Ashanti Goldfields Company Limited Update on Margin Free Arrangements.

Business Editors

ACCRA, Ghana--(BUSINESS WIRE)--April 18, 2002

Ashanti Goldfields

Ashanti Goldfields Company Limited

("Ashanti" or the "Company")

Update on Margin Free Arrangements

Margin Free Arrangements

On 18 March 2002, Ashanti announced that it had executed interim margin free arrangements ("Interim Margin Free Agreements") with all its active hedge counterparties ("Active Counterparties") other than Credit Suisse First Boston International ("CSFB").

Ashanti would like to announce that CSFB has now novated all of its existing hedging trades with Ashanti (the "Novated Trades") to Barclays Bank PLC ("Barclays") and is consequently no longer an Active Counterparty of Ashanti. The Interim Margin Free Agreements have now been signed by all of Ashanti's Active Counterparties.

The Interim Margin Free Agreements remain conditional on the matters set out in the press announcement dated 18 March 2002, including the Proposed Restructuring (or such other restructuring as is approved by an appropriate majority of hedge counterparties) being completed. Once all of the conditions of the Interim Margin Free Agreements have been satisfied, Ashanti will be able to require each of the Active Counterparties to enter a new margin free trading letter (the "New MFTL"). The New MFTL will amend and restate the existing margin free trading letter with its hedge counterparties dated October 2000 ("Existing MFTL") and will provide for margin free trading on an ongoing basis, subject only to certain limited termination rights. At that time both the Existing MFTL and the Interim Margin Free Agreements will terminate.

Following the novation of the Novated Trades to Barclays, Ashanti Group entered into a restructuring of the Novated Trades. The restructuring, which had no impact, as at the date it was effected, on the overall mark-to market value of the hedge position or on the committed ounces, has:

-- eliminated the convertible nature of the Novated Trades resulting in a
simpler hedge structure of that portfolio; and

-- resulted in a moderate increase in protected ounces,

The Board of Ashanti considers that this is an important step towards eliminating the risk of margin calls in relation to its hedging arrangements.

General

Ashanti currently expects that the public documentation relating to the Proposed Restructuring will be posted to Ashanti securityholders and holders of the Existing Notes during the second part of May 2002. It should be noted, however, that there can be no assurance that the Proposed Restructuring will be implemented. Securityholders should, given the uncertainties surrounding the Proposed Restructuring, exercise caution in relation to dealings in Ashanti's securities at the present time.

Close Brothers Corporate Finance Limited, which is authorised in the UK to carry on investment business by the Financial Services Authority, is acting for Ashanti and no one else in connection with the Proposed Restructuring and will not be responsible to anyone other than Ashanti for providing the protections afforded to its clients or for giving advice in relation to the Proposed Restructuring.

This announcement contains a number of statements relating to Ashanti that are considered "forward looking statements" as defined in the Private Securities Litigation Reform Act 1995 of the United States of America, including but not limited to its discussions of the Proposed Restructuring of the Existing Notes and projections of the conditions under which a particular hedge counterparty might be permitted to make margin calls. Such statements are based on current plans, information, intentions and estimates and certain external factors which may be beyond the control of Ashanti and, therefore, undue reliance should not be placed on them. Forward looking statements speak only as of the date they are made, and Ashanti undertakes no obligation to update publicly any of them in light of new information or future events. These statements are subject to risks and uncertainties that could cause actual occurrences to differ materially from the forward looking statements such as the risks that Ashanti may not be able to reach agreement with sufficient holders of the Existing Notes, conditions to the Proposed Restructuring may not be satisfied, fulfilled or waived, and the Proposed Restructuring might not be approved by the holders of the Existing Notes or by the relevant Court. Additional risk factors affecting Ashanti and its hedge book are set out in Ashanti's filings with the US Securities and Exchange Commission, and those risk factors are incorporated by reference herein.

This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale or distribution of securities in any such jurisdiction in which such offer, sale or distribution is not permitted.