this Joint Venture Agreement;
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1.2  "AngloGold"                means AngloGold Limited (Registration Number:
                                1944/017354/06);

1.3  "ARM"                      means African Rainbow Minerals Gold Limited
                                (Registration Number: 1997/015869/06);

1.4  "the ARM Unsecured Loan"   means the loan of R400 000 000 (four hundred
                                million Rand) made by ARM to Freegold on loan
                                account;

1.5  "the ARM Term Loan"        means the loan of R500 000 000 (five hundred
                                million Rand) made by ARM to Freegold on loan
                                account and funded by the BoE Term Loan;

1.6  "ARM Unsecured Claims on   means all of ARM's Claims on Loan Account
      Loan Account"             excluding the ARM Term Loan;

1.7  "the Articles"             means the articles of association of Freegold in
                                force from time to time;

1.8  "the ARM Directors"        means the directors nominated by ARM and holding
                                office from time to time in terms of the
                                Articles;

1.9  "ARM's Interest"           in relation to any particular time, means all of
                                ARM's Shares and its Claims on Loan Account (if
                                any) at the time in question;

1.10 "the Auditors"             means the auditors of Freegold for the time
                                being;

1.11 "Board"                    means the board of directors of Freegold as
                                constituted from time to time;
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1.12 "BoE"                                means BoE Merchant Bank, a division of
                                          BoE Bank Limited (Registration Number:
                                          1951/000847/06);

1.13 "BoE Cession and Pledge in Security" means the written cession and pledge
                                          in security by ARM in favour of BoE as
                                          security for all of ARM's obligations
                                          under, inter alia, the Maandagshoek
                                          Guarantee;

1.14 "the BoE Term Loan"                  means the term loan of R500 000 000
                                          (five hundred million Rand) made by
                                          the Lenders (but initially only BoE)
                                          to ARM and guaranteed by Freegold
                                          pursuant to the Freegold Guarantee;

1.15 "Business Day"                       means any day other than a Saturday,
                                          Sunday or statutory public holiday in
                                          the Republic;

1.16 "Businesses of Freegold"             means the gold mining businesses
                                          known as the Bambanani, Joel,
                                          Matjhabeng and Tshepong mines and
                                          the Ernes Oppenheimer Hospital
                                          business, together with all their
                                          associated assets and infrastructure,
                                          as carried on by AngloGold and its
                                          associated companies as at 21
                                          November 2001 and as more fully
                                          described in the Sale of Business
                                          Agreement;

1.17 "Claims on Loan Account"             in relation to either of the
                                          Shareholders, means its claims in
                                          respect of loans made to Freegold by
                                          such Shareholder, where such loans
                                          are made with the consent of or by
                                          arrangement with the other
                                          Shareholder or in terms of this
                                          Agreement as well as its claims
                                          against Freegold

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                                          which have arisen from any other
                                          cause.

1.18 "the Companies Act"                  means the Companies Act 1973, as
                                          amended from time to time;

1.19 "Conditional Subscription Agreement" means the written agreement entitled
                                          "Conditional Subscription Agreement"
                                          between BoE and ARM pursuant to which
                                          BoE may acquire Shares in Freegold;

1.20 "Debt Guarantor"                     means Micawber 243 (Proprietary)
                                          Limited (Registration Number
                                          2001/021483/07) which will inter alia
                                          guarantee to the Lenders the
                                          obligations of ARM under the BoE Term
                                          Loan and the obligations of Freegold
                                          under the Freegold Guarantee;

1.21 "the Directors"                      means the ARM Directors and the
                                          Harmony Directors;

1.22 "Financier"                          means a bank, financial institution
                                          or other entity which is regularly
                                          engaged in or established for the
                                          purpose of making, purchasing or
                                          holding interests in loans,
                                          securities or other financial assets;

1.23 "Freegold"                           means Clidet No 383 (Proprietary)
                                          Limited (Registration Number
                                          2001/029602/07), a private company
                                          incorporated in the Republic in which
                                          both ARM and Harmony hold 50% (fifty
                                          percent) of the issued share capital,
                                          the name of which will as soon as
                                          possible after the implementation
                                          date of the Sale of Business
                                          Agreement be changed to Freegold
                                          (Proprietary) Limited or such other
                                          name as may be acceptable to the
                                          Shareholders and the

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                                             Registrar of  Companies;

1.24           "Freegold Counter             means the written agreement
               Indemnity"                    entitled "Freegold Counter
                                             Indemnity" between Freegold
                                             and the Debt Guarantor pursuant
                                             to which Freegold indemnifies the
                                             Debt Guarantor against certain
                                             costs, losses, liabilities or
                                             expenses it may incur under the
                                             written agreements entitled
                                             "Lenders' Debt Guarantee" and
                                             "Harmony Debt Guarantee";

1.25           "Freegold Debt Guarantee"     the written guarantee entitled
                                             "Freegold Debt Guarantee"
                                             pursuant to which Freegold
                                             guarantees the obligations of
                                             ARM under the BoE Term Loan;

1.26           "Harmony"                     means Harmony Gold Mining
                                             Company Limited (Registration
                                             Number 1950/038232/06);

1.27           "the Harmony Directors"       means the directors nominated
                                             by Harmony and holding office
                                             from time to time in terms of
                                             the Articles;

1.28           "the Harmony Term Loan"       means the loan of R500 000 000
                                             (five hundred million Rand) made
                                             by Harmony to Freegold on loan
                                             account;

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1.29 "the Harmony Unsecured Loan"  means the loan of R400 000 000 (four hundred
                                   million Rand) made by Harmony to Freegold on
                                   loan account;

1.30 "Harmony Unsecured Claims     means all of Harmony's Claims Loan Account
     on Loan Account"              excluding the Harmony Term Loan;

1.31 "Harmony's Interest"          in relation to any particular time, means all
                                   of Harmony's Shares and its Claims on Loan
                                   Account (if any) at the time in question;

1.32 "Lenders' CTA"                means the written agreement entitled
                                   "Lenders' Common Terms Agreement" between BoE
                                   (as Lender and Facility Agent), ARM, Freegold
                                   and the Debt Guarantor, the terms and
                                   conditions of which apply, inter alia, to the
                                   BoE Term Loan;

1.33 "Lenders"                     means BoE and any Financiers that have at any
                                   time advanced funds to ARM under the BoE Term
                                   Loan;

1.34 "Maandagshoek Guarantee"       means the written agreement entitled
                                   "Guarantee" issued by ARM and African Rainbow
                                   Minerals and Exploration Investments
                                   (Proprietary) Limited (Registration No.
                                   1997/020158/07) in favour of BoE pursuant to
                                   which ARM as primary obligor guarantees the
                                   obligations of ARM Mining Consortium Limited
                                   to BoE under a subordinated loan agreement in
                                   an amount of R102 500 000 (one hundred and
                                   two million five hundred thousand Rand)
                                   excluding capitalised interest;

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1.35      "Management Period"      means the period from 1 January 2002 until
                                   the implementation date of the Sale of
                                   Business Agreement or the date on which that
                                   agreement lapses, as the case may be, during
                                   which period Freegold will manage the
                                   Businesses of Freegold in terms of the Sale
                                   of Business Agreement;

1.36      "Market Value"           means the combined value of the Shareholder's
                                   Interest of all Shareholders determined in
                                   accordance with clause 18;

1.37      "Member of the Same      in relation to a Shareholder which is a
          Group"                   company, means another company which is for
                                   the time being a holding company of the
                                   Shareholder in question or a subsidiary of
                                   that shareholder or another subsidiary of any
                                   such holding company of that shareholder and
                                   where applicable, includes any individual who
                                   owns or otherwise controls, directly or
                                   indirectly, more than 50% (fifty percent) of
                                   the total votes in respect of all the issued
                                   ordinary share capital of the Shareholder in
                                   question, or nay company controlled by that
                                   individual or a member of his immediate
                                   family and any trust of which that individual
                                   or his immediate family is a beneficiary;

1.38      "Merchant Bank"          means a merchant bank or investment bank
                                   which is a subsidiary or a part or a division
                                   of a registered bank whether such bank is
                                   registered in the Republic or elsewhere:

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1.39      "Nominee"                means a Shareholder who holds a Share as a
                                   nominee for a Shareholder as permitted in
                                   terms of this Agreement and the Articles;

1.40      "the Parties"            means ARM, Harmony and Freegold and their
                                   successors in title and "Party" means any of
                                   them;

1.41      "Prime Rate"             means the rate (percent per annum) from time
                                   to time charged by ABSA Bank Limited for
                                   similar amounts on unsecured overdraft to its
                                   prime customers in good standing in the
                                   private sector, as certified by the manager
                                   of that bank, whose appointment it will not
                                   be necessary to prove, calculated on a daily
                                   basis and compounded monthly in arrear;

1.42      "the Republic"           means the Republic of South Africa;

1.43      "the Sale of Business    means the sale of business agreement
          Agreement"               concluded between ARM, Harmony, Anglogold and
                                   Freegold on 24 December 2001;

1.44      "Shares"                 means the ordinary par value shares of R1
                                   (one rand) each in the issued share capital
                                   of Freegold from time to time;

1.45      "Shareholders"           means ARM and Harmony and where the context
                                   so requires, includes their successors in
                                   title to any Shares, and "Shareholder" means
                                   any one of them as the context may require;

1.46      "Shareholder's Interest" in relation to a Shareholder at any

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                              particular time, means all that Shareholder's
                              Shares and its Claims on Loan Account (if any);

1.47 "Signature Date"         means the date on which this Agreement is signed
                              by the last Shareholder signing it;

1.48 "Stock Exchange"         means the JSE Securities Exchange South Africa and
                              any stock exchange on which shares of a company
                              may be listed;

1.49 "Unsecured Claims on     means collectively, the ARM Unsecured Claims on
     Loan Account"            Loan Account and the Harmony Unsecured Claims on
                              Loan Account;

1.50 words and expressions defined in the Companies Act which are not defined in
     this Agreement shall have the same meaning in this Agreement as those
     ascribed to them in the Companies Act;

1.51 if any provision in a definition or the preamble contains a substantive
     provision conferring rights or imposing obligations on any Party, then
     notwithstanding that it is in the definitions clause or preamble, effect
     shall be given to it as if it were a substantive provision of this
     Agreement;

1.52 Unless inconsistent with the context, an expression which denotes:

1.52.1    any gender includes the other genders;

1.52.2    a natural person includes an artificial person and vice versa;

1.52.3    the singular includes the plural and vice versa;

1.53 All the headings and sub-headings in this Agreement are for convenience
     only and are not to be taken into account for the purposes of interpreting
     it.

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2.   SUSPENSIVE CONDITION

     This Agreement, save for clauses 1, 2, 3, 16, 25, 27, 29 and 30, is subject
     to the suspensive condition that the Sale of Business Agreement becomes
     unconditional on or before 30 April 2002 or such later date as may be
     agreed in writing between the Shareholders, and is implemented, failing
     which this Agreement shall be of no force or effect.

3.   THE INTERIM MANAGEMENT OF FREEGOLD

3.1  Freegold is obliged to manage the Businesses of Freegold in terms of the
     Sale of Business Agreement during the Management Period, or should the Sale
     of Business Agreement not become unconditional, from 1 January 2002 to the
     date on which that agreement lapses.

3.2  The Shareholders shall provide human and other resources required for such
     management by Freegold free of charge. Should it be necessary to obtain
     human or other resources from third parties, the Shareholders shall bear
     the costs thereof equally, provided that the necessary approvals in terms
     of clause 3.12 have been obtained.

3.3  Freegold has commenced management of the Businesses of Freegold and an
     Interim Executive Committee ("Interim Exco") has been established which is
     vested with the management of Freegold in the same manner, mutatis
     mutandis, as if the Interim Exco were the Board.

3.4  The Interim Exco consists of 12 (twelve) representatives.

3.5  Each Shareholder is entitled, by written notice to the other Shareholder,
     to appoint 6 (six) representatives to the Interim Exco and similarly by
     written notice to remove any such representative or to replace any such
     representative who is so removed or who ceases for any other reason to be a
     member of the Interim Exco.

3.6  The quorum for meetings of the Interim Exco is 4 (four) representatives
     present at the commencement of and throughout the meeting of whom 2

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     (two) shall be representatives appointed by ARM and 2 (two) shall be
     representatives appointed by Harmony.

3.7  The 6 (six) representatives on the Interim Exco of each of ARM and
     Harmony have 1 (one) block vote, which vote is cast by 1 (one) of their
     respective representatives.

3.8  The Interim Exco has established an interim steering committee which
     shall report directly to the Interim Exco. The interim steering committee
     is responsible for the day to day running of the Businesses of Freegold
     within the powers delegated to it by the Interim Exco. In particular,
     the interim steering committee operates within the constraints of any
     approved budget and schedule of authority.

3.9  The interim steering committee consists of that number of persons deemed
     necessary by the Interim Exco for the running of the Businesses of
     Freegold.

3.10 The interim steering committee ensures that the Businesses of Freegold
     are run and managed according to the highest international standards and
     operating procedures relating to health, safety and environment.

3.11 The interim steering committee is empowered to establish such sub-
     committees as may be necessary for the running of the Businesses of
     Freegold.

3.12 All expenditure by either of the Shareholders in the course of the
     management of the Businesses of Freegold during the Management
     Period in excess of R100 000 (one hundred thousand Rand) may only be
     incurred with the prior written approval of the Interim Exco. All
     expenditure less than R100 000 (one hundred thousand Rand) by either
     of the Shareholders must be approved by the financial directors of
     each of the Shareholders.

3.13 Should the Businesses of Freegold not generate sufficient working
     capital at any time during the Management Period, the Shareholders
     shall provide bridging finance equally to Freegold which bridging
     finance shall be repaid when sufficient capital is available to make
     such repayments and after

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            having provided for working capital requirements. Should the Sale of
            Business Agreement lapse for any reason and should one of the
            Shareholders have contributed less than 50% (fifty percent) of such
            bridging finance that Shareholder shall compensate the other
            Shareholder by making a payment to the extent and with the effect
            that such bridging finance shall have been contributed equally
            within 3 (three) days of receipt of a written demand to make such
            payment.

     3.14   All expenses approved in terms of clause 3.12 shall be borne
            equally by the Shareholders unless borne by Freegold. Should the
            aggregate of payments in respect of such expenses be
            disproportionate to the Shareholder's Interest that they will hold
            after the implementation date of the Sale of Business Agreement and
            dilution in terms of clause 4 (if any), then the Shareholder whose
            payments are less than its proportionate share shall compensate the
            other Shareholder by making a payment to the extent and with the
            effect that such expenses are borne by the Shareholders in
            proportion to their shareholding within 3 (three) days of receipt of
            a written demand to make such payment.

     3.15   The income of the Businesses of Freegold during the Management
            Period shall be applied in the payment of the costs incurred during
            the Management Period and the profits of the costs incurred during
            the Management Period and the profits of the Businesses of Freegold
            shall be retained and shall, after the implementation date of the
            Sale of Business Agreement, be dealt with in terms of clause 9.
            Should the Sale of Business Agreement lapse the profits and losses
            of Freegold shall be for the account of AngloGold.

     4.   SHAREHOLDINGS IN FREEGOLD

     4.1    It is recorded that the authorised share capital of Freegold is
            100000 (one hundred thousand) ordinary shares of R1 (one Rand) each
            and that the issued share capital of Freegold, which is held by ARM
            and Harmony in equal proportions, is 2 (two) ordinary shares of R1
            (one Rand) each.

     4.2    Freegold shall, provided that neither Shareholder defaults in
            making its contribution in respect of the initial payment in terms
            of clause 4.3, allot and issue 9 999 (nine thousand nine hundred and
            ninety nine) Shares to
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                                       16

     each of the Shareholders at par and for cash as soon as possible after the
     Signature Date.

4.3  It is recorded that Freegold is obliged to pay the initial payment to
     AngloGold on the implementation date of the Sale of Business Agreement, on
     which date each Shareholder shall contribute to Freegold, on loan account,
     an amount equal to 50% (fifty percent) of the initial payment ("the initial
     contribution") in the following manner:

4.3.1  ARM shall advance the ARM Unsecured Loan to Freegold and Harmony shall
       advance the Harmony Unsecured Loan to Freegold; and

4.3.2  ARM shall advance the ARM Term Loan to Freegold and Harmony shall advance
       the Harmony Term Loan to Freegold.

4.4  Subject to clause 4.6, in the event that for any reason whatsoever either
     of the Shareholders ("the defaulting shareholder") fails to contribute the
     full amount of its initial contribution, any such shortfall shall be
     contributed to Freegold by the other Shareholder ("the complying
     shareholder") within 10 (ten) Business Days of the date of receipt of the
     written notice in terms of clause 21 of the Sale of Business Agreement,
     and, unless the complying shareholder elects otherwise in writing, Freegold
     shall allot and issue to the complying shareholder the number of shares
     necessary so that each Shareholder holds the percentage of the total number
     of Shares which is in proportion to the contribution made by each of them
     respectively ("the adjusted Shareholder's shareholding percentage").

4.5  The adjusted Shareholder's shareholding percentage shall be determined in
     accordance with the following formula:

                                    A                    100
                    Y   =   ------------------     X     ---
                                    B                     1

     in which formula:-

     (i)  "Y" is the adjusted Shareholder's shareholding percentage;
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                                       17

(ii)    "A" is that portion of the initial payment (less the interest thereon)
        contributed by the relevant Shareholder;

(iii)   "B" is R1 800 000 000 (one thousand eight hundred million Rand).

EXAMPLE 1:  FOR THE DETERMINATION OF THE ADJUSTED SHAREHOLDER'S SHAREHOLDING
PERCENTAGE OF A SHAREHOLDER WHO CONTRIBUTES R720 000 000 (SEVEN HUNDRED AND
TWENTY MILLION RAND) OF THE INITIAL CONTRIBUTION AND ASSUMING THAT THE INITIAL
PAYMENT IS R1 800 000 000 (ONE THOUSAND EIGHT HUNDRED MILLION RAND).

        720 000 000      100
        -----------      ---
   Y =  1 800 000 000  X  1

   Y = 40%

EXAMPLE 2: FOR THE DETERMINATION OF THE ADJUSTED SHAREHOLDER'S SHAREHOLDING
PERCENTAGE OF A SHAREHOLDER WHO PAYS R1 080 000 000 (ONE THOUSAND AND EIGHTY
MILLION RAND) OF THE INITIAL CONTRIBUTION AND ASSUMING THAT THE INITIAL PAYMENT
IS R1 800 000 000 (ONE THOUSAND EIGHT HUNDRED MILLION RAND).

        1 080 000 000    100
        -------------    ---
   Y =  1 800 000 000  X  1

   Y = 60%

4.6     In the event that for any reason whatsoever either of the Shareholders
        ("the defaulting shareholder") fails to contribute any amount at all of
        its initial contribution, its initial contribution shall be contributed
        to Freegold by the other Shareholder ("the complying shareholder")
        within 10 (ten) Business Days of the date of receipt of the written
        notice in terms of clause 21 of the Sale of Business Agreement and the
        defaulting shareholder shall be obliged to transfer its 1 (one) Share
        ("the transfer share") to the complying shareholder, for a purchase
        consideration equal to the transfer share's par value of R1 (one Rand),
        by delivering to the complying shareholder against payment of the
        purchase consideration its share

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                                       18

         certificate for the transfer share, together with such duly executed
         transfer form as may be required by law for the transfer of the
         transfer share to the complying shareholder or any Nominee for the
         complying shareholder, and the provisions of clause 12.3.10 shall apply
         mutatis mutandis.

4.7      On 1 January 2005, to the extent that Freegold is unable to fund the
         second payment from internal cash resources (the amount which Freegold
         is unable to fund is hereafter referred to as "the second payment
         shortfall amount"), each Shareholder shall contribute on loan account
         to Freegold an amount equal to that percentage of the second payment
         shortfall amount which is equivalent to their then respective
         percentage shareholdings ("the second payment contribution"), which
         contributions will form part of the Unsecured Claims on Loan Account.

4.8      Should a Shareholder ("the defaulting shareholder") not contribute the
         full amount due by it in terms of clause 4.7, the other Shareholder
         ("the complying shareholder") shall within 10 (ten) Business Days of
         the date of receipt by Freegold of the written notice in terms of
         clause 21 of the Sale of Business Agreement remedy the default of the
         defaulting shareholder by contributing as an unsecured loan to Freegold
         the amount ("the new unsecured claim on loan account") which the
         defaulting shareholder has failed to contribute in terms of clause 4.7.
         Thereafter the defaulting shareholder's shareholding in Freegold shall
         be diluted in accordance with the dilution procedure ("the dilution
         procedure") set out in clauses 4.9 to 4.12 (both inclusive).

4.9      The Market Value of the Shareholder's interest after the second payment
         contribution shall be determined in terms of clause 18. The market
         value of the Shares shall be determined by subtracting the Claims on
         Loan Account from the Market Value of the Shareholder's interest and
         dividing the result by the number of Shares.

4.10     Once the market value per Share has been determined, the Auditors shall
         determine in terms of this clause 4.10 the percentage of the Shares
         which the defaulting shareholder should hold after dilution ("the
         second adjusted Shareholder's shareholding percentage"). The second
         adjusted Shareholder's shareholding percentage shall be determined in
         the following manner:
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                                       19

                                B - (A x C)          100
              Y  =  [  A  +  (  ------------  )]  x  ---
                                Market Value          1

     in which formula:

     (i)    "Y" is the second adjusted Shareholder's shareholding percentage;

     (ii)   "A" is the defaulting shareholder's attributable share capital
            (being the par value of the defaulting shareholder's Shares plus a
            proportionate share of any share premium or the stated capital, as
            the case may be) plus the face value of its Claims on Loan Account,
            divided by the total share capital of Freegold and the total Claims
            on Loan Account;

     (iii)  "B" is that portion of the second payment contribution made by
            defaulting shareholder;

     (iv)   "C" is the amount of the second payment shortfall amount;

     (v)    "Market Value" is the Market Value determined in terms of clause 18.

EXAMPLE: FOR THE DETERMINATION OF THE SECOND ADJUSTED SHAREHOLDER'S
SHAREHOLDING PERCENTAGE OF A SHAREHOLDER WHOSE EXISTING SHAREHOLDER'S INTEREST
IS 50% (FIFTY PERCENT) AND WHO CONTRIBUTES R150 000 000 (ONE HUNDRED AND FIFTY
MILLION RAND) OF THE SECOND PAYMENT CONTRIBUTION ASSUMING THAT THE MARKET VALUE
IS R3 BILLION (THREE THOUSAND MILLION RAND).

                    150 million - (0.5 x 400 million)         100
Y  =  [  0.5  +  (  ---------------------------------  )]  x  ---
                                3 billion                      1

Y  =  48,3%

4.11   The Auditors shall determine the number of Shares ("the remedy shares")
       to be allotted and issued to the complying shareholder so that the
       defaulting shareholder holds the second adjusted shareholder's
       percentage. The complying shareholder shall subscribe for and Freegold
       shall allot and issue to the complying shareholder the remedy shares at
       the
<PAGE>
                                       20

        market value per Share determined in terms of clause 4.9 ("the
        subscription price").

4.12    The amount of the subscription price shall be set off against the
        amount of the new unsecured claim on loan account in partial repayment
        by Freegold to the complying shareholder of the new unsecured claim on
        loan account (the remaining balance of the new unsecured claim on loan
        account is hereafter referred to as "the new claim balance").

4.13    The defaulting shareholder shall for a period of 60 (sixty) days after
        the remedy of the default of the defaulting shareholder by the
        complying shareholder, have a call option ("the clawback option") to
        require the complying shareholder to sell to the defaulting shareholder
        that number of the remedy shares ("the clawback remedy shares") and
        that portion of the new claim balance that will put the defaulting
        shareholder back in the position it would have been in had it not
        defaulted in respect of the second payment contribution ("the clawback
        new claim balance"). The purchase price for:

4.13.1       the clawback remedy shares shall be calculated by multiplying the
             number of clawback remedy shares by the market value per Share
             which was determined in terms of clause 4.9 and which was used for
             the calculation of the number of remedy shares allotted and issued
             in terms of clause 4.11;

4.13.2       the clawback new claim balance shall be the face value thereof.

        The aggregate of the purchase prices for the clawback remedy shares and
        the clawback new claim balance is hereafter referred to as "the
        clawback price".

4.14    The clawback option may be exercised by the defaulting shareholder by
        way of written notice to the complying shareholder on or before the
        last day of the 60 (sixty) day period. Upon the exercise of the
        clawback option, the defaulting shareholder shall pay the clawback
        price (together with interest thereon at the Prime Rate from the date
        of remedy of the default in terms of clause 4.8 to the date of payment
        of the clawback price) to the complying shareholder within 10 (ten)
        Business Days of the date of
<PAGE>
                                       21

                 exercise of the clawback option against delivery by the
                 complying shareholder to the defaulting shareholder of the
                 share certificates and a share transfer form in respect of the
                 clawback remedy shares signed by the complying shareholder and
                 blank as to transferee and a written cession of the clawback
                 new claim balance in favour of the defaulting shareholder.

     4.15        The defaulting shareholder shall indemnify the complying
                 shareholder against any tax incurred by the complying
                 shareholder in respect of the transfer of the clawback remedy
                 shares contemplated in clause 4.14.

     4.16        When Freegold is required to pay the tax payment in terms of
                 the Sale of Business Agreement and to the extent that Freegold
                 is unable to fund the tax payment from internal cash resources
                 (the amount which Freegold is unable to fund is hereafter
                 referred to as "the tax payment shortfall amount") each
                 Shareholder shall contribute on loan account to Freegold an
                 amount equal to that percentage of the tax payment shortfall
                 amount which is equivalent to their then respective percentage
                 shareholdings ("the tax payment contribution"), which
                 contributions will form part of the Unsecured Claims on Loan
                 Account.

     4.17        Should a Shareholder not contribute the full amount due by it
                 in terms of clause 4.16, the dilution procedure and the
                 provisions of clauses 4.8 to 4.15 (both inclusive) shall apply
                 mutatis mutandis except that references to the second payment
                 contribution shall be construed as references to the tax
                 payment contribution.

5.   FURTHER FINANCING

     5.1         Unless otherwise agreed between the Shareholders in writing,
                 neither Shareholder shall be obliged to give any guarantees or
                 provide any security in respect of the funding obligations of
                 Freegold.

     5.2         Freegold's future capital requirements shall be provided in
                 the following manner:

     5.2.1       out of Freegold's own resources; or if this is not possible

<PAGE>
                                       22

5.2.2      by means of loans from financial institutions and other appropriate
           third parties secured by the assets of Freegold without security
           being provided by the Shareholders; or if this is not possible;

5.2.3      by means of loans by the Shareholders or, if so agreed between the
           Shareholders, by means of share capital, which shall be contributed
           ("the capital call contribution") by the Shareholders pro rata to
           their shareholdings at that time; and

5.2.4      combinations of the above.

5.3     Where the Shareholders provide any capital by way of loans,
        including without limitation, the loans in respect of the Unsecured
        Claims on Loan Account, such loans (other than the ARM Term Loan and the
        Harmony Term Loan, the terms and conditions of which are contained in
        written agreements concluded between ARM and Freegold and Harmony and
        Freegold respectively) shall, unless otherwise agreed in writing between
        the Shareholders, be on the following terms and conditions:

5.3.1      such loans shall be interest bearing at the rate agreed between the
           Shareholders and Freegold from time to time and failing such
           agreement at the Prime Rate;

5.3.2      subject to the provisions of clause 9.1, such loans shall be
           repayable to the Shareholders pro rata to their then shareholding as
           and when the funds are available;

5.3.3      such loans shall in all other respects be on the terms and conditions
           applicable to the existing Unsecured Claims on Loan Account (if any)
           at the time in question.

5.4     Should a Shareholder ("the defaulting shareholder") fair to fulfil
        any of its obligations in terms of and in accordance with clause 5.2.3,
        and should the defaulting shareholder remain in breach of those
        obligations for a period of 14 (fourteen) days after receipt of a
        written notice by the other Shareholder ("the complying shareholder")
        calling upon the defaulting shareholder to remedy such breach, the
        complying shareholder may, after it has remedied the default, in its
        sole discretion, elect to invoke the dilution procedure, in
<PAGE>
                                       23

          which event the provisions of clauses 4.8 to 4.15 (both inclusive)
          shall apply mutatis mutandis except that:

5.4.1          references to the second payment contribution shall be construed
               as references to the capital call contribution; and

5.4.2          the clawback option may be exercised in accordance with clause
               4.13 within a period of 180 (one hundred and eighty) days.

5.5       Should the complying shareholder elect not to remedy the default of
          the defaulting shareholder and invoke the dilution procedure in
          accordance with clause 5.4, it may, in its sole discretion, elect to
          claim immediate repayment of the loan advanced by it to Freegold in
          terms of clause 5.2.3.

5.6       Should AngloGold claim any amount from Freegold in terms of the Sale
          of Business Agreement and should Freegold be unable to pay the amount
          out of its own resources then the Shareholders shall provide further
          capital by way of loans pro rata to their shareholdings at that time
          to Freegold in order to enable it to pay such amount to AngloGold.
          Unless otherwise agreed in writing between the Shareholders, the
          indebtedness of Freegold incurred in respect of such loans shall be on
          terms and conditions agreed between the Shareholders and the Board
          and, failing such agreement shall be on the terms and conditions
          applicable to the existing Unsecured Claims on Loan Account (if any)
          at the time in question. Should a Shareholder fail to fulfil any of
          its obligations in terms of this clause 5.6 the provisions of clause
          5.4 shall apply mutatis mutandis.

5.7       The Shareholders agree that to the extent that any of them suffers any
          loss in relation to suretyships and indemnities given on behalf of
          Freegold, or loans made or credit given to Freegold pursuant to this
          Agreement, they shall compensate each other within 3 (three) days of a
          written demand to the extent and with the effect that such losses are
          borne in proportion to their then shareholdings in Freegold.

<PAGE>
                                       24

6.   FREEGOLD'S BUSINESS

6.1       Each of the Shareholders shall use all reasonable and proper means in
          its power to maintain, improve and extend the business of Freegold and
          to further the reputation and interests of Freegold and any
          subsidiaries it may have from time to time, subject to the terms and
          conditions of the Co-operation Agreement.

6.2       The business of Freegold shall be that of gold mining, the acquisition
          and exploitation of mineral rights and all related operations
          including, but not limited to, smelting, refining, beneficiation and
          marketing of gold and its associated minerals and by-products, and any
          other types of business which the Shareholders may agree upon from
          time to time subject to the terms and conditions of the Co-operation
          Agreement.

6.3       Except as the Shareholders may otherwise agree in writing or save as
          otherwise provided for or contemplated in this Agreement, they shall
          exercise their powers in relation to Freegold so as to ensure that
          Freegold carries on and conducts its business and affairs in a proper
          and efficient manner and for its own benefit.

6.4       The expression "Freegold" where used in this clause 6 shall include
          any subsidiaries it may have from time to time to the extent and with
          the effect that the provisions of this clause 6 shall apply in
          relation to each such subsidiary as they apply in relation to
          Freegold.

6.5       The Shareholders record that Freegold shall be a profit orientated
          enterprise.

7.   THE BOARD

7.1       Notwithstanding the provisions of the Articles, The Board shall
          consist of 12 (twelve) directors.

7.2       For as long as ARM and Harmony each hold 50% (fifty percent) of the
          Shares, or for so long as ARM and BoE collectively hold (pursuant to
          an

<PAGE>
                                       25

             acquisition of Shares by BoE in terms of the Conditional
             Subscription Agreement) 50% (fifty percent) of the Shares and
             Harmony holds the other 50% (fifty percent) of the Shares:

     7.2.1     ARM may nominate 6 (six) persons for appointment as directors;
               and

     7.2.2     Harmony may nominate 6 (six) persons for appointment as
               directors;

            which persons shall be appointed as directors in terms of the
            Articles.

     7.3    If, and for so long as a Shareholder holds more than 50% (fifty
            percent) of the Shares, such Shareholder shall be entitled to
            nominate 7 (seven) persons for appointment as directors and the
            other Shareholder shall be entitled to nominate 6 (six) persons for
            appointment as directors, which persons shall be appointed as
            directors in terms of the Articles provided that if and for so long
            as a Shareholder holds 75% (seventy five percent) of more of the
            Shares, the Shareholders shall nominate directors in proportion to
            their then shareholdings. Should the application of the
            proportionate nomination principle result in a fraction, then that
            number shall be rounded off to the nearest whole number.

     7.4    Subject to the provisions of the Companies Act, the Shareholder
            nominating a director shall be entitled to remove and replace such
            director by written notice to Freegold, and in the same manner
            replace a director who ceases to be a director for any other reason.

     7.5    The Shareholders shall be entitled to nominate alternate directors
            for the directors nominated in terms of this clause 7, who shall be
            appointed in terms of the Articles. Such alternates need not be
            directors.

     7.6    Subject to the provisions of clause 7.3, the quorum for meetings of
            the Board shall be 4 (four) directors present at the commencement of
            and throughout the meeting of whom 2 (two) shall be ARM Directors
            and 2 (two) shall be Harmony Directors.
<PAGE>
                                       26

7.7  If within 30 (thirty) minutes after the time appointed for the commencement
     of any meeting of the Board a quorum is not present, the meeting shall be
     adjourned to a day 7 (seven) days after the date of the adjourned meeting
     at the same place and time. Should that day not be a Business Day the
     meeting shall be adjourned to the next Business Day after the expiry of the
     7 (seven) day period.

7.8  Should a quorum not be present at such adjourned meeting within 30 (thirty)
     minutes after the time appointed for the meeting, the directors present in
     person at that adjourned meeting shall constitute a quorum.

7.9  Unless otherwise determined by the Board a director shall receive at least
     7 (seven) days notice of directors' meetings and shall receive at least 48
     (forty eight) hours notice of adjourned meetings.

7.10 All nominations of directors and alternate directors in terms of this
     clause 7 shall be made by written notice given to Freegold by the relevant
     Shareholder.

7.11 Each Shareholder shall exercise its votes in respect of any resolution for
     the appointment or removal of a director in the same manner as the
     Shareholder who nominated such director.

7.12 Where no chairman or deputy chairman of the Board is present at the
     commencement of and throughout the meeting the directors nominated by the
     Shareholder who appointed the chairman in terms of clause 8 shall elect
     from amongst their number a chairman of the meeting.

7.13 So as to effect meaningful black empowerment, transfer of skills and
     capacity building, each Shareholder shall be entitled to identify 2 (two)
     invitees whose identity shall be provided to Freegold in writing and who
     shall be approved by the Board in writing and once so approved shall, in
     addition to the directors, except where the Shareholders agree otherwise,
     be entitled to attend and speak at meetings of the Board but shall not be
     entitled to vote at such meetings.

7.14 The ARM Directors shall collectively have 1 (one) block vote which will be
     cast by 1 (one) of the ARM Directors present at the meeting of the Board
<PAGE>

                                       27

               and the Harmony Directors shall collectively have 1 (one) block
               vote which will be cast by 1 (one) of the Harmony Directors
               present at the meeting of the Board.

7.15           If, and for so long as a Shareholder holds more than 50% (fifty
               percent) of the Shares, the directors nominated by such
               Shareholder shall have 2 (two) block votes and the other
               Shareholder shall have 1 (one) block vote which will be cast by 1
               (one) of their respective directors present at the meeting of the
               Board.

7.16           No resolution of the Board shall be regarded as having been
               passed in respect of any of the following matters unless it has
               been passed unanimously:

7.16.1              save as otherwise provided for in this Agreement, the
                    allotment or issue of any further shares in Freegold which
                    have been placed under the control of the directors by
                    Freegold in general meeting and in respect of which a
                    general authority has been given.

7.16.2              save as otherwise provided for in this Agreement, the
                    consent to the registration of transfer of Shares otherwise
                    than in terms of this Agreement, the Articles or any
                    agreement between all the Shareholders;

7.16.3              the creation or issue of any debentures by Freegold;

7.16.4              the declaration of dividends in excess of that provided for
                    in clause 9 of this Agreement;

7.16.5              the purchase by Freegold of any asset other than in the
                    ordinary, normal and regular course of business or the
                    entering into of any lease in terms of which an item will be
                    leased otherwise than in the ordinary, normal and regular
                    course of business;

7.16.6              the sale or disposal of any fixed assets of Freegold for a
                    total selling price per transaction of more than
                    R 50 000 000 (fifty million Rand);

<PAGE>
                                       28

7.16.7    the conclusion, extension, renewal or modification of any long term
          (exceeding 6 (six) months) contract, other than in the normal,
          ordinary and regular course of business and any unusual or onerous
          contract;

7.16.8    the conclusion of any contract with a Shareholder of Member of the
          Same Group as the Shareholder outside the normal, ordinary and regular
          course of business;

7.16.9    the conclusion of any other transaction or contract outside the
          normal, ordinary and regular course of business;

7.16.10   subject to the provisions of clause 26, the establishment of any new
          business including the sinking of any new shafts or the material
          expansion of the operations of Freegold other than in accordance with
          the budget or business plan;

7.16.11   the suspension or cessation or abandonment of any business or part
          thereof carried on by Freegold;

7.16.12   the changing of the main business of Freegold;

7.16.13   save as otherwise provided for in this Agreement or in terms of the
          Freegold Debt Guarantee, the mortgage, pledge or hypothecation in any
          other manner of any assets or property of Freegold outside the normal
          and regular course of business;

7.16.14   save as otherwise provided for in this Agreement or in terms of the
          Freegold Debt Guarantee, the giving of any suretyship or guarantee for
          the obligations of any person or entity other than a wholly owned
          subsidiary;

7.16.15   save as otherwise provided for in this Agreement or in terms of the
          Freegold Counter Indemnity, the issuing or any indemnities by Freegold
          or the undertaking of any other similar obligations outside the normal
          and regular course of business;

<PAGE>
                                       29

7.16.16   the provision of any finance to any other person or entity whether in
          the form of loans or in any other manner of amounts (whether or not
          reflected on Freegold's balance sheet) outside the normal and regular
          course business;

7.16.17   subject to the provisions of clause 26, the authorisation or incurring
          of any capital expenditure outside the normal, ordinary and regular
          course of business and which is not provided for in the short or long
          term budget or business plan;

7.16.18   the change of the basis of accounting used by Freegold for its
          previous accounting period unless required by any law. Generally
          Accepted Accounting Practice or convention;

7.16.19   the employment or dismissal of all employees who report directly to
          the steering committee established in terms of clause 7.19

7.16.20   the adoption or material variation, of any bonus or profit-sharing
          scheme or any share option or share incentive scheme or employee share
          trust or share ownership plan;

7.16.21   the variation of any benefits under the pension fund in respect of
          Freegold, other than variations of benefits required to be effected by
          the pension fund;

7.16.22   the acquisition of any business, whether directly by acquiring the
          business itself, or indirectly by acquiring the share capital of any
          company owning the business;

7.16.23   the subscription for or the purchase of shares of or stock in or
          debentures issued by any company outside the normal and regular course
          of business;

7.16.24   the entering into of any partnership or joint venture with any third
          party outside the normal and regular course of business;

7.16.25   the disposition or dilution Freegold's interests, directly or
          indirectly, in any subsidiaries it may have from time to time;
<PAGE>
                                       30

7.16.26   the merging of Freegold with any other company or corporate body or
          the merger of Freegold's business with that of any other person;

7.16.27   the approval of annual and long term budgets of Freegold from time to
          time and deviations therefrom, which vote in favour of such resolution
          shall not be unreasonably withheld taking cognisance of generally
          accepted mining industry practice, sound economic principles and the
          best interests of the Businesses of Freegold specifically and Freegold
          generally;

7.16.28   the determination of Freegold's annual and long term business plan and
          investment and financial policies and plans, which vote in favour of
          such resolution shall not be unreasonably withheld taking cognisance
          of generally accepted mining industry practice, sound economic
          principles and the best interests of the Businesses of Freegold
          specifically and Freegold generally;

7.16.29   the determination of Freegold's hedging and associated foreign
          exchange policies;

7.16.30   the conclusion of any contract between Freegold and any director or
          employee of Freegold or any person who is a relative or member of
          Freegold as defined in the Estate Duty Act. 1955 (as amended), or any
          corporation or company controlled by any Shareholder, director, Member
          of the Same Group or relative, directly or indirectly outside the
          normal, ordinary and regular course of business;

7.16.31   the variation of, addition to or cancellation of any terms or
          conditions of or the cancellation of any appointment, transaction or
          agreement dealt within this clause 7.16 or to which it applies.

7.17 Should a Shareholder hold 75% (seventy five percent) or more of the Shares
     the provisions of clause 7.16 shall not apply and Board resolutions and
     resolutions put to the vote of the Board shall be decided by way of a
     majority vote.
<PAGE>
                                       31

7.18 Save as otherwise provided in this Agreement, all resolutions of the Board
     shall be decided by way of a majority vote.

7.19 The Board shall establish a steering committee which shall report directly
     to the Board. The steering committee shall be responsible for the day to
     day running of the Businesses of Freegold within the powers delegated to it
     by the Board. In particular, the steering committee shall operate within
     the constraints of any approved budget and schedule of authority.

7.20 The steering committee shall ensure that the Businesses of Freegold are run
     and managed according to the highest international standards and operating
     procedures relating to health, safety and environment.

7.21 The steering committee may establish sub-committees such as financial
     committees, empowerment committees, technical committees and human
     resources committees.

8.   CHAIRMAN AND DEPUTY CHAIRMAN OF THE BOARD

8.1  In line with the Shareholders' intention to promote the empowerment image
     and profile of Freegold and in order to grow and develop its business, the
     chairman of the Board shall, for the first 24 (twenty four) months after
     the implementation date of the Sale of Business, be a person nominated by
     ARM and appointed in terms of the Articles and the deputy chairman for that
     period shall be a person nominated by Harmony. Thereafter, notwithstanding
     that Harmony should be entitled to nominate the chairman, it is the
     intention of the Shareholders that, for the above reasons, Freegold should
     have joint-chairmen, one of whom shall be a person nominated by ARM and the
     other shall be a person nominated by Harmony. There shall accordingly be no
     deputy chairman.

8.2  The chairman and the deputy chairman shall always be nominated from amongst
     the directors of Freegold.

8.3  The chairman and deputy chairman shall not have a casting vote at meetings
     of the Board.

<PAGE>
                                       32

8.4       A chairman, joint-chairman or deputy chairman nominated by a
          Shareholder may be removed and may be replaced pursuant to a written
          request given to Freegold to that effect by that Shareholder. A
          chairman and deputy chairman shall be appointed, removed and replaced
          by Freegold in terms of the Articles at a general meeting.

8.5       Each Shareholder shall exercise its votes in respect of any resolution
          for the appointment or removal of a chairman, joint-chairman or deputy
          chairman in the same manner as the Shareholder nominating such
          chairman or deputy chairman or requesting his removal, as the case may
          be.

9.   PROFITS AND DIVIDEND POLICY

9.1       The surplus cash after payment of operating costs and current taxes of
          Freegold shall be applied in the following manner:

9.1.1          firstly, to fund working capital, capital expenditure and to
               provide for taxes;

9.1.2          secondly, to the provision for pro rata repayment and to pro-rata
               repayment of, the capital and interest on the ARM Term Loan and
               the Harmony Term Loan;

9.1.3          thirdly, to the provision for payment and to payment of the
               second payment and the tax payment;

9.1.4          fourthly, to the pro rata repayment of the capital and interest
               on the ARM Unsecured Loan and the Harmony Unsecured Loan and any
               further Unsecured Claims on Loan Account;

9.1.5          fifthly, to the payment of dividends.

9.2       Subject to clause 9.1 and unless otherwise agreed in writing by the
          Shareholders, they shall procure that all of Freegold's profits for
          each financial year, which are available for distribution, will,
          unless otherwise

<PAGE>
                                       33

          agreed, be distributed by the payment of cash dividends at least
          twice during each financial year and within 30 (thirty) days of
          the end of each period of 6 (six) months during the financial
          year in question.

10.       GENERAL MEETINGS OF THE COMPANY AND MATTERS REQUIRING BOTH
          SHAREHOLDERS' APPROVAL

10.1          The quorum for general meetings of Freegold shall always include
              both Shareholders who shall be present at the commencement of and
              throughout the general meeting. The voting and the conduct at
              proceedings of general meetings shall in all other respects be
              governed by the Articles and the Companies Act.

10.2          Resolutions in respect of the following matters may only be passed
              with the approval in writing of a Shareholder or Shareholders, as
              the case may be, holding 75% (seventy five percent) or more of
              the Shares:

10.2.1              the change of the Auditors;

10.2.2              the passing of a resolution as contemplated in Section 228
                    of the Companies Act to authorise the sale or disposition
                    of the whole or a major part of the business or the assets
                    of Freegold;

10.2.3              subject to the provisions of this Agreement and save in
                    respect of Shares which BoE may become entitled to acquire
                    in terms of the Conditional Subscription Agreement, the
                    creation, allotment or issue of any shares in the capital of
                    Freegold or any other security or granting of any option or
                    rights to subscribe in respect thereof or the conversion of
                    any instrument into such shares;

10.2.4              the declaration of a dividend otherwise than in accordance
                    with clause 9;

10.2.5              the bringing of any application for the winding-up of
                    Freegold; or

10.2.6              the obtaining of a listing for the Shares on any Stock
                    Exchange.

<PAGE>
                                       34

10.3 The expression "Freegold" where used in clause 10.2 shall include any
     subsidiaries Freegold may have from time to time to the extent and with the
     effect that the provisions of clause 10.2 shall apply in relation to each
     such subsidiary as they apply in relation to Freegold.

10.4 Should there be an equality of votes in respect of a resolution proposed at
     a general meeting the chairman of the general meeting shall not have a
     casting vote.

10.5 Save as otherwise provided for in this Agreement, the Articles or the Act,
     all resolutions put to the vote of the general meeting shall be decided by
     way of a majority vote.

11.  TRANSFERS OF SHAREHOLDER'S INTEREST

11.1 Neither Shareholder shall, except in accordance with the provisions of this
     Agreement or in accordance with the provisions of the Conditional
     Subscription Agreement or with the prior written consent of the other
     Shareholder:

11.1.1    pledge, mortgage or otherwise hypothecate or encumber its
          Shareholder's Interest or any of the rights attached to its
          Shareholder's Interest; or

11.1.2    sell, transfer or otherwise dispose of its Shareholder's Interest or
          any of the rights attached to its Shareholder's Interest; or

11.1.3    enter into any agreement in respect of the votes attached to its
          Shareholder's Interest or any of the other rights attached to its
          Shareholder's Interest.

11.2 Any Shareholder shall be entitled to encumber its Shareholder's Interest in
     favour of the Debt Guarantor and/or any Financier that provides funding to
     such Shareholder to enable such Shareholder to make contributions

<PAGE>
                                       35

     (whether in the form of loans or share capital) to Freegold; provided that
     in granting such security the relevant Shareholder shall ensure that:

11.2.1    the Debt Guarantor and/or any Financier, as the case may be, agrees to
          comply with the provisions of clauses 12.1 to 12.6 (both inclusive) in
          favour of the other Shareholder when realising the relevant
          Shareholder's Interest; and

11.2.2    the Debt Guarantor and/or any Financier, as the case may be, agrees to
          ensure that any person who agrees to acquire the relevant
          Shareholder's Interest shall enter into and sign a deed of adherence
          to observe, perform and be bound by all the terms of this Agreement
          which are capable of applying to such person.

11.3 The Harmony Term Loan shall be secured in the same manner and to the same
     extent mutatis mutandis as the security provided to the Lenders and/or the
     Debt Guarantor in respect of the assets of Freegold.

11.4 The Parties shall procure that before any person (other than a person who
     is already a Shareholder) is registered as a holder of any Share, such
     person shall enter into and sign a deed of adherence to observe, perform
     and be bound by all the terms of this Agreement which are capable of
     applying to such person. The Parties shall further co-operate in good faith
     so as to amend this Agreement to provide for the additional Shareholder or
     Shareholders. Freegold shall not register any such person as the holder of
     any Share until such a deed has been executed. Upon being so registered
     that person shall be deemed to be a Party to this Agreement.

11.5 Freegold shall not register any transfer of Shares made in breach of this
     Agreement and the Shares so transferred shall carry no rights whatsoever
     unless and until the breach is rectified.

11.6 No Shareholder shall transfer any Shares unless a proportionate amount of
     that Shareholder's Claims on Loan Account, if any, are transferred together
     with such Shares.

<PAGE>
                                       36

12.  RECIPROCAL RIGHTS OF PRE-EMPTION BETWEEN THE SHAREHOLDERS

12.1   Save as otherwise provided in this Agreement, each Shareholder ("the
       offeror") undertakes not to sell or otherwise dispose of or transfer any
       Shareholder's Interest owned by it to anyone ("a third party offer")
       other than the other Shareholder ("the offeree"), without first offering
       such Shareholder's Interest ("the offer Shareholder's Interest") to the
       offeree at the same price and on the same terms and conditions as those
       on which the offeror is prepared to sell the offer Shareholder's
       Interest under a bona fide transaction to such other person.

12.2   Any offer ("the offer") in terms of clause 12.1 shall;

12.2.1      be made in writing to the offeree and be delivered to the offeree at
            its address set out in clause 30;

12.2.2      specify the name of the third party who is the prospective
            transferee, the purchase price expressed as an amount in South
            African Rands and the terms and conditions of the third party offer;

12.2.3      be irrevocable for a period of 30 (thirty) days from its receipt by
            the offeree;

12.2.4      not be capable of partial acceptance unless otherwise agreed by the
            prospective transferee;

12.2.5      be accepted by the offeree giving written notice to the offeror's
            address specified in clause 30 within the 30 (thirty) days referred
            to in clause 12.2.3.

12.3   If the offer is duly accepted by the offeree;

12.3.1      then the sale and purchase of the offer Shareholder's Interest which
            results shall be on the terms and conditions of the third party
            offer provided that payment shall be made within 60 (sixty) days
            after the acceptance referred to in clause 12.2.5. Should payment
            for the offer Shareholder's Interest occur after the payment date
            specified in the third party offer, the offeree shall pay interest
            on the

<PAGE>
                                       37

       purchase price at the Prime Rate from the payment date specified in the
       third party offer until the date of payment;

12.3.2 the offeror shall deliver the relevant share certificate(s) to the
       offeree or any Nominee(s) for the offeree, together with such duly
       executed transfer forms as may be required by law for the transfer of
       the Shares forming part of the offer Shareholder's Interest to the
       offeree or any Nominee(s) for the offeree, and a power of attorney in
       such form and in favour of such person as the offeree may nominate so as
       to enable the offeree to exercise all rights of ownership in respect of
       the Shares forming part of the offer Shareholder's Interest, including,
       without limitation, the voting rights thereto;

12.3.3 the offeror shall deliver the relevant cessions to the offeree in
       writing in respect of a proportionate amount of its rights in respect of
       its Claims on Loan Account;

12.3.4 the offeror and the offeree shall procure (insofar as they are able)
       that such transfer or transfers are duly registered;

12.3.5 the offeror shall do all such other things and execute all such other
       documents as the offeree may require to give effect to the sale and
       purchase of the offer Shareholder's Interest;

12.3.6 each of the Shareholders shall use its reasonable endeavours to obtain
       any regulatory or other consents that are needed to enable the sale and
       purchase of the offer Shareholder's Interest to be completed. If such
       consents are refused the purchase and sale shall become void and the
       offeror and the offeree shall be released from their obligations under
       this clause 12.3, but they shall negotiate with each other in good faith
       with a view to achieving an alternative solution.

12.3.7 the offeree shall within the 60 (sixty) day period referred to in clause
       12.3.1 provide the offeror with a written statement by the offeree's
       Financiers to the effect that they are prepared to lend the

<PAGE>
                                       38

        necessary funds to the offeree to enable it to purchase the offer
        Shareholder's Interest at the end of the 60 (sixty) day period;

12.3.8  should the funds referred to in clause 12.3.7 not be available at the
        end of the 60 (sixty) day period referred to in clause 12.3.1 then,
        provided that the offeree provides proof, to the reasonable
        satisfaction of the offeror, before the end of the 60 (sixty) day
        period, that payment of the purchase price will be made within a
        further 30 (thirty) days from the end of such 60 (sixty) day period,
        the offeree shall have an additional 30 (thirty) day period from the
        end of such 60 (sixty) day period to pay the purchase price;

12.3.9  should the offeree fail to make payment at the end of the 60 (sixty) day
        or the additional 30 (thirty) day period, at the case may be, the
        offeror shall without prejudice to its other rights in law be entitled
        to cancel the agreement of sale and purchase in terms of clause 12.3 and
        the offeree shall forfeit all its pre-emptive rights in respect of any
        proposed future transfers by the offeror of its Shareholder's Interest
        or a portion of its Shareholder's Interest;

12.3.10 if the offeror fails or refuses to transfer any offer Shareholder's
        Interest in accordance with its obligations hereunder, the offeree
        shall execute and deliver on behalf of the offeror the necessary
        transfer form(s) and other documents required for the transfer of the
        offer Shareholder's Interest. The offeree shall receive the purchase
        money in trust for the offeror and in the case of any Shares forming
        part of the offer Shareholder's Interest cause the offeree to be
        registered as the holder thereof, whereupon it shall pay the purchase
        money so received by it to the offeror and after the offeree has been
        registered in exercise of the aforesaid powers the validity of the
        proceedings shall not be questioned by any person.

12.4    Should the offer not be accepted by the offeree within the period
        applicable under clause 12.2.6, then the offeror shall be entitled to
        sell or otherwise dispose of and transfer the offer Shareholder's
        Interest to the third party specified as the prospective transferee in
        the offer, provided that:

<PAGE>
                                       39

12.4.1    the sale is entered into within 30 (thirty) days from the date on
          which the offeror receives written notification from the offeree of
          its rejection of the offer or the offer expires, whichever is the
          earlier;

12.4.2    the sale is not effected at a price and on terms and conditions which
          are more favourable to the prospective transferee than those first
          offered to the offeree in terms of the offer;

12.4.3    no transfer may be effected in terms of this clause 12.4 unless and
          until the prospective transferee will have first agreed in writing to
          become a party to and be bound as a Shareholder by all the terms and
          conditions of this Agreement in accordance with the requirements of
          clause 11.4 and the sale or other disposal to the prospective
          transferee in question shall not take effect unless and until the
          requirements of this clause 12.4.3 have been completed to the
          reasonable satisfaction of the offeree:

12.4.4    without detracting from the generality of this clause 12.4, no
          transfer may be effected in terms of this clause 12.4 to a prospective
          transferee who at the time of the proposed transfer is or would be in
          breach of any of the obligations to be assumed by such transferee in
          terms of the requirements of clause 12.4.3; and

12.4.5    should the sale or other disposal to the prospective transferee named
          in the offer not be entered into within the 30 (thirty) days referred
          to in clause 12.4.1, all the provisions of this clause 12 shall
          continue to remain in force.

12.5 Notwithstanding anything else in this clause 12 it shall not apply to and
     therefore not preclude:

12.5.1    any transfer of any Shares by a Shareholder to a bona fide Nominee of
          that Shareholder or from any such bona fide Nominee back to that
          Shareholder or from any one such bona fide Nominee to any other such
          bona fide Nominee, where there is no change of beneficial ownership of
          the Shares in question, provided that no such transfer may be effected
          unless and until such Nominee will have first agreed in writing to
          become a party to and be bound as a
<PAGE>
                                       40

          Shareholder by all terms and conditions of this Agreement in
          accordance with the requirements of clause 11.4;

12.5.2    any transfer of any Shareholder's Interest by a Shareholder to any
          other company which is wholly owned subsidiary of that Shareholder,
          provided that:

12.5.2.1  the transferee continues to be a wholly owned subsidiary of such
          Shareholder for as long as it holds any Shares;

12.5.2.2  no transfer may be effected in terms of this clause 12.5.2 unless and
          until the prospective transferee will have first agreed in writing to
          become a party to and be bound as a Shareholder by all the terms and
          conditions of this Agreement in accordance with the requirements of
          clause 11.4;

12.5.2.3  the Shareholder shall continue to be bound by this Agreement and
          undertakes that is the transferee, after having taken transfer of the
          Shares in question, ceases to be a wholly owned subsidiary of the
          Shareholder, it will prior to so ceasing transfer all Shares it may
          then be holding back to that Shareholder in accordance with the
          requirements of clause 12.5.2.1.

12.6 Any third party who takes transfer of a Shareholder's Interest in terms of
     clause 12 shall comply with the provisions of clause 11.4.

12.7 The provisions of clauses 12.1 to 12.6 (both inclusive) other than clause
     12.5.1, shall not apply to any transfer of the whole or any part of ARM's
     Shareholder's Interest in accordance with the provisions of the Conditional
     Subscription Agreement.

13.  COME ALONG

13.1 Should a shareholder ("the disposing shareholder") at any time hold 70%
     (seventy percent) or more of the Shareholder's Interest and should an offer
<PAGE>
                                       41

          to acquire its entire Shareholder's Interest be received from a third
          party ("the third party offer") the disposing shareholder shall, in
          the event that it wishes to accept the third party offer in respect of
          its Shareholder's Interest, indicate in writing to the other
          Shareholder ("the remaining shareholder") its intention to accept the
          third party offer insofar as it relates to its Shareholder's Interest.

13.2      The notice in terms of clause 13.1 shall constitute an offer by the
          disposing shareholder to sell its Shareholder's Interest to the
          remaining shareholder on the terms of the third party offer.

13.3      Such offer to the remaining shareholder shall be irrevocable and
          capable of acceptance for a period of 30 (thirty) days after the
          receipt of such notice.

13.4      Should the offer referred to in clause 13.2 be refused by the
          remaining shareholder or expire unaccepted, then the other provisions
          of this Agreement or the Articles conferring pre-emptive rights on the
          Shareholders shall not apply and the disposing shareholder shall have
          the right to immediately require the remaining shareholder to join
          with the disposing shareholder in accepting the third party offer and
          giving effect to any sale resulting therefrom.

13.5      If the remaining shareholder fails or refuses to cede and transfer any
          of its Shareholder's Interest in accordance with its obligations
          hereunder, the disposing shareholder shall execute and deliver on
          behalf of the remaining shareholder the necessary transfer form(s) and
          other documents required for the transfer of the remaining
          Shareholder's Interest. The disposing shareholder shall receive the
          purchase money in trust for the remaining Shareholder's Interest and
          cause the third party to be registered as the holder thereof,
          whereupon it shall pay the purchase money so received by it to the
          remaining shareholder and in the case of such registration in exercise
          of the aforesaid powers, the validity of any such actions shall not be
          questioned by any person.

<PAGE>
                                       42

14.     TAG ALONG

        Subject to the provisions of clause 12, should either Shareholder hold
        70% (seventy percent) or more of the Shares, such Shareholder shall not
        enter into any transaction for the sale or disposal of more than 49%
        (forty nine percent) of the entire Shareholder's Interest unless at the
        same time it procures for the other Shareholder an offer by the same
        time it procures for the other Shareholder an offer by the same
        purchaser for the purchase of the Shareholder's Interest of the other
        Shareholder at the same price and upon the same terms and conditions.

15.     HARMONY CALL OPTIONS

15.1        Should the Lenders call up the BoE Term Loan or any part thereof (by
            the exercise of any of their rights under clause 12 of the Lenders'
            CTA pursuant to ARM failing to remedy an event of default under that
            agreement in the time period allowed therefor), ARM shall forthwith
            inform Harmony in writing thereof and such notice shall constitute
            an offer by ARM to Harmony to sell that percentage of its
            Shareholder's Interest ("the Sold Interest"), calculated at Market
            Value, which is equal in value to the outstanding amount of the BoE
            Term Loan in respect of which BoE has called for payment. The
            purchase price for the Sold Interest shall be:

15.1.1            in respect of ARM's Shares ("the Sold Shares") comprised in
                  the Sold Interest, the market value thereof (being the Market
                  Value of the Sold Interest less the face value of ARM's
                  Claims on Loan Account comprised in the Sold Interest); and

15.1.2            in respect of ARM's Claims on Loan Account comprised in the
                  Sold Interest ("the Sold Claims"), the face value thereof.

15.2        Such offer to Harmony shall be irrevocable and capable of acceptance
            by Harmony for a period of 30 (thirty) days after the date of
            receipt of such offer by Harmony pursuant to the provisions of
            clause 15.1 or the date of receipt by Harmony of a written notice
            from BoE informing Harmony that the Lenders have called up the BoE
            Term Loan or a part thereof, whichever date is the earlier. Within
            30 (thirty) days of the date of

<PAGE>
                                       43

               acceptance of the aforesaid offer or, in the event that the
               Market Value has not been determined prior to that date, within
               2 (two) Business Days of the date on which the Market Value is
               determined, Harmony shall pay the purchase price for the Sold
               Interest to BoE on behalf of ARM against delivery by ARM (or its
               nominee) to Harmony of the share certificates and a share
               transfer form in respect of the Sold Shares and a written cession
               of the Sold Claims in favour of Harmony.

15.3           Should BoE be entitled to exercise its rights, under clause 9 of
               the BoE Cession and Pledge in Security pursuant to a breach by
               ARM of the Maandagshoek Guarantee and notify ARM in writing that
               it is so entitled and is going to exercise such rights, ARM shall
               forthwith inform Harmony in writing thereof and such notice shall
               constitute an offer by ARM to Harmony to sell that percentage of
               its Shareholder's Interest ("the Sold Interest"), calculated at
               Market Value, which is equal in value to the amount outstanding
               by ARM under the Maandagshoek Guarantee. The purchase price for
               the Sold Interest shall be:

15.3.1              in respect of ARM's Shares ("the Sold Shares") comprised in
                    the Sold Interest, the market value thereof (being the
                    Market Value of the Sold Interest less the face value of
                    ARM's Claims on Loan Account comprised in the Sold
                    Interest); and

15.3.2              in respect of ARM's Claims on Loan Account comprised in the
                    Sold Interest ("the Sold Claims"), the face value thereof.

15.4           Such offer to Harmony shall be irrevocable and capable of
               acceptance by Harmony for a period of 30 (thirty) days after the
               date of receipt of such offer by Harmony pursuant to the
               provisions of clause 15.3 or the date of receipt by Harmony of a
               written notice from BoE informing Harmony that it is entitled to
               exercise its rights, under clause 9 of the BoE Cession and Pledge
               in Security pursuant to a breach by ARM of the Maandagshoek
               Guarantee, whichever date is the earlier. Within 30 (thirty) days
               of the date of acceptance of the aforesaid offer or, in the event
               that the Market Value has not been determined prior to that date,
               within 2 (two) Business Days of the date on which the Market
               Value is determined, Harmony shall pay the purchase price for the
               Sold Interest to BoE on behalf of ARM against delivery by ARM (or
               its nominee) to Harmony of the share

<PAGE>
                                       44

          certificates and a share transfer form in respect of the Sold Shares
          and a written cession of the Sold Claims in favour of Harmony.

15.5      If ARM fails or refuses to cede and transfer any of its Shareholder's
          Interest in accordance with its obligations under clause 15.2 or
          clause 15.4, as the case may be, Harmony shall execute and deliver on
          behalf of ARM the necessary transfer form(s) and other documents
          required for the transfer of ARMs's Shareholder's Interest.

15.6      The provisions of clauses 15.3 and 15.4 shall be subject to BoE,
          having consented in writing to ARM being entitled to offer the Sold
          Interest to Harmony under clause 15.3 and to the sale of the Sold
          Interest to Harmony pursuant to its acceptance of any such offer.

16.  MATERIAL BREACH

16.1      For the purposes of this clause 16, the expression "material breach"
          means a breach of any of the terms of this Agreement which is material
          having regard to all relevant circumstances including, without being
          limited to, the nature of the relationship between the Shareholders
          and the need for each Shareholder to maintain the confidence of the
          other, the nature of the breach (and in particular whether it is
          intentional, negligent or neither) and the consequences of the breach.

16.2      If either Shareholder ("the defaulting shareholder") commits a
          material breach which is not capable of being remedied, the following
          provisions shall apply:

16.2.1         the other Shareholder ("the aggrieved shareholder") shall,
               without prejudice to its other rights in law, have the right
               either to require Freegold to be wound up in accordance with
               clause 20 or to require the defaulting shareholder to sell its
               Shareholder's Interest to it, as the aggrieved shareholder may
               elect;

16.2.2         the aggrieved shareholder's right in terms of clause 16.2.1 must
               be exercised by written notice ("the election notice") given
               within 30

<PAGE>
                                       45

             (thirty) days from the date on which the aggrieved shareholder
             becomes aware of the breach or within a period of 10 (ten) days
             after the determination of the Market Value, whichever is the
             later, and such notice shall identify the breach, refer to clause
             16.2.1 and specify which of the alternative rights referred to in
             clause 16.2 is being elected;

16.2.3       if the aggrieved shareholder exercises the right to require
             Freegold to be wound up, then the Shareholders shall be bound to
             take all such steps as may be necessary to wind up Freegold
             forthwith by way of a members voluntary winding up;

16.2.4       if the aggrieved shareholder exercises the right to require the
             defaulting shareholder to sell its Shareholder's Interest to it,
             then the sale shall be subject to the following terms and
             conditions:

16.2.4.1       the effective date of the sale shall be the date on which the
               defaulting shareholder receives the election notice;

16.2.4.2       the purchase price payable for the defaulting shareholder's
               Shareholder's Interest shall be the Market Value of such
               Shareholder's Interest;

16.2.4.3       completion of the sale shall be effected within 90 (ninety) days
               of the expiry of the period specified in clause 16.2.2

16.3       If any Shareholder commits a material breach which is capable of
           being remedied then, without prejudice to any other rights that the
           aggrieved shareholder may have in law, the following provisions shall
           apply:

16.3.1         the aggrieved shareholder may give written notice ("the warning
               notice") to the defaulting shareholder identifying the material
               breach and referring to this sub-clause, provided that such
               notice must be given within 30 (thirty) days from the date on
               which it becomes aware of the material breach;

16.3.2.       if the warning notice is given in terms of clause 16.3.1 and if
              the material breach identified in that notice is not remedied by
              the
<PAGE>
                                       46

               defaulting shareholder within a period of 15 (fifteen) days from
               the date it receives the warning notice, or such longer period as
               may be reasonable in the circumstances provided that the
               defaulting shareholder commences the remedial action within the
               15 (fifteen) day period and proceeds with such action
               expeditiously and in good faith, then the aggrieved shareholder
               shall have the same rights as those set out in clause 16.2, the
               provisions of which shall apply mutatis mutandis provided that
               the aggrieved shareholder shall have a further 30 (thirty) days
               within which to give the election notice.

     16.4   Notwithstanding anything to the contrary contained in this
            Agreement, no Party shall be entitled to cancel this Agreement.

     16.5   Subject to clause 27 and notwithstanding anything to the contrary
            in this clause 16, the aggrieved shareholder shall be entitled to
            exercise its common law rights in respect of a breach of the terms
            and conditions of this Agreement, irrespective of whether such
            breach is a material breach capable of remedy or not or whether it
            is a non-material breach.

     17.  ARM AND HARMONY'S RECIPROCAL CALL OPTIONS

     17.1   If either Shareholder ("the affected Shareholder") is placed under
            any provisional or final order of winding-up or judicial management
            or enters into any voluntary winding-up other than a voluntary
            winding-up for the purposes of a bona fide scheme of arrangement or
            reconstruction ("an option event"), then the other Shareholder ("the
            other Shareholder") shall have the option to require the affected
            Shareholder to sell the affected Shareholder's Interest to it.

     17.2   The other Shareholder's right to exercise the right referred to in
            clause 17.1 will lapse if it is not exercised by written notice
            ("the election notice") given within 60 (sixty) days from the date
            on which the other Shareholder becomes aware of the happening of the
            option event, or within 10 (ten) days of the date of the
            determination of the Market Value, whichever is the later, and such
            notice shall identify that option event and refer to this clause 17.

<PAGE>
                                       47

17.3      If the other Shareholder exercises the right referred to in clause
          17.1 then the sale shall be on the same terms and conditions mutatis
          mutandis as those set out in clause 12.3, except that:

17.3.1         the effective date of the sale, shall be the date on which the
               affected Shareholder receives the election notice;

17.3.2         the purchase price payable for the affected Shareholder's
               Interest shall be the Market Value thereof;

17.3.3         completion of the sale shall be effected subject to clause 12.3
               within 90 (ninety) days of the expiry of the period of
               14 (fourteen) days after the determination date referred to in
               clause 17.2.

18. MARKET VALUE OF THE SHAREHOLDER'S INTEREST

18.1      Whenever the Market Value is required to be determined for the
          purposes of any provision of this Agreement, then failing agreement
          between the Shareholders as to the Market Value within 10 (ten)
          Business Days, the Market Value shall be determined, at the request of
          either Shareholder, in accordance with the following provisions unless
          otherwise agreed in writing by the Shareholders:

18.1.1         the Shareholders shall each appoint 1 (one) Merchant Bank to
               value the entire Shareholder's Interest;

18.1.2         for the avoidance of any doubt, each Shareholder shall expressly
               instruct the Merchant Bank appointed by it that, in valuing the
               entire Shareholder's Interest, the value of the Claims on Loan
               Account shall not be deducted;

18.1.3         the Market Value will be the average of the 2 (two) valuations;

18.1.4         should the valuations of the 2 (two) Merchant Banks differ by
               more than 20% (twenty percent) then the Shareholders will appoint
               by
<PAGE>
                                       48

          agreement between them a third Merchant Bank to carry out a valuation
          of the entire Shareholder's Interest without reference to the 2 (two)
          valuations of the Merchant Banks appointed in terms of clause 18.1.1;

18.1.5    failing agreement between the Shareholders as provided for in clause
          18.1.4, on the application of either Shareholder, the third Merchant
          Bank will be appointed by the senior partner of the Auditors;

18.1.6    the average of those 2 (two) of the 3 (three) valuations which are
          closest to each other will be the Market Value;

18.1.7    the Merchant Banks appointed in terms of clause 18.1.1 shall act as
          experts and not as arbitrators and will determine and certify the
          Market Value as at the effective date of the purchase on the
          following assumptions and bases:

18.1.7.1      valuing the entire Shareholder's Interest as on an arms-length
              sale between a willing seller and a willing purchaser;

18.1.7.2      if Freegold is then carrying on business as a going concern on a
              sustainable basis, on the assumption that it will continue to do
              so;

18.1.8    if any difficulty arises in applying any of these assumptions or
          bases then the difficulty shall be resolved by the Merchant Banks
          taking all relevant facts, circumstances and information into account;

18.1.9    the Merchant Banks may call upon any professional advisors of
          Freegold, including the Auditors or any of their predecessors, for
          such documents and information as the Merchant Banks may reasonably
          require for the purposes of this determination and the Parties shall
          give or, so far as they are able, procure that appropriate authority
          is given to those advisers to make the disclosures required of them
          and that they as far as they are able,
<PAGE>
                                       49

              give the Merchant Banks all such facilities and information as
              they may reasonably require for the purposes of their
              determination;

18.1.10       for the purposes of their determination the Merchant Banks shall
              be entitled to consult any other valuers and take account of any
              valuations obtained from any other valuer, but not necessarily be
              bound by them;

18.1.11       the Merchant Banks shall afford the Shareholders the opportunity
              to make such written and, at their discretion, oral
              representations as they or any of them wish, subject to such
              reasonable time and other limits as they may prescribe, and they
              shall have regard to any such representations but not be bound by
              them;

18.1.12       all the Parties will use their best endeavours to procure that
              the Merchant Banks will determine the Market Value within 30
              (thirty) days of being requested to do so.

18.2     If the determination of the Market Value is referred to the Merchant
         Banks in terms of clause 18.1 the date of determination of the Market
         Value ("the determination date") shall be the date on which both
         Shareholders receive the final and binding Merchant Banks'
         determination of the Market Value in writing. If the Market Value is
         determined by written agreement between the Shareholders, the
         determination date shall be the date on which the agreement is reached.

18.3     The sum of all the costs and expenses of the Merchant Banks appointed
         in terms of this clause 18 shall be borne equally by both Shareholders.

19.  LENDERS' CTA

     Each Shareholder undertakes to the other that it shall exercise all the
     voting rights attached to its Shares, and all powers, discretions and
     authorities exercisable directly and indirectly by it in relation to
     Freegold, so as to procure that Freegold complies with its obligations and
     undertakings under the Lenders' CTA.

<PAGE>
                                       50

20.   WINDING-UP

20.1   In the event of Freegold being wound up by way of a members' voluntary
       winding-up, the Shareholders will procure that the liquidator is a member
       of The South African Institute of Chartered Accountants acceptable to
       both Shareholders, or in default of agreement, nominated at the request
       of either Shareholder by the President for the time being of such
       Institute.

20.2   The Shareholders shall prove in the winding-up of Freegold to the maximum
       extent permitted by law all sums due or to fall due to them respectively
       from Freegold and shall exercise all rights of set-off and generally do
       all such other acts and things as may be available to them in order to
       obtain the maximum receipts and recoveries.

20.3   To the extent that either or both of the Shareholders do not receive
       satisfaction in full in the winding-up of Freegold of all sums due or to
       fall due to them, then the aggregate shortfall between all sums due or to
       fall due to the Shareholders and all amounts actually recovered by the
       Shareholders from Freegold or its liquidator (whether by direct payment
       or the exercise of any right of set-off or otherwise)  shall be
       calculated and apportioned between the Shareholders in proportion to
       their then holdings of Shares, and the Shareholders shall make
       contributions within 3 (three) days of receipt of a written demand to
       make such payment one to the other to the extent and with the effect that
       each Shareholder bears its respective share of the aggregate amount of
       such shortfall.

20.4   If Freegold enters into a members voluntary winding-up each Shareholder
       shall, unless otherwise agreed to in writing, be obliged to continue to
       perform and discharge its obligations under any executory contract
       between it and Freegold to the full extent required by Freegold to enable
       it or any of its assignees to meet all Freegold's obligations and
       commitments to its customers and other third parties (including any
       obligations and commitments for ongoing maintenance).

<PAGE>
                                       51

21.   SHAREHOLDERS CONSENT

      Where this Agreement provides that any particular transaction or matter
      requires the consent, approval or agreement of any Shareholder, such
      consent, approval or agreement may be given subject to such reasonable
      terms and conditions as that Shareholder may impose and any breach of such
      terms and conditions by any person subject to them shall be deemed to be a
      breach of the terms of this Agreement.

22.   PARTIES BOUND

22.1   Freegold undertakes with each of the Shareholders to be bound by and
       comply with the terms and conditions of this Agreement insofar as the
       same relate to it and to act in all respects as contemplated by this
       Agreement.

22.2   The Shareholders undertake with each other to exercise their powers in
       relation to Freegold so as to ensure that Freegold fully and promptly
       observes, performs and complies with its obligations under this
       Agreement.

22.3   Each Shareholder undertakes with each of the other Parties that whilst it
       remains a Party to this Agreement it will not (except as expressly
       provided for in this Agreement) agree to cast any of the voting rights
       exercisable in respect of any of the Shares held by it in accordance with
       the directions, or subject to the consent of, any other person.

23.   ENFORCEMENT OF THE COMPANY'S RIGHTS

23.1   If it appears that either Shareholder ("the defaulting Shareholder") is
       in breach of any obligation which it owes to Freegold (whether under this
       Agreement or the Articles or under any other agreement, including any
       employment agreement, or otherwise) or has misapplied or retained or
       become liable or accountable for any money or property of Freegold, or
       has been guilty of any misfeasance or breach of any fiduciary or other
       duty in relation to Freegold or is under any obligation to indemnify
       Freegold

<PAGE>
                                       52

          against any liability, then it is agreed that the enforcement and
          prosecution of any right of action of Freegold in respect thereof
          shall be passed to the directors nominated by the other Shareholder
          alone who shall have full power and authority on behalf of Freegold to
          enforce, negotiate, litigate and settle any claim arising out of any
          such right of action and the defaulting Shareholder shall take all
          steps within its power to give effect to the provisions of this clause
          23.1.

23.2      Freegold agrees with each of the Shareholders that any moneys or
          property which it may recover or receive as a result of the operation
          of the provisions of this clause 23 shall be applied by it in a
          proper and efficient manner for its own benefit.

24.  SHAREHOLDER'S RIGHTS TO INFORMATION

24.1      The ARM Directors shall be entitled to disclose to ARM all information
          which they are entitled to receive as directors of Freegold and to
          furnish to ARM copies of all documents containing any such
          information.

24.2      The Harmony Directors shall be entitled to disclose to Harmony all
          information which they are entitled to receive as directors of
          Freegold and to furnish to Harmony copies of all documents containing
          any such information.

25.   CONFIDENTIALITY

25.1      All communications between ARM Harmony Freegold and/or any of them
          and all information and other materials supplied to or received by any
          of them from the others which by its nature is intended to be for the
          knowledge of the recipient alone, and all information concerning the
          business transactions and the financial arrangements of ARM. Harmony
          or Freegold with any person with whom any of them is in a confidential
          relationship with regard to the matter in question coming to the
          knowledge of the recipient, shall be kept confidential by the
          recipient unless or until the recipient can reasonable demonstrate
          that any such communication,

<PAGE>
                                       53

          information and material is, or part of it is, in the public domain
          through no fault of its own. To the extent that it is in the public
          domain or is required to be disclosed by law or in accordance with
          generally accepted accounting practice or in compliance with the rules
          of any Stock Exchange or in pursuance of employment duties, this
          obligation shall then cease.

25.2      The Shareholders shall use all reasonable endeavours to procure the
          observance of such restrictions by Freegold, and shall take all
          reasonable steps to minimise the risk of disclosure of confidential
          information, by ensuring that only they and such of their employees
          and directors whose duties will require them to possess any of such
          information have access thereto and instructing such employees and
          directors to treat such information as confidential.

25.3      The obligation contained in this clause 25 shall endure, even after
          the termination of the Agreement, without limit in point of time
          except and until such confidential information enters the public
          domain as set out in clause 25.1.

25.4      Notwithstanding clauses 25.1 to 25.3 each Shareholder may at any time
          disclose any such information and communications to a Member of the
          Same Group as it, to its own professional advisers (including any
          Merchant Bank appointed in terms of clause 18) or those of any Member
          of the same Group as it; and, if required to do so by law or any
          applicable regulatory requirements or requested to do so by any
          regulatory body to whose jurisdiction that Shareholder is subject or
          with whose instructions it is customary to comply, to the person(s) to
          whom the disclosure is required or requested provided that such
          Shareholder obtains an undertaking from such persons to maintain the
          confidentiality of the information on the same terms and conditions as
          apply to the Parties in terms of this clause 25.

25.5      Nothing in clauses 25.1 to 25.3 shall preclude either Shareholder at
          any time from disclosing to any person any information about the
          financial results or the operations of Freegold which is reasonably
          required to assess the financial conditions and prospects of that
          Shareholder and its subsidiaries provided that such Shareholder
          obtains a written undertaking from such persons to maintain the
          confidentiality of the information on the
<PAGE>
                                       54

          same terms and conditions as apply to the Parties in terms of this
          clause 25.

26.  EXPANSION OF THE MINING AND RELATED ACTIVITIES OF FREEGOLD

26.1      Should either Shareholder ("the proposing shareholder") propose that
          Freegold embark on any new mining operation or an expansion or
          reopening of any existing mining operation ("the expansion") which
          will require additional funding which has not been provided for in the
          budget and should the other Shareholder not be in favour of the
          expansion, Freegold and the proposing shareholder shall apply their
          best endeavours to reach agreement on a structure such as a
          partnership or joint venture by way of which the proposing shareholder
          can embark on the expansion and in terms of which Freegold will
          contribute ore reserves and the use of its facilities and personnel on
          commercial terms.

26.2      Should Freegold and the proposing shareholder be unable to reach
          agreement on a structure as contemplated in clause 26.1, the proposing
          shareholder may proceed with the expansion for its own profit and loss
          and shall pay to Freegold an amount to be agreed between the proposing
          shareholder and Freegold as compensation for the exploitation of the
          ore reserves and the use of Freegold's facilities and personnel.

26.3      Should Freegold and the proposing shareholder be unable to reach
          agreement on the amount of such compensation in terms of clause 26.2
          the matter shall be referred to arbitration in terms of clause 27 and
          the arbitrator shall be instructed that the intention of the
          Shareholders is that Freegold receives a market related compensation
          for the use of its facilities and personnel and that Freegold be
          compensated for the exploitation of its ore reserves at a fair and
          reasonable market related price.

26.4      The provisions of this clause 26 shall not come into effect until 1
          January 2005.

<PAGE>
                                       55

27.  ARBITRATION AND DISPUTE RESOLUTION

27.1      Any dispute between the Parties in regard to any matter arising out of
          or in terms of or pursuant to this Agreement shall be resolved in the
          following manner:

27.1.1         matters which cannot be resolved by the general meeting of the
               Board, as the case may be, shall be referred for resolution to a
               senior executive nominated by each of ARM and Harmony
               respectively;

27.1.2         if the matter referred to the senior executives of ARM and
               Harmony respectively in terms of clause 27.1.1 is not resolved
               between them within 14 (fourteen) days after the date on which it
               is referred to them, the matter shall be referred for resolution
               to the most senior executive at the time of ARM and Harmony
               respectively;

27.1.3         any dispute to which the provisions of this clause 27 apply which
               is not resolved in terms of clauses 27.1.1 and 27.1.2 shall be
               referred to arbitration in accordance with clauses 27.2 to 27.8

27.2      Should any dispute arise between the Parties in regard to:

27.2.1         the interpretation of; or

27.2.2         the carrying into effect of; or

27.2.3         any of the Parties' rights and obligations arising from; or

27.2.4         the rectification of; or

27.2.5         any matter arising out of or in connection with or pursuant to;

          this Agreement, then that dispute shall be submitted to and decided by
          arbitration, subject to the procedure in 27.1 being exhausted.

27.3      That arbitration shall be held:

27.3.1         with only the Parties and their legal representatives or advisors
               present thereat;

<PAGE>
                                       56

27.3.2         unless otherwise agreed in writing in Johannesburg.

          it being the intention that the arbitration shall, where possible, be
          held and concluded within 21 (twenty one) Business Days after it has
          been demanded

27.4      The arbitrator shall be agree between the Parties and failing
          agreement within 7 (seven) days after the arbitration has been
          demanded, then the arbitrator shall:

27.4.1         if the matter is primarily of an accounting nature, be an
               independent auditor of not less than 10 (ten) years' standing,
               appointed by the senior partner of the Auditors; or

27.4.2         if the matter is primarily of a legal nature be an independent
               attorney of not less than 10 (ten) years' standing or an
               independent advocate of not less than 15 (fifteen) years'
               standing appointed by the President for the time being of the
               Johannesburg Bar Council or its successor body; or

27.4.3         if the matter is primarily of any other nature, a suitably
               qualified person appointed by the senior partner of the
               Auditors; or

27.5      If the Parties fail to agree as to whether the matter is primarily of
          an accounting, legal or other nature, the matter shall be deemed to be
          primarily of a legal nature.

27.6      The arbitrator shall have the fullest and freest discretion with
          regard to the proceedings. Furthermore the arbitrator:

27.6.1         may dispense wholly or in part with formal submissions or
               pleadings;

27.6.2         shall provide written reasons for decisions taken during the
               course of the arbitration;

27.6.3         shall include such order as to costs as he deems just.

<PAGE>
                                       57

27.7      Any Party shall have the right on written notice to the other Parties
          given within 21 (twenty one) days of receipt of the decision of the
          arbitrator to appeal the decision of the arbitrator to a panel of 3
          (three) arbitrators to be appointed in the same manner mutatis
          mutandis set out in clause 27.4.

27.8      The Parties shall be entitled to have the award made an order of court
          of competent jurisdiction. The Parties record that they consent to the
          jurisdiction of the Witwatersrand Local Division of the High Court
          of South Africa or its successor in title.

27.9      This clause shall be binding on the Parties notwithstanding, and shall
          survive, the termination of this Agreement.

28.  MINE HEALTH AND SAFETY ACT APPOINTMENTS

28.1      Subject to the provisions of the Mine, Health and Safety Act No. 29 of
          1996 as amended ("the MHS Act") and unless otherwise determined by the
          Board --

28.1.1         ARM and Harmony shall each nominate an ARM Director and a Harmony
               Director, respectively, to be designated in terms of Section
               2A.(3) of the MHS Act as the persons to perform the functions of
               the owner in terms of Section 2 of the MHS Act;

28.1.2         ARM and Harmony shall each nominate a person who may, but need
               not be, an ARM Director or Harmony Director, respectively, to be
               appointed in terms of Section 4.(1) of the MHS Act to perform the
               functions entrusted to the employer by Sections 2. and 3. of the
               MHS Act;

29.  GENERAL

29.1      No Cancellation
<PAGE>
                                       58

          No Party shall be entitled to cancel this Agreement.

29.2      Remedies

          Subject to the provisions of clause 27.1, no remedy conferred by this
          Agreement is intended to be exclusive of any other remedy which is
          otherwise available at law, by statute or otherwise. Each remedy shall
          be cumulative and in addition to every other remedy given hereunder or
          now or hereafter existing at law, by statute or otherwise. The
          election of any one or more remedy by any of the Parties shall not
          constitute a waiver by such Party of the right to pursue any other
          remedy.

29.3      Severance

          If any provision of this Agreement is rendered void, illegal or
          unenforceable in any respect under any law, the validity, legality and
          enforceability of the remaining provisions shall not in any way be
          affected or impaired thereby and the Parties shall endeavour in good
          faith to agree an alternative provision to the void, illegal or
          unenforceable provision.

29.4      Survival of Rights, Duties and Obligations

          Termination of this Agreement for any cause shall not release a Party
          from any liability which at the time of termination has already
          accrued to such Party or which thereafter may accrue in respect of any
          act or omission prior to such termination.

29.5      Costs

          Each Party shall bear its own costs and expenses incurred by it in
          connection with this Agreement.

29.6      Entire Agreement

          This Agreement together with the Sale of Business Agreement
          constitutes the entire agreement between the Parties and save as
          otherwise expressly provided no modification, amendment or waiver of
          any of the provisions of

<PAGE>
                                       59

         this Agreement it shall be effective unless made in writing
         specifically referring to this Agreement and duly signed by the
         Parties.

29.7     Assignment.

29.7.1      This Agreement shall be binding on the Parties hereto and their
            respective successors and assigns.

29.7.2      None of the Parties may assign this Agreement or any of its rights
            and obligations under it except to a permitted transferee of that
            Party's Shareholder's Interest who has complied with clause 11.2,
            save that:

29.7.2.1       ARM shall be entitled to cede its rights under clause 15 either
               out and out or as security to any Financier and/or the Debt
               Guarantor; and

29.7.2.2       any Shareholder shall be entitled to cede its rights under clause
               17 either out and out or as security to any Financier and/or the
               Debt Guarantor.

29.8     Conflict with the Articles.

         In the event of any ambiguity or discrepancy between this Agreement and
         the Articles, this Agreement shall prevail. Accordingly the Parties
         shall exercise all voting and other rights and powers available to them
         so as to give effect to this Agreement and if necessary shall procure
         any required amendment to the Articles.

29.9     No Partnership.

         Nothing in this Agreement shall be deemed to constitute a partnership
         between the Parties (or any of them) or constitute any Party the agent
         of any other Party for any purpose.
<PAGE>
                                       60

29.10    Further Assurance

         Each Shareholder shall co-operate with the other Parties and execute
         and deliver to the other Parties such other instruments and documents
         and take such other actions as may be reasonably requested from time to
         time in order to carry out, evidence and confirm their rights and the
         intended purpose of this Agreement.

29.11    Counterparts

         This Agreement may be signed in any number of counterparts, all of
         which taken together shall constitute one and the same instrument. Any
         Party may enter into this Agreement by signing any such counterpart.

29.12    Successors Bound

         This Agreement shall be binding on and shall inure for the benefit of
         the successors and assigns and personal representatives (as the case
         may be) of each of the Parties.

29.13    Good Faith

         Each of the Parties undertakes with each of the others to do all things
         reasonably within its power which are necessary or desirable to give
         effect to the spirit and intent of this Agreement.

29.14    Governing Law

         The validity of this Agreement, its interpretation, the respective
         rights and obligations of the parties and all other matters arising in
         any way out of it or its expiration or earlier termination for any
         reason shall be determined in accordance with the laws of the Republic.
<PAGE>
                                       61

30.       ADDRESSES FOR LEGAL PROCESSES AND NOTICES

30.1          The Parties choose for the purposes of this Agreement the
              following addresses, telefax numbers and, for the purpose of any
              notices, designated officers:

30.1.1              ARM           ARM House
                                  29 Impala Road
                                  Chislehurston
                                  Sandton
                                  Telefax No: (011) 883 5609
                                  For the attention of the Financial Director

30.1.2              Harmony       Block 27
                                  Randfontein Office Park
                                  Cnr Main Reef Road & Ward Avenue
                                  Randfontein
                                  Telefax No: (011) 692 3879
                                  For the attention of the Company Secretary

30.1.3              Freegold      Block 27
                                  Randfontein Office Park
                                  Cnr Main Reef Road & Ward Avenue
                                  Randfontein
                                  Telefax No: (011) 692 3879
                                  For the attention of the Company Secretary

                                  and

                                  ARM House
<PAGE>
                                       62

                                     29 Impala Road
                                     Chislehurston
                                     Sandton
                                     Telefax No: (011) 883-5609
                                     For the attention of the Financial Director

30.2      Any legal process to be served on any of the Parties may be
          served on it at the address specified for it in clause 30.1 and it
          chooses that address as its domicillium citandi et executandi for all
          purposes under this Agreement.

30.3      Any notice or other communication to be given to any of the
          Parties in terms of this Agreement shall be valid and effective only
          if it is given in writing, provided that any notice given by telefax
          shall be regarded for this purpose as having been given in writing.

30.4      A notice to any Party which is delivered to the Party by hand at the
          address specified for it in clause 30.1 shall be deemed to have been
          received on the day of delivery, provided it was delivered to a
          responsible person during ordinary business hours, and the notice and
          the envelope in which it is delivered are both marked for the
          attention of the Party's designated officer specified in clause 30.1

30.5      A notice by telefax to a Party at the telefax number specified for it
          in Clause 30.1 shall be deemed to have been received (unless the
          contrary is proved) within 24 (twenty four) hours of transmission if
          it is transmitted during normal business hours of the receiving Party
          or within 24 (twenty four) hours of the beginning of the next Business
          Day at the destination after it is transmitted, if it is transmitted
          outside those business hours, provided it is marked for the attention
          of the Party's designated officer specified in clause 30.1

30.6      Notwithstanding anything to the contrary in this clause 30, a written
          notice or other communication actually received by any Party (and for
          which written receipt has been obtained) shall be adequate written
          notice or communication to it notwithstanding that the notice was not
          sent to or delivered at its chosen address, provided it is marked for
          the attention of the Party's designated officer specified in clause
          29.1.
<PAGE>

                                       65

30.5      A notice by telefax to a Party at the telefax number specified for it
          in clause 30.1 shall be deemed to have been received (unless the
          contrary is proved) within 24 (twenty four) hours of transmission if
          it is transmitted during normal business hours of the receiving Party
          or within 24 (twenty four) hours of the beginning of the next Business
          Day at the destination after it is transmitted, if it is transmitted
          outside those business hours, provided it is marked for the attention
          of the Party's designated officer specified in clause 30.1

30.6      Notwithstanding anything to the contrary in this clause 30, a written
          notice or other communication actually received by any Party (and for
          which written receipt has been obtained) shall be adequate written
          notice or communication to it notwithstanding that the notice was not
          sent to or delivered at its chosen address, provided it is marked for
          the attention of the Party's designated officer specified in clause
          29.1.

30.7      Any Party may by written notice to the other Parties change its
          address or telefax number for the purposes of clause 30.1 to any other
          address (other than a post office box number) provided that the change
          shall become effective on the seventh day after the receipt of the
          notice.

31.  STATUS OF THIS AGREEMENT

     This Agreement supersedes the first joint venture agreement and
     accordingly, with effect on the Signature Date, the first joint venture
     agreement is hereby cancelled.

SIGNED at SANDTON                       on 5 APRIL 2002.

                                        For: AFRICAN RAINBOW
                                             MINERALS GOLD LIMITED

                                        /s/
                                        ----------------------------------
                                        Signatory: P. TALJAARD
<PAGE>
                                       66

                                   Capacity:  DIRECTOR
                                   Authority: BOARD APPROVAL

SIGNED at Sandton                  on 5 April 2002.

                                   For: HARMONY GOLD MINING
                                        COMPANY LIMITED

                                          /s/ FRANK ABBOTT
                                   ------------------------------------
                                   Signatory: Frank Abbott
                                   Capacity: Director
                                   Authority: Board Resolution

SIGNED at Sandton                  on 5 April 2002.

                                   For: CLIDET NO 383 (PROPRIETARY)
                                        LIMITED

                                    /s/ FRANK ABBOTT          /s/ P. TALJAARD
                                   ---------------------------------------------
                                   Signatory: Frank Abbott      P. Taljaard
                                   Capacity: Director           Director
                                   Authority: Board Resolution  Board Resolutionexv10w4

 

EXHIBIT 10.4

AGREEMENT

     This Amended and Restated Agreement is dated as of December 1, 2002 by and
between WACHOVIA SECURITIES, INC., formerly known as First Union Securities,
Inc. (“Wachovia”) and J. ALDEN PHILBRICK, IV (“Philbrick”), OXFORD VENTURE
FINANCE, LLC and OXFORD FINANCE CORPORATION, INC. (together “Oxford”). This
Agreement supercedes the Agreement between the aforementioned parties dated as
May 1, 2002.

BACKGROUND STATEMENT

     On February 28, 2002, Wachovia and Oxford Venture Finance, LLC entered
into a Letter Agreement under which Wachovia was to serve as exclusive agent
for one or more transactions for the capitalization of Oxford Finance
Corporation, Inc. (this Agreement refers to each such transaction as a
“Transaction”). A copy of the Letter Agreement is attached to this Agreement.
Wachovia had, prior to the date of the Letter Agreement, begun to perform
services for the benefit of Oxford in the expectation that an agreement
substantially in the form of the Letter Agreement would be achieved.

     Wachovia and Oxford have discussed the possibility that Oxford would
consummate or seek to consummate a Transaction through an agent other than
Wachovia. Oxford has advised Wachovia that it desires to close on or about
March 29, 2002, through an agent of Oxford other than Wachovia, a Transaction
effecting an equity financing of Oxford Finance Corporation, Inc. (“the Equity
Financing”). Wachovia has advised Oxford that it would view the closing of
such a Transaction as an event entitling Wachovia to a fee from Oxford by
operation of the Letter Agreement. Wachovia and Oxford have agreed to resolve
issues regarding the entitlement of Wachovia to a fee upon closing of this
Transaction, and other issues regarding these parties’ obligations, as follows:

TERMS OF AGREEMENT

     1.     Payment made to Wachovia. On April 3, 2002 Oxford paid to Wachovia the
sum of $100,000.00.

     2.     Right of first refusal of Wachovia. Oxford shall have the obligation,
from the date of this Agreement and through the date, if any, that Wachovia and
Oxford agree in writing to terminate such obligation, to offer to Wachovia in
writing the opportunity to serve as exclusive agent for Oxford in any debt
financing contemplated by Oxford or by any subsidiary or affiliate of Oxford
that now exists or may in the future exist. Unless Wachovia expressly
declines, in writing, to serve in such capacity, or in the event that Oxford
fails to offer it the opportunity so to serve, Wachovia shall be entitled to a
fee to be agreed upon between it and Oxford, but that shall not be less than
one (1) percent of the amount of the financing.

     The right of first refusal expressed in this Paragraph 2 shall terminate
at the point that Wachovia shall have received, in good funds, fees under this
Paragraph 2 totaling at least $500,000.00. Wachovia and the entity or entities
for which it may serve as exclusive agent for

 

 

debt financing under this Paragraph 2 may elect to enter into separate
agreements regarding the terms of such agency, but if they elect not to do so,
this Agreement shall govern the agency relationship and Wachovia’s entitlement
to a fee.

     “Debt financing” means, for purposes of this Paragraph 2, any transaction
or series of related transactions by or through which Oxford, a subsidiary or
an affiliate obtains financing through means other than the issuance of equity
securities or interests, and includes all transactions understood in the
corporate finance and investment banking industries to qualify as debt rather
than as equity transactions. The parties to this Agreement further intend that
“debt financing” be given the broadest possible interpretation consistent with
the usage of this phrase in the corporate finance and investment banking
industries, and that the phrase be interpreted to include, in addition to loan
transactions described as such, the issuance of preferred stock; and the
issuance of loans or other debt or debt-like instruments with rights of
conversion to equity or rights (e.g. warrants) to obtain equity. This
enumeration of forms of transaction constituting “debt financing” for purposes
of this Paragraph 2 is a limited illustration rather than a comprehensive
enumeration of qualifying transactions.

     3.     Installment payments from Oxford to Wachovia. In addition to the
payments provided in paragraphs 1 and 4 of this Agreement, Oxford shall pay or
cause to be paid to Wachovia, on the first day of each month beginning May 2002
and through December 2002, the sum of $18,750.00, for a total amount of
$150,000.00. This amount shall be credited against future fees payable to
Wachovia for services related to asset-backed securitization transactions.

     4.     Fee to be paid to Wachovia in the event of certain transactions. In
addition to all other obligations of Oxford expressed in this Agreement, Oxford
shall pay Wachovia an amount equal to one percent (1%) of the Aggregate
Consideration in respect of any Transaction between or among Oxford and either
or both parties listed on Exhibit A attached hereto (together and separately
“Acquiror”). Except as set forth below, such amount shall be paid to Wachovia
at the closing of each Transaction (“Closing”). This obligation of payment is
independent from all other payment obligations of Oxford in this Agreement, and
shall exist whether or not Wachovia becomes entitled to payment under Paragraph
2 of this Agreement. Wachovia shall, upon request of Oxford, furnish to it
customary mergers and acquisitions advisory services with respect to a
prospective or contemplated Transaction, but shall be entitled to its fee under
this paragraph whether or not Oxford has requested such services for a period
of eighteen (18) months from the date of the signing of this agreement.

     “Transaction” means any of the following, accomplished directly or
indirectly in a single transaction or a series of transactions: (i) any
purchase or acquisition by an Acquiror of all or substantially all the assets
or capital stock of Oxford; (ii) any purchase or acquisition by an Acquiror of
capital stock of Oxford or any merger, share exchange, consolidation or similar
combination transaction involving Oxford that results, directly or indirectly,
in the acquisition by an Acquiror of (A) a majority of the outstanding capital
stock of Oxford or its successor by operation of law or (B) a significant
portion (but less than a majority) of the outstanding capital stock of Oxford
if the Acquiror is entitled to special voting rights or contractual rights to
prohibit or restrict fundamental transactions of Oxford.

 

 

     “Aggregate Consideration” means the total amount paid or payable, directly
or indirectly, to, or for the benefit of, Oxford and/or its security holders of
(i) cash; and (ii) equity or debt securities or other equity interests (valued
at the fair market value thereof on the date of Closing), including equity
retained by Oxford or its shareholders; plus (iii) the face amount of any debt
for borrowed money, including capital leases, of Oxford that is (A) in a sale
of assets, assumed or repaid by the Acquiror at Closing, or (B) in any other
Transaction, assumed or repaid by the Acquiror at Closing or remaining on
Oxford’s balance sheet after Closing; (iv) in an asset sale, the fair market
value of Oxford’s assets that remain on its balance sheet after Closing less
the fair market value of any liabilities of Oxford (other than indebtedness for
borrowed money, including capital leases) that remain on its balance sheet
after closing; and (v) the amount of any other form of consideration paid to
Oxford or to any shareholder, owner or partner of Oxford, including pursuant to
non-compete agreements, any consideration held in escrow, and future payments
which are contingent upon the performance of Oxford or any successor to it.
Aggregate Consideration will exclude any payment or consideration to adjust for
any closing working capital being higher or lower than the base level of
working capital as defined in a definitive acquisition or purchase agreement.
When such future payments are determinable at Closing, that portion of the fee
will be paid at Closing based upon the present value of such payments,
discounted at the prevailing rate on Treasury securities having a maturity most
closely approximating the period over which such payments are expected to be
made. When such future payments are not determinable at Closing, that portion
of the fee will be paid at the time of receipt by the Oxford or its
shareholders, bondholders, or other security holders.

     5.     Payment of Wachovia expenses. In addition to any amounts payable to
Wachovia hereunder, Oxford agrees, from time to time upon request, to reimburse
Wachovia for all reasonable and customary travel (limited to domestic coach
class and international business class air fares) and other out-of-pocket
expenses incurred in respect of Oxford (including expenses incurred prior to
March 29, 2002 in connection with any services performed for Oxford by
Wachovia) or otherwise arising out of or in connection with any actual or
potential Transaction or debt financing, including any sales, use or similar
taxes arising in connection with such Transaction or debt financing. To the
extent that officers or employees of Wachovia or its affiliates assist in, or
provide testimony (whether at trial or in deposition) for or documents in
connection with, any action, suit or proceeding related to, or arising from,
Wachovia’s engagement hereunder, the Company shall pay Wachovia its reasonable
charges for the services of such officers and employees.

     6.     Indemnification of Wachovia by Oxford. Oxford agrees to indemnify
and to hold harmless Wachovia and each of its officers, directors, employees,
affiliates, agents, counsel and other advisors, and each other person or entity
who controls any of them (hereinafter collectively referred to as an
“Indemnified Party”), to the full extent allowed by law or equity, from and
against any and all damages, costs, fees, expenses or liabilities, joint or
several, to which an Indemnified Party may become subject, related to or
arising out of any actual or threatened claims (valid or not) or judgments
against them in connection with Wachovia’s engagement or performance under this
Agreement, any transactions contemplated thereby, and any services rendered by
Wachovia prior to the effective date of this Agreement, (hereinafter referred
to collectively as a “Claim”), and shall, upon request, reimburse an
Indemnified Party for all legal and other costs, fees and expenses as they are
incurred in connection with

 

 

investigating, preparing or defending a Claim; provided, however, that no such
indemnification shall be required to be paid to an Indemnified Party with
respect to a Claim that it is finally determined (by a court of competent
jurisdiction or through arbitration) to have resulted primarily from the gross
negligence or willful misconduct of any Indemnified Party.

     In the event that the foregoing indemnity is unavailable or insufficient
for any reason (other than by reason of the terms hereof), Oxford shall
contribute to any amounts paid or payable by an Indemnified Party in such
proportion as appropriately reflects the relative benefits to such Indemnified
Party and to Oxford in connection with the matters to which the Claim relates.
If such allocation is judicially determined to be impermissible, then Oxford
shall contribute in such proportion as appropriately reflects the relative
benefits and relative fault of Oxford and such Indemnified Party, as well as
any other equitable considerations. The aggregate liability of Wachovia and
any other Indemnified Party for contribution pursuant to this paragraph in
connection with all Claims shall not exceed the amount of fees actually
received by Wachovia under the Letter Agreement.

     All amounts due to an Indemnified Party hereunder shall be payable by
Oxford promptly upon request by such Indemnified Party. In addition, Oxford
agrees to pay all costs and expenses (including attorneys’ fees) incurred by
any Indemnified Party to enforce the terms of this paragraph.

     Upon receipt by an Indemnified Party of actual notice of a Claim as to
which indemnification may be sought hereunder, such Indemnified Party shall
promptly notify Oxford of the nature and basis of the Claim. In addition, an
Indemnified Party shall promptly notify Oxford after any action is commenced
against the Indemnified Party (by way of service with a summons or other legal
process) and shall transmit a copy to the business address of Oxford. In any
event, failure to notify Oxford shall not relieve Oxford from any liability
which Oxford may have on account of this indemnity or otherwise, except to the
extent that Oxford is actually prejudiced thereby. Oxford may, and shall, if
requested by any Indemnified Party, assume the defense of Oxford against such
Indemnified Party in respect of which indemnity may be sought hereunder,
including, without limitation, the employment of one counsel reasonable
satisfactory to all Indemnified Parties and the payment of the fees and
expenses of such counsel and necessary experts, in which event, except as
provided below, Oxford shall not be liable for the fees and expenses of any
other counsel retained by such Indemnified Party in connection with such
litigation or proceeding. In any such litigation or proceeding the defense of
which the Company shall have assumed, any Indemnified Party shall have the
right to participate and to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party unless (i)
Oxford and such Indemnified Party have agreed in writing to the retention of
such counsel; or (ii) the named parties to any such litigation or proceeding
(including any impleaded parties) include Oxford and such Indemnified Party and
representation of both parties by the same counsel would, in the opinion of
counsel to such Indemnified Party, be inappropriate due to actual or potential
conflicts of interests between Oxford and such Indemnified Party. Both parties
hereby waive their right to a jury trial.

     Oxford shall not be liable for any settlement of any litigation or
proceeding effected without its written consent; however, if settlement occurs
with such consent or if there is a final

 

 

judgment against the Indemnified Party, Oxford agrees to indemnify, pursuant to
the terms hereof, against any loss or liability by reason of such settlement or
judgment. Oxford shall not settle any Claim, action or proceeding where
indemnity may be sought hereunder, whether or not any Indemnified Party is an
actual or potential party to such Claim, without Wachovia’s written consent,
which consent will not be unreasonably withheld.

     7.     Release of claims. In exchange for the various agreements,
undertakings, and releases expressed in this Agreement, each of Wachovia, on
the one hand, and Oxford and Philbrick, on the other hand, on their own behalf
and on behalf of their respective directors, officers, employees, shareholders,
members and agents (the “Releasors”), agree to and do hereby release and
discharge the other, and the employees, directors, officers and agents of the
other (the “Releasees”), from any and all claims or causes of action the
Releasors may have or have had or may in the future have arising from any acts,
omissions, circumstances, or facts occurring prior to and through the date of
this Agreement, including without limitation arising under the February 28,
2002 Letter Agreement, provided however that this mutual release does not in
any way affect or release any obligation or agreement arising under any other
section of this Agreement. In addition, neither party is aware of any pending
or threatened third-party claims against Wachovia, Oxford or Philbrick.

     8.     Reliance on Wachovia statements and advice. Should Oxford receive
advisory services from Wachovia under this Agreement, Oxford acknowledges that
Wachovia has been retained to provide such services only by Oxford, and that
Oxford’s engagement of Wachovia is not deemed to be on behalf of, and is not
intended to confer rights upon, any shareholder, owner or partner of Oxford or
any other person not a party hereto as against Wachovia or any of its
controlling persons, affiliates, directors, officers, employees or agents.
Unless otherwise expressly agreed in writing by Wachovia, no one other than
Oxford is authorized to rely upon this engagement or any other statements or
conduct of Wachovia, and no one other than Oxford is intended to be a
beneficiary of this Agreement. Oxford acknowledges that any recommendations or
advice, written or oral, given by Wachovia to Oxford in connection with
Wachovia’s engagement are intended solely for the benefit and use of Oxford’s
management and directors in considering a possible Transaction or Debt
Financing, and any such recommendations or advice shall not confer any rights
or remedies upon any other person or be used or relied upon for any other
purpose.

     9. Limitation of Wachovia’s Liability to Oxford. Wachovia and Oxford
further agree that neither Wachovia nor any of its controlling persons,
affiliates, directors, officers, employees or agents shall have any liability
to Oxford, its security holders or creditors, or any person asserting claims on
behalf of or in the right of Oxford (whether direct or indirect, in contract,
tort, for an act of negligence or otherwise) for any losses, fees, damages,
liabilities, costs, expenses or equitable relief arising out of or relating to
this Agreement or services that may be rendered hereunder, except to the extent
that it is finally determined (by a court of competent jurisdiction and after
exhausting all appeals or in an arbitration conducted in accordance with this
Agreement) that such losses, fees, damages, liabilities, costs, expenses or
equitable relief resulted solely from the gross negligence or willful
misconduct of Wachovia.

 

 

     10.     Governing Law. This Agreement shall be interpreted, and the rights
and liabilities determined, in accordance with the laws of the State of New
York.

     11.     Arbitration of Disputes. Except as provided below, any claim or
controversy arising out of or relating to this Agreement, or the breach
thereof, shall be settled by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, and judgment on the
award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. The arbitration of any such claim or controversy shall
take place in Charlotte, North Carolina. In the event that Wachovia is named
as a party in a lawsuit arising out of or related to its engagement or to a
Transaction or a Debt Financing and Oxford is not named as a party in that
lawsuit, Wachovia has the right but not the obligation to file a third-party
claim against Oxford or to otherwise join Oxford in that lawsuit in accordance
with applicable law. If Wachovia does not exercise that right, any dispute
over a claim for indemnity or contribution by Wachovia arising out of the
lawsuit in which Oxford was not named as a party shall be settled by
arbitration as contemplated herein.

     12. Miscellaneous. This Agreement shall not be modified or amended except
in writing signed by Wachovia and Oxford. This Agreement shall not be assigned
without the prior written consent of Wachovia and Oxford. This Agreement
constitutes the entire agreement of Wachovia and Oxford with respect to the
subject matter hereof and supersedes all prior agreements. If any provision of
this Agreement is determined to be invalid or unenforceable in any respect,
such determination will not affect such provision in any other respect, and the
remainder of the Agreement shall remain in full force and effect. In
connection with the services it renders pursuant to this Agreement, Wachovia
shall not be required to obtain any additional licenses, consent to service of
process or otherwise make any further material filing under any applicable
state or federal statutes or regulations. This Agreement may be executed in
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

 

     13.     The signatories of this document are the appropriate and fully authorized
representatives of each entity.

	 	 	 	 	 	 	 
	 	 	 	 	FIRST UNION SECURITIES, INC.	 	 
	 
	Date:	 	
 

	 	By:
	 	/s/ Robert K. Grunewald

Robert K. Grunewald

Managing Director
	 
	 	 	 	 	OXFORD VENTURE FINANCE LLC	 	 
	 
	Date:	 	
 

	 	By:
	 	/s/ J. Alden Philbrick IV

J. Alden Philbrick IV

Managing Member
	 
	 	 	 	 	OXFORD FINANCE CORPORATION, INC.	 	 
	 
	Date:	 	
 

	 	By:
	 	/s/ Michael Altenburger

Michael Altenburger

Chief Financial Officer
	 
	Date: 		 
	 	By:
	 	/s/ J. Alden Philbrick IV

J. Alden Philbrick,IV, individually

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