Media releases

Blyvoor accepts offer of assistance from Anglogold Ashanti

DRDGOLD shareholders are advised that the Companys distressed operating subsidiary, Blyvooruitzicht Gold Mining Company Limited has accepted an offer of assistance from AngloGold Ashanti Limited.

DRDGOLD shareholders (Shareholders) are advised that the Companys distressed operating subsidiary, Blyvooruitzicht Gold Mining Company Limited (Blyvoor) has accepted an offer of assistance from AngloGold Ashanti Limited (AngloGold Ashanti) This offer is subject to the finalisation of a definitive agreement between Blyvoor and AngloGold Ashanti.

This development follows DRDGOLDs announcement published on SENS on 23 June 2011 which included details that, in response to DRDGOLDs suspension of any further financial assistance to Blyvoor, the board of directors of Blyvoor (Blyvoor Board) had decided to begin business rescue proceedings for Blyvoor in terms of Chapter 6 of the new Companies Act, No. 71 of 2008, as amended (Companies Act).

The offer of assistance from AngloGold Ashanti involves the sale to Blyvoor of some 390 000 square metres of its neighbouring Savuka mining area for a consideration of R35 million. This area is not within AngloGolds current mine planning. Pending the necessary regulatory approvals and subject to the finalisation of a binding agreement,, Blyvoor will mine the area under contract.

We are grateful to AngloGold Ashanti for this show of good neighbourliness and pragmatism, said Niël Pretorius, CEO of DRDGOLD.

We believe that there may be potential for Blyvoor to generate significant free cashflow by mining the Savuka ground, which will help to restore its going concern status, and an important consideration for prospective lenders and suitors.

In terms of the provisions of Chapter 6 of the Companies Act, the Blyvoor Board has appointed Peter van den Steen as the Business Rescue Practitioner. Working with Blyvoors management team, Van den Steen has 25 working days until 12 August to produce a rescue plan for Blyvoor. The plan must then be presented to and voted on by Blyvoor's creditors.

At this point, we are very confident the rescue process can deliver a workable rescue plan, Pretorius said.

A no vote to such a plan would mean Blyvoors liquidation; an outcome with far-reaching negative consequences for all stakeholders.

Van den Steen, an MBA graduate and registered business rescue practitioner, has extensive experience in successful business rescue processes, both in South Africa and internationally.

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