Statement re private placement

Anglovaal Mining Limited

Registration Number 1993/004580/06

(Incorporated in the Republic of South Africa)

('Avmin')

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES,
CANADA OR JAPAN.

AVMIN TO PLACE UP TO 100,000,000 SHARES IN AVGOLD INTERNATIONALLY

Anglovaal Mining Limited ('Avmin') announces that it is launching a private
placement of up to 100,000,000 ordinary shares (the 'shares') of Avgold Limited
('Avgold') to global institutional investors. The shares are listed on the JSE
Securities Exchange South Africa. Morgan Stanley will act as sole bookrunner
for the placement.

The placement proceeds will be applied to repay some of Avmin's U.S.
dollar-denominated debt which is secured in part by its 55.7% equity interest
in Avgold. After considering various options for raising the necessary funds
outside of South Africa, Avmin concluded that the sale of up to 100,000,000
Avgold shares was the most appropriate means to raise the majority of the funds
required.

Avmin considers its investment in Avgold to be strategic and has no intention
to sell any Avgold shares other than through the placement. The arrangements
for the placement provide that Avmin and Avgold will each undertake that,
following completion of the placement, it will not, for a period of 180 days,
sell or issue, where applicable, further shares of Avgold.

The placement will also benefit Avgold by increasing its free float from
approximately 33% to up to 48%, an increase of about 45%, and it will also
establish an international shareholder base for Avgold. Avmin will continue to
control Avgold after the placement.

The shares will not be offered to residents of South Africa, Lesotho, Namibia
and Swaziland.

This announcement is directed only at persons who (i) are outside the United
Kingdom or (ii) are in the United Kingdom and either have professional
experience in matters relating to investments or are high net worth companies,
unincorporated associations etc for the purposes of Article 49 of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2001 (all such
persons together being referred to as 'relevant persons'). This announcement
must not be acted on or relied on by persons who are not relevant persons. Any
investment or investment activity to which this announcement relates is
available only to relevant persons and will be engaged in only with relevant
persons. Stabilisation/FSA.

This announcement is not for publication or distribution or release in the
United States of America (including its territories and possessions, any state
of the United States and the District of Columbia). This announcement does not
constitute or form part of an offer or solicitation of an offer to purchase or
subscribe for securities in the United States or any other jurisdiction. The
securities referred to herein have not been and will not be registered under
the United States Securities Act of 1933, as amended, and may not be offered or
sold in the United States, except pursuant to an applicable exemption from
registration. No public offering of securities is being made in the United
States.

Neither this announcement nor any copy of it may be taken, transmitted or
distributed, directly or indirectly in or into the United States, Canada or
Japan.